2010-07 Code Amendment - General Employees Pension Plan (2)
ORDINANCE 2010-07
AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF
NORTH PALM BEACH, FLORIDA, AMENDING AND RESTATING THE
VILLAGE OF NORTH PALM BEACH GENERAL EMPLOYEES PENSION
PLAN TO COMPLY WITH STATE AND FEDERAL LAW AND TO
CLARIFY EXISTING PROVISIONS; PROVIDING ADDITIONAL
DEFINITIONS; AMENDING THE DEFINITIONS OF CREDITED SERVICE
AND EARNINGS; PROVIDING FOR THE CREATION OF THE PLAN AND
TRUST; PROVIDING FOR AN OPTION TO PARTICIPATE IN THE
VILLAGE’S DEFINED CONTRIBUTION PLAN; CLARIFYING THE
NORMAL RETIREMENT DATE AND RETIREMENT BENEFIT FOR
EMPLOYEES BASED ON DATE OF HIRE; LIMITING LUMP SUM
PAYMENTS TO SMALL RETIREMENT INCOME; MODIFYING THE
COMPOSITION OF THE BOARD OF TRUSTEES AND PROVIDING FOR A
TERM OF SERVICE; CLARIFYING THE AUTHORITY AND DUTIES OF
THE BOARD OF TRUSTEES; PROVIDING A MANNER OF DISTRIBUTION
OF ASSETS UPON TERMINATION OF THE FUND; PROVIDING FOR
MAXIMUM PENSION BENEFITS, LIMITATIONS ON CONTRIBUTIONS
AND DISTRIBUTION OF BENEFITS AS REQUIRED BY THE INTERNAL
REVENUE CODE; PROVIDING FOR ROLLOVERS FROM QUALIFIED
PLANS; CLARIFYING MEMBER CONTRIBUTIONS BASED ON DATE OF
HIRE; SPECIFYING AN INDEX FOR THE COST OF LIVING
ADJUSTMENT; AMENDING SECTIONS 2-146 THROUGH 2-158.1 OF THE
VILLAGE CODE OF ORDINANCES, DELETING SECTION 2-158 AND
ADOPTING A NEW SECTION 2-146.1; PROVIDING FOR CODIFICATION;
PROVIDING FOR SEVERABILITY; PROVIDING FOR CONFLICTS; AND
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the Village Council wishes to amend the provisions of the General Employees
Pension Plan to comply with state and federal law provisions, including the requirements of the
Internal Revenue Code; and
WHEREAS, the Village Council also wishes, among other things, to: (1) clarify existing
provisions governing the normal retirement date, retirement benefits and member contributions
based on an employee’s date of hire; (2) provide an option for employees to participate in the
Village’s defined contribution plan; (3) modify the composition of the Board of Trustees and
provide for terms of service; (4) provide a manner of distribution of Pension Plan assets upon
termination; (5) provide for rollovers from qualified plans; and (6) specify the consumer price
index to be utilized in adjusting the amount of the pension benefit; and
WHEREAS, the Village Council determines that the adoption of this Ordinance is in the best
interests of the residents and citizens of the Village of North Palm Beach.
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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,
“Pension and Retirement Systems,” Division 3, “Pension and Certain Other Benefits for General
Employees,” of the Village Code of Ordinances by amending Section 2-146 to read as follows
(new language is underlined and deleted language is stricken through):
Sec. 2-146. Definitions.
As used herein, unless otherwise defined or required by the context, the
following words and phrases shall have the meaning indicated:
Accrued benefit is the benefit earned to date using the normal retirement
benefit.
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, other than a lump sum
distribution, all future payments shall be discounted for interest and mortality by
eight (8) percent interest and the 1983 group annuity mortality table for males
with ages set ahead five (5) years in the case of disability retirees. For bargaining
unit employee group participants and general employee group participants, the
actuarial present value shall be a fixed interest rate of five and twenty-five-
hundredths (5.25) percent.
Agreement means the written ordinance from which this division derived,
setting forth the provisions of the retirement system.
Assumed rate of return. The assumed rate of return for calculation of
annual pension costs shall be eight (8) percent fixed.
