Ord 18-04ORDINANCE NO. 18-04
AN ORDINANCE OF THE CITY COMMISSION OF THE
CITY OF DEL1LAY 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 33.62, "BENEFIT
AMOUNTS AND ELIGIBILITY", PROVIDING AN
ENHANCED MULTIPLIER BENEFIT OPTION FOR
ELIGIBLE MEMBERS; PROVIDING AN INCREASE IN
MEMBER CONTRIBUTIONS FOR THOSE MEMBERS
WHO ELECT THE ENHANCED MULTIPLIER;
PROVIDING AN OPTION TO PURCHASE THE
ENHANCED MULTPLIER FOR THOSE MEMBERS WHO
DO NOT ELECT THE ENHANCED MULTIPLIER OPTION
BEFORE APRIL 15, 2004; AMENDING SECTION 33.687,
"EARLY RETIREMENT INCENTIVE", PROVIDING FOR
APPLICATION OF THE ENHANCED MULTIPLIER TO
THE EARLY RETIREMENT INCENTIVE; PROVIDING A
REPEALER CLAUSE; PROVIDING A VALIDITY CLAUSE;
AND PROVIDING AN EFFECTWE DATE.
BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF
DELRAY BEACH AS FOLLOWS:
Section 1. That Chapter 33, "Police and Fire Depaitments", subheading, "Pensions", of the
Code of Ordinances of the City of Delray Beach is hereby amended by amending Section 33.62,
"Benefit Amounts and Eligibility", Subsection (B), "Normal Retirement Benefit", to read as follows:
Section 33.62 BENEFIT AMOUNTS AND EI.IGIBILITY,
(B) Normal Retirement Benefit.
(1) Duration, Survivor Benefits. A member retiring on his normal retirement date
shall receive a monthly benefit which shall commence on his normal retirement date and be
continued thereafter during his lifetime. Upon his death the full retirement benefit shall be
continued to his_spouse for one year and sixty (60) percent of that amount continued
thereafter until the earlier of death or remarriage.
(2) Amount. Normal retirement benefits shall be in the amount of two and one-
half (2 1/2) percent of average monthly earnings for each year of continuous service for
employees with more than ten (10) but less than twenty (20) years of continuous service.
Normal retirement benefits shall be in the amount of three (3) percent of average monthly
earnings for each year of continuous service if an employee has attained twenty (20) or more
years of continuous service, subject to a maximum of seventy-five (75) percent of average
monthly earnings. Provided, however, that in no event shall a member's total benefit be less
than two (2) percent of average monthly earnings for each year of continuous service.
However, members as of the effective date shall receive at their normal retirement date (age
fifty-two (52) regardless of years of service) the greater of the benefit provided by the
formula above or fifty (50) percent of average monthly earnings.
(3) Optional Enhanced Multiplier.
(a) Notwithstanding any provision of the System to the contrary, a
member who is actively employed by the City. on March 15, 2004, but who is not
participating in the deferred retirement option plan .(DROP). may elect a normal retirement
benefit in the amount of three and one-half (3.5) percent of average monthly earnings for
each year of continuous service if the member attalng twenty (20) or more years of
continuous service, subject to a maximum of eighty-seven and one-half (87.5) percent of
average monthly earnings. Members electing this enhanced multiplier shall thereafter
contribute three (3) percent of earnings to the Trust Fund in addition to the member
contribution specified in Section 33.64(A). and shall receive the enhanced multiplier for all
periods of continuous service. An election under this subparagraph must be on or before
April 15. 2004.
