Ordinance 1982-009 Police & Fire Pension PlanORDINANCE N0. 9-82
AN ORDINANCE OF THE VILLAGE OF NORTH PALM BEACH
ENACTING INTO LAW A PENSION PLAN FOR FIRE AND
POLICE EMPLOYEES OF THE VILLAGE; PROVIDING FOR
AN ORDERLY TRANSFER OF FUNDS TO THE NEW FUND;
PROVIDING FOR THE BENEFITS OF THE FUND; PRO-
VIDING FOR THE FUNDING OF THE FUND; PROVIDING
FOR ADMINISTRATION OF THE FUND; PROVIDING FOR
THE ESTABLISHMENT OF A NEW BOARD OF RETIREMENT;
PROVIDING FOR A SAVINGS CLAUSE; REPEALING ALL
ORDINANCES IN CONFLICT HEREWITH; AND PROVIDING
AN EFFECTIVE DATE.
WHEREAS, the Village of North Palm Beach Fire and Police
Employees are presently provided pension and certain other
benefits, and
WHEREAS, the Village Council is desirous of clarifying and
restating the provisions of the Fire and Police Retirement Fund
in Ordinance form.
NOW, THEREFORE, BE IT ORDAINED BY THE VILLAGE COUNCIL OF
NORTH PALM BEACH, FLORIDA, AS FOLLOWS:
SECTION 1: DEFINITIONS
As used herein, unless otherwise defined or required by
' the context, the following words and phrases shall have the mean-
ing indicated:
1. Village means Village of North Palm Beach, Florida.
2. Agreement means this written Ordinance setting forth
the provisions of the Retirement System.
3. System means the Village of North Palm Beach Fire and
Police Retirement Fund as contained herein and all amendments
thereto.
4. Fund means the Trust Fund established herein as part
of the System.
5. Board means the Board of Retirement, which shall
administer and manage the System herein provided and serve as
' Trustees of the Fund.
6. Employee shall mean all actively employed full-time
Fire and Police Employees of the Village.
7. Member means an actively employed full-time Fire and
Police Employee who fulfills the prescribed participation require-
ments, after twelve (12) months employment, and will become a
participant on the October 1st coincident or next following.
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8. Credited Service means the total number of years and
fractional parts of years of actual service with the Village of
North Palm Beach, beginning after one year of continuous service.
9. Earnings means gross salary, including overtime, but
excluding bonuses, or any other nonregular payments such as unused
sick leave pay or vacation time pay.
10. Final Average Earnings means the arithmetic average
of annual Earnings for the highest five (5) years of the ten (10)
consecutive. years of service immediately preceding the retirement
or termination of a Member.
11. Beneficiary means the person or persons entitled to
receive benefits hereunder at the death of a Member who has or
have been designated in writing by the Member and filed with the
Board. If no such designation is in effect at the time of death
of the Member, or if no such person so designated is living at
that time, the Beneficiary shall be the estate of the Member.
12. Actuarial Equivalent means a benefit or amount of
equal value, based upon the 1971 Group Annuity Mortality Table.
13. S ouse means the lawful wife or husband of a Member
at the time or pre-retirement death or retirement.
14. Effective Date means the date on which this Ordinance
becomes effective. Plan year is from October 1 to September 30.
15. Accrued Benefit is the benefit earned to date using
the Normal Retirement Benefit.
SECTION 2: MEMBERSHIP
1. Conditions of Eligibility
A, All Fire and Police Employees as of the Effective Date,
and all future new Fire and Police Employees, shall become Members
of this System as a condition of Employment.
2. Application for Membership
Each current and future eligible Employee shall
' complete an application form covering certain items, and provide
other information, as follows or may be prescribed by the Board.
A. Acceptance of the terms and conditions of the Retirement
System.
B. Designation of a Beneficiary or Beneficiaries.
C. A certified statement as to prior medical history.
D. A written release allowing distribution of all medical
records to the Board.
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For the purposes of all benefits hereunder, an
Application for Membership shall be considered to have been in
effect from date of employment, even though officially accepted
and approved by the Board at a later date.
3. Change in Designation of Beneficiary
A Member may from time to time change his designated
Beneficiary by written notice to the Board upon forms provided by
the Board. Upon such change, the rights of all previously
designated Beneficiaries to receive any benefits under the System
shall cease.
SECTION 3: BENEFIT AMOUNTS AND ELIGIBILITY
1. Retirement Date
A Member's Normal Retirement Date shall be the first
day of the month coincident with, or next following, the attain-
ment of his sixtieth (60) birthday. A Member may retire on his
Normal Retirement Date or on the first day of any month thereafter,
and each Member shall become 100% vested in his accrued benefit on
his Normal Retirement Date.
