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Ord 18-08~.. / \ ORDINANCE NO. 18-08 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, BY AMENDING SECTION 33.65, "ADMINISTRATION", TO ALLOW THE MAYOR TO DESIGNATE THE ASSISTANT CITY MANAGER TO SERVE ON THE BOARD OF TRUSTEES IN LIEU OF THE MAYOR; AMENDING SECTION 33.685, "DEFERRED RETIREMENT OPTION PLAN", TO PROVIDE FOR PAYMENT OF DROP BENEFITS IN MONTHLY INSTALLMENTS AT THE MEMBER'S ELECTION; PROVIDING A GENERAL REPEALER CLAUSE; A SAVINGS 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 33, "Police and Fire Departments", subheading, "Pensions", of the Code of Ordinances of the City of Delray Beach is hereby amended by amending Section 33.65, "Administxadon", to read as follows: Sec. 33.65. ADMINISTRATION. (A) The general administration and responsibility for the proper operation of the retirement system and for making effective the provisions of this subchapter are vested in a Board of Trustees consisting of nine (9) persons as follows: (1) The Mayox• .or upon the Mayor's designation. the Assistant Ci4y Managg~; (2) Two (2) public members to be appointed by Ciry Commission as hereinafter provided; (3) The Fire Chief or, in the event of the Fixe Chiefs tetmuiadon of participation in the system, a firefighter designated by the Fire Chief; (4) The Police Chief or, in the event of the Police Chiefs termination of participation in the system, a police officer designated by the Police Chief; (5) Two (2) members of the Fire Department to be elected as hereinafter provided; (6) Two (2) members of the Police Department to be elected as hereinafter provided. Section 2. That Chapter 33, "Police and Fire Departments", subheading, "Pensions", of the Code of Ordinances of the City of Dekay Beach is hereby amended by amending Section 33.65, "Deferred Retirement Option Plan", to read as follows: r~ '~ Sec. 33.685. DEFERRED RETIREMENT OPTION PLAN. (F) At the conclusion of the employee's participation in the Deferred Retirement Option Plan, and as a condition of participating in such plan, the employee will retire and terminate City employment. The employee will thereafter receive a normal retirement benefit calculated in accordance with Subsection 33.62(B) based on average monthly earnings and continuous service as of the effective date of the employee's election to participate in the Deferred Retirement Option Plan. The employee's Deferred Retirement Option Plan account will thereafter be distributed to the employee in a cash lump sum, unless the employee elects an alternative distribution as described below: (1) Payments in approximately equal monthly. quarterly or annual installments over a period designated by the employee, not to exceed the life expectancy of the employee or the joint life expectancy of the employee and the employee's designated beneficiary. In the event that the employee dies before all installments have been paid, the remaining balance in the employee's Deferred Retirement Option Plan account shall be paid in an immediate cash lump sum to the employee's designated beneficiary. (2) The purchase of a nonfoxfeitable fixed annuity payable in such form as the employee may elect. Elections under this Subsection (2) shall be in writing and shall be made in such time ox manner as the Board of Trustees shall determine. If the annuity form selected is not a qualified joint and fifty (50) percent survivor annuity with the employee's spouse as the beneficiary, the annuity payable to the employee and thereafter to the employee's beneficiary shall be subject to the incidental death benefit rule as described in section 401(a)9g of the Internal Revenue Code and applicable regulations. Section 3. That all ordinances ox parts of ordinances in conflict herewith be, and the same axe hereby repealed. Section 4• That if any section, subsection, paragraph, sentence ox word ox 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 ox unconstitutional, such decision shall not affect