Loading...
Ord 16-08/~ ,~ ORDINANCE NO. 16-08 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, BY AMENDING SECTION 35.097, "RETIREMENT INCOME; BASIS, AMOUNT, AND PAYMENT"; PROVIDING A GENERAL REPEALER CLAUSE; A VALIDITY CLAUSE; AND AN EFFECTIVE DATE. 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 amending section 35.097, "Retirement Income; Basis, Amount, and Payment", to read as follows: Sec. 35.097. RETIREMENT INCOME; BASIS, AMOUNT, AND PAYMENT. (J) Maximum Pension. (8) Additional Limitation on Pension Benefits. Notwithstanding anything herein to the contrary: (a) The normal retirement benefit or pension payable to a retiree who becomes a member of the plan and who has not previously participated in such plan, on or after January 1, 1980, shall not exceed one hundred (100) percent of his average final compensation. However, nothing contained in this Section shall apply to supplemental retirement benefits or to pension increases attributable to cost-of-living increases or adjustments. (b) No member of the plan who is not now a member of such plan shall be allowed to receive a retirement benefit or pension which is in part or in whole based upon any service with respect to which the member is akeady receiving, or will receive in the future, a retirement benefit or pension from a different employer's retirement plan or plan. This restriction /, does not apply to Social Security benefits or Federal benefits under Chapter 67, Title 10, U.S. Code. fc) Notwithstanding any other provision of this plan to the contrary, the annual benefit to which a member is entitled under the elan shall not, in any limitation yeaz, be in an amount which would exceed the applicable limitations under Section 415 of the Internal Revenue Code and the regulations issued thereunder. If the benefit savable under the plan would (but for this section) exceed the limitations of Section 415 of the Code by reason of a benefit payable under another defined benefit plan aggregated with this plan under Code section 415(_8. the benefit under this plan shall be reduced only after all reductions have been made under such other plan. As of January 1 of each calendaz yeaz commencing on or after January 1. 2008, the dollaz limitation as determined by the Commissioner of the Internal Revenue Service for that calendar veaz shall become effective as the maximum permissible dollar amount of benefit payable under the plan durine the limitation yeaz ending within that calendaz yeaz. Section 2. That all ordinances or parts of ordinances in conflict herewith be, and the same aze hereby repealed. Section 3. That if any section, subsection, pazagraph, sentence or word or other provision of this ordinance, or any portion thereof, or its application to any person or circumstance, be declazed by a court of competent jurisdiction to be invalid or unconstitutional, such decision shall not affect the validity of any other section, subsection, pazagraph, sentence or word or provision or its application to other persons or circumstances and shall not affect the validity of the remainder hereof as a whole or part thereof other than the part declazed to be invalid. ORD NO. 1608 i ~. Section 4. That this ordinance shall become effective immediately upon passage on second and final reading. PASSED AND ADOPTED in regulaz session on second and final reading on this 1 S` day of April, 2008. ATTEST: City Clerk First Readin ~ ~~ Second Reading ~ ~~ ~.~a ~~ MAYOR ORD NO. 16-08 MEMORANDUM TO: Mayor and City Commissioners FROM: David T. Harden, City Manager DATE: March 21, 2008 SUBJECT: AGENDA ITEM 10 D -REGULAR COMMISSION MEETING OF APRIL 1, 2008 ORDINANCE NO. 16-08 -SECOND READING ITEM BEFORE COMMISSION This ordinance is before Commission amending Chapter 35, "Employees Policies and Benefits", Subheading "Retirement Plan", of the Code of Ordinances by amending Section 35.097, "Retirement Income; Basis, Amount, and Payment". BACKGROUND At the first reading on Mazch 18, 2008, the Commission passed Ordinance No. 16-08. RECOMMENDATION Recommend approval of Ordinance No. 16-08 on second and final reading. ORDINANCE NO. 16-08 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 AMENDING SECTION 35.097, "RETIREMENT INCOME; BASIS, AMOUNT, AND PAYMENT"; PROVIDING A GENERAL REPEALER CLAUSE; A VALIDITY CLAUSE; AND AN EFFECTIVE DATE. 