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Ordinance 1983-001 Repeals General Employees Pension PlanORDINANCE NO. 1-83 AN ORDINANCE OF THE VILLAGE OF NORTH PAiM BEACH ENACTING INTU TAW A PENSION PLAN FOR GENERAL EMPIAYEES OF THE VILLAGE, EXCEPT FIRE AND POLICE; PROVIDING FOR AN ORDERLY TRANSFER OF THE FUNDS; PROVIDING FOR THE BENEFITS OF THE FUNDS; PROVIDING FOR THE ' FUNDING OF THE FUND; PROVIDING FOR AI~ffNISTRATION OF THE FUND; PROVIDING FOR A BOARD OF RETIREMENT; PROVIDING FOR A SAVING CLAUSE; REPEALING ORDINANCE ~~ 10-82 AND ALL OTHER ORDINANCES IN CONFLICT' HEREWITH; AND PROVIDING AN EFFECTIVE RATE. 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. NOT,d, THEREFORE, BE IT ORDAIAIED BY THE VIIJAGE OOUNCIL OF NORTH PALM BEACH, FLORIDA AS FOIdAWS: 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, em=_nt means this written Ordinance setting forth the provisions of the Retire[rent System. 3. System means the Village of North Palm Beach General Retirement Nlmd 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. to ee shall mean any actively employed full-time General Employees of the Village, except Firemen and Policemen. ' 7. Member means an actively employed full-time etiployce who fulfills the prescribed participation requirements, after twelve (12) m7nths employtrent and will become a participant on the October 1st of the next following year. 8. Credited Service means the total number of years and fractional parts of years of actual service with the Village of North Palm Beach, begirming 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 and vacation time pay. 10. Final Average Earnings mean the arithmetic average of annual earn- ings for the highest Five (5) years of the Ten (10) consecutive years of servlce imriediately preceding the retirement or termination of a Member. ' 11. Beneficiary means the person or persons entitled to receive benefits hereunder and who has or have been designated as such 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 amotmt of equal value, based upon the 1971 Group Annuity Mortality Table. 13. use means the lawful wife or husband of a Member at the time of pre-retirement death or retirement. 14. Effective Date means the date an 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 Re- ' tirement Benefit. SECTION 2: MEMBERSHIP 1. Conditions of Eligibility A) All employees as of the Effective Date and all future new employees, except Members of the fire department and police department, shall become Members of this System as a condition of Employment. 2. Application for Membership Each current and fugue eligible FYnployee shall ccmQlete an application form covering items set forth below, and provide other information, as may be prescribed by the Board. A) Acceptance of the terns 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 here~der, an Application for Member- ship 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. Failure to 2 co~lete an application within Ninty (90) days of employment and written notice of this agreement shall constitute a deliberate choice to be excluded from the system. 3. Change in Designation of Beneficiary A Member may from time to time change his designated Beneficiary without 1 approval by the Board of Trustees or previous beneficiary by written notice to the Board upon foams 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 Ai~U[Pi5 AND ELIGIBILITY 1. Retirement Date A Mender's Normal Retirement Date shall be the .first day of the month coincident with, or next follaauig, 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% rested in his accrued benefit on his Normal Retirement Date. 2. Retirement Benefit 1 A Member retiring hereunder on or after his Normal Retirement Date shall receive a monthly benefit which shall comrence on his Retirement Date and be continued hereafter during his lifetime, ceasing upon death. The Member's annual Pension Benefit shall equal 2% of Final Average Earnings multiplied by the Member's credited service for the first Ttaenty (20) years of credited service and one (1%) percent for each year of credited service thereafter. 3. Late Retirement A participant who retires after his Normal Retirement Date shall be paid 1 the monthly benefit otherwise payable to the participant at his Normal Retirement Date increased by using the benefit formila for Normal Retirement together with consideration of his additional years or fractional parts of years of Credited Service and final average earnings. 4. Early Retiremrent A Member may retire after age 55 If a mender does retire early, his or her pension shall be actuarially reduced. 