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
Member and filed with the board. If no such designation is in effect at the time of
death of the member Member, or if no such person so designated is living at that
time, the beneficiary shall be the estate of the member Member.
Board means the board of retirement, which shall administer and manage
the system herein provided and serve as trustees of the fund.
Code means the Internal Revenue Code of 1986, as amended.
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Credited service means the total number of years and fractional parts of
years of actual service with the village Village. This definition and shall also
apply to an employee whose employment is terminated with the village Village
and who recommences full-time employment within two (2) years from the date
of termination. The years or fractional parts of years that an Employee serves in
the military service of the Armed Forces of the United States or the United States
Merchant Marine, voluntarily or involuntarily, upon being granted leave by the
Village and separation from employment as a Village Fund Member, shall be
added to his/her years of credited service provided that:
(1) The Member returns to his/her full time employment with the
Village within one (1) year from the date of his/her military
discharge. Effective January 1, 2007, Members who die or
become disabled while serving on active duty military service
which intervenes the Member’s employment shall be entitled to the
rights of this section even though such Member was not re-
employed by the Village. Members who die or become disabled
while on active duty military service shall be treated as though re-
employed the day before the Member became disabled or died,
was credited with the service they would have been entitled to
under this section, and then either died a non-duty death while
employed or became disabled from a non-duty disability.
(2) The General Employee deposits into the Fund the same sum that
the Member would have contributed if he/she had remained a
General Employee in accordance with Code Section 414(u)
effective December 12, 1994.
(3) The maximum credit for military service shall be five (5) years.
(4) Leave for such active duty military service shall not be considered
a break in service provided a Member returns to employment as
provided for in subsection (1).
Earnings means gross salary, (including overtime), but excluding bonuses
or any other nonregular payments such as unused sick leave and vacation time
pay. Effective for payments made after December 31, 2008, as provided for by
Internal Revenue Code §414(u)(7), the definition of salary shall include any
differential wage payment from the employer to a Member as a result of the
Member’s absence from employment while serving in qualified military service.
Effective date means the date on which this division becomes effective
[January 13, 1983]. Plan year is from October 1 to September 30.
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Employee shall mean any actively employed full-time general employees
of the village Village, except firefighters firemen and police officers policemen.
Final average earnings means the arithmetic average of the twelve (12)
months earnings for the highest sixty (60) months of the one hundred twenty
(120) consecutive months of service immediately preceding the retirement or
termination of a member one-sixtieth of the earnings of a Member during the five
(5) years of his or her employment within the last ten (10) years of employment,
which is greater than the total during any other five (5) years during the ten-year
period; provided that if a Member shall have been employed for fewer than five
(5) years, such average shall be taken over the period of his or her actual
employment.
Fund means the trust fund established herein as part of the system.
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 1 of the next following year and makes
contributions if required by section 2-150(b).
Plan means this Ordinance setting forth the retirement benefits.
Spouse means the lawful wife or husband of a member Member at the
time of preretirement death or retirement.
System means the Village of North Palm Beach general retirement fund as
contained herein and all amendments thereto.
Village means the Village of North Palm Beach.
Section 3. The Village Council hereby amends Chapter 2, “Administration,” Article V,
“Pension and Retirement Systems,” Division 3, “Pension and Certain Other Benefits for General
Employees,” of the Village Code of Ordinances by adding a new section 2-146.1 to read as
follows (new language is underlined):
Sec. 2-146.1. Creation of Plan and Trust
There is hereby created a trust fund for the General Employees of the
Village of North Palm Beach, Florida, to be known as the Village of North Palm
Beach General Retirement Fund. All assets of every description held for the
benefit of the general employees retirement shall continue to be held in this trust
and shall be administered as set forth in this Division 3 of Chapter 2 of the Village
of North Palm Beach Code of Ordinances. This System is intended to be a tax
qualified plan under Code Section 401(a) and meet the requirements of a
governmental plan as defined in Code Section 414(d).