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 amending section 35.097, "Retirement Income; Basis, Amount, and Payment", to read as follows: Sec. 35.097. RETIREMENT INCOME; BASIS, AMOUNT, AND PAYMENT. (J) Maximum Pension. (8) Additional Limitation on Pension Benefits. Notwithstanding anything herein to the contrary: (a) The normal retirement benefit or pension payable to a retiree who becomes a member of the plan and who has not previously participated in such plan, on or after January 1, 1980, shall not exceed one hundred (100) percent of his average final compensation. However, nothing contained in this Section shall apply to supplemental retirement benefits or to pension increases attributable to cost-of-living increases or adjustments. (b) No member of the plan who is not now a member of such plan shall be allowed to receive a retirement benefit or pension which is in part or in whole based upon any service with respect to which the member is already receiving, or will receive in the future, a retirement benefit or pension from a different employer's retirement plan or plan. This restriction does not apply to Social Security benefits or Federa] benefits under Chapter 67, Title 10, U.S. Code. (cl Notwithstanding any other provision of this plan to the contrary the annual benefit to which a member is entitled under the plan shall not, in any limitation year, be in an amount which would exceed the applicable limitations under Section 415 of the Internal Revenue Code and the reQUlations issued thereunder. If the benefit payable under the plan would (but for this section) exceed the limitations of Section 415 of the Code by reason of a benefit kavable under another defined benefit olan aegre~ated with this elan under Code section 415(8, the benefit under this plan shall be reduced only after all reductions have been made under such other plan. As of January 1 of each calendar year commencing on or after January 1, 2008, the dollar limitation as determined by the Commissioner of the Internal Revenue Service for that calendar year shall become effective as the maximum permissible dollar amount of benefit payable under the plan during the limitation year ending within that calendar Section 2. That all ordinances or parts of ordinances in conflict herewith be, and the same are hereby repealed. Section 3. That if any section, subsection, paragraph, sentence or word or other provision of this ordinance, or any portion thereof, or its application to any person or circumstance, be declared by a court of competent jurisdiction to be invalid or unconstitutional, such decision shall not affect the validity of any other section, subsection, paragraph, sentence or word or provision or its application to other persons or circumstances and shall not affect the validity of the remainder hereof as a whole or part thereof other than the part declared to be invalid. Section 4. That this ordinance shall become effective immediately upon passage on second and final reading. PASSED AND ADOPTED in regular session on second and final reading on this the day of , 2008. ATTEST: MA City Clerk First Second Reading MEMORANDUM TO: Mayor and City Commissioners FROM: Susan A. Ruby, City Attorney DATE: March 11, 2008 SUBJECT: AGENDA ITEM 12.C. -REGULAR COMMISSION MEETING OF MARCH 18, 2008 ORDINANCE 16-OS ITEM BEFORE COMMISSION The item before the City Commission is Ordinance No. 16-08 Employee Retirement Plan to comply with recent IRS regulafion Internal Revenue Code. Section 415 establishes maximum limits retirement plans. The regulations were published in 2007. BACKGROUND which amends the City's General s implementing Section 415 of the on benefits provided by qualified The City's retirement plan is a qualified plan and must comply with the Section 415 benefit limits. We have reviewed the Ciry's plan and determined that it generally complies with the Section 415 regulations; however, the regulations contain new safe harbor provisions that, in our judgment, warrant amending the plan. The attorney for the General Employee Pension Plan concurs with our assessment, and with the language of the amendments. The Section 415 regulations contain two "safe harbors" for retirement plans, like the