Ord 43-02ORDINANCE NO. 43-02
AN ORDINANCE OF THE CITY COMMISSION OF THE
CITY OF DFJ.RAY BEACH, FLORIDA, AMENDING
CHAPTER 35, "EMPLOYEES POLICIES AND BENEFITS",
SUBHEADING "RETIREMENT PLAN", OF THE CODE OF
ORDINANCES OF THE CITY OF DFJ.RAY BEACH,
FLORIDA, BY CREATING A NEW SUBSECTION (M),
"EARLY RETIREMENT INCENTIVE", IN SECTION 35.097;
ESTABLISHING AN EARLY RETIREMENT INCENTIVE
PROGRAM FOR FJ.IGIBLE EMPLOYEES; PROVIDING A
GENERAL REPEALER CLAUSE; PROVIDING A
VALIDITY CLAUSE; AND PROVIDING AN EFFECTIVE
DATE.
WHEREAS, the City Commission of the City of Delray Beach desires to amend the General
Employees' Retirement Plan to allow an incentive for early retirement.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE
CITY OF DFJ.RAY BEACH AS FOLLOWS:
Section 1. That Chapter 35, "Employee Policies and Benefits", subheading,
"Retirement Plan", of the Code of Ordinances of the City of Delray Beach is hereby amended by
creating a new subsection (M), "Early Retirement Incentive", of Section 35.097," RETIREMENT
INCOME; BASIS, AMOUNT, AND PAYMENT", to read as follows:
Section 35.097 RETIRF. MF. NT INCOME; BASIS, AMOUNT, AND PAYMENT.
(M) EARLY RETIREMENT INCENTIVE.
(1) Rffective October 1, 2002, an early retirement incentive pro,am shall be
provided in accordance with this section. The gv,ail~bility of the early retirement
incentive in any plan year shall be determined by the City. The City shall provide all
eligible employees with at least thirty (30) days advance notice that the early
reOrement incentive will be offered. The early retirement incentive program shall be
voluntary, for all eligi_'ble employees.
(2) F. mployees who are 100% vested and within two (2) years of their
earliest normal retirement date at the be~nning of the plan year in which the early
retirement incentive is offered shall be eligible for the early retirement incentive. In
any plan year in which the early retirement incentive is offered, eli_~ble employees
shall be _given an opportunity to elect the early retirement incentive within sixty (60)
days following receipt of notice that the early retirement incentive is being offered.
The employee's election shall be made in writing on a form provided by the City..
and shall be irrevocable.
(3) Eligfi'ble employees who elect the early retirement incentive shall have
their retirement benefit calculated in accordance with Section 35.097(A), based on
credited service and final monthly compensation as of the last day of employment.
There shall be no actuarial reduction as defined in Section 35.097~)(2). Employees
who elect the early retirement incentive shall immediately retire and terminate City.
employment.
(4) An employee who elects to receive the early retirement incentive under
this subsection cannot also participate in the Deferred Retirement Option Phn
under Section 35.110.
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.
Section 4. That this ordinance shall become effective mediately upon its passage
on second and final reading, except as to plan participants who are covered under a collective
bargaining agreement. This ordinance shall become effective as to the excluded employees
immediately upon the date of ratification and execution of a collective bargaining agreement or
memorandum of understanding that includes the provisions of this ordinance.
the /7'
PAS~ED_~ANDv ADOPTED in regul~ session on second and final reading on this
day of.~.~-~ ,2002.
MAYOR
ATI~EST:
City Clerk
First Reading ~
Second Reading
2 ORD. NO. 43-02
MEMORANDUM
TO:
FROM:
SUBJECT:
DATE:
MAYOR AND CITY COMMISSIONERS
CITY MANAGER i~ !
AGENDA ITEM # ] 0 lr~. REGULAR MEETING OF SEPTEMBER 17, 2002
ORDINANCE NO. 43-02 (AMENDING CHAPTER 35. "EMPLOYEE
POLICIES AND BENEFITS")
SEPTEMBER 13, 2002
This ordinance is before Commission for second reading and public hearing amending Chapter 35,
"Employee Policies and Benefits", Subheading "Retirement Plan" of the City Code of Ordinances by
enacting Subsection (M), "Early Retirement Incentive" to establish an early retirement incentive
program for eligible employees.
At the first reading on September 3, 2002, the City Commission unanimously approved this
ordinance. We expect to have the actuarial report before Tuesday evening. If we do not, the second
reading will have to be postponed until October 1, 2002.
Recommend approval of Ordinance No. 43-02 on second and final reading.