(b) Notwithstanding any provision of the System to the contrary., a
member who is actively employed by the City. on March 15. 2004. but does not elect the
enhanced multiplier in accordance with subpara~aph (a). above, and who is not
participating in the deferred retiement option plan .(DROP). may thereafter elect a normal
retirement benefit in the amount of three and one-half (3.5) percent of average monthly
earnings for all future continuous service after rnakinc, such election if the member attains
twenty. (20) or more years of continuous service, subject to a rna~rinanrn of eighty-seven ancl
one-half (87.5) percent of average monthly earnings. Members electing this enhanced
mulfipher shall thereafter contribute three (3) percent of earnings to the Trust Fund in
addition to the member contribution specified in Section 33.64(A). Such member may also
elect to purchase the enhanced multiplier for some or all periods of continuous set, ice prior
to the date of the election, by pa.ving the full actuarial cost of the enhanced multiplier, plus
the full cost of any actuarial or other professional services required.
Notwithstanding any provision of the System to the contrary, a
member who is hired after March 15. 2004 and who is not participating in the deferred
retirement option plan (DROll) may elect a normal retirement benefit in the amount of
three and one-half (.3.5) percent of average monthly earnings for all future continuous
service after making such election if the member attain~ twenty. (~1~) or more years of
continuous service, subject to a maximum of eighty-seven and one-half (87.5) percent of
2 ORD. NO. 18-04
average monthly earning. Members electing this enhanced multiplier shall th~=renfrer
contribute three (.3) percent of eamin~ to the Trust Fund in addition to the rnemher
contribution specified in Section 33.64(A). Such member may also elect to purchase the
enhanced multiplier for some or all periods of continuous service prior to the date of the
election, by paying the full actuarial cost of the enhanced multiplier, plus the full cost of any
actuarial or other professional set, ices required.
(d) The election to receive the enhanced multiplier under this para~aph
must be made in writing on a form provided by the City.. Such election shall be irrevocable.
If an eli~ble member does not elect an optional enhanced multiplier under this para~aph,
or if an eli~ble member elects the enhanced multiplier for only a portion of his total
continuous service, then the benefit provided in para~aph (5) shall be used to calculate the
benefit for all continuous service to which the enhanced multiplier does not apply. If an
eli~ble member elects the enhanced multiplier and attains more than ten (10) but less than
twenty. (.2(~ years of continuous service, the member's benefit shall be determined in
accordance with para~aph (2). and the member shall receive a refund of ail additional
contributions and amounts paid for the enhanced multiplier, without interest. In no event
shall a member's total benefit be less than two (2) percent of average monthly earnings for
each year of continuous se~ice.
{-3)~ Upon becoming eligible for normal retirement, a member shall be one
hundred (100) percent vested in his accrued benefit.
Section 2. 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 33.687,
"Early Retirement Incentive", to read as follows:
Section 33.687 EARLY RETIREMENT INCENTIVE.
(A) Effective January 1, 1994, an early retirement incentive shall be provided to
employees in accordance with this section. The availability of the early redrement incentive
in any calendar year shall be determined by the City.
03) Employees with eighteen (18) and up to, but not including twenty (20) years
of continuous service shall be eligible for the early retirement incentive. In any calendar year
in which the City determines that the early retirement incentive will be offered, eligible
employees shall be given an opportunity to decide within a specified time period (30 to 90
days) whether they wish to receive the early relffement incentive and retire from City
employment. The City will provide at least sixty (60) days advance notice to eligible
employees of the early retirement incentive offering.
(C) Eligible employees who elect to receive the early retirement incentive shall
3 ORD. NO. 18-04
receive two (2) additional years of continuous service, under the System, and upon receiving
such additional continuous service shall immediately retire and terminate City employment.
Effective the first pay period after September 1, 1999, eligible employees who elect to
receive the early retirement incentive shall receive three percent 0%) of average monthly
earnings for each year of continuous service if the employee qualifies for the twenty (20) year
(or more) normal retirement benefit. Eli~ble employees who previously elected the
enhanced three and one-half percent (.3.50/0) multiplier pursuant to Section 33.62(.3) and who
elect to receive the early retirement incentive on or after March 15. 2004 shall receive three
and one-half percent (3.50/0) of average monthly earnings for each year of continuous
sexarice, or portion thereof, to which the optional enhanced multiplier under Section 33.62(3)
applies: and if the enhanced multiplier is applicable to more than fifty, percent (500/0) of the
employee's total continuous service, excluding the two (2) additional years provided in this
section, the employee shall receive three and one-half percent (3.50/o) of average monthly
earnings for each of the two additional years provided in this section. The early retirement
incentive program shall be voluntary for all eligible employees. The early retirement
incentive shall not apply to sick leave, vacation or any other accruals or benefits.