Ciry's, that have automatic cost-of-living adjustments. If a plan adopts one of the safe harbors, COLAs provided by the plan are automatically treated as meeting the Section 415 limit on benefits. The current Section 415 maximum benefit limit is $185,000 per year, at normal retirement age. The maximum benefit limit is adjusted each year for inflation in accordance with the regulations. According to the regulations, plans can apply the Section 415 adjusted dollar limit to a retired participant who receives additional benefits through a cost of living increase. The attached amendment is intended to comply with one of the safe hazbor rules. The amendment specifically limits the actual benefit paid to a member in any yeaz to no more than the Section 415 dollar limit for that year. In addition, the amendment expressly recognizes increases in the Section 415 dollar limits that occur after retirement. RECOMMENDATION The City Attorney recommends approval of Ordinance No. 16-08. MEMORANDUM TO: Mayor and City Commissioners FROM: Susan A. Ruby, City Attorney DATE: March 11, 2008 SUBJECT: AGENDA ITEM 12.C. -REGULAR COMMISSION MEETING OF MARCH 18 2008 ORDINANCE 16-08 ITEM BEFORE COMMISSION The item before the City Commission is Ordinance No. 16-08 which amends the City's Genera] Employee Retirement Plan to comply with recent IRS regulations implementing Section 415 of the Internal Revenue Code. Section 415 establishes maximum limits on benefits provided by qualified retirement plans. The regulations were published in 2007. The City's retirement plan is a qualified plan and must comply with the Section 415 benefit limits. We have reviewed the City's plan and determined that it generally complies with the Section 415 regulations; however, the regulations contain new safe harbor provisions that, in our judgment, warrant amending the plan. The attorney for the General Employee Pension Plan concurs with our assessment, and with the language of the amendments. The Section 415 regulations contain two "safe harbors" for retirement plans, like the City's, that have automatic cost-of-living adjustments. If a plan adopts one of the safe harbors, COLAs provided by the plan are automatically treated as meeting the Section 415 limit on benefits. The current Section 415 maximum benefit limit is $185,000 per yeaz, at normal retirement age. The maximum benefit limit is adjusted each yeaz for inflation in accordance with the regulations. According to the regulations, plans can apply the Section 415 adjusted dollar limit to a retired participant who receives additional benefits through a cost of living increase. The attached amendment is intended to comply with one of the safe hazbor rules. The amendment specifically limits the actual benefit paid to a member in any year to no more than the Section 415 dollar limit for that year. In addition, the amendment expressly recognizes increases in the Section 415 dollaz limits that occur after retirement. RECOMMENDATION The City Attorney recommends approval of Ordinance No. 16-08. ORDINANCE NO. 16-08 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 AMENDING SECTION 35.097, "RETIREMENT INCOME; BASIS, AMOUNT, AND PAYMENT"; PROVIDING A GENERAL REPEALER CLAUSE; A VALIDITY CLAUSE; AND AN EFFECTIVE DATE. 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 amending section 35.097, "Retirement Income; Basis, Amount, and Payment", to read as follows: Sec. 35.097. RETIREMENT INCOME; BASIS, AMOUNT, AND PAYMENT. (J) Maximum Pension. (8) Additional Limitation on Pension Benefits. Notwithstanding anything herein to the contrary: (a) The normal retirement benefit or pension payable to a retiree who becomes a member of the plan and who has not previously participated in such plan, on or after January 1, 1980, shall not exceed one hundred (100) percent of his average final compensation. However, nothing contained in this Section shall apply to supplemental retirement benefits or to pension increases attributable to cost-of-living increases or adjustments. (b) No member of the plan who is not now a member of such plan shall be allowed to receive a retirement benefit or pension which is in part or in whole based upon any service with respect to which the member is already receiving, or will receive in the future, a