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Ordinance 1982-009 Police & Fire Pension Plan (2)ORDINANCE 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. - 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. 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. - 2 - 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 - 3 - 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. - 4 - 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 - 5 - 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, - 6 - 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 e of North Pal B h i i d . g m eac , or ts es gnated 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 - 7 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 - $ - 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 - 9 - 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. - 10 - 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