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HomeMy WebLinkAboutOrdinance 1983-001 Repeals General Employees Pension PlanORDINANCE NO. 1-83 AN ORDINANCE OF THE VILLAGE OF NORTH PALM BEACH ENACTING INTO LAW A PENSION PLAN FOR GENERAL EMPLOYEES OF THE VILLAGE, EXCEPT FIRE AND POLICE; PROVIDING FOR AN ORDERLY TRANSFER OF THE FUNDS; PROVIDING FOR THE BENEFITS OF THE FUNDS; PROVIDING FOR THE FUNDING OF THE FUND; PROVIDING FOR AI ffNISTRATION OF THE FUND; PROVIDING FORA BOARD OF RETIREMENT; PROVIDING FORA SAVING CLAUSE; REPEALING ORDINANCE lk 10-82 AND ALL OTHER ORDINANCES IN CONFLICT HEREWITH; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Village of North Palm Beach General Employees are presently provided pension and certain other benefits, and WHEREAS, the Village Council is desirous of clarifying and restating the provisions of the General Retirement Find in Ordinance form. NOW, THEREFORE, BE IT ORDAINED BY THE VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA AS FOLLOWS: SECTION 1: DEFINITIONS As used herein, unless otherwise defined or required by the context, the following words and phrases shall have the meaning indicated: 1. Village means Village of North Palm Beach, Florida. 2. Agreement means this written Ordinance setting forth the provisions of the Retirement System. 3. System means the Village of North Palm Beach General Reti..rarent Fund as contained herein and all amendments thereto. 4. Fund means the Trust Fund established herein as part of the System. 5. Board means the Board of Retirement, which shall administer and manage the System herein provided and serve as Trustees of the Fund. 6. Employee shall mean any actively employed full -tine General Employees of the Village, except Firemen and Policemen. 7. Member means an actively employed full -titre employee who fulfills the prescribed participation requiscments, after twelve (12) nonths employment and will become a participant on the October 1st of the next following year. 8. Credited Service means the total number of years and fractional parts of years of actual service with the Village of North Palm Beach, beginning after one year of continuous service. 9. Earnings neans gross salary, (including overtime) but excluding bonuses or any other nonregular payments such as unused sick leave and vacation tine pay. 10. Final Average Earnings mean the arithmetic average of annual earn- ings for the highest Five (5) years of the Ten (10) consecutive years of service immediately preceding the retiL.euent or termination of a Member. 11. Beneficiary neans the person or persons entitled to receive benefits hereunder and who has or have been designated as such in writing by the Member and filed with the Board. If no such designation is in effect at the time of death of the Member, or if no such person so designated is living at that time, the beneficiary shall be the estate of the Member. 12. Actuarial Equivalent neans a benefit or amount of equal value, based upon the 1971 Group Annuity Mortality Table. 13. Spouse means the lawful wife or husband of a Member at the tine of pre -retirement death or retireuent. 14. Effective Date means the date on which this Ordinance becomes effective. Plan year is from October 1 to September 30. 15. Accrued Benefit is the benefit earned to date using the Normal Re- tirement Benefit. SECTION 2: MEMBERSHIP 1. Conditions of Eligibility A) All employees as of the Effective Date and all future new employees, except Members of the fire departneut and police department, shall become Members of this System as a condition of Employment. 2. Application for Membership Each current and future eligible Employee shall complete an application form covering items set forth below, and provide other information, as may be prescribed by the Board. A) Acceptance of the terms and conditions of the Betiieueut System. B) Designation of a Beneficiary or Beneficiaries. C) A certified statement as to prior medical history. D) A written release allowing distribution of all medical records to the Board. For the purposes of all benefits hereunder, an Application for Member- ship shall be considered to have been in effect can date of employment, even though officially accepted and approved by the Board at a later date. Failure to 2 complete an application within Ninty (90) days of employment and written notice of this agreement shall constitute a deliberate choice to be excluded fium the system. 3. Change in Designation of Beneficiary A Member may from time to time change his designated Beneficiary without approval by the Board of Trustees or previous beneficiary by written notice to the Board upon forms provided by the Board. Upon such change, the rights of all previously designated Beneficiaries to receive any benefits under the System shall cease SECTION 3: BENEFIT MDUNTS AND ELIGIBILITY 1. Retirement Date A Mender's Normal Retirement Date shall be the first day of the nonth coincident with, or next following, attainment of his Sixty -Fifth (65) birthday. A Member may retire on his Normal Retirement Date or on the first day of any month thereafter, and each Member shall become 100% rested in his accrued benefit on his Normal Retirement Date. 2. Retirement Benefit A Member retiring hereunder on or after his Normal Retirement Date shall receive a monthly benefit which shall commence on his Retirement Date and be continued hereafter during his lifetime, ceasing upon death. The Member's annual Pension Benefit shall equal 2% of Final Average Earnings multiplied by the Member's credited service for the first Ttaenty (20) years of credited service and one (1%) percent for each year of credited service thereafter. 