S:\C~ty Clerk\chore. Re fokl,~\agenda men~.Ord 43.0Z09.17.0Zdoc
[ITY OF DELRrlV BEfl[H
CITY ATTORNEY'S OFFICE
200 NW 1st AVENUE · DELRAY BEACH, FLORIDA 33444
TELEPHONE 561/243-7090 · FACSIMILE 561/278-4755
Writer's Direct Line: 561/243-7091
1993 TO:
MEMORANDUM
August 30, 2002
City Commission
David T. Harden, City Manager
FROM:
Susan A. Ruby, City Attorney
SUBJECT: Early Retirement Incentive
The General Employees Retirement Plan currently provides for early retirement at
age 55 with at least 15 years of credited or 20 years service regardless of age with
a 5 percent deduction per year, to account for the actuarial impact of the eady
retirement.
The plan also provides for a normal retirement for those employees who reach 60
years of age and have up to a maximum of 30 years of credited service, or those
employees who attain 30 years of credited service regardless of age, without an
actuarial reduction.
The proposed ordinance provides for an eady retirement incentive for those
participants that are 100% vested (i.e. 10 or more years of service) and within two
years of the normal retirement date (i.e. 58 years of age or those with 28 or more
years of service). This benefit will not have the actuarial reduction that is part of
the early retirement program. The benefit shall be calculated as a normal
retirement but shall be based on the credited service and final monthly
compensation as of the last date of employment. Those persons who enter or
have entered the Deferred Retirement Option Plan (DROP) are not eligible.
Please place on the September 3, 2002 agenda for City Commission
consideration. The actuarial impact statement needs to be performed prior to
second reading.
Please call if you have any questions.
SAR:sm~~.~
cc: Joseph Safford, Finance Director
Milena Walinski, Assistant Finance Director
Jeff Keating, Chairman of General Employees Pension Plan
Members, General Employees Pension Plan
Tom Lynch
ORDINANCE NO. 43-02
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF
DELRAY BEACH, FLORIDA, AMENDING CHAPTER 35,
"EMPLOYEES POLICIES AND BENEFITS", SUBHEADING
"RETIREMENT PLAN", OF THE CODE OF ORDINANCES OF THE
CITY OF DELRAY BEACH, FLORIDA, BY CREATING A NEW
SUBSECTION (M), "EARLY RETIREMENT INCENTIVE", IN
SECTION 35.097; ESTABLISHING AN EARLY RETIREMENT
INCENTIVE PROGRAM FOR ELIGIBLE EMPLOYEES;
PROVIDING A GENERAL REPEALER CLAUSE; PROVIDING A
VALIDITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City Commission of the City of Delray Beach desires to amend the General
Employees' Retirement Plan to allow an incentive for early retirement.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF
DELRAY BEACH AS FOLLOWS:
Section 1. That Chapter 35, "Employee Policies and Benefits", subheading, "Retirement
Plan", of the Code of Ordinances of the City of Delray Beach is hereby amended by creating a new
subsection (M), "Early Retirement Incentive", of Section 35.097, "RETIREMENT INCOME; BASIS,
AMOUNT, AND PAYMENT", to read as follows:
Section 35.097 RETIREMENT INCOME; BASIS, AMOUNT, AND PAYMENT.
(M) EARLY RETIREMENT INCENTIVE.
(1) Effective October 1, 2002, an early retirement incentive program shall be
provided in accordance with this section. The availability of the early retirement incentive
in any plan year shall be determined by the City. The City shall provide all eligible
employees with at least thirty (30) days advance notice that the early retirement incentive
will be offered. The early retirement incentive program shall be voluntary for all eligible
employees.
(2) Employees who are 100% vested and within two (2) years of their earliest
normal retirement date at the beginning of the plan year in which the early retirement
incentive is offered shall be eligible for the early retirement incentive. In any plan year in
which the early retirement incentive is offered, eligible employees shall be given an
opportuni _ty to elect the early retirement incentive within six _ty (60) days following receipt
of notice that the early retirement incentive is being offered. The employee's election shall
be made in writing on a form provided by the City, and shall be irrevocable.
(3) Eligible employees who elect the early retirement incentive shall have their
retirement benefit calculated in accordance with Section 35.097(A), based on credited
service and final monthly compensation as of the last day of employment. There shall be no
actuarial reduction as defined in Section 35.097(B)(2). Employees who elect the early
retirement incentive shall immediately retire and terminate City employment.
(4) An employee who elects to receive the early retirement incentive under this
subsection cannot also participate in the Deferred Retirement Option Plan under Section
35.110.
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.
Section 4. That this ordinance shall become effective immediately upon its passage on
second and final reading, except as to plan participants who are covered under a collective bargaining
agreement. This ordinance shall become effective as to the excluded employees immediately upon the
date of ratification and execution of a collective bargaining agreement or memorandum of understanding
that includes the provisions of this ordinance.
PASSED AND ADOPTED in regular session on second and final reading on this the
__ day of ., 2002.
MAYOR
ATTEST:
City Clerk
First Reading
Second Reading
2 ORD. NO. 43-02
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