(D) An employee who elects to receive the early retirement incentive under this
Section cannot also participate in the Deferred Retirement Option Plan under Section
33.685.
Section 3. That all ordinances or parts of ordinances in conflict herewith be, and the same
are hereby repealed.
Section 4. 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.
Section 5. That this ordinance shall become effective on March 15, 2004.
~.LPASSE?.~ND A~OPTED in regular session on second and final reading on this the
day o~-~Z4,~t~/4~ .2004.
4 ORD. NO. 18-04
City Clerk
First ReadingJ_~./Z ~'~OO4g
Second Readin~d/~ ~°O~(~a~
ORD. NO. 18-04
MEMORANDUM
TO:
FROM:
SUBJECT:
DATE:
MAYOR AND CITY COMMISSIONERS
CITY MANAGER ~
AGENDA ITEM # ~ C) ~:>
ORDINANCE NO. 18-04
FIRE DEPARTMENTS".
AMOUNTS AND ELIGIBILITY")
- REGULAR MEETING OF MARCH 11. 2004
(AMENDING CHAPTER 33. "POLICE AND
PENSIONS. SECTION 33.62. "BENEFIT
MARCH 5, 2004
This ordinance is before Commission for second reading and public hearing to amend Chapter 33,
"Police and Fire Departments", Pensions, Section 33.62, "Benefit Amounts and Eligibility", of the
City Code of Ordinances, providing an enhanced multiplier benefit option for the Police and Fire
Pension Plan.
At the first reading on February 17, 2004, the Commission passed Ordinance No. 18-04.
Recommend approval of Ordinance No. 18-04 on second and final reading.
S:\City Clerk\agenda memo. Oral 18.04. Police. Fire Pension. Enhanced Multiplier.03.11.04
[IT¥ I)F DELRrlq' BErlgH
CITY ATTORNEY'S OFFICE
Al. Am~,ca City
TO:
200 NW Ist 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: Ordinance No. 18-04 - Enhanced Multiplier Option for Police/Fire
Pension Plan
The ordinance allows the following for members employed on March 15, 2004:
Election of 3.5% multiplier times the average monthly earnings for
members who obtain 20 or more years of service subject to a
maximum of 87.5%. The election must occur by April 15, 2004 and it
will apply to all years of service, past and future. Those that elect the
enhanced multiplier will pay an additional 3% over that paid for those
that do not elect the enhanced multiplier.
If a member does not elect the enhanced multiplier by April 15, 2004,
they may thereafter elect an increased multiplier on service in the
future if they contribute an additional 3% and may elect 3.5% on all
or part of past service if they pay the full actuarial cost.
3. The election is irrevocable.
If an eligible member elects the enhanced multiplier and attains 10
but less than 20 years of continuous service, they receive a 2 1/2%
multiplier and are eligible to receive a refund of all additional
contributions and amounts paid by them for the enhanced multiplier
without interest.
If a window is opened allowing an early retirement incentive and the
member previously elected to participate in the 3 1/2 % multiplier for
more than 50% of the total service (excluding the 2 additional years
allowed under the retirement incentive window) they will also be
February 12, 2004
Page 2
allowed the 3 1/2 % multiplier on each of the additional two years
awarded under the early retirement incentive window.
Please call if you have any questions.