3. Late Retirement A participant who retires after his Normal Retiieuttmt Date shall be paid the monthly benefit otherwise payable to the participant at his Normal Retirement Date increased by using the benefit formula for Normal Retirement together with consideration of his additional years or fractional parts of years of Credited Service and final average earnings. 4. Early Retirement A Member may retire after age 55. If a member does retire early, his or her pension shall be actuarially reduced. 5. Pre -Retirement Death If a member is age 55 and has 5 years of continuous service and dies prior to normal retirement date, a pension benefit of 50% of the amount the 3 member would have been entitled to, actuarially reduced for early retiraiut, shall be paid to the surviving beneficiary for as long as the beneficiary shall live. Such amount shall be based on the amount payable under the 50% joint and survivor option, reduced actuarially to the age of the beneficiary. 6. Termination of Employment A participant who terminates his employment for reason other than death or retirement shall be entitled to a deferred monthly retirement benefit comm- encing at his normal retirement date equal to the product of his vested per- centage, as determined from the following schedule, and his accrued benefit: Credited Service Vested Percentage Less than 5 0% 5 but less than 5 50% 7 but less than 9 75% 9 or more 100% SECTION 4: NORMAL AND OPTIONAL FORMS OF BENEFITS 1. The normal form of retirement benefit is a monthly benefit for life. 2. Each nember entitled to a normal or early retitenait benefit shall have the right at any time prior to the date on which benefit payments begin to elect to have this benefit payable under any of the options hereinafter set forth in lieu of such benefits and to revoke any such elections and make a new election at any time prior to the actual beginning of payments. The value of optional benefits shall be the actuarial equivalent of the value of benefits other- wise payable. The neuber shall make such an election by written request to the Board, such request being retained in the Board's files. Option 1 - Joint and Last Survivor option The member may elect to receive a benefit during his lifetime and have such benefit (or a designated fraction thereof) continued after his death to and during the lifetime of his designated beneficiary. The minimum joint and survivor percentage shall be 50%, reduced actuarially to the age of the beneficiary. The election of Option 1 shall be null and void if the designated beneficiary dies before the nember's benefit payments commence. Option 2 - Life Annuity With Ten Years Certain The nember may elect to receive a monthly benefit for one hundred and twenty monthly payments certain. In the event the member dies after his retirement but before he has received retirement benefits for a period of ten (10) years, the same monthly benefit will be paid to the beneficiary (or beneficiaries) as designated by the nember for the balance of such ten (10) year period or, if no beneficiary is 4 designated, to the surviving spouse, or estate of the member. Option 3 - Other In lieu of the optional forms enumerated in this section, benefits may be paid in any form approved by the Board so long as it is the actuarial equivalent of the benefits otherwise payable. Option 4 - Social Security Adjustment Option If a member retires before being eligible for Social Security benefits, he or she nay elect an option to receive a larger pension up to the date he or she begins receiving Social Security benefits. The member's pension benefits shall be appropriately reduced after social security payments begin. The amount of re- duction shall be actuarially determined by the actuary. SECTION 5: VILLAGE CONTRIBUTIONS 1. So long as this system is in effect, the Village shall make a contri- bution to the Trust Fund in an amount equal to the total cost for the year as shown by the most recent actuarial valuation of the system. The total cost for any year shall be defined as the total normal cost plus the additional amount sufficient to amortize the unfunded accrued past service liability over a forty (40) year period. 2. Other. Private donations, gifts and contributions may be deposited to the Fund, but such deposits must be accounted for separately and kept on a segregated bookkeeping basis. Funds from these sources may be used only for additional benefits for members, as determined by the Board, and may not be used to reduce required Village contributions. SECTION 6: RETIREMENT BOARD - ESTABLISHMENT A. There is hereby created a General Employees RetiL.enent Board of the Village which shall consist of five (5) members. TWo (2) members of the Board shall be employees of the Village of North Palm Beach. The employee members shall be elected at large by fulltime Village employees who are not firemen or policemen. Employees who are elected cannot work in the same departments of the Village. The term of service of employees on the General Retirement Board shall be indefinite or until the time such employee member of the retirement board is retired, disabled, resigns, terminates Village employment or is removed for misconduct by majority vote of the said employees or the Council of the Village of North Palm Beach or for non -participation by missing two (2) or more consecutive meetings. The election to the Board shall be arranged by the Village Clerk, who shall give reasonable notice of the election to the 5 1 eligible voters. One (1) member of