the validity of any other section, subsection, paragraph, sentence ox word ox provision or its application to other persons ox circumstances and shall not affect the validity of the remainder hereof as a whole ox part thereof other than the part declared to be invalid. Section 5. That this ordinance shall become effective immediately upon passage on second and final reading. ORD NO. 18-08 ~.. ,~ PASSED AND ADOPTED in regular session on second and final wading on this 1~`day of April, 2008. ~,~Q ~~ ATTEST: MAYOR ~~~~ ~. ~~ City Clerk First Readin ~ ~~ ~~ Second Reading ~ ~~ ORD NO. 18-08 MEMORANDUM TO: Mayor and City Commissioners FROM: David T. Harden, City Manager DATE: March 21, 2008 SUBJECT: AGENDA ITEM 10 E -REGULAR COMMISSION MEETING OF APRIL 1, 2008 ORDINANCE NO. 18-08 ITEM BEFORE COMMISSION This ordinance is before Commission amending Chapter 33, "Police and Fire Departments", Subheading "Pensions", of the Code of Ordinances by amending Section 33.65, "Administration", to allow the Mayor to designate the Assistant City Manager to serve on the Board of Trustees in lieu of the Mayor; and amending Section 33.685, "Deferred Retirement Option Plan", to provide for payment of DROP benefits in monthly installments at the member's election. BACKGROUND At the first reading on March 18, 2008, the Commission passed Ordinance No. 18-08. Recommend approval of Ordinance No. 18-08 on second and final reading. ORDINANCE NO. 18-08 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, BY AMENDING SECTION 33.65, "ADMINISTRATION", TO ALLOW THE MAYOR TO DESIGNATE THE ASSISTANT CITY MANAGER TO SERVE ON THE BOARD OF TRUSTEES IN LIEU OF THE MAYOR; AMENDING SECTION 33.685, "DEFERRED RETIREMENT OPTION PLAN", TO PROVIDE FOR PAYMENT OF DROP BENEFITS IN MONTHLY INSTALLMENTS AT THE MEMBER'S ELECTION; A GENERAL REPEALER CLAUSE; A SAVINGS CLAUSE; AND AN EFFECTIVE DATE. NOW THEREFORE, BE IT ORDAINED BY THE CITY 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 33.65, "ADMINISTRATION", to read as follows: Sec. 33.65. ADMINISTRATION. (A) The general administration and responsibility for the proper operation of the retirement system and for making effective the provisions of this subchapter are vested in a Board of Trustees consisting of nine (9) persons as follows: (1) The Mayor; or upon the Mayor's designation, the Assistant Citv Manager; (2) Two (2) public members to be appointed by City Commission as hereinafter provided; (3) The Fire Chief or, in the event of the Fire Chiefs termination of participation in the system, a firefighter designated by the Fire Chief; (4) The Police Chief or, in the event of the Police Chiefs temunation of participation in the system, a police officer designated by the Police Chief; (5) Two (2) members of the Fire Department to be elected as hereinafter provided; (6) Two (2) members of the Police Department to be elected as hereinafter provided. 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 33.65, "DEFERRED RETIREMENT OPTION PLAN", to read as follows: Sec. 33.685. DEFERRED RETIREMENT OPTION PLAN. (F) At the conclusion of the employee's participation in the Deferred Retirement Option Plan, and as a condition of participating in such plan, the employee will retire and terminate City employment. The employee will thereafter receive a normal retirement benefit calculated in accordance with Subsection 33.62(B) based on average monthly earnings and continuous service as of the effective date of the employee's election to participate in the Deferred Retirement Option Plan. The employee's Deferred Retirement Option Plan account will thereafter be distributed to the employee in a cash lump sum, unless the employee elects an alternative distribution as described below: (1) Payments in approximately equal monthly, quarterly or annual installments over a period designated by the employee, not to exceed the life expectancy of the employee or the joint life expectancy of the employee and the employee's designated beneficiary. In