retirement benefit or pension from a different employer's retirement plan or plan. This restriction does not apply to Social Security benefits or Federal benefits under Chapter 67, Title 10, U.S. Code. f c) Notwithstanding anv other provision of this plan to the contrary, the annual benefit to which a member is entitled under the plan shall not, in any limitation Paz, be in an amount which would exceed the applicable limitations under Section 415 of the Internal Revenue Code and the regulations issued thereunder. If the benefit payable under the plan would (but for this section) exceed the limitations of Section 415 of the Code by reason of a benefit payable under another defined benefit plan agg~ated with this plan under Code section 415(fl, the benefit under this plan shall be reduced only after all reductions have been made under such other plan. As of Januazy 1 of each calendar year commencing on or after January 1, 2008, the dollaz limitation as determined by the Commissioner of the Internal Revenue Service for that calendaz yeaz shall become effective as the maximum aermissible dollaz amount of benefit payable under the plan during the limitation yeaz ending_within that calendaz veaz. Section 2. That all ordinances or parts of ordinances in conflict herewith be, and the same aze hereby repealed. Section 3. That if any section, subsection, pazagraph, sentence or word or other provision of this ordinance, or any portion thereof, or its application to any person or circumstance, be declared by a court of competent jurisdiction to be invalid or unconstitutional, such decision shall not affect the validity of any other section, subsection, pazagraph, sentence or word or provision or its application to other persons or circumstances and shall not affect the validity of the remainder hereof as a whole or part thereof other than the part declazed to be invalid. Section 4. That this ordinance shall become effective immediately upon passage on second and final reading. PASSED AND ADOPTED in regulaz session on second and final reading on this the _ day of , 2008. ATTEST: MAYOR City Clerk First Reading Second Reading CC ~. ~.a.~--~cd~ N~IC'Su MEMBER'S ELECTION; PROVIDING A GENERAL REPEALER CLMISE;A -~ SAVINGS CLAUSE; ANO AN EF~ ~ FECTNE DATE. PNMe be aENwd Mal it a person M~ cures M appeal eirytlNNon metla W the Cey Dommisaion w0h respsd to any maaer cpnaMerotl at these hear- bgs, sucn pawn May nael ro enwre 100 Mal a verbatim rocor0 indutles the testimony and evieence upon wnloh ~ J1Nfl00MOFAiEi1TS the appeal is to ba baaeQ Tha City ~ tloes nol Drovitle nw prepare auto p remidpwwad MFS.2a601p5. ~ CRY OF pELPAT BEPCN N CM1mNb D Nuhw, C1L N ~kydeBc N CIPY OF DELRAT BEACH,RARIW Pudish:kMay, Mardi 21, 211118 t NOTICE OF Ia11Bl1CNEARING Bate RMwvOakry Beall Nees A PUBLIC HEAflING will ba MM on A the 1011pwing prapme! CltllnarlLes al ~ ]:00 p.m. an TUESDAY, APRIL 1, T 2008 IX al anY wnlinuatbn pf such ~ maeling which is set by Me ~ CanaNa4on1. n the dly Camlrissorl ~ Chamberc, 100 N.W. 1M Awrue, Dd~ ~ lay Beech, FbrNe, alwhipN tlme Bla j, CM CwMnisaionwil consider (heir C a0op8Dn. The proposed pr0inences mey Ile inspedatl al tlM OMw oltle si Chy dark al CBy Hall, 100 N.W: 1sl N AvmMe, Delray Beech; FbrWe, be- 3 M1swen 8m hours M SW a.m. antl 6:00 Z Pm., MorAaY Ihrcugh FrMay, eircepl hdMays. MI intereaMtl pmtlse are YF t vMM b a0end an0 EB hesr0 wM ro- N Spedbtln PDlHSaO WUinOrKaS m ORDINANCE Np.15U8 ~ AN ORDINANCE OF THE CIiY COM- MISSION OF THE CITY OF OELflAV Q BEACH, FLORIDA, AMENDING CHAPTER 33, 'POLICE AND FIRE o DEPARTMENTS', SUBHEADING 9ENSIONS', OF THE CODE OF OR- ~ DINANCES OF THE CITY OF OEL- ~ qAY BEACH, BY AMENDING SEC- cr TION 33.62, 'BENEFIT AMOUNTS m AND ELIGIBILITY'; PROVIDING A GENERAL flEPEALEq bIAUSE; A SAVINGS CLAUSE; ANp AN EF- 0 FECTIVE DATE v .ORDINANCE NQ 1848 , 3 CODE OF ORDINANCES OF THE ~ CITY OF DELRAY BEACH, BY ~ AMENDING SECTION 35.09], v 'RETIREMENT INCOME; BASIS, ~ AMOUNT, AND PAYMENT°; Pq0- VIDING A GENERAL flEPEALEfl CWISE; A VAODItt CLAUSE; AND AN EFFECI IVE DATE.. ORDINANCE NQ 1008 TION AMENDING SEC- 'AGER TO SERVE ON THE BOAgp 'OF TgUSTEES IN LIEU OF THE 'MAYOq; AMENDING SECTION 33.685, 'DEFERflED flETIflEMENT OPNON PLAN', TO PROVIDE FOfl PAYMENT OF DflOP BENEFITS IN MONTHLY INSTALLMENTS AT THE