2025-04 Code Amendment - Pension and Other Certain Benefits for Fire and Police EmployeesORDINANCE NO. 2025-04
AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF NORTH
PALM BEACH, FLORIDA AMENDING DIVISION 4, "PENSION AND CERTAIN
OTHER BENEFITS FOR FIRE AND POLICE EMPLOYEES," OF ARTICLE V,
"PENSIONS AND RETIREMENTS SYSTEMS," OF CHAPTER 2,
"ADMINISTRATION," OF THE VILLAGE CODE OF ORDINANCES TO
IMPLEMENT CHANGES TO RETIREMENT BENEFITS RESULTING FROM
COLLECTIVE BARGAINING WITH THE UNION REPRESENTING THE
VILLAGE'S FIREFIGHTER EMPLOYEES (IAFF); PROVIDING FOR
AMENDMENTS AFFECTING THE CALCULATION OF FIREFIGHTER
EMPLOYEES' RETIREMENT BENEFITS WHEN THEY BECOME ELIGIBLE
FOR SAME; INCREASING EMPLOYEE CONTRIBUTION RATES;
CLARIFYING THE ENTRY WINDOW FOR PARTICIPATION IN THE
DEFERRED RETIREMENT OPTION PLAN (DROP); APPLYING THE USE OF
INSURANCE PREMIUM TAX REVENUE TO THE VILLAGE ANNUAL
RETIREMENT CONTRIBUTION; PROVIDING FOR CODIFICATION;
PROVIDING FOR SEVERABILITY; PROVIDING FOR CONFLICTS; AND
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, collective bargaining with the unions that represents the Village's firefighter employees
has been concluded with the ratification of a new Collective Bargaining Agreement by the Village
Council and the bargaining units; and
WHEREAS, the new Collective Bargaining Agreement provides for amendments to the retirement
benefits for firefighters; and
WHEREAS, a majority of bargaining unit employees ratified the Agreement, including the provisions
for increasing employee contributions; and
WHEREAS, the Village Council finds that the retirement benefit amendments hereinafter described
are fully consistent with the new Collective Bargaining Agreement; and
WHEREAS, Village Administration has complied with all conditions precedent to the adoption of a
pension plan amendment as required by Florida Statutes; and
WHEREAS, the Village Council determines that the adoption of this Ordinance is in the interests of
the public health, safety and welfare of the Village and its residents.
NOW, THEREFORE, BE IT ORDAINED BY THE VILLAGE COUNCIL OF THE VILLAGE 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 4, "Pension and Certain Other Benefits for Fire and Police
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Employees," of the Village Code of Ordinance as follows (new language is underlined and deleted
language is stricken through):
Sec. 2-159. Creation of trust and definitions.
Normal retirement date means: f f eaeh member the
For Police Officer members: The first day of the month coincident with
or next following the date on which the Police Officer member attains
age fifty-five (55) or the date on which the member attains age fifty-
two (52) and has twenty-five (25) years of credited service. A Police
Officer member may retire on this normal retirement date or on the first
day of any month thereafter.
For Firefighter members: Effective for retirements on and after April
1, 2025, the first day of the month coincident with or next following
the date on which the Firefighter member attains (1)age fifty-two (52)
years regardless of years of credited service or (2) upon the completion
of twenty-five (25) years of credited service regardless of age. For
retirements prior to April 1, 2025, the normal retirement date meant the
first day of the month coincident with or next following the date on
which the Firefighter member (1) attained age fifty-five 55) years or
(2) the date on which the Firefighter member attained age fifty-two (52)
years and had twenty-five (25) years of credited service. In all cases, a
Firefighter member may retire on this normal retirement date or on the
first day of anv month thereafter.
Sec. 2-161. Benefit amounts.
(a) Normal retirement benefit.
(1) Amount. Each member who retires on or after the member's
normal retirement date shall be eligible to receive a normal
retirement benefit commencing on the member's actual
retirement date. In all cases, the benefit provided for years of
service on and after October 1, 2018 shall be at least 2.75
percent of average monthly earnings per year of service
(provided the member was employed by the village on and after
July 11, 2019). The monthly normal retirement benefit shall be
calculated as follows:
For Police Officer members: An amount equal to the sum of:
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a. two and one-half (tea 2.5) percent of the member's
average monthly earnings multiplied by the member's
credited service prior to October 1, 2018; and
b. two and three-fourths (2,14 2.75) percent for credited
service on or after October 1, 2018 (provided the
member remained employed by the Village as a police
officer on or after July 11, 2019); and
C. three (3.0) percent for credited service on or after
October 1, 2022.
On and after October 1, 2022, a police officer retiree's
maximum monthly pension benefit shall not exceed eighty (80)
percent of the retiree's average monthly earnings as that term is
defined in section 2-159 above; for retirements prior to October
1, 2022, the maximum benefit is seventy-five (75) percent of
average monthly earnings.
For Firefighter members: An amount equal to the sum of-
a.
f
a. two and one-half (2.5) percent of the member's average
monthly earnings multiplied by the member's credited
service prior to October 1, 2018; and
b. two and three-fourths 2.75 percent for credited service
on or after October 1, 2018 (provided the member
remained employed by the Village as a firefighter on or
after July 11, 2019), and
C. three (3.0) percent for credited service on or after
October 1, 2021 for members employed on or after
April 1, 2025.
