18-90 ORDINANCE NO. 18-90
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF
DELRAY BEACH, FLORIDA, AMENDING CHAPTER 33, "POLICE
AND FIRE DEPARTMENTS", OF THE CODE OF ORDINANCES OF
THE CITY OF DELRAY BEACH, FLORIDA, BY AMENDING
SECTION 33.62, "BENEFIT AMOUNTS AND ELIGIBILITY",
SUBSECTION (E), "DISABILITY RETIREMENT PROVISIONS",
SUBSECTIONS (5) AND (7), TO PROVIDE THAT DISABILITY
BENEFITS SHALL BE REDUCED BY WORKERS' COMPENSATION
BENEFITS TO THE EXTENT SUCH BENEFITS WHEN ADDED TO
THE MEMBER'S DISABILITY RETIREMENT BENEFIT FROM THE
SYSTEM EXCEED THE MEMBER'S AVERAGE MONTHLY EARNINGS
ON THE DATE OF DISABILITY; PROVIDING A SAVINGS
CLAUSE; PROVIDING AN EFFECTIVE DATE.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE
CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS:
Section 1. That Section 33.62(E)(5), "Disability Retirement
Benefits", and Section 33.62(E)(7), "Annual Benefit Adjustments", of the
Code of Ordinances of the City of Delray Beach, Florida, are hereby
amended to read as follows:
(5) Disability retirement benefits.
(a) Eligibility. All members are eligible for service
incurred disability benefits, regardless of their length of
continuous service. Each member who completes ten years of
continuous service prior to becoming disabled shall be eligible for
nonservice incurred disability benefits.
(b) Initial amount of service incurred disability benefit.
Seventy-five percent of the member's average monthly earnings in
effect on the date of disability, subject in any event to the
offsets listed below.
(c) Initial amount of nonservice incurred disability benefit.
Where eligible, 2% of average monthly earnings in effect on the
date of disability for each year of continuous service, subject in
any event to maximum 50% of average monthly earnings and subject
further to the offsets listed below.
(d) Terms of payments. Disability benefits shall commence on
or as of the first day of the month coincident with or next fol-
lowing the date of disability, as established by the Board of
Trustees, and shall continue to be paid on the first day of each
subsequent month until the death or recovery of the disability
retires. The same survivorship percentages which apply to normal
retirement benefits shall also apply to disability retirement
benefits.
(e) Benefit offsets. Disability retirement benefits
described above shall be reduced by any disability benefits paid by
social security ~ , by workers' compensation benefits to the
extent such benefits when added to the member's disability retire-
ment benefit from the system exceed the member's average monthly
earnings on the date of disability, and er by other benefit offsets
set forth in division (E) (7) of this section. The reduction for
social security shall be in the amount of the primary insurance
amount only, not including any family benefit. Any cost of living
adjustments in the disability retiree's social security and
workers' compensation benefits shall not serve to reduce further
the disability benefit payable from the system. The reduction for
social security disability benefits shall terminate upon the
retiree's attainment of age 65. In the case of a lump sum settle-
ment paid by workers' compensation, the disability retirement
benefit payable from the system shall be s~s~e~e~-fe~-a-ee~a~
~mBe~-~ -m~hsv --The -~m~e~ -~ -m~ehs -~ -s~s~e~s~-sha~-be
adjusted as follows:
(1) The amount of the lump sum settlement shall be
divided by the member's remaining life expectancy (in months), as
determined using standard actuarial tables approved by the plan
actuary;
(2) If the number obtained in subparagraph (1), above,
when added to the member's monthly disability retirement benefit
from the system, exceeds the member's average monthly earnings on
the date of disability, the amount of the excess shall be deducted
from the member's monthly disability retirement benefit from the
system, for the duration of the member's remaining life expectancy
as determined in subparagraph (1), above.
ame~ -~ -~he -~m~ -s~m-se~½eme~e -by -~he -ame~ -~he
be~e~-w~-be-~-~he~e-we~e-~e~-w~e~s~-e~m~e~sa~e~-~see~
(3.) If the number obtained in subparagraph (1), above,
when added to the member's monthly disability retirement benefit
from the system does not exceed the member's average monthly
earnings on the date of disability, there shall be no reduction of
the member's disability retirement benefits from the system.
