1996-29 P&F Pension Member Contributions•
ORDINANCE NO. 29-96
AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF NORTH PALM BEACH,
FLORIDA, AMENDING SECTION 2-163 (a) RELATING TO MEMBER CONTRIBUTIONS OF
DIVISION 9, PENSION AND CERTAIN OTHER BENEFITS FOR FIRE AND POLICE
F.MPLOYEE5, OF ARTICLE V, PENSIONS AND RETIREMENT SYSTEMS, OF CHAPTER
2 OF THE CODE OF ORDINANCES OF THE VILLAGE; PROVIDING FOR SEVERABILITY;
PROVIDING FOR THE REPEAL OF ALL ORDINANCES OR PARTS OF ORDINANCES IN
CONFLICT HEREWITH; ANll, PROVIDING FOR AN EFFECTIVE DATE.
BE IT ORDAINED BY THE VILLAGE COUNCIL OF NORTH PALM BEACH,
FLORIDA:
Section 1. Subsection (a), Member Contributions, of Section 2-163 of
Division 9, Pension and Certain Other Benefits for Fire and Police Employees, of
Article V, Pensions and Retirement Systems, of Chapter 2 of the Code of
• Ordinances of the Village is hereby amended to read as follows:
"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. The Village shall pick-up, rather than deduct
from each member's pay, beginning with the date of
employment, two (2%) percent of the member's basic
compensation. The mon[es so picked-up shall be deposited in
the Fund on a monthly basis. An account record shall be
maintained continuously for each member. Pick-up
contributions shall continue until death, disability or
termination of service, whichever shall occur first.
Contributions shall remain in the fund unless withdrawn as
provided in the Plan. No member shall have the option to
choose to receive the contributed amounts directly instead of
having them paid by the VHlage directly to the Plan. All such
pick-up contributions by the Village shall be deemed and be
considered as part of the member's accumulated contributions
and subJect to all provisions of the Plan pertaining to
accumulated contributions of members. The intent of this
• provision is to comply with Section 414(h) (2) of the Internal
Revenue Code. For paying Social Security taxes, and for such
other purposes except as specified in this Plan, the amount of
employee contributions "picked-up" or paid by the Village
willbe added to the amount distributed on a current basis in
• order to determine total wages, salary, pay or compensation.
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. Ail 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 419(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 benefits payable under this plan
• are in lieu of a refund of accumulated contributions. In any
event, however, each member shall be guaranteed the payment
of benefits on his behalf at least equal in total amount to his
accumulated contributions."
Section 2. If any section, paragraph, sentence, clause, phrase or word of
this Ordinance is for any reason held by a Court to be unoonstItutional,
inoperative or void, such holding shall not affect the remainder of this
Ordinance.
Section 3. All ordinances or parts of ordinances in conflict herewith are
hereby repealed.
Section 4. This Ordinance shall take effect immediately upon passage.
PLACED ON FIRST READING THIS 11th DAY OF ~u~
1996.
•
PLACED ON SECOND, FINAL READING AND PASSED ON THIS 95th DAY OF
1996.
MAYOR
(VILL.AGF. SEAL)
ATTEST:
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VILLAGE CL RK
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