5. Pre-Retirement Death If a member is age 55 and has 5 years of continuous service and dies prior to nornial retirement date, a pension benefit of 50% of the annum the 3 member would have been entitled to, actuarially reduced for early retirement, shall be paid to the surviving beneficiary for as long as the beneficiary shall live. Such amotmt shall be based on the amount payable under the 50% joint and surviwr option, reduced actuarially to the age of the beneficiary, 6. Terndnation of E~loyment A participant who terminates his employment for reason other than death ' or retirement shall be entitled to a deferred monthly retirement benefit canm- encing at his normal retirement date equal to the product of his vested per- centage, as detemm~ed from the following schedule, and his accrued benefit: Credited Service Less than 5 5 but less than 5 7 but less than 9 9 or more Vested Percents 0% 50% 75% 100% SECTION 4: NORMAL AND OPTIONAL FORMS OF BENEFITS 1. The normal form of retirement benefit is a monthly benefit 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 such benefits and to rewke 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 other- wise payable. The m~nber 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 Surviwr 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 designated beneficiary. The minita~mm joint and stsviwr percentage shall be 50%, reduced actuarially to the age of the beneficiary. The election of Option 1 shall be null and wid if the designated beneficiary dies before the trember's benefit payments carm~ence. Option 2 -Life Annuity With Ten Years Certain ' The member may elect to receive a monthly benefit for one hundred and twenty mmthly payments certain. In the event the member dies after his retirement but before he has received retirement benefits for a period of ten (10) years, the same monthly benefit will be paid to the beneficiary (or beneficiaries) as designated by the member for the balance of such ten (10) year period or, if no beneficiary is 4 designated, to the surviving spouse, or estate of the member. Option 3 - Other In lieu of the optional forms enumerated ixi 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 an option to receive a larger pension up to the date he or she begins receiving Social Security benefits. The member's pension benefits shall be appropriately reduced after social security pay~rents begin. The amount of re- duction shall be actuarially determined by the actzaary. SECTION 5: VILi.AGE OONTRIBUiTONS 1. So long as this system is in effect, the Village shall make a contri- bution to the Trust Fund in an amoLmt 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 amotmt sufficient to amortize the unfimded 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. Fiords from these sources may be used only for additional benefits for members, as determined by the Board, and may not be used to reduce required Village contributions. SECTION 6: RETIREMENT BOARD - ESTABLISNMENf A. There is hereby created a General ~loyees Retirement Board of the Village which shall consist of five (5) members. Ztao (2) members of the Board shall be employees of the Village of North Palm Beach. The e~loyee members shall be elected at large by fulltime Village e~loyees who are not firemen or policemen. ~loyees who are elected caxmot work in the same departments of the Village. The term of service of employees on the General Retirement Board shall be indefinite or until the time such employee ' ~rember of the retirement board is retired, disabled, resigns, terminates Village employirent or is removed for misconduct by majority wte of the said e~loyees or the Council of the Village of North Palm Beach or for non-participation by missing two (2) or more consecutive meetings. the election to the Board shall be arranged by the Village Clerk, who shall give reasonable notice of the election to the 5 eligible esters, One (1) member of the General Retirement Board shall be a resident of the Village of North Palm Beach, selected by the Village Council, one (1) member shall be the Village Manager and one (1) member shall be the Village Mayor who shall serve as nan-voting Chairman except in case of a tie vote of the Retirement Board. The Mayor ~y designate another m~nber of the ' Village Council to serve in his place from time to time. B. Should a vacancy occur in the position of a member serving as an employee irember, 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 his duties on the General Retirement Board, his successor shall be appointed by the Village Council witMn 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 may give advice and legal assistance to said Retirement Board in all matters pertaining to the performance of their duties, whenever requested, and may pro- ' secute and defend all suits which may be instituted by or against it; provided, haaever, the Retirement Board may, in its discretion, employ independent legal counsel for such purposes, if funded by the Village Council, 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 Ordinance and shall cause all disbutrsenents and receipt for all ironies received by the Find through the office of the Village Treasurer. 