1996-12 Amends Gen. Employees Pension Plan
ORDINANCE NO. ]7_96
AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF NORTH PALM
BEACH, FLORIDA, AMENDING THE DEFINITION OF "ACTUARIAL EQUIVALENCE
OR ACTUARIALLY EQUIVALENT" SET FORTH IN SECTION 2-146 OF DIVISION
3, PENSION AND CERTAIN OTHER BENEFITS FOR GENERAL EMPLOYEES, OF
ARTICLE V OF CHAPTER 2 OF THE CODE OF ORDINANCES OF THE VILLAGE;
CREATING A NEW SECTION 2-158 ENTITLED "OPTIONAL BENEFIT PLAN"
PROVIDING FOR AN OPTIONAL BENEFIT PLAN FOR EXISTING AND NEW
EMPLOYEES OF THE VILLAGE AND EMPLOYEE CONTRIBUTIONS THEREFORE;
PROVIDING FOR SEVERABILITY; PROVIDING FOR THE REPEAL OF ALL
ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT HEREWITH; AND,
PROVIDING FOR AN EFFECTIVE DATE.
• BE IT ORDAINED BY THE VILLAGE COUNCIL OF NORTH PALM BEACH,
FLORIDA:
Section 1. The term "actuarial equivalence or actuarially
equivalent" in Section 2-146 of Division 3, Pension and Certain
Other Benefits for General Employees, of Article V of Chapter 2 of
the Code of Ordinances of the Village is hereby amended to read as
follows:
"Actuarial equivalence or actuarially equivalent means
that any benefit payable under the terms of this plan in
a form other than the normal form of benefit shall have
the same actuarial present value on the date payment
commences as the normal form of benefit. For purposes of
establishing the actuarial present value of any form of
payment, other than a lump sum distribution, all future
payments shall be discounted for interest and mortality
by using eight (8) percent interest and the 1983 group
annuity mortality table for males with ages set ahead
five (5) years in the case of disability retirees. In
the case of a lump sum distribution, the actuarial
present value shall be determined on the basis of the
same mortality rates as just described and the pension
benefit guaranty corporation's interest rates for
• terminating single employer plans which rates are in
effect on the October 1 immediately preceding the
member's date of termination."
Section 2. There is hereby created a new Section 2-158
entitled "Optional Benefit Plan" to Division 3, Pension and Certain
Other Benefits for General Employees, of Article 5 of Chapter 2 of
the Code of Ordinances of the Village and to read as follows:
"Sec. 2-158. Optional benefit plan.
(a) Applicability to employees. The optional benefit
plan shall apply to all employees hired subsequent to the
effective date of this Ordinance and to all existing
employees of the Village at the effective date of this
Ordinance who elect in writing to be a part of this
Optional Benefit Plan within thirty (30) days from the
effective date of this Ordinance. Existing employees of
the Village at time of passage of this Ordinance who do
not elect to be covered under the optional plan within
said thirty (30) day period shall continue to be covered
under the existing benefit plan for general employees.
(b) 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 sixtieth 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 to members who are hired
as general employees from and after the effective date of this
ordinance.
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 sixtieth birthday.
(c) 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 and one
quarter (2 1/4) 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.
• (d) Member contributions.
(1) Amount. Members of the plan shall make regular
• contributions to the fund at a rate equal to two (2)
percent of their respective earnings.
(2) Duration. Contributions shall be deducted from such
earnings before the same are paid until the member has
reached his actual retirement date or his termination
date whichever occurs first. Member contributions
shall be deposited in the fund on at least a monthly
basis. In the event that the employer agrees to assume
and pay member contributions in lieu of direct
contributions by the member, such contributions shall
accordingly be paid into the plan on behalf of the
members. No member subject to such agreement shall
have the option of choosing to receive the contributed
amounts directly instead of having them paid by the
employer directly to the plan. All such contributions
by the employer shall be deemed and considered as part
of the member's accumulated contributions and subject
to all provisions of this plan pertaining to
accumulated contributions of members. The intent of
this language is to comply with section 414(h)(2) of
the Internal Revenue Code.
(3) Interest. Interest shall be credited to member
contributions as of September 30 of each year at a rate
• equal to the change in the consumer price index,
published by the U.S. bureau of Labor Statistics, over
the twelve-month period ending on the previous June 30.
The maximum rate for any year shall be seven (7)
percent and the minimum rate shall be zero (0) percent.
(4) Guaranteed refund. All contributions made by employees
whose employment is terminated prior to vesting shall
receive a refund of all amounts contributed by the
employee together with interest at a rate equal to
the Consumer Price Index, published by the U.S. Bureau
of Labor Statistics in effect during the year or years
of employee contributions or seven (7) percent per
annum, whichever is less."
(e) The board shall have the power and authority to recommend
an increase or decrease in the benefits payable hereunder,
through the adoption of an amendment to this Article, but
provided such action is based on an actuarial review by an
enrolled actuary who is a member of the Society of Actuaries.
(f) All portions of Division 3, Pension and Certain Other
Benefits for General Employees, of Article V of Chapter 2 of
the Code of Ordinances that are not in conflict with this
Section 2-158 shall have full applicability to this Optional
• Benefit Plan.
Section 3. If any section, paragraph, sentence, clause,
• phrase or word of this Ordinance is for any reason held by a Court
to be unconstitutional, inoperative or void, such holding shall not
affect the remainder of this Ordinance.
Section 4 All ordinances or parts of ordinances in conflict
herewith are hereby repealed.
Section 5 This Ordinance shall take effect immediately upon
passage.
PLACED ON FIRST READING THIS 14th DAY OF
March
1996.
• PLACED ON SECOND, FINAL READING AND PASSED ON THIS 28th
March 1996.
DAY OF
MAYOR
(VILLAGE SEAL)
ATTEST:
• VILLAGE CLERK ~-