2005-27 Amends General Employee Pension FPEORDINANCE 27-2005
AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF NORTH PALM
BEACH, FLORIDA, AMENDING VARIOUS SECTIONS OF DIVISION 3, PENSION
AND CERTAIN OTHER BENEFITS FOR BARGAINING UNIT EMPLOYEE GROUP
PARTICIPANTS OF THE VILLAGE GENERAL EMPLOYEE PENSION PLAN, OF
ARTICLE V, PENSIONS AND RETIREMENT SYSTEMS, OF CHAPTER 2 OF THE
CODE OF ORDINANCES OF THE VILLAGE; AMENDING SECTION 2-146,
DEFINITIONS, BY CHANGING THE ACTUARIAL PRESENT VALUE OF LUMP SUM
DISTRIBUTIONS; AMENDING SECTION 2-158.1, OPTIONAL BENEFIT PLAN NO. 2,
TO PROVIDE THAT THE COST OF LIVING ADJUSTMENT (COLA) SHALL NOT
APPLY TO LUMP SUM CALCULATIONS FOR BARGAINING UNIT EMPLOYEES
HIRED BY THE VILLAGE SUBSEQUENT TO THE EFFECTIVE DATE OF THIS
ORDINANCE; 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. Section 2-146, Definitions, of Division 3, Pension and Certain Other Benefits for
General Employees, of Article V, Pensions and Retirement Systems, of Chapter 2 of the Code of
Ordinances of the Village is hereby amended by amending the definition for "actuarial
equivalence or actuarially equivalent" and to read as follows:
"Section 2-146. Definitions.
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. For
bargaining unit employee group participants and General Employee group
participants, the actuarial present value shall be a fixed interest rate of 5.25%. "
Section 2. Section 2-146, Definitions, of Division 3, Pension and Certain Other Benefits for
General Employees, of Article V, Pensions and Retirement Systems, of Chapter 2 of the Code of
Ordinances of the Village is hereby amended by adding a definition for "assumed rate of return"
and to read as follows:
"Section 2-146. Definitions.
Assumed rate of return. The assumed rate of return for calculation of
annual pension costs shall be eight (8%) percent fixed."
Section 3. Section 2-158.1, Optional benefit plan No. 2, of Division 3, Pension and Certain
Other Benefits for General 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:
"Section 2-158.1. Optional benefit plan No. 2.
Cost of living adjustment. The amount of pension benefit will be
increased or decreased in accordance with the changes in the consumer price
index published by the U.S. Bureau of Labor Statistics. Adjustments of pension
payments will be made on October 1 of each year reflecting the change in the
consumer price index over the 12-month period ending April 1 of that year. The
maximum increase or decrease in the member's pension benefit for any one (1)
year is three (3) percent. However, the member's pension benefit can never be
reduced below the amount the member received at date of retirement. Such
adjustments shall apply to each retirement, survivor or disability benefit in pay
status as of each October 1.
This provision is mandatory for all employees hired after the effective date
of this section and such employees shall contribute two (2) percent of their salary
for this benefit. The cost of living adjustment and contribution of salary as
specified in this section shall be optional with all employees who were hired prior
to the effective date of this ordinance.
The cost of living adjustment (COLA) set forth herein shall apply to all
forms of benefits set forth in sections 2-148, 2-149 and 2-158 of the Code of
Ordinances of the Village. For General Employee group members and bargaining
unit employee group participants, the cost of living adjustment (COLA) shall not
apply to lump sum calculations for employees hired by the Village subsequent to
the effective date of this Ordinance."
Section 4. 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 5. All Ordinances or parts of Ordinances in conflict herewith are hereby repealed.
Section 6. This Ordinance shall take effect immediately upon passage.
PLACED ON FIRST READING THIS 22nd DAY OF SEPTEMBER, 2005.
PLACED ON SECOND, FINAL READING AND PASSED THIS 29th DAY OF
SEPTEMBER, 2005.
(`tillage "peal)
ATTEST:
VILLAGE CLERK