2008-18 Code Amendment Police & Fire Pension FundORDINANCE 2008-18
• AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF
NORTH PALM BEACH, FLORIDA, AMENDING THE VILLAGE CODE OF
ORDINANCES BY AMENDING CHAPTER 2, "ADMINISTRATION,"
ARTICLE V, "PENSIONS AND RETIREMENT SYSTEMS," DIVISION 4,
"PENSION AND CERTAIN OTHER BENEFITS FOR FIRE AND POLICE
EMPLOYEES," SECTION 2-159, "DEFINITIONS," SECTION 2-160,
"MEMBERSHIP," SECTION 2-161, "BENEFIT AMOUNTS," AND SECTION
2-162, "OPTIONAL FORMS OF BENEFITS," TO AMEND THE NORMAL
RETIREMENT AGE AND THE CALCULATION OF ACCRUED BENEFITS,
TO PROVIDE FOR IMMEDIATE MEMBERSHIP IN THE PLAN, AND TO
ELIMINATE LUMP SUM DISTRIBUTIONS; PROVIDING FOR
CODIFICATION; PROVIDING FOR SEVERABILITY; PROVIDING FOR
CONFLICTS; AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, in accordance with the reopener provisions of the existing Collective
Bazgaining Agreements between the Village and the Professional Firefighters/Pazamedics of Palm
Beach County, Local 2928, IAFF, Inc. and the Police Benevolent Association of Palm Beach
County, Inc. ("Unions"), the Unions and the Village engaged in collective bargaining negotiations
and have agreed upon certain amendments the provisions of the Village Code governing the
North Palm Beach Police and Fire Pension Fund ("Fund"); and
WHEREAS, in accordance with the Addenda to the Collective Bargaining Agreements
adopted by the Village and the Unions, the Fund's Boazd of Trustees and the Village have agreed
to the specific language to be incorporated into the Village Code ofOrdinances; 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 employees of the Village and the public
health, safety and welfare.
NOW, THEREFORE, BE IT ORDAINED BY THE VILLAGE COUNCIL OF THE VILLAGE
OF NORTH PALM BEACH, 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,
"Pensions and Retirement Systems," Division 4, "Pension and Certain Other Benefits for Fire and
Police Employees," by amending Section 2-159 to read as follows (additional language underlined
and deleted language °'^~):
Sec.2-159. 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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Accrued benefit means the portion of a member's normal retirement benefit
• which is considered to have accrued as of any date. A member's accrued benefit as
of any date shall be equal to the sum of two and one-half (2 '/_) percent of his
average monthly earnings multiplied by his credited service for the first twenty-
four (24) veazs; zero (0) percent of his average monthly earnings multiplied by the
member's credited service for each yeaz after twenty-four (24) years up to thirty
(30) veazs: and two (2) percent of his average monthly earnin sg multiplied by the
member's credited service for each year in excess of thirty (30) vears~H~h-e
. For
purposes of this calculation, average monthly earnings and credited service as of
the date of determination shall be used. The accrued benefit is considered to be
payable in the plan's normal form commencing on the member's normal retirement
date, with such date determined as through the member remains in full-time
employment with the employer.
Actuarial equivalence or actuarially equivalent means that any benefit
payable under the terms of this plan in a form other than the normal form of benefit
shall have the same actuarial present value on the date payment commences as the
normal form of benefit. For purposes of establishing the actuarial present value of
any form of payment, ,all future payments shall
be discounted for interest and mortality by using seven (7) percent interest and the
1983 Group Annuity Mortality Table for Males, with ages set ahead five (5) years
in the case of disability retirees. r.. «,.,. ,.....e ,.v n ~.........,,.„ a;n. 7...4:,... 4,.0
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Normal retirement date means for each member the first day of the month
coincident with or next following the date on which he the member attains age fifty-five
55 his na,i~~aY or the date on which the member attains age fifty-two
(52) and has twenty-five (25~veais of credited service. A member may retire on this
normal retirement date or on the first day of any month thereafter.
Section 3. The Village Council hereby amends Chapter 2, "Administration," Article V,
"Pensions and Retirement Systems," Division 4, "Pension and Certain Other Benefits for Fire and
Police Employees," by amending Section 2-160 to read as follows (additional language is
underlined and deleted language is ~«~~):
•
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Sec.2-160. Membership.
• (a) Conditions of eligibility. Each person who becomes an employee
must become a member of the plan as a condition of his employment. Each such
employee shall be considered a member immediately uvon hire en-the-9steber~
~ * ~
Section 4. The Village Council hereby amends Chapter 2, "Administration," Article V,
"Pensions and Retirement Systems," Division 4, "Pension and Certain Other Benefits for Fire and
Police Employees," by amending Section 2-161 to read as follows (additional language is
underlined and deleted language is stricken-t~Hreugk):
Sec. 2-161. Benefit amounts.
(a) Normal retirement benefit
(1) Amount. Each member who retires on or after his normal
retirement date shall be eligible to receive a normal retirement
benefit commencing on his actual retirement date. The monthly
normal retirement benefit shall be an amount equal to the sum of
two and one half (2 'h) percent of his average monthly earnings
multiplied by the member's credited service for the first tweet
(24) years; zero (O) percent of his average monthly eamines
multiplied by the member's credited service for each year after
twenty-four (24) years up to thirty (301 years; and two (2) percent
of his average monthly earnings multiplied by the member's
credited service for each year in excess ofthirtv (30) years. The
* s
Section 5. The Village Council hereby amends Chapter 2, "Administration," Article V,
"Pensions and Retirement Systems," Division 4, "Pension and Certain Other Benefits for Fire and
Police Employees," by amending Section 2-162 to read as follows (additional language is
underlined and deleted language is st~i~-Fluexgh):
Sec. 2-162. Optional forms of benefits.
Each member entitled to a normal, early, disability or vested retirement benefit
shall have the right, at any time prior to the date on which benefit payments begin, to
elect to have his or her benefit payable under any one (1) ofthe 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 beguuiing of payments. The value of
optional benefits shall be actuarially equivalent to the value of benefits otherwise
payable, and the present value of payments to the retiring member must be at least
equal to fifty (50) percent ofthe total present value ofpayments to the retiring member
• and his/her beneficiary. 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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(3) Option 3--Other. In lieu of the other optional forms enumerated in
• this section, benefits may be paid in any form approved by the
board so long as actuarial equivalence with the benefits otherwise
payable is maintained, provided, however, that the boazd shall not
authorize any actuarially equivalent single or hunp sum distnbutions.
Section 6. The provisions of this Ordinance shall become and be made part of the Code of
Ordinances for the Village ofNorth Palm Beach, Florida.
Section 7. 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 8. All ordinances and resolutions, or parts of ordinances and resolutions, in conflict
herewith aze hereby repealed to the extent of such conflict.
Section 9. This Ordinance shall be effective immediately upon adoption. In accordance with
the amendment to Section 2-160 above, all eligible employees currently in their first year of
employment with the Village shall become members immediately upon the effective date of this
Ordinance. Such membership shall apply prospectively.
PLACED ON FIRST READING THIS 23rd DAY OF OCTOBER. 2008.
PLACED ON SECOND, FINAL READING AND PASSED THIS 13th DAY OF NOVEMBER 2008.
(Village Seal)':, j~,~
MAYOR
„~ ;,,
ATTEST: '
VILLAGE CLERK
APPROVED AS TO FORM AND
LEGAL SUFFICIENCY:
~~Z_.
VILLAGE ATTORNEY
•
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