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Section 4. The Village Council hereby amends Chapter 2, “Administration,” Article V,
“Pension and Retirement Systems,” Division 3, “Pension and Certain Other Benefits for General
Employees,” of the Village Code of Ordinances by amending Section 2-147 to read as follows
(new language is underlined and deleted language is stricken through):
Sec. 2-147. Membership.
(a) Conditions of eligibility. All employees as of the effective date and
all future new employees who choose to participate, except members employees
of the fire department and police department who are members of the Fire and
Police Retirement Fund, shall become members Members of this system as a
condition of employment. Effective for employees hired after October 1, 2006,
employees may choose to participate in this plan or the Village’s defined
contribution plan. Employees have thirty (30) days from date of hire to elect
which plan to join. Within thirty (30) days after the passage of this ordinance
allowing the change, employees who elected to participate in the defined
contribution plan will have a one time opportunity to elect to change back to the
defined benefit plan. Members who elect to re-enroll in the defined benefit plan
shall be required to make contributions as required by the terms of the plan,
including contributions for the time the Member participated in the defined
contribution plan. Members shall be permitted to roll over the accumulated
defined contribution balance to defray the cost of the required contributions.
(b) Application for membership. Each current and future eligible
employee shall complete an application form covering items set forth below, and
provide other information, as may be prescribed by the board Board.
(1) Acceptance of the terms and conditions of the retirement system.
(2) Designation of a beneficiary or beneficiaries.
(3) A certified statement as to prior medical history.
(4) 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
officially accepted and approved by the board Board at a later date. Failure to
complete an application within ninety (90) thirty (30) days of employment and
written notice of this agreement shall constitute a deliberate choice to be excluded
from the system and to participate in the defined contribution system.
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(c) Change in designation of beneficiary. A member Member may,
from time to time, change his designated beneficiary without approval by the
board of trustees or previous 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 5. The Village Council hereby amends Chapter 2, “Administration,” Article V,
“Pension and Retirement Systems,” Division 3, “Pension and Certain Other Benefits for General
Employees,” of the Village Code of Ordinances by amending Section 2-148 to read as follows
(new language is underlined and deleted language is stricken through):
Sec. 2-148. Benefit amounts and eligibility.
(a) Retirement date
(1) A member's Member’s normal retirement date shall be as follows:
the first day of the month coincident with, or next following,
attainment of his or her sixty-fifth birthday and the completion of
nine (9) full years of service with the village. A member may retire
on his or her normal retirement date or on the first day of any
month thereafter, and each member shall become one hundred
(100) percent vested in his or her accrued benefit on his normal
retirement date. The normal retirement date described above shall
apply only to members who are hired as general employees from
and after the effective date of this ordinance.
a. For Members who were employed as general employees on
or before March 23, 1995, a Member’s normal retirement
date The normal retirement date for a member who was a
general employee of the village prior to the effective date
of this ordinance shall be the first day of the month
coincident with, or next following, attainment of his or her
sixty-fifth birthday.
b. For Members hired after March 23, 1995, a Member’s
normal retirement date shall be the first day of the month
coincident with, or next following, attainment of his or her
sixty-fifth birthday and the completion of nine (9) full years
of credited service with the Village.
c. For Members hired after March 28, 1996, and any then
active existing employees on March 28, 1996 who elect in
writing, a Member’s normal retirement date shall be the
first day of the month coincident with, or next following,
attainment of his or her sixtieth birthday and the
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completion of nine (9) full years of credited service with
the Village.
(2) Retirement date in general
a. A Member may retire on his or her applicable normal
retirement date or on the first day of any month thereafter,
and each Member shall become one hundred (100) percent
vested in his or her accrued benefit on his or her normal
retirement date.
b. Employees who are vested and eligible to retire shall have
the right to file a written election to be considered retired
on the day before death if such employee should die prior
to retirement. If an employee who is vested and eligible to
retire dies prior to retirement without making the foregoing
election, the election can be made by the employee's
beneficiary previously designated in the village Village
records.
(b) Retirement benefit. A member 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,
ceasing upon death.
(1) For Members hired on or before March 28, 1996, who did not elect
the optional retirement benefit, and did not contribute to this
benefit in accordance with Section 2-150, the Member’s The
member's annual pension benefit shall equal two (2) percent of
final average earnings multiplied by the member's Member’s
credited service for the first twenty (20) years of credited service
and one (1) percent for each year of credited service thereafter.