the General Retirement Board shall be a resident of the Village of North Palm Beach, selected by the Village Council, one (1) member shall be the Village Manager and one (1) number shall be the Village Mayor who shall serve as non -voting Chairman except in case of a tie vote of the Retirement Board. The Mayor may designate another nether of the Village Council to serve in his place fLum time to time. B. Should a vacancy occur in the position of a nen:ber serving as an employee number, the Village of North Palm Beach employees shall within thirty (30) days hold an election and elect a successor to serve. Should the member appointed by Village Council resign or relinquish his duties on the General Retirement Board, his successor shall be appointed by the Village Council within thirty (30) days. C. The Retirement Board hereby created shall perform all duties and enjoy all rights and powers vested by law or Ordinance, and the Village Attorney may give advice and legal assistance to said Retirement Board in all matters pertaining to the performance of their duties, whenever requested, and may pro- secute and defend all suits which may be instituted by or against it; provided, however, the Retirement Board may, in its discretion, employ independent legal counsel for such purposes, if funded by the Village Council, the expense of such employment to be paid by the Village of North Palm Beach. D. The RetiLen nt Board shall have full authority to administer all the provisions of this Ordinance and shall cause all disbursements and receipt for all monies received by the Fled through the office of the Village Treasurer. The Retirement Board shall appoint a secretary who shall keep a complete record of all actions and proceedings by the Board. E. The Retirement Board shall continue to exist exclusively for the purpose provided by this and related legislation, and the responsibility for the administration and proper operation thereof and for effectuating the provisions of the law relating thereto, is vested in the said Retirement Board. SECTION 7: ADDITIONAL RULES AND REGULATIONS AUTHORIZED Said Retirement Board shall have the pacer to adopt rules and regulations, not inconsistent with the provisions of this act, governing its activities and providing for the certification of the sum to be paid a retired nember from the General Retirement Fled. 6 SECTION 8: INVESTING FUNDS; CUSTODIAN OF SECURITIES A. The Retirement Board shall have the power and authority to direct the Village Treasurer to invest and reinvest the assets of the General RetiL.etieut Fund in a manner consistent with laws and statutes governing the investment of the Village of North Palm Beach funds. B. The Village of North Palm Beach, or its designated funding agent, shall be the custodian of all securities, and the accretion thereof shall become a part of the General Retirement Fund. A11 funds and securities of the General Retirement Fund shall be deposited with the Village Treasurer, who shall keep them in a separate fund, and shall be liable for the safekeeping of the same under the bond given to the Village and shall be liable in the same manner and to the same extent as is liable for the safekeeping of the funds of the Village as provided for by law. All funds now held by the Village of North Palm Beach for this retirement system are hereby transferred to the Fund established by this act. SECTION 9: OATHS OF OFFICE; MEETINGS: QUORUM Before entering upon their duties as members of said Board, each ueuber shall take and subscribe to the oath of office required by the Village Charter, which oath shall be filed with the Village Clerk. The Board shall meet as often as necessary or upon the call of the Chairman or any member thereof or upon request of the Village Clerk. A majority of the Board shall constitute a quorum for the trans- action of any business. Notice of meetings shall be given to Council and the public at least seven (7) days in advance. SECTION 10: REPEAL OR TERMINATION OF SYSTEM 1. This Ordinance establishing the System and Fund, and subsequent Ordin- ances pertaining to said System and Fund, may be modified, terminated or amended in whole or in part; provided that if this or any subsequent Ordinance shall be artnded or repealed in its application to any person benefiting hereunder, the amount of benefits which at the time of any such alteration, amendment or repeal shall have accrued to the Member or Beneficiary shall not be affected thereby, except to the extent that the assets of the Fund may be determined to be inadequate. 2. If this Ordinance is repealed and not superseded by another Pension Plan, or if contributions to the System are discontinued, the Board shall continue to administer the System in accordance with the provisions of the Ordinance, for the sole benefit of the then Members, any Beneficiaries then receiving retirement allowances, and any future persons entitled to receive benefits under one of the options provided for in this Ordinance who are designated by any of said Members. 7 In the event of such repeal, or if contributions to the System are discontinued, there shall be full vesting (100%) of benefits on a proportionate basis to the person entitled to benefits in accordance with the provisions thereof. 