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 adnunistration 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 AMID REGULATIONS AUIHORIZID Said Retirement Board shall have the pacer to adopt rules and regulations, not inconsistent with the provisions of this act, governing its activities and providing for the certification of the scan to be paid a retired member from the General Retirement Find. 6 SECTION 8: INVESTING FUNDS; CUSTODL9N OF SECURITIES A. Zlze Retirement Board shall have the power and authority to direct the Village Treasurer to invest and reinvest the assets of the General Retirement Fund in a manner consistent with laws and statutes governing the investment of the Village of North Palm Beach fiords. B. The Village of North Palm Beach, or its designated funding agent, shall ' be the custodian of all securities, and the accretion thereof shall beccxre a part of the General Retirement Fund. All funds and securities of the General Retirement Fund shall be deposited with the Village Treasurer, 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 finds 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 ' 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 quor~sn for the trans- action 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 the System and I~lnd, and subsequent Ordin- ances 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 amoznt of benefits which at the time 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 crazy be determined to be inadequate. 2. If this Ordinance is repealed and not superseded by another Pension ' Plan, or if contributions to the System are discontinued, the Board shall continue to administer the System in accordance with the provisions of the Ordinance, for the sole benefit of the then Diembers, 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. 7 In the event of such 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 allo- cating the assets of the System as of the date of such repeal of this Ordin- ance, 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 benefit or 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 assu~tions used for purposes of the frost 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 apportionment 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 aTrount required to provide the actuarial equivalent, as described in A above, of the actuarial Normal Retirement Benefit, based on the Credited Service and Average Monthly Earnings as of such date, and each vested former Member than en- titled to a deferred benefit who has not, by. such date, begun receiving benefit payments, in the amotmt required to provide said actuarial equivalent of the accrued Nornial Retirement Benefit, provided that, if such remaining asset value be less than the aggregate of the amounts apportioned hereunder, such latter amotmts shall be proportionately reduced so that the aggregate of such amotmts 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 entitle to an apportiocmient under subparagraphs A and B in the amount equal to his accumulated benefits, provided that, if such remaining asset value be leee than the aggregate of the amounts apportioned here- under such latter amotmts shall be proportionately reduced so that the aggregate of 8 such reduced amounts will be equal to such remaining asset value. D) If there be any asset value remaining after the apportionments Linder 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 equiva- lent, 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 amoLnts apportioned hereunder, such atrounts 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: MISCII i.4NFAUS 1. Discharged Members. Members entitled to a pension as approved by the Pension Board, shall not forfeit the same upon dismissal from the Village, but shall be retired as herein described. 2. Non-Assi~ability. 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 or hereafter have been granted or obtained to determine if such Pension was granted erroneously, fraudulently, or illegally for any reason. Said Board is empowered to purge the pension rolls of any person heretofore or hereafter 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 here- after under this Ordinance be erroneously, improperly, or illegally classified. 4. Incompentents. If any Member or Beneficiary is a minor or is, in the judgtrent of the Board, otherwise incapable of personally receiving and giving a valid receipt for any payment due him under the System, .the Board rosy, 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 inctffred expense or assumed responsibility for the expenses of such person. Any payment so made shall be a coirplete discharge of any liability under the System for such payment. 9 SECTION 12: Specific authority is hereby granted to codify and incoporate 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, including Ordinance No. 10-82, dated June 10, 1982- ' All f~mds and assets from that system are hereby transferred to this system and all rights and benefits of Members in that system will be credited to and maintained by this Fiord. SECTION 14: 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 effective imrediately upon passage. ' PLACED ON FIRST READING THIS 9th DAY OF December, 1982. PLACED ON SECOND, FINAL READING AND PASSED THIS 13th DAY OF JANUARX, 1983. MAYOR ATTEST: Village Clerk 1 10