(2) For Members hired after March 28, 1996, and any then Village
employees who elected the optional retirement benefit in writing
and who contributed a two (2) percent employee contribution in
accordance with Section 2-150(b), the Member’s annual pension
benefit shall equal two and one quarter (2.25) percent of final
average earnings multiplied by the Member’s credited service for
the first twenty (20) years of credited service and one (1) percent
for each year of credited service thereafter.
(3) For Members hired after December 11, 2003, and any then Village
employees who elected the second optional retirement benefit and
who contributed a four (4) percent employee contribution (not
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including the two (2) percent COLA contribution), the Member’s
annual pension benefit shall equal two and one-half (2.5) percent
of final average earnings multiplied by the Member’s credited
service for the first twenty (20) years of credited service and one
(1) percent for each year of credited service thereafter.
(c) 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 by using the benefit formula
for the applicable normal retirement together with consideration of his additional
years or fractional parts of years of credited service and final average earnings.
(d) Early retirement.
(1) Early retirement age
A member Member or a terminated vested participant may retire
after age fifty-five (55) and shall receive a vested accrued benefit.
(2) Early retirement benefit
If a member Member does retire early, his or her pension,
calculated according to the employee’s hire date and the applicable
normal retirement benefit and contribution rate, shall be actuarially
reduced for early retirement.
(e) Preretirement death.
(1) If a participant who is no longer an employee of the village Village
dies prior to the normal retirement date and has attained age fifty-
five (55) and had five (5) years of credited service, a pension
benefit of fifty (50) percent of the amount the participant 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 amount shall be based on the amount payable
under the fifty (50) percent joint and survivor option, reduced
actuarially to the age of the beneficiary.
(2) If a member Member dies prior to the normal retirement date while
still employed by the village Village and has five (5) years of
credited service, such member Member regardless of age shall
receive pension benefits as set forth in subsection (3).
(3) The members Members specified in subsection (2) above shall
receive a benefit equal to the member's Member’s vested accrued
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pension as computed under subsection 2-148(b) and shall be
payable to the designated beneficiary in equal, consecutive
monthly installments over ten (10) years. The benefit payment
specified herein shall commence upon death of the plan member
Member and approval of the pension board.
(f) Termination of employment. A participant who terminates his
s
employment for reason other than death or retirement and who has not opted for
early 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:
TABLE INSET:
Credited Service Vested Percentage
Less than 5 0
5 but less than 7 50
7 but less than 9 75
9 or more 100
(g) Refund of contribution. All contributions made by employees
whose employment is terminated for any reason prior to vesting shall receive a
refund of all amounts contributed by the employee to the pension plan without
interest. All contributions made by fully or partially vested employees whose
employment is terminated for any reason shall have the option to receive a refund
of all amounts contributed by the vested employee without interest. If such option
is elected by the fully or partially vested employee, then such employee shall no
longer be a part of the pension plan and shall not receive any additional pension
benefits.
Section 6. The Village Council hereby amends Chapter 2, “Administration,” Article V,
“Pension and Retirement Systems,” Division 3, “Pension and Certain Other Benefits for General
Employees,” of the Village Code of Ordinances by amending Section 2-149 to read as follows
(new language is underlined and deleted language is stricken through):
Sec. 2-149. Normal and optional forms of benefits.
(a) The normal form of retirement benefit is a monthly benefit for life.
(b) Each member Member entitled to a normal, or early, or late
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 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 Member shall make such an
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election by written request to the board, such request being retained in the board's
Board’s files.
Option 1.Joint and last survivor option. The member 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 minimum joint and survivor
percentage shall be fifty (50) percent, reduced actuarially to the age of the
beneficiary. The election of option 1 shall be null and void if the
designated beneficiary dies before the member's Member’s benefit
payments commence.