the event that the employee dies before all installments have been paid, the remaining balance in the employee's Deferred Retirement Option Plan account shall be paid in an immediate cash lump sum to the employee's designated beneficiary. (2) The purchase of a nonforfeitable fixed annuity payable in such form as the employee may elect. Elections under this Subsection (2) shall be in writing and shall be made in such time or manner as the Boazd of Trustees shall determine. If the annuity form selected is not a qualified joint and fifty (50) percent survivor annuity with the employee's spouse as the beneficiary, the annuity payable to the employee and thereafter to the employee's beneficiary shall be subject to the incidental death benefit rule as described in section 401(a)9g of the Internal Revenue Code and applicable regulations. Section 3. That all ordinances or parts of ordinances in conflict herewith be, and the same aze hereby repealed. Section 4. 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 declared to be invalid. 2 Section 5. 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 day of , 2008. ATTEST: City Clerk First Reading MAYOR Second Reading MEMORANDUM TO: Mayor and City Commissioners FROM: Susan A. Ruby, City Attorney DATE: March 11, 2008 SUBJECT: AGENDA ITEM 12.D. -REGULAR COMMISSION MEETING OF MARCH 18 2008 ORDINANCE 18-08 ITEM BEFORE COMMISSION Ordinance 18-08 provides that the Mayor may designate an Assistant City Manager to serve on the police/fire pension board in lieu of the Mayor. The ordinance also provides for monthly distributions to the DROP plan participants. BACKGROUND This ordinance allows more discretion on who can serve on the board. The ordinance also adds monthly distributions to the available options for receiving DROP distributions. The current code allows for distribution of DROP benefits by quarterly, annnual, or lump sum payments or the purchase of an annuity. RECOMMENDATION The City Attorney recommends approval of Ordinance No. 18-08. ORDINANCE NO. 18-08 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 33.65, "ADMINISTRATION", TO ALLOW THE MAYOR TO DESIGNATE THE ASSISTANT CITY MANAGER TO SERVE ON THE BOARD OF TRUSTEES IN LIEU OF THE MAYOR; AMENDING SECTION 33.685, "DEFERRED RETIREMENT OPTION PLAN", TO PROVIDE FOR PAYMENT OF DROP BENEFITS IN MONTHLY INSTALLMENTS AT THE MEMBER'S ELECTION; PROVIDING A GENERAL REPEALER CLAUSE; A SAVINGS 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 33, "Police and Fire Departments", subheading, "Pensions", of the Code of Ordinances of the City of Delray Beach is hereby amended by amending Section 33.65, "ADMINISTRATION", to read as follows: Sec. 33.65. ADMINISTRATION. (A) The general administration and responsibility for the proper operation of the retirement system and for making effective the provisions of this subchapter are vested in a Board of Trustees consisting of nine (9) persons as follows: (1) The Mayor or upon the Mavor's designation, the Assistant City Manager; (2) Two (2) public members to be appointed by City Commission as hereinafter provided; (3) The Fire Chief or, in the event of the Fire Chiefs termination of participation in the system, a firefighter designated by the Fire Chief; (4) The Police Chief or, in the event of the Police Chiefs termination of participation in the system, a police officer designated by the Police Chief; (5) Two (2) members of the Fire Department to be elected as hereinafter provided; (6) Two (2) members of the Police Department to be elected as hereinafter provided. 