Once the number of months of suspension has been completed, the
disability retirement benefit from the system shall be resumed.
Additional benefit adjustments shall also apply as described below
in division (E)(7) of this section.
(f) Eligibility for other benefits. In the event that a
member applying for disability benefits is also eligible for either
early or normal retirement, the Board may, upon the request of the
member, pay the early or normal retirement benefit instead of a
disability retirement benefit.
(7) Annual benefit adjustments.
(a) The monthly disability retirement benefit of each person
who is receiving benefits on, or who shall receive benefits after
the effective date of this subchapter, shall be adjusted annually
as described herein. First, the sum of the following items shall
be calculated for the previous calendar year:
1. The disability retirement benefits paid from the
system;
2. The social security primary insurance amounts (not
including family benefits) less any cost of living adjustments
since the benefit first went into effect;
3. The workers' compensation disability benefits
(excluding medical reimbursements) less any cost of living adjust-
ments since the benefit first went into effect, to the extent that
such benefits, when added to the member's disability retirement
benefit from the system exceed the member's average monthly
earnings on the date of disability; and
4. Any earned income (as defined in division (E)(ll) of
this section) received as evidenced by the IRS W-2 forms (excluding
2 ORD. NO. 18-90
any sick and vacation pay received from the city pursuant to the
disability, as determined by the Board of Trustees).
(b) The annual rate of earnings of the disability retiree on
his date of disability (utilizing the minimum set forth herein)
shall then be subtracted from this sum. If there is any excess of
the sum over the sum of the disability retiree's pre-disability
annual earnings rate (with a presumed minimum upon the effective
date of this subchapter of $30,000) as increased or decreased
annually by the city in accordance with the salary funded for
comparably funded city positions, then the disability retirement
benefit payable from the system shall be reduced. The amount of
the annual reduction shall be equal to 50% of any sums up to and
including $15,000 of the excess, plus 100% of the excess, if any,
which exceeds $15,000 in excess of the as-adjusted disability
retiree's predisability annual earnings (with a presumed minimum
upon the effective date of this subchapter of $30,000). The annual
reduction so computed shall then be divided by 12 to make it a
monthly reduction. The monthly reduction shall then be subtracted
from the monthly disability retirement benefit which has most
recently been paid. If the sum of the four items listed above is
less then the disability retirement benefit computed in accordance
with division (E)(5)(b) or (c) of this section, as applicable,
prior to the offset provided by (E)(5)(e) of this section, then the
disability retirement benefit payable form the system shall be
increased. The amount of the annual increase shall be equal to the
amount of the disability retirement benefit computed in accordance
with division (E)(5)(b) or (c) of this section, as applicable,
prior to the offset provided by division (E)(5)(e) of this section,
minus the sum of the four items listed above. The annual increase
so computed shall then be divided by 12 to make it a monthly
increase. The monthly increase shall then be added to the monthly
disability retirement benefit which has most recently been paid.
The newly adjusted disability retirement benefit shall be paid for
the ].2 months beginning on the next January 1; however, the dis-
ability retiree may petition the Board no more than once annually
during that 12-month period for a recomputation of those benefit
adjustments, which the Board may elect to consider and grant based
upon demonstrated exigent circumstances occurring to the disability
retiree subsequent to the last benefit adjustment. Upon the death
of the disability retiree prior to his recover, the monthly benefit
rate without any adjustments shall be used to compute any survivor
benefits which are payable from the system.
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 deci-
sion shall not effect 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 of April
20, 1989.
PASSED AND ADOPTED in regular ses~on second and final
reading on this the 22nd day of ~~
A~EST: ~, ,,
CitYVClerk - ~ /
First Reading May 8, 1990
Second Reading. May 22, 1990
3 ORD. NO. 18-90
DELRAY
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