On and after October 1, 2022, a Firefighter retiree's maximum
monthly pension benefit shall not exceed eighty (80) percent of
the retiree's average monthly earnings as that term is defined in
Section 2-159 above; for retirements prior to October 1, 2022,
the maximum benefit is seventy-five f75)ep rcent of average
monthly earnings.
See. 2-161.1. Firefighter supplement.
Any Firefighter who satisfies the requirements for a normal retirement or is
approved for a duty disability retirement and is separated from employment on
or after April 1, 2025 is entitled to and shall be paid a lifetime monthly
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supplemental benefit equal to fifteen dollars ($15.00) per year of service. This
benefit is payable for the lifetime of the Firefighter member.
(a) Firefighter members in the DROP are not entitled to a supplemental
benefit payment while participating in the DROP, but the years of
service while participating in the DROP shall count as years of service
for purposes of calculating the amount of the supplemental benefit to
be paid to the Firefighter member after separation of employ
Firefighter members may choose to receive the supplemental benefit
under one of the optional forms of benefits in Section 2-162 which will
cause the supplemental benefit to be actuarially adjusted to be
actuarially equivalent to the Firefighter member's lifetime
supplemental benefit.
(c) Firefighter members who retire on an early retirement, a vested
terminated benefit that begins at early or normal retirement, pre-
retirement death benefits whether duty or nonduty, and nonduty
disabilities are not entitled to the supplemental benefit.
Sec. 2-163. Contributions.
(a) Member contributions.
(1) Amount. Members of the plan shall make regular contributions
to the fund as follows: at rate eqal to two (2) pereent E) ft4 F
For Police Officer members only:
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(iv) Effective the first payroll period after October 1, 2020,
the Police Officer member shall contribute seven (7.0)
percent of earnings.
(iivi) Effective the first full payroll after October 1, 2022, the
Police Officer member shall contribute eight and one-
half (8.5) percent of earnings.
(iiivim4) Effective the first payroll after October 1, 2023, the
Police Officer member shall contribute ten (10.0)
percent of earnings; and
(ivv) During participation in the DROP, Police Officer
members shall contribute four (4.0) percent of earnings,
with three (3.0) percent credited to the member's DROP
account and one (1.0) percent applied to the pension
plan unfunded actuarial accrued liability ("UAAL").
For Firefighter members only:
(iii) Effective with the second payroll period following
adoption of Ordinance No. 2019-11, the Firefighter
member contribution shall increase from five (5)
percent of earnings to seven (7.0)ep rcent of earnings.
Qiiv) Effective the first full payroll period after October 1,
2022, the Firefighter member contribution shall
increase from seven (7.0) percent to seven and one-half
(7.5) percent.
(iiiv) Effective the first frill payroll period after October 1,
2023, the Firefighter member contribution shall
increase from seven and one-half (7.5) percent to eight
(8.0) percent.
Qvvi) Effective the first full payroll period after October 1,
2024, the Firefighter member contribution shall
increase from eight (8.0) percent to eight and one-half
(8.5) percent.
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(v) Effective the first payroll period after March 31, 2025,
the Firefighter member contribution shall increase from
eight and one-half (8.5) percent to eleven (11.0) percent.
(vii) During DROP, the Firefighter member shall contribute
four (4.0) percent of earnings, with three (3.0) percent
credited to the member's DROP account and one (1.0)
percent applied to the Pension Plan.
(b) State contributions. Any monies received or receivable by reason of
the laws of the State of Florida for the express purpose of funding and
paying for the benefits of police officers or firefighters shall be
deposited in the fund within the time prescribed by law. Such monies
shall be for the sole and exclusive use of members or may be used to
pay extra benefits for members. Pursuant to the mutual consent
provisions of Sections 175.351 and 185.35, Florida Statutes, the The
State contributions pursuant to Chapters 175/185 are applied to reduce
the Village's annual contribution.
Sec. 2-170.1 Deferred retirement option benefit plan (DROP)
(c) An employee may elect to participate in the DROP provided the
employee makes the election no later than thirty (30) days after
reaching the employee's latest normal retirement date.
Notwithstanding the foregoing, effective April 1, 2025 est
enaetment of this O,.dina ee members must make their initial election
to participate in the DROP by the later of:
(1) Thirty (30) days after reaching their latest normal retirement
date; or
(2) Ninety (90) days after creation of the DROP April 1, 2025.
X X X
Section 3. All other provisions of Division 4 of Article V of Chapter 2 of the Village Code of
Ordinances not expressly amended as set forth above shall remain unchanged by the adoption of the
Ordinance.
Section 4. The provisions of this Ordinance shall become and be made a part of the Code of the
Village of North Palm Beach, Florida.
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Section 5. 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 6. All ordinances or parts of ordinances and resolutions or parts of resolutions in conflict
with this Ordinance are hereby repealed to the extent of such conflict.
Section 7. This Ordinance shall take effect immediately upon adoption.
PLACED ON FIRST READING THIS 13TH DAY OF FEBRUARY, 2025.
PLACED ON SECOND, FINAL READING AND PASSED THIS 27TH DAY OF FEBRUARY, 2025
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MAYOR
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APPROVED AS TO FORM AND
LEGAL SUFFICIENCY:
VILLAGE ATTORNEY
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