3. The following shall be the order of priority for purposes of allo- cating the assets of the System as of the date of such repeal of this Ordin- ance, or if contributions to the System are discontinued with the date of such discontinuance being determined by the Board. A) Apportionment shall first be made in respect of each retired Member receiving a benefit or each person receiving a benefit on such date on account of a retired (but since deceased) Member, and each Member who has, by such date, become eligible for Normal Retirement but has not yet retired, an amount which is the actuarial equivalent of such benefit, based upon the actuarial assumption used for purposes of the most recent actuarial valuation, provided that, if such asset value be less than the aggregate of such amounts, such amounts shall be proportionately reduced so that the aggregate of such reduced amounts will be equal to such asset value. B) If there be any asset value remaining after the apportionment under subparagraph A, apportionment shall next be made in respect of each Member in the Service of the Village on such date who has completed at least ten years of Credited Service and who is not entitled to an apportionment under subparagraph A, in the amount required to provide the actuarial equivalent, as described in A above, of the actuarial Normal Retirement Benefit, based on the Credited Service and Average Monthly Earnings as of such date, and each vested former Member then en- titled to a deferred benefit who has not, by. such date, begun receiving benefit payments, in the amount required to provide said actuarial equivalent of the accrued Normal Retirement Benefit, provided that, if such remaining asset value be less than the aggregate of the amounts apportioned hereunder, such latter amounts shall be proportionately reduced so that the aggregate of such amounts will be equal to such remaining asset value. C) If there be any asset value after the apportionments under subparagraph A and B, apportionment shall be made in respect of each Member in the service of the Village on such date who is not entitle to an apportionment under subparagraphs A and B in the amount equal to his accumulated benefits, provided that, if such remaining asset value be leee than the aggregate of the amounts apportioned here- under such latter amounts shall be proportionately reduced so that the aggregate of 8 such reduced amounts will be equal to such remaining asset value. D) If there be any asset value remaining after the apportionments under subparagraphs A, B and C, apportionments shall lastly be made in respect of each Member included in subparagraph C above to the extent of the actuarial equiva- lent, as described in A above, of the accrued Normal Retirement Benefit, less the amount apportioned in subparagraph C, based on the Credit Service and Average Monthly Earnings as of such date, provided that, if such remaining asset value be less than the aggregate of the amounts apportioned hereunder, such °mounts shall be reduced so that the aggregate of such reduced amounts will be equal to such remaining asset value. 4. After all the vested and accrued benefits provided hereunder have been paid and after all other liabilities have been satisfied, then and only then shall any remaining funds revert to the general fund of the Village. SECTION 11: MISCELLANEOUS 1. Discharged Members. Members entitled to a pension as approved by the Pension Board, shall not forfeit the same upon dismissal from the Village, but shall be retired as herein described. 2. Non -Assignability. No benefit provided for herein shall be assignable or subject to garnishment for debt or for other legal process. 3. Pension Validity. The Board of Retirement shall have the power to examine into the facts upon which any pension shall heretofore or hereafter have been granted or obtained to determine if such Pension was granted erroneously, fraudulently, or illegally for any reason. Said Board is empowered to purge the pension rolls of any person heretofore or hereafter granted a pension under prior or existing law or heretofore granted under this Ordinance if the same is found to be erroneous, fraudulent or illegal for any reason; and to reclassify any pensioner who has heretofore under any prior or existing law or who shall here- after under this Ordinance be erroneously, improperly, or illegally classified. 4. Inconpentents If any Metter or Beneficiary is a minor or is, in the judgment of the Board, otherwise incapable of personally receiving and giving a valid receipt for any payment due him under the System, the Board may, unless and until claims shall have been made by a duly appointed guardian of such person, make such payment or any part to such person's Spouse, children or other person deemed by the Board in its sole discretion to have incurred expense or assumed responsibility for the expenses of such person. Any payment so made shall be a complete discharge of any liability under the System for such payment. 9 SECTION 12: Specific authority is hereby granted to codify and incoporate this Ordinance in the existing Code of Ordinances of the Village of North Palm Beach. SECTION 13: All Ordinances or parts of Ordinances in conflict herewith be and the saire are hereby repealed, including Ordinance No. 10-82, dated June 10, 1982- All funds and assets from that system are hereby transferred to this system and all rights and benefits of Members in that system will be credited to and maintained by this Fund. SECTION 14: 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 affect the validity of the remainder hereto as a whole or part thereof other than the part to be declared invalid. SECTION 15: This Ordinance shall take effective immediately upon passage. I PLACED ON FIRST READING THIS 9th DAY OF December, 1982. PLACED ON SECOND, FINAL READING AND PASSED THIS 13th DAY OF JANUARY, 1983. ATTEST: Village Clerk 1 10 MAYOR