HomeMy WebLinkAbout2008-02 GE Pension Plan Amendment•
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ORDINANCE 2008-02
AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF
NORTH PALM BEACH, FLORIDA AMENDING DIVISION 3, "PENSION
AND CERTAIN OTHER BENEFITS FOR GENERAL EMPLOYEES," OF
ARTICLE V, "PENSIONS AND RETIREMENT SYSTEMS," OF CHAPTER 2,
"ADMINISTRATION," OF THE VILLAGE CODE OF ORDINANCES BY
AMENDING SECTION 2-148 TO AUTHORIZE EARLY RETIREMENT FOR
TERMINATED VESTED PARTICIPANTS AND TO CORRECT AND
CLARIFY EXISTING LANGUAGE; PROVIDING FOR CODIFICATION;
PROVIDING FOR SEVERABILITY; PROVIDING FOR CONFLICTS; AND
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the North Palm Beach General Employee Pension Board of Trustees
recommends clarification of the wording concerning the practice of allowing terminated
participants to take early retirement; and
WHEREAS, the Actuary has confirmed that the plan's actuarial valuations take into
account the early retirement of terminated vested participants; and
WHEREAS, the Village Council of the Village of North Palm Beach finds it in the best
interests of the public and employees of the Village to enact such amendments and to make
minor corrections and clarifications to existing language.
NOW, THEREFORE, BE IT ORDAINED BY THE VILLAGE COUNCIL OF NORTH PALM
BEACH, FLORIDA as follows:
Section 1. The foregoing "whereas" clauses are hereby ratified as true and are incorporated herein.
Section 2. The Village Council hereby amends Chapter 2, "Administration," Article V,
"Pensions and Retirement Systems," Division 3, "Pensions and Certain Other Benefits for
General Employees," of the Village Code of Ordinances by amending Section 2-148 to read as
follows (new language is underlined and deleted language is stricken through):
Sec. 2-148. Benefit amounts and eligibility.
(a) Retirement date A member's normal retirement date shall be the first day of
the month coincident with, or next following, attainment of his or her sixty-
fifth birthday and the completion of nine (9) full years of service with the
village. A member may retire on his or her normal retirement date or on the
first day of any month thereafter, and each member shall become one hundred
(100) percent vested in his or her accrued benefit on his normal retirement
date. The normal retirement date described above shall apply only temembers
to members who are hired as general employees from and after the effective
date of this ordinance.
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The normal retirement date for a member who was a general employee of the
village prior to the effective date of this ordinance shall be the first day of the
month coincident with, or next following, attainment of his or her sixty-fifth birthday.
Employees who are vested and eligible to retire shall have the right to file a
written election to be considered retired on the day before death if such
employee should die prior to retirement. If an employee who is vested and
eligible to retire dies prior to retirement without making the foregoing
election, the election can be made by the employee's beneficiary previously
designated in the village records.
(b) 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 thereafter during his lifetime, ceasing upon
death. The member's annual pension benefit shall equal two (2) percent of
final average earnings multiplied by the member's credited service for the first
twenty (20) years of credited service and one (1) percent for each year of
credited service thereafter.
(c) Late retirement. A participant who retires after his normal retirement 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.
(d) Early retirement. A member or a terminated vested narticinant may retire
after age fifty-five (55) and shall receive vested accrued benefit. If a member
does retire early, his or her pension shall be actuarially reduced for early retirement.
(e) Preretirement death.
(1) If a participant who is no longer an employee of the village dies prior
to the normal retirement date and has attained age fifty-five (55) and had
five (5) years of credited service, a pension benefit of fifty (50) percent of
the amount the participant would have been entitled to, actuarially reduced
for early retirement, 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 fifty (50) percent joint and survivor option, reduced
actuarially to the age of the beneficiary.
(2) If a member dies prior to the normal retirement date and -is -then while
still employed by the village and has five (5) years of credited service,
such member regardless of age shall receive pension benefits as set forth
in subsection (3).
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(3) The members specified in subsection (2) above shall receive a benefit equal to
the member's vested accrued pension as computed under section 2-148(b)
and shall be payable to the designated beneficiary in equal, consecutive
monthly installments over ten (10) years. The benefit payment specified
herein shall commence upon death of the plan member and approval of the
pension board.
(f) Termination of employment. A participant who terminates his employment
for reason other than death or retirement and who has not opted for early
retirement shall be entitled to a deferred monthly retirement benefit
commencing at his normal retirement date equal to the product of his vested
percentage, as determined from the following schedule, and his accrued benefit:
Credited Service Vested Percentage
Less than 5 0
5 but less than 7 50
7 but less than 9 75
9 or more 100
(g) Refund of contribution. All contributions made by employees whose
employment is terminated for any reason prior to vesting shall receive a
refund of all amounts contributed by the employee to the pension plan without
interest. All contributions made by fully or partially vested employees whose
employment is terminated for any reason shall have the option to receive a
refund of all amounts contributed by the vested employee without interest. If
such option is elected by the fully or partially vested employee, then ,such
employee shall no longer be a part of the pension plan and shall not receive
additional pension benefits.
Section 3. The provisions of this Ordinance shall become and be made a part of the Code of
the Village of North Palm Beach, Florida.
Section 4. If any section, paragraph, sentence, clause, phrase or word of this Ordinance is for
any reason held by a court of competent jurisdiction to be unconstitutional, inoperative or void,
such holding shall not affect the remainder of this Ordinance.
Section 5. All ordinances or parts of ordinances and resolutions or parts of resolutions in
conflict herewith are hereby repealed to the extent of such conflict.
Section 6. This Ordinance shall take effect immediately upon adoption.
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PLACED ON FIRST READING THIS 13th DAY OF DECEMBER. 2007.
PLACED ON SECOND, FINAL READING AND PASSED THIS 10th DAY OF JANUARY. 2008.
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VILLAGE CLERK '/
APPROVED AS TO FORM AND
LEGAL SUFFICIENCY:
VILLAGE ATTORNEY
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