Please place on the February 17, 2004
Attachment
CC;
Barbara Garito, City Clerk
Larry Schmeder, 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. 18-04
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 33.62, "BENEFIT
AMOUNTS AND ELIGIBILITY", PROVIDING AN ENHANCED
MULTIPLIER BENEFIT OPTION FOR ELIGIBLE MEMBERS;
PROVIDING AN INCREASE IN MEMBER CONTRIBUTIONS FOR
THOSE MEMBERS WHO ELECT THE ENHANCED MULTIPLIER;
PROVIDING AN OPTION TO PURCHASE THE ENHANCED
MULTPLIER FOR THOSE MEMBERS WHO DO NOT ELECT THE
ENHANCED MULTIPLIER OPTION BEFORE APRIL 15, 2004;
AMENDING SECTION 33.687, "EARLY RETIREMENT
INCENTIVE", PROVIDING FOR APPLICATION OF THE
ENHANCED MULTIPLIER TO THE EARLY RETIREMENT
INCENTIVE; 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
33.62, "Benefit Amounts and Eligibility", Subsection (B), "Normal Retirement Benefit", to read as
follows:
Section 33.62 BENEFIT AMOUNTS AND ELIGIBILITY.
(B) Normal Retirement Benefit.
(1) Duration, Survivor Benefits. A member retiring on his normal retirement date
shall receive a monthly benefit which shall commence on his normal retirement date and
be continued thereafter during his lifetime, Upon his death the full retirement benefit shall
be continued to his_spouse for one year and sixty (60) percent of that amount continued
thereafter until the earlier of death or remarriage.
(2) Amount. Normal retirement benefits shall be in the amount of two and one-
half (2 1/2) percent of average monthly earnings for each year of continuous service for
employees with more than ten (10) but less than twenty (20) years of continuous service.
Normal retirement benefits shall be in the amount of three (3) percent of average monthly
earnings for each year of continuous service if an employee has attained twenty (20) or
more years of continuous service, subject to a maximum of seventy-five (75) percent of
average monthly earnings. Provided, however, that in no event shall a member's total
benefit be less than two (2) percent of average monthly earnings for each year of
continuous service. However, members as of the effective date shall receive at their
normal retirement date (age fifty-two (52) regardless of years of service) the greater of the
benefit provided by the formula above or fifty (50) ~ercent of average monthly earnings.
(3) Optional Enhanced Multiplier.
(a) Notwithstandin.q any provision of the System to the contrary, a
member who is actively employed by the City on March 15, 2004, but who is not
participating in the deferred retirement option plan (DROP), may elect a normal retirement
benefit in the amount of three and one-half (3.5) percent of averaqe monthly earnings for
each year of continuous service if the member attains twenty (20) or more years of
continuous service, subject to a maximum of eighty-seven and one-half (87.5) percent of
average monthly earnings. Members electing this enhanced multiplier shall thereafter
contribute three (3) percent of earnings to the Trust Fund in addition to the member
contribution specified in Section 33.64(A), and shall receive the enhanced multiplier for all
periods of continuous service. An election under this subparagraph must be on or before
April 15, 2004.
(b) Notwithstanding any provision of the System to the contrary, a
member who is actively employed by the City on March 15, 2004, but does not elect the
enhanced multiplier in accordance with subpara.qraph (a), above, and who is not
participatinq in the deferred retirement option plan (DROP), may thereafter elect a normal
retirement benefit in the amount of three and one-half (3.5) percent of average monthly
earnings for all future continuous service after makin.q such election if the member attains
twenty (20) or more years of continuous service, subject to a maximum of eighty-seven
and one-half (87.5) percent of average monthly earnings. Members electing this enhanced
multiplier shall thereafter contribute three (3) percent of earnings to the Trust Fund in
addition to the member contribution specified in Section 33.64(A). Such member may also
elect to purchase the enhanced multiplier for some or all periods of continuous service
prior to the date of the election, by payinq the full actuarial cost of the enhanced multiplier,
plus the full cost of any actuarial or other professional services required.