Option 2.Life annuity with ten years certain. The member Member may
elect to receive a monthly benefit for one hundred twenty (120) monthly
payments certain. In the event the member 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 Member for the balance of
such ten-year period or, if no beneficiary is designated, to the surviving
spouse, or estate of the member 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 Board so long as
it is the actuarial equivalent of the benefits otherwise payable., provided,
however, the Board shall not authorize any actuarial equivalent single or
lump sum distributions except the lump sum payment of small retirement
income provided for below.
Option 4. Social security adjustment option. If a member 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 Member’s pension benefits shall be
appropriately reduced after social security payments begin. The amount of
reduction shall be actuarially determined by the actuary.
(c) Lump sum payment of small retirement income. Notwithstanding
anything contained within section 2-148 and section 2-149 to the contrary, the
board Board, in its sole discretion, may elect to pay a lump sum payment to the
beneficiary or beneficiaries in lieu of installments when the present value of the
accrued benefit is less than $5,000 monthly benefits do not exceed the sum of one
hundred dollars ($100.00). This provision applies to normal retirement, late
retirement, early retirement, and preretirement death regardless of the fact that the
member Member elected retirement benefits to be made in monthly installments.
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Section 7. The Village Council hereby amends Chapter 2, “Administration,” Article V,
“Pension and Retirement Systems,” Division 3, “Pension and Certain Other Benefits for General
Employees,” of the Village Code of Ordinances by amending Section 2-150 to read as follows
(new language is underlined and deleted language is stricken through):
Sec. 2-150. Village contributions Contributions.
(a) Generally Village contributions. So long as this system is in effect,
the village Village shall make a contribution to the trust 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-year period.
(b) Member contributions.
(1) Members of the Fund shall make regular contributions to the Fund
as follows:
a. For Members hired on or before March 28, 1996 who did
not elect any optional benefits, including the Cost of Living
Adjustment, the contribution rate shall be zero (0) percent
of earnings.
b. For Members hired after March 28, 1996 and Members
who elected in writing to participate in the optional benefits
of a normal retirement age of sixty (60) with nine (9) years
of credited services and a two and one quarter (2.25)
percent multiplier, the employee contribution rate shall be
two (2) percent of earnings;
c. For Members who were hired after May 11, 2000 and then
current Village employees who elected to participate in the
cost of living adjustment in Section 2-158.1, the employee
contribution rate is two (2) percent. This contribution is in
addition to the contribution provided for in subsection b
above. Members who participate in both the optional
benefit provided for in subsection b plus the Cost of Living
in Section 2-158.1 shall have a contribution rate of four (4)
percent.
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d. For Members hired after December 11, 2003, the employee
contribution rate is six (6) percent.
e. For Members who elected in writing to participate in the
second optional benefits of the normal retirement age of
sixty (60) with nine (9) years of credited service and a two
and one half (2.50) percent multiplier, the employee
contribution rate shall be four (4) percent of the member’s
earnings. This four (4) percent contribution rate includes
the contribution required by subsection b above, but does
not include participation in the Sec 2-158.1 cost of living.
If the member elected the Sec. 2-158.1 cost of living plus
the additional benefits provided for in this paragraph, the
contribution rate totals six (6) percent.
(2) The Village shall pick-up, rather than deduct from each Member's
pay, beginning with the date of employment, two (2) percent of the
Member's basic compensation. The monies so picked-up shall be
deposited in the Fund on a monthly basis. An account record shall
be maintained continuously for each Member. Pick-up
contributions shall continue until death, disability or termination of
service, whichever shall occur first. Contributions shall remain in
the fund unless withdrawn as provided in the Plan. No Member
shall have the option to choose to receive the contributed amounts
directly instead of having them paid by the Village directly to the
plan. All such pick-up contributions by the Village shall be
deemed and be considered as part of the Member's accumulated
contributions and subject to all provisions of the Plan pertaining to
accumulated contributions of Members. The intent of this
provision is to comply with Section 414(h)(2) of the Internal
Revenue Code. For paying Social Security taxes, and for such
other purposes except as specified in this plan, the amount of
employee contributions "picked-up" or paid by the Village will be
added to the amount distributed on a current basis in order to
determine total wages, salary, pay or compensation. In the event
that the employer agrees to assume and pay Member contributions
in lieu of direct contributions by the Member, such contributions
shall accordingly be paid into the plan on behalf of the Members.