2. 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, caesing upon death. The Member's annual Pension
benefit shall equal 2-1/4% of Final Average Earnings multiplied
by the Member's credited service
The maximum benefit is 50% of
Final Average.
3. Late Retirement
A participant who retires after his Normal Retirement
t
Date shall be paid the monthly benefit otherwise payable to the
participant at his Normal Retirement Date increased actuarially to
his actual benefit commencement date.
4. Early Retirement
A Member may retire after age 50. If a Member does
retire early, his or her pension benefits shall be actuarially
reduced.
5. Pre-retirement Death
If a Member is age 55 and has 5 years of continuous
service and has been married for one year and dies prior to
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Normal Retirement Date, a pension benefit of 50% of the amount the
Member would have been entitled to, actuarially reduced for early
retirement, shall be paid to the surviving Spouse for as long as
the Spouse shall ive. Such amount shall be based on the amount
payable under the 50% joint and Survivor option. The Spouse's
pension benefit shall be adjusted for changes in the cost of
living benefit. The cost of this death benefit is to be borne by
the participant in the form of an actuarial reduction in the
participent's or spouse's annuity.
6. Cost of Living
The amount of pension benefit will be increased or
decreased in accordance with the changes in the consumer price
index published by the D.S. Bureau of Labor Statistics. Adjust-
ments of pension payments will be made on October 1st of each year
reflecting the change in the consumer price index over the 12
month period ending three months before that date. The maximum
increase or decrease in the Member's pension benefit for any one
year is 3%. However, the Member's pension benefit can never be
reduced below the amount the Member received at date of retirement.
7. Termination of Employment
A participant who terminates his employment for
reasons other than death or retirement shall be entitled to a
deferred monthly retirement benefit commencing at his Normal
Retirement Date equal to the product of his vested percentage,
as determined from the following schedule and his Accrued Benefit:
Credited Service
Less than 10
10 or more
SECTION 4
Vested Percentage
0%
100%
OPTIONAL FORMS OF BENEFITS
Each Member entitled to a Normal or Early Retirement Benefit
t
shall have the right at any time prior to the date on which
benefit payments begin to elect to have this benefit payable
under any of the Options hereinafter set forth in lieu of benefits
provided herein, and to revoke any such elections and make a new
election at any time prior to the actual beginning of payments.
The value of optional benefits shall be the actuarial equivalent
of the value of benefits otherwise payable. The Member shall make
such an election by written request to the Board, such request
being retained in the Board's files.
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Option 1 - Joint and Last Survivor Option
The Member may elect to receive a benefit during his lifetime and
have such benefit (or a designated fraction thereof) continued
after his death to and during the lifetime of his Spouse or a
relative other than his Spouse. The minimum Joint and Survivor
Percentage shall be 50%. The election of Aption 1 shall be null
and void if the designated Beneficiary dies before the Member's
benefit payments commence.
Option 2 - Life Annuity and Ten Years Certain
The Member may elect to receive a benefit for 120 monthly payments
certain and then continuing thereafter only during the lifetime of
the Member.
Option 3 - Other
In lieu of the optional forms enumerated in this section, benefits
may be paid in any form approved by the Board so long as it is the
Actuarial Equivalent of the benefits otherwise payable.
Option 4 - Social Security Adjustment Option
If a Member retires before being eligible for Social Security
Benefits, he or she may elect this option. A Member may elect to
receive a larger pension up to the date he or she begins receiving
Social Secutiry Benefits. The Member's pension benefits may be
reduced or terminated after Social Security payments begin. The
amount of reduction shall be actuarially determined by the actuary.
SECTION 5: VILLAGE CONTRIBUTIONS
1. Vi11aRe Contributions
So long as this System is in effect, the Village
shall make a contribution to the Trust Fund in an amount, minus
the annual amount received from Chapters 175 and 185 F.S., equal
to the total cost for the year as shown by the most recent
actuarial valuation of the System. The total cost for any year
shall be defined as the total Normal Cost plus the additional
amount sufficient to amortize the Unfunded Accrued Past Service
Liability over a forty (40) year period.
2. Other
Private donations, gifts and contributions may be
deposited to the Fund, but such deposits must be accounted for
separately and kept on a segregated bookkeeping basis. Funds
arising from these sources may be used only for additional
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benefits for Members, as determined by the Board, and may not be
used to reduce what would have otherwise been required Village
contribution.
SECTION 6: RETIREMENT BOARD - ESTABLISHMENT
A. There is hereby created a Retirement Board of the Village
of North Palm Beach, Palm Beach County, consisting of five (5)
members. Four (4) of whom shall be Fire and Police Employees of
the Village of North Palm Beach, two of whom shall be Firefighters,
and two shall be Policemen.