(c) Notwithstandinq any provision of the System to the contrary, a
member who is hired after March 15, 2004 and who is not participating in the deferred
retirement option plan (DROP) may elect a normal retirement benefit in the amount of
three and one-half (3.5) percent of averaqe monthly earninqs for all future continuous
service after making such election if the member attains twenty (20) or more years of
continuous service, subiect to a maximum of eighty-seven and one-half (87.5) percent of
2 ORD. NO. 18-04
averaqe monthly earnin.qs. Members electinq this enhanced multiplier shall thereafter
contribute three (3) percent of earnin.qs to the Trust Fund in addition to the member
contribution specified in Section 33.64(A). Such member may also elect to purchase the
enhanced multiplier for some or all periods of continuous service prior to the date of the
election, by payin.q the full actuarial cost of the enhanced multiplier, plus the full cost of any
actuarial or other professional services required.
(d) The election to receive the enhanced multiplier under this paraqraph
must be made in writin.q on a form provided by the City. Such election shall be irrevocable.
If an eli.qible member does not elect an optional enhanced multiplier under this para.qraph,
or if an eli.qible member elects the enhanced multiplier for only a portion of his total
continuous service, then the benefit provided in paraqraph (2) shall be used to calculate
the benefit for all continuous service to which the enhanced multiplier does not apply. If an
eli.qible member elects the enhanced multiplier and attains more than ten (10) but less than
twenty (20) years of continuous service, the member's benefit shall be determined in
accordance with paragraph (2), and the member shall receive a refund of all additional
contributions and amounts paid for the enhanced multiplier, without interest. In no event
shall a member's total benefit be less than two (2) percent of average monthly earninqs for
each year of continuous service.
(3)(4) Upon becoming eligible for normal retirement, a member shall be one
hundred (100) percent vested in his accrued benefit.
Section 2. 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
33.687, "Early Retirement Incentive", to read as follows:
Section 33.687 EARLY RETIREMENT INCENTIVE.
(A) Effective January 1, 1994, an early retirement incentive shall be provided to
employees in accordance with this section. The availability of the early retirement
incentive in any calendar year shall be determined by the City.
(B) Employees with eighteen (18) and up to, but not including twenty (20) years
of continuous service shall be eligible for the early retirement incentive. In any calendar
year in which the City determines that the early retirement incentive will be offered, eligible
employees shall be given an opportunity to decide within a specified time period (30 to 90
days) whether they wish to receive the early retirement incentive and retire from City
employment. The City will provide at least sixty (60) days advance notice to eligible
employees of the early retirement incentive offering.
(C) Eligible employees who elect to receive the early retirement incentive shall
3 ORD. NO. 18-04
receive two (2) additional years of continuous service, under the System, and upon
receiving such additional continuous service shall immediately retire and terminate City
employment. Effective the first pay period after September 1, 1999, eligible employees
who elect to receive the early retirement incentive shall receive three percent (3%) of
average monthly earnings for each year of continuous service if the employee qualifies for
the twenty (20) year (or more) normal retirement benefit. Eligible employees who elect to
receive the early retirement incentive on or after March 15, 2004 shall receive three and
one-half percent (3.5%) of average monthly earninqs for each year of continuous service,
or portion thereof, to which the optional enhanced multiplier under Section 33.62(3)
applies; and if the enhanced multiplier is applicable to more than fifty percent (50%) of the
employee's total continuous service, excludinq the two (2) additional years provided in this
section, the employee shall receive three and one-half percent (3.5%) of average monthly
earnings for each of the two additional years provided in this section. The early retirement
incentive program shall be voluntary for all eligible employees. The early retirement
incentive shall not apply to sick leave, vacation or any other accruals or benefits.
(D) An employee who elects to receive the early retirement incentive under this
Section cannot also participate in the Deferred Retirement Option Plan under Section
33.685.
Section 3. That all ordinances or parts of ordinances in conflict herewith be, and the same
are hereby repealed.
Section 4. 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.
Section 5. That this ordinance shall become effective on March 15, 2004.
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
4 ORD. NO. 18-04