No Member subject to such agreement shall have the option of
choosing to receive the contributed amounts directly instead of
having them paid by the employer directly to the plan. All such
contributions by the employer shall be deemed and considered as
part of the Member's accumulated contributions and subject to all
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provisions of this plan pertaining to accumulated contributions of
Members. The intent of this language is to comply with section
414(h)(2) of the Internal Revenue Code.
(b) (c) Other contributions. 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 from these sources may be
used only for additional benefits for members Members, as determined by the
board Board, and may not be used to reduce required village Village
contributions.
Section 8. The Village Council hereby amends Chapter 2, “Administration,” Article V,
“Pension and Retirement Systems,” Division 3, “Pension and Certain Other Benefits for General
Employees,” of the Village Code of Ordinances by amending Section 2-151 to read as follows
(new language is underlined and deleted language is stricken through):
Sec. 2-151. Retirement board, establishment.
(a) There is hereby created a general employees retirement board of
the village Village which shall consist of five (5) members.
Two (2) members of the board Board shall be employees of the village
Village. The employee members of the Board shall be elected at large by full-
time village Village employees Members of the Plan who are not firemen or
policemen. Employees who are elected cannot work in the same departments of
the village Village. The term of service of employees on the general retirement
board shall be three (3) years indefinite or, unless the until the time such
employee member of the retirement board is sooner retired, disabled, resigns,
terminates village Village employment, or is removed for misconduct by majority
vote of the employees or the council of the village Village Council or is removed
for nonparticipation by missing two (2) or more consecutive meetings. The
election to the board Board shall be arranged by the village Village clerk, who
shall give reasonable notice of the election to the eligible voters. Two (2) One (1)
members of the general retirement board Board shall be a residents of the village
Village, selected by the village council Village Council to serve terms of two (2)
years, one (1) member shall be the village manager and one (1) member shall be
the village mayor. The two employee members of the Board and the two
Council-appointed members of the Board shall annually appoint a member of the
general public who has never been employed by the Village to serve as the fifth
member of the Board. This fifth member shall serve a term of one-year. All
members of the board Board shall be voting members. The mayor may designate
in writing another member of the village council to serve in his place, and vote
from time to time.
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(b) Should a vacancy occur in the position of a member serving as an
employee member, the village Village employees shall, within thirty (30) days,
hold an election and elect a successor to serve. Should the member appointed by
village Village council resign or relinquish his duties on the general retirement
board, his successor shall be appointed by the village Village council within thirty
(30) days. Should a vacancy occur in the position of the fifth member, the Board
shall appoint a replacement within thirty (30) days.
(c) The retirement board 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
prosecute and defend all suits which may be instituted by or against it; provided,
however, the retirement board 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.
(d) The retirement board Board shall have full authority to administer
all the provisions of this division and shall cause all disbursements and receipt for
all monies received by the fund through the office of the village Village finance
director or a custodian bank if one is employed. The retirement board Board shall
appoint a secretary who shall keep a complete record of all actions and
proceedings by the board Board.
(e) The retirement board Board shall continue to exist exclusively for
the purpose provided by this division 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 retirement
board Board.
(f) The Retirement Board shall have the authority to employ such
professional, technical or other advisers as required to carry out the provisions of
this Ordinance.
(g) The Board shall have the power and authority to recommend an
increase or decrease in the benefits payable hereunder, through the adoption of an
amendment to this article but provided such action is based on an actuarial review
by an enrolled actuary who is a member of the Society of Actuaries.
(h) The Board shall discharge its duties solely in the interest of the
participants and beneficiaries for the exclusive purpose of providing benefits to
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participants and their beneficiaries and defraying reasonable expenses of
administration.
Section 9. The Village Council hereby amends Chapter 2, “Administration,” Article V,
“Pension and Retirement Systems,” Division 3, “Pension and Certain Other Benefits for General
Employees,” of the Village Code of Ordinances by amending Section 2-152 to read as follows
(new language is underlined and deleted language is stricken through):
Sec. 2-152. Additional rules and regulations authorized.
