Ordinance 1982-010 General Employees Pension Plan
ORDINANCE NO. 10-82
AN ORDINANCE OF THE VILLAGE OF NORTH PALM BEACH
ENACTING INTO LAW A PENSION PLAN FOR GENERAL
EMPLOYEES OF THE VILLAGE, EXCEPT FIRE AND POLICE;
PROVIDING FOR AN ORDERLY TRANSFER OF FUNDS TO THE
NEW FUND; PROVIDING FOR THE BENEFITS OF THE FUND;
PROVIDING FOR THE FUNDING OF THE FUND; PROVIDING
FOR ADMINISTRATION OF THE FUND; PROVIDING FOR THE
ESTABLISHMENT OF A NEW BOARD OF RETIREMENT; PRO-
' VIDING FOR A SAVINGS CLAUSE; REPEALING ALL ORDI-
NANCES IN CONFLICT HEREWITH; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the Village of North Palm Beach General Employees
are presently provided pension and certain other benefits, and
WHEREAS, the Village Council is desirous of clarifying and
restating the provisions of the General 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
meaning 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 General
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
General Employees of the Village, except Firemen and Policemen.
(Exceptions as allowed by the Pension Trustees.)
7. Member means an actively employed full-time employee
who fulfills the prescribed participation requirements, after
twelve (12) months employment and will become a participant on
the October 1st coincident with or next following.
- 1 -
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.
The maximum credited service is 30 years.
9. Earnings means gross salary, (including overtime)
but excluding bonuses, or any other nonregular payments, such as
unused sick leave and 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. Spouse means the lawful wife or husband of a Member
at the time of 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. Social Security Benefit means a benefit calculated
using the social security law in effect at the time of employee
separation. The benefit is calculated using all earnings with
the Village during the employee's tenure and if the employee
separates before his Normal Retirement date, future earnings will
be assumed at the employee's rate of earnings at termination.
Additionally, earnings before employment will follow from the
employee's actual earnings with the Village but be adjusted by
the appropriate social security average wage factor.
16. Accrued Benefit is the benefit earned to date using
the formula for the Normal Retirement Benefit.
- 2 -
SECTION 2: MEMBERSHIP
1. Conditions of Eligibi7Yty
A. All Employees as of the Effective Date, and all future
new Employees, shall become Members of this System as a condition
of Employment. Members of the fire department and police depart-
ment are not included under the General Pension and Retirement
Fund of the Village of North Palm Beach.
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.
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 officia-ly 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, attainment of
his sixty-fifth (65) 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
- 3 -
commence on his Retirement Date and be continued thereafter during
his lifetime, ceasing upon death. The Member's annual Pension
benefit shall equal 1-2/3% of Final Average Earnings multiplied
by the Member's credited service minus 1-2/3% of his Social
Security Benefit multiplied by credited service.
3. Late Retirement
A participant who retires after his Normal Retirement
Date shall be paid the monthly benefit otherwise payable to the
participant at his Normal Retirement Date increased actuaria-ly
to his actual benefit commencement date.
4. Early Retirement
A Member may retire after age 55. 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
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 live. 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 participant's or the 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 U.S. Bureau of Labor Statistics. Adjust-
ments 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 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 retire-
ment.
- 4 -
7. Termination of Employment
A participant who terminates his employment for
reason 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 Vested Percentage
Less than 5 0%
5 but less than 7 50%
7 but less than 9 75%
9 or more 100%
SECTION 4: NORMAL AND OPTIONAL FORMS OF BENEFITS
1. The normal form of retirement benefit is a monthly
annuity for life.
2. Each Member entitled to a Normal or Early Retirement
Benefit 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 el-ction 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.
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 Option 1 shall be
null and void if the designated Beneficiary dies before the
Member's benefit payments commence.
Option 2 - Life Annuity With Ten Years Certain
The Member may elect to receive a monthly benefit for one hundred
and twenty monthly payments and then continuing thereafter only
during the lifetime of the Member.
- 5 -
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 Security 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. So long as this System is in effect, the Village
shall make a contribution to the Turst Fund in an amount 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
benefits for-Members, as determined by the Board, and may not be
used to reduce what would have otherwise been required Village
contributions,
SECTION 6: RETIREMENT BOARD - ESTABLISHMENT
A. There is hereby created a Retirement Board of the
Village of North Palm Beach, Palm Beach County, Florida consisting
' of five (5) Members. Four (4) of whom shall be employees of the
Village of North Palm Beach.
The above mentioned employees shall be elected at large
by the Village employees. The term of service on the General
Retirement Board shall be indefinite or until such time such
employee Member of the Retirement Board is retired, disabled, or
is removed for misconduct by majority vote of the employees of
- 6 -
the Village of North Palm Beach or for non-participation by
missing two (2) or more consecutive meetings.
One (1) Member of the five on the General Retirement
Board shall be a resident of the Village of North Palm Beach,
selected by the Village Council, and shall serve as Chairman of
the Retirement Board.
' B. Should a vacancy occur in the Member serving as employee
Member, the Village of North Palm Beach 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 General 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 en3oy 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
for 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 discretaion, employ independent legal counsel if funded by
Village Council, for such purposes, the expense of such employment
to be paid by the Village of North Palm Beach.
D. The Retirement Board shall have full authority to
administer all the provisions of this act and shall make all
discursements 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 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 General Retirement Fund.
- 7 -
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 General Retirement Fund.
B. The Village of North Palm Beach, or its designated
funding agent, shall be the custodian of all securities, and the
' accretion thereof shall become a part of the General Retirement
Fund. All funds and securities of the General Retirement Fund
shall be deposited with the Village, who shall keep them in a
separate fund, and shall be liable for the safekeeping of the
same under the bond given to the Village and shall be liable in
the same manner and to the same extent as is liable for the
safekeeping of the funds of the Village ae provided for by law.
All funds now held by the Village of North Palm Beach for this
Retirement System or from the former 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 necessary or upon the
call of the Chairman or any Member thereof or upon request of the
Village Clerk. A majority of the Board shall constitute a quorum
for the transaction of any business. Notice of meetings shall
be given to Council and the public at least seven (7) days in
advance.
SECTION 10: REPEAL OR TERMINATION OF SYSTEM
1. This Ordinance establishing
subsequent Ordinances pertaining to said
modified, terminated or amended in whole
that if this or any subsequent Ordinance
repealed in its application to any perso;
the amount of benefits which at the time
the System and Fund, and
System and Fund, may be
or in part; provided
shall be amended or
1 benefiting hereunder,
of any such alteration,
amendment or repeal shall have accrued to the Member or Beneficiary
shall not be affected thereby, except to the extent that the
assets of the Fund may be determined to be inadequate.
- 8 -
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 on a proportionate basis to the person entitled to
benefits in accordance with the provisions thereof.
3. The following shall be the order of priority for
purposes of allocating the assets 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
assumptions used 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
- 9 -
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 proportionately reduced so that the 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
subparagraph 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 Credit
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 amounts 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.
- 10 -
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
pensioner who has heretofore under any prior or existing law or
who shall hereafter under this Ordinance be erroneously, improperly,
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 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 of resumed responsibility for the expenses
of such person. Any payment so made shall be a complete discharge
of any liability under the System for such payment.
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 repealed.
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.
- 11 -
SECTION 15:
This Ordinance shall take effect immediately upon passage.
I I
L~
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