The above mentioned employees shall be elected at large
by the Village Fire and Police Employees. The term of service on
the Fire and Police Retirement Board shall be indefinite or until
such time such Fire and Police Employee Member of the Retirement
Board is retired, disabled, or is removed for misconduct by
majority vote of the Fire and Police Employees of the Village of
North Palm Beach, or not employed, or for non-participation by
missing two (2) or more consecutive regular meetings.
One member of the five on the Fire and Police Retirement
Board shall be a resident of the Village of North Palm Beach and
be selected by the Village Council, who shall be the Chairman of
the Retirement Board.
B. Should a vacancy occur in the Fire and Police Members
serviing as employee Member, the Village of North Palm Beach Fire
and Police Employees shall within thirty (30) days hold an
election and elect a successor to serve. Should the member
appointed by Village Council resign or relinquish duties on the
Fire and Police Retirement Board, his successor shall be appointed
by the Village Council within thirty (30) days.
C. The Retirement Board hereby created shall perform all
duties and enjoy all rights and powers vested by law or ordinance,
and the Village Attorney of said Village may give advice and
legal assistance to said Retirement Board in-all matters pertaining
to the performance of their duties, whenever requested, and may
prosecute and defend all suits which may be instituted by or
against it; provided, however, the Retirement Board may, in their
discretion, employ independent legal counsel for such purposes,
the expense of such employment to be paid by the Village of North
Palm Beach, providing said expense has been funded by the Village
Council,
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D. The Retirement Board shall have full authority to
administer all the provisions of this act and fihall make all
disbursements and receipt for all monies received by the fund.
The Retirement Board shall appoint a secretary who shall keep a
complete record of all actions and proceedings by the Board.
E. The Fire and Police Retirement Board shall continue to
exist exclusively for the purpose provided by this and related
legislation, and the responsibility for the administration and
proper operation thereof and for effectuating the provisions of
the law relating thereto, is vested in the said Retirement Board.
SECTION 7: ADDITIONAL RULES AND REGULATIONS AUTHORIZED
Said Retirement Board shall have the power to adopt rules
and regulations, not inconsistent with the provisions of this
act, governing its activities and providing for the certification
of the sum to be paid from the Fire and Police Retirement Fund.
SECTION 8: INVESTING FUNDS; CUSTODIAN OF SECURITIES
A. The Retirement Board shall have the power and authority
to direct the Village Treasurer to invest and reinvest the assets
of the Fire and Police Retirement Fund.
B
The Villa
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funding agent, shall be the custodian of all securities, and the
accretion thereof shall become a part of the Fire and Police
Retirement Fund. All funds and securities of the Fire and Police
Retirement Fund shall be deposited with the Village, who shall
keep them in a separate fund, and shall be liable for the safe-
keeping of the same under the bond given to the Village and shall
be liable in the same manner and to the same extent as it is
liable for the safekeeping of the funds of the Village as provided
for by law. All funds now held by the Village of North Palm
Beach for this Retirement System are hereby transferred to the
Fund established by this act.
SECTION 9: OATHS OF OFFICE; MEETINGS; QUORUM
Before entering upon their duties as members of said Board,
each member shall take and subscribe to the oath of office
required by the Village Charter, which oath shall be filed with
the Village Clerk. The Board shall meet as often as is deemed
necessary or upon the call of the Chairman or any member thereof
or upon request of the Village Clerk. A majority of the Board
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shall constitute a quorum for the transaction of any business.
Notice of the meetings shall be given to Council and the public
at least (7) days in advance.
SECTION 10: REPEAL OR TERMINATION OF SYSTEM
1. This Ordinance establishing the System and Fund, and
subsequent Ordinances pertaining to said System and Fund, may be
modified, terminated, or amended, in whole or in part; provided
that if this or any subsequent Ordinance shall be amended or
repealed in its application to any person benefiting hereunder,
the amount of benefits which at the time of any such alteration,
amendment, or repeal shall have accrued to the Member or Benefi-
ciary shall not be affected thereby, except to the extent that
the assets of the Fund may be determined to be inadequate.
2. If this Ordinance shall be repealed, or if contribu-
tions to the System are discontinued, the Board shall continue to
administer the System in accordance with the provisions of this
Ordinance, for the sole benefit of the then Members, any
Beneficiaries then receiving retirement allowances and any future
persons entitled to receive benefits under one of the options
provided for in this Ordinance who are designated by any of said
Members. In the event of repeal, or if contributions to the
System are discontinued, there shall be full vesting (100%) of
benefits accrued to date of repeal and the assets of the System
shall be allocated in an equitable manner to provide benefits
on a proportionate basis to the person so entitled to benefits
in ascordance with the provisions thereof.
3. The following shall be the order of priority for
purposes of allocating the a-sets of the System as of the date
of repeal of this Ordinance, or if contributions to the System
are discontinued with the date of such discontinuance being
determined by the Board.
