2014-11 Police & Fire Pension Plan AmendmentORDINANCE NO. 2014-11
AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF
NORTH PALM BEACH, FLORIDA, AMENDING DIVISION 4, "PENSION
AND CERTAIN OTHER BENEFITS FOR FIRE AND POLICE EMPLOYEES,"
OF ARTICLE V, "PENSIONS AND RETIREMENT SYSTEMS," OF
CHAPTER 2, "ADMINISTRATION," OF THE VILLAGE CODE OF
ORDINANCES BY AMENDING SECTION 2 -159, "CREATION OF TRUST
AND DEFINITIONS," TO LIMIT OVERTIME FOR POLICE OFFICER MEMBERS,
SECTION 2 -161, "BENEFIT AMOUNTS," TO CLARIFY THE NORMAL
RETIREMENT BENEFIT AND SECTION 2 -163, "CONTRIBUTIONS," TO
INCREASE POLICE OFFICER MEMBER CONTRIBUTIONS; PROVIDING
FOR CODIFICATION; PROVIDING FOR SEVERABILITY; PROVIDING
FOR CONFLICTS; AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the Village of North Palm Beach and the Palm Beach County Police
Benevolent Association entered into a collective bargaining agreement which, among other
things, made certain changes to the Pension Plan provisions governing overtime and member
contributions for the Police Officers who are members of the North Palm Beach Fire and Police
Retirement Fund ( "Fund "); and
WHEREAS, the Board of Trustees of the Fund has recommended an additional change to
the Pension Plan provisions to clarify the definition of normal retirement benefit and determined
that the proposed amendments to the Pension Plan set forth herein are in the best interests of the
participants and beneficiaries of the Pension Plan; and
WHEREAS, the Village Council of the Village of North Palm Beach determines that the
adoption of this Ordinance is in the best interests of the residents and employees of the Village of
North Palm Beach.
NOW, THEREFORE, BE IT ORDAINED, BY THE VILLAGE COUNCIL OF THE VILLAGE
OF NORTH PALM BEACH, PALM BEACH COUNTY, FLORIDA as follows:
Section 1. The foregoing recitals are ratified as true and correct and are incorporated herein.
Section 2. The Village Council hereby amends Chapter 2, "Administration," Article V,
"Pension and Retirement Systems," Division 4, "Pension and Certain Other Benefits for Fire and
Police Employees," of the Village Code of Ordinances by amending Section 2 -159 to read as
follows (new language is underlined):
Sec. 2 -159. Creation of trust and definitions.
(b) Definitions. As used herein, unless otherwise defined or required by
the context, the following words and phrases shall have the meaning indicated:
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Earnings means a member's gross salary, including overtime, public safety
pay increment and special pay, but excluding bonuses, such as longevity, safety
and attendance awards and any other non - regular payments such as unused sick
leave or vacation time pay. Beginning with earnings after December 31, 2008 and
pursuant to Internal Revenue Code Section 414(u)(7), the definition of earnings
includes amounts paid by the village as differential wages to members who are
absent from employment while serving in qualified military service. For Police
Officer members only, effective the first full payroll following October 1 2013
Police Officers will be limited to three hundred (300) hours of overtime ver
officer per fiscal year.
Section 3. The Village Council hereby amends Chapter 2, "Administration," Article V,
"Pension and Retirement Systems," Division 4, "Pension and Certain Other Benefits for Fire and
Police Employees," of the Village Code of Ordinances by amending Section 2 -161 to read as
follows (deleted language is strieken th.-oug ):
Sec. 2 -161. Benefit amounts.
(a) Normal retirement benefit.
(2) Form of benefit. The normal retirement benefit shall commence on
the member's actual retirement date and be payable on the first day
of each month thereafter, with the last payment being the one next
preceding the retiree's deat ., wM on htmdr-ed twenty (120).
monthly payments guaranteed " n ' If the member should
die before one hundred twenty (120) monthly payments are made,
payments are then continued to the designated beneficiary until
one hundred twenty (120) monthly payments in all have been
made, at which time the benefits cease.
Section 4. The Village Council hereby amends Chapter 2, "Administration," Article V,
"Pension and Retirement Systems," Division 4, "Pension and Certain Other Benefits for Fire and
Police Employees," of the Village Code of Ordinances by amending Section 2 -163 to read as
follows (new language is underlined):
Sec. 2-163. Contributions.
(a) Member contributions.
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(1) Amount. Members of the plan shall make regular contributions to the
fund at a rate equal to two (2) percent of their respective earnings.
For Police Officer members only: (i) effective at the beginning of f the
first full payroll period after October 1, 2013, the Police Officer member
contribution shall increase to two and sixty -seven one hundredths
(2.67) percent (ii) effective the first full pa r �period after
October 1 2014, the Police Officer member contribution shall
increase to three and thirty -three one hundredths (3.33) percent;
and (iii) effective the first full payroll period after October 1, 2015,
the Police Officer member contribution shall increase to four (4) percent.
Section 5. The provisions of this Ordinance shall become and be made part of the Code of
Ordinances for the Village of North Palm Beach, Florida.
Section 6. If any section, paragraph, sentence, clause, phrase or word of this Ordinances is
for any reason held by a court of competent jurisdiction to be unconstitutional, inoperative or
void, such holding shall not affect the remainder of the Ordinance.
Section 7. All ordinances and resolutions, or parts of ordinances and resolutions, in conflict
herewith are hereby repealed to the extent of such conflict.
Section 8. This Ordinance shall become effective upon the occurrence and satisfaction of
each of the following events: (a) the Village Council has received and has accepted a report
establishing the actuarial soundness of these amendments; and (b) a copy of this Ordinance is
transmitted to the State of Florida Division of Retirement.
PLACED ON FIRST READING THIS 11th DAY OF SEPTEMBER, 2014.
PLACED ON SECOND, FINAL READING AND PASSED THIS 25th DAY OF SEPTEMBER, 2014.
(Village Seal)
ATTEST:
VILLAGE CLERK
APPROVED AS TO FORM AND
LEGAL SUFFICIENCY:
VILLAGE ATTORNEY
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kQ ni� � C
MAYOR