2025-16 Code Amendment- Pension and Certain Other Benefits for Fire and Police EmployeesORDINANCE NO. 2025-16
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 BY AMENDING SECTION 2-170.1 TO IMPLEMENT
CHANGES TO THE DEFERRED RETIREMENT OPTION PLAN RESULTING
FROM MEMORANDUMS OF UNDERSTANDING WITH THE COLLECTIVE
BARGAINING AGENTS REPRESENTING POLICE OFFICER AND
FIREFIGHTER EMPLOYEES; PROVIDING FOR CODIFICATION;
PROVIDING FOR SEVERABILITY; PROVIDING FOR CONFLICTS; AND
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the Village sponsors a retirement plan for its police officer and firefighter employees
known as the Village of North Palm Beach Fire and Police Retirement Fund, which is administered
by a Board of Trustees; and
WHEREAS, the Village and the collective bargaining agents representing the police officer and
firefighter employees (Palm Beach County Police Benevolent Association, Inc. and the
Professional Firefighters/Paramedics of Palm Beach County, Local 2928, IAFF, respectively) have
each agreed to a memorandum of understanding to extend the Deferred Option Benefit Plan from
five to eight years; and
WHEREAS, the Village Council wishes to amend the Plan to incorporate this change and
determines that the adoption of this Ordinance is in the interest 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 ratified as true and 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 Employees," of the Village Code of Ordinances by amending Section 2-170.1 to read as
follows (additional language is underlined and deleted language is str-ic e through):
x x x
See. 2-170.1. Deferred option benefit plan (DROP).
(a) Effective October 24, 2019 upon the adoption of the Ordin n ffeFfl i, i,
this etion deft e , a Deferred Retirement Option Plan ("DROP") benefit
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is created and added to the Plan and shall be available to employees upon
reaching their normal retirement date.
(b) Upon entry into the DROP, an employee is considered retired for pension
plan purposes.
(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, 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 April 1, 2025.
(d) An election to participate in the DROP must be made in writing and shall
become irrevocable thirty (30) days following the date it is received by the
Pension Administrator and the Village's Director of Human Resources.
(e) Effective December 11, 2025, an employee who elects to participate in the
DROP may participate in the plan for a maximum of ninetv-six (96) months.
An employee who entered the DROP before December 11, 2025 emits to
partes could participate in the DROPyui �i p ftieipate i the pla for a
iiau
maximum of sixty (60) months. The application to enter into the DROP
shall include an irrevocable letter of resignation effective upon the last day
of DROP participation. Employees who participate in the DROP may elect
to terminate their participation prior to ninety-six (96) si-3ty (60) months of
participation, but may not continue participation beyond ninety-six(96)
sixty (60) months from the date of entry into the DROP. All DROP
participants who are actively employed and in the DROP on December 11
2025 can elect into the ninety (96) month DROP by completing and
filing a form with the Board making that election within 90 days of the
adoption of the Ordinance creating the ninety-six (96) month DROP.
(f) An eligible employee who elects to participate in the DROP shall have the
employee's benefit calculated based on credited service, multiplier, and
average monthly earnings determined as of the effective date of the
employee's election to participate in the DROP. No further credited service,
benefit changes, or changes in earnings shall be considered for pension
purposes.
(g) After entering the DROP, a participant shall not be eligible for disability or
pre -retirement death benefits under the Plan. This provision is not intended
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to limit entitlement to any statutory line of duty death benefit under state or
federal law.
(h) A DROP account shall be established for each employee who elects to
participate. These are not actual accounts; rather they are nominal accounts
and balances kept as a bookkeeping process.
(i) During the period of the employee's participation in the DROP, the
employee's normal retirement benefit shall be accounted for in the
employee's DROP account.
(j) The employee's DROP account shall be invested with the retirement plan
assets and credited with the overall net (earnings less costs) investment rate
of return on the retirement plan assets during the period of the employee's
participation in the DROP and the crediting rate will be no less than zero
(0) percent and no more than 6.40 percent.
(k) At the conclusion of the employee's participation in the DROP, and as a
condition of participating in such plan, the employee will terminate Village
employment. The retiree will thereafter receive a normal monthly
retirement benefit as previously calculated upon entry into the DROP, but
the monthly amount will be paid to the retiree and no longer accounted for
in the DROP account. If the employee does not terminate participation in
the DROP at the end of the sixty (60) month employee'smaximum
participation period (sixty(60) or ninety-six (96) months, as applicable), no
earnings shall be credited on the DROP balance and no further DROP
deposits shall be made.
(1) No amount can be paid from the retirement plan until the DROP employee
terminates employment.
(m) Upon termination, the retiree's DROP account will be distributed to the
retiree in a lump sum, which can be rolled over or paid in cash at the retiree's
discretion. Direct rollover may be accomplished by any reasonable means
determined by the Board.
(n) If a retiree dies before distribution of the retiree's DROP account
commences, the account balance shall be distributed to the retiree's
designated beneficiary in a lump sum, which can be rolled over or paid in
cash at the beneficiary's discretion.
(o) Distribution of an employee's DROP account shall begin as soon as
administratively practicable following the employee's termination of
employment. The employee must elect the distribution within forty-five
(45) days following the employee's termination date. If the employee does
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not timely request the withdrawal of the asset M the DROP, no further
earnings shall be credited on the DROP balance.
(p) Any form of payment selected by the employee must comply with the
minimum distribution requirements of the IRC 401(A)(9), i..,
111UJL eammenee by age seventy
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
this Ordinance.
Section 4. The provisions of this Ordinance shall become and be made part of the Code of the
Village of North Palm Beach, Florida.
Section 5. If any action, paragraph, sentence, clause, phrase, or word of this Ordinance is for
any reason held be a court of competent jurisdiction to be unconstitutional, inoperative, or void,
such holding shall not affect the remainder of this Ordinance.
Section 6. This Ordinance shall be effective immediately upon adoption.
PLACED ON FIRST READING THIS 23RD DAY OF OCTOBER, 2025.
PLACE RrND, FINAL READING AND PASSED THIS 11TH DAY OF DECEMBER, 2025
o�•NoyA9 ".
('e Seal))
g: FLO�tIDA;p7 MAYOR
ATT
VILLAGE -CLERK
APPROVED AS TO FORM AND
LEGAL SUFFICIENCY:
VILLAGE ATTORNEY
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