A. Apportionment shall first be made in respect of each
retired Member receiving a retirement or disability benefit
hereunder on such date, each person receiving a benefit on such
date on account of a retired (but since deceased) Member, and
each Member who has, by such date, become eligible for Normal
Retirement but has not yet retired, an amount which is the
actuarial equivalent of such benefit, based upon the actuarial
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assumptions in use for purposes of the most recent actuarial
valuation, provided that, if such asset value be less than the
aggregate of such amounts, such amounts shall be proportionately
reduced so that the aggregate of such reduced amounts will be
equal to such asset value.
B. If there be any asset value remaining after the appor-
tionment under subparagraph A, apportionment shall next be made
in respect of each Member in the Service of the Village on such
date who has completed at least ten years of Credited Service and
who is not entitled to an apportionment under subparagraph A,
in the amount required to provide the actuarial equivalent, as
described in A above, of the accrued Normal Retirement Benefit,
based on the Credited Service and Average Monthly Earnings as
of such date, and each vested former Member then entitled to a
deferred benefit who has not, by such date, begun receiving
benefit payments, in the amount required to provide said
actuarial equivalent of the accrued Normal Retirement Benefit,
provided that, if such remaining asset value be less than the
aggregate of the amounts apportioned hereunder, such latter
amounts shall be proportionatel
reduced so th
t th
y
a
e aggregate
of such amounts will be equal to such remaining asset value.
C. If there be any asset value after the apportionments
under subparagraph A and B, apportionment shall be made in
respect of each Member in the service of the Village on such date
who is not entitled to an apportionment under subparagraphs A
and B in the amount equal to his accumulated benefits, provided
that, if such remaining asset value be less than the aggregate
of the amounts apportioned hereunder such latter amounts shall
be proportionately reduced so that the aggregate of such reduced
amounts will be equal to such remaining asset value.
D. If there be any asset value remaining after the
apportionments under subparagraphs A, B and C, apportionments
shall lastly be made in respect of each Member included in sub-
paragraph C above to the extent of the actuarial equivalent, as
described in A above, of the accrued Normal Retirement benefit,
less the amount apportioned in subparagraph C, based on the
Credited Service and Average Monthly Earnings as of such date,
provided that, if such remaining asset value be less than the
aggregate of the amounts apportioned hereunder, such amount
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shall be reduced so that the aggregate of such reduced amounts
will be equal to such remaining asset value.
4. After all the vested and accrued benefits provided
hereunder have been paid and after all other liabilities have
been satisfied, then and only then shall any remaining funds
revert to the general fund of the Village.
SECTION 11: MISCELLANEOUS
1. Discharged Members. Members entitled to a pension
as approved by the Pension Board shall not forfeit the same upon
dismissal from the Department, but shall be retired as herein
described.
2. Non-Assignability. No benefit provided for herein
shall be assignable or subject to garnishment for debt or for
other legal process.
3. Pension Validity. The Board of Retirement shall
have the power to examine into the facts upon which any pension
shall heretofore have been granted or obtained erroneously,
fraudulently, or illegally for any reason. Said Board is
empowered to purge the pension rolls of any person heretofore
granted a pension under prior or existing law or heretofore
granted under this Ordinance if the same is found to be erroneous,
fraudulent or illegal for any reason; and to reclassify any pen-
sioner who has heretofore under any prior or existing law or
who shall hereafter under this Ordinance be erroneously, improp-
erly, or illegally classified.
4. Incompetents. If any Member or Beneficiary is a
minor or is, in the judgement of the Board, otherwise incapable
of personally receiving and giving a valid receipt for any payment
due him under the System, the Board may, unless and until claims
shall have been made by a duly appointed guardian or committee
of such person, make such payment or any part to such person's
Spouse, children or other person deemed by the Board in its sole
discretion to have incurred expenses or assumed respo nsibility
for the expenses of such person. Any payment so made shall be a
complete discharge of any liability under the System for such
payment.
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SECTION 12:
Specific authority is hereby granted to codify and
incorporate this Ordinance in the existing Code of Ordinances
of the Village of North Palm Beach.
SECTION 13:
All Ordinances or parts of Ordinances in conflict herewith
be and the same are hereby repeal-d.
SECTION 14:
That should any section or provision of this Ordinance or
any portion thereof, any paragraph, sentence or word be declared
by a court of competent jurisdiction to be invalid, such decision
shall not affect the validity of the remainder hereto as a whole
or part thereof other than the part to be declared invalid.
SECTION 15:
This Ordinance shall take effect immediately upon passage.
PLACED ON FIRST READING THIS 10TH DAY OF JUNE, 1982.
PLACED ON SECOND, FINAL READING AND PASSED THIS 10TH DAY OF
JUNE, 1982..
MAYOR
ATTEST:
VILLAGE CLERK