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 33.65, "DEFERRED RETIREMENT OPTION PLAN", to read as follows: Sec. 33.685. DEFERRED RETIREMENT OPTION PLAN. (F) At the conclusion of the employee's participation in the Deferred Retirement Option Plan, and as a condition of participating in such plan, the employee will retire and terminate City employment. The employee will thereafter receive a normal retirement benefit calculated in accordance with Subsection 33.62(B) based on average monthly earnings and continuous service as of the effective date of the employee's election to participate in the Deferred Retirement Option Plan. The employee's Deferred Retirement Option Plan account will thereafter be distributed to the employee in a cash lump sum, unless the employee elects an alternative distribution as described below: (1) Payments in approximately equal monthly. quarterly or annual installments over a period designated by the employee, not to exceed the life expectancy of the employee or the joint life expectancy of the employee and the employee's designated beneficiary. In the event that the employee dies before all installments have been paid, the remaining balance in the employee's Deferred Retirement Option Plan account shall be paid in an immediate cash lump sum to the employee's designated beneficiary. (2) The purchase of a nonforfeitable fixed annuity payable in such form as the employee may elect. Elections under this Subsection (2) shall be in writing and shall be made in such time or manner as the Boazd of Trustees shall determine. If the annuity form selected is not a qualified joint and fifty (50) percent survivor annuity with the employee's spouse as the beneficiary, the annuity payable to the employee and thereafter to the employee's beneficiary shall be subject to the incidental death benefit rule as described in section 401(a)9g of the Internal Revenue Code and applicable regulations. Section 3. That all ordinances or parts of ordinances in conflict herewith be, and the same aze hereby repealed. Section 4. 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 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 declared to be invalid. 2 Section 5. 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: MAYOR City Clerk First Reading Second Reading cc ~. ~-a.~-~-c~t~ M rN W O O N N N N L V N T L N T a eLL 3 d Z u d m m N g O A K A O m U 3 c m u v° 4 PUBLIC HFARWG wN be heM on Ne MAOwirg W prtinancea M 3:00 p.m. on TUESDAY, APRIL 1, 2008 a at anY cominuatlon of wch meeting which is eel by the Dammlavmi), M Bm City Canmissbn dYUnbms, 100 N.W. 3Q Awxue, pel- my Beech, FlprMe, M whkn Bme tlw City GNnmisaian will conaWer Meir e9oplion. Tha prpposetl oNinences may Ee Napmetl et Me Ohlro al Me Cily Geh M City Hell, 100 N.W. 1M Avenue, Delray Beech, Flprlne, ba- tAeen tlw horn d BW e.m. erM 5:00 plMeys. All imereaMtl pmeas ae pr metl m anenaantl ro nears w8h re- gegb Me PrpPo~ oNinmwes. ORDINANCE Na 15d8 W ORDINANCE OF 1HE Cltt COM- MISSION OF THE CRV OF DELRAY 3EACH, FLORIDA, AMENDING DHAPTER 33, 'POLICE AND FIRE DEPARTMENTS', SUBHEADING PENSIONS', OF THE CODE OF OR- DINANCES OF THE CRY OF OEL RAV BEACH, BV AMENDING SEG iION 33.62, 'BENEFIT AMOUNTS AND ELIGIBILITY'; PROVIDING A GENERAL flEPEALEfl CLAUSE;A SAVINGS CLAUSE; ANO AN EF~ FECTWE DATE. ORDNANCE NQ 1698 CODE OF ORDINANCES OF THE CITY OF DEIflAY BEACH, BY AMENDING SECTION 35.09), 'RETIREMENT INCOME; BASIS, AMOUNT, ANO PAYMENT'; Pfl0- VIOING A GENEflAI REPEALER CLMISE;A VALIDRV CLAUSE; AND AN EFFECIWE DATE. - 011DINANCE NQ 1608 ',RAY BEACH, BY AMENDING SEC- TION 33.85, 'ADMINISTRATIOM, TO ;ALLOW THE MAYOR TO DESIG- iNATE THE ASSISTANT CITY MAN- AGEfl TO SERVE ON THE BOARD OF TRUSTEES IN LIEU OF THE MAYOfl; AMENDING SECTION 33.885, 'DEFERRED RETIREMENT OPTION PIAM, TO PROVIDE FOfl PAYMENT OF DROP BENEFITS IN MOIRHLY INSTALLMENTS AT THE MEMBEfl'S ELECTION; PROVIDING A GENERAL REPEALER CLAUSE;A SAVINGS CLAUSE; AND AN EF- FECTIVE DATE. Pbna be aMwetl Mat 6 e person tle- cMes to appeal arty tlenaion metle try Me City Cammisaion with respect M any manor cpnaitlaretl al Mese M1ear~ igs, such person may reetl M ensure Met a varbalim rerortl indutles Ma testimony and evitlanca upon wnicn Me appeal is m be easetl. The City tloas nol provide nor prepare such raaE W~wuNM E5.2060105. crrv DF DELIUr FEACH cna.<IN D rvuen, cMc Cey CNM1 PubOSh: FnEay March 21, 2008 Bom Pekn~OebeY BeecVi News