The retirement board Board shall have the power to adopt rules and
regulations, not inconsistent with the provisions of this division, governing its
activities and providing for the certification of the sum to be paid a retired
member Member from the general retirement fund.
Section 10. The Village Council hereby amends Chapter 2, “Administration,” Article V,
“Pension and Retirement Systems,” Division 3, “Pension and Certain Other Benefits for General
Employees,” of the Village Code of Ordinances by amending Section 2-153 to read as follows
(new language is underlined and deleted language is stricken through):
Sec. 2-153. Investing funds; custodian of securities.
(a) The retirement board Board shall have the power and authority to
retain the services of an investment advisor registered under the Investment
Advisors Act of 1940 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 Fund village. Each of the foregoing powers and
functions reposed in the retirement board may be performed and carried out by
the village treasurer, at the direction of the retirement board through duly
authorized agents, provided that the village treasurer shall, at all times, maintain
continuous supervision over the acts of any such agent(s); provided further, that
legal. Legal title to the funds shall remain at all times in the name of the Fund
village.
(b) The village Village, 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 Village treasurer finance director 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 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
Village as provided for by law. All funds now held by the village Village for this
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retirement system are hereby transferred to the fund established by this division.
The Board may in its discretion chose to retain services of a custodian bank.
Section 11. The Village Council hereby amends Chapter 2, “Administration,” Article V,
“Pension and Retirement Systems,” Division 3, “Pension and Certain Other Benefits for General
Employees,” of the Village Code of Ordinances by amending Section 2-154 to read as follows
(new language is underlined and deleted language is stricken through):
Sec. 2-154. Oaths of office; meetings; quorum.
Before entering upon their duties as members of the board Board, each
member shall take and subscribe to the oath of office required by the village
Village Charter, which oath shall be filed with the village Village clerk. The
board Board shall meet as often as necessary or upon the call of the chairman or
any member thereof or upon request of the village Village clerk. All board Board
meetings shall be held at village Village hall. A majority of the board 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 12. The Village Council hereby amends Chapter 2, “Administration,” Article V,
“Pension and Retirement Systems,” Division 3, “Pension and Certain Other Benefits for General
Employees,” of the Village Code of Ordinances by amending Section 2-155 to read as follows
(new language is underlined and deleted language is stricken through):
Sec. 2-155. Repeal or termination of system.
(a) This division establishing the system and fund, and subsequent
ordinances pertaining to the system and fund, may be modified, terminated or
amended in whole or in part; provided that if this division 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 Member or beneficiary
shall not be affected thereby, except to the extent that the assets of the fund may
be determined to be inadequate.
(b) If this division is repealed and not superseded by another pension
plan, or if contributions to the system are discontinued, the board Board shall
continue to administer the system in accordance with the provisions of this
division, for the sole benefit of the then members Members, any beneficiaries then
receiving retirement allowances, and any future persons entitled to receive
benefits under one (1) of the options provided for in this division who are
designated by any of such members Members. In the event of such repeal, or if
contributions to the system are discontinued, there shall be full vesting of one
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hundred (100) percent of the accrued benefits on a proportionate basis to the
person entitled to benefits in accordance with the provisions thereof.
(c) The following shall be the order of priority for purposes of
allocating the assets of the system as of the date of such repeal of this division, or
if contributions to the system are discontinued with the date of such
discontinuance being determined by the board:
(1) Apportionment shall first be made in respect to 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 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.
(2) If there be any asset value remaining after the apportionment under
subparagraph (1), 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 (10) years of credited service and who is not
entitled to an apportionment under subparagraph (1), in the amount
required to provide the actuarial equivalent, as described in (1)
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 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 proportionately reduced so
that the aggregate of such amounts will be equal to such remaining
asset value.
(3) If there be any asset value after the apportionments under
subparagraph (1) and (2), 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 (1) and (2) in
the amount equal to his accumulated benefits, provided that, if
such remaining asset value be less than the aggregate of the
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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.
(4) If there be any asset value remaining after the apportionments
under subparagraphs (1), (2) and (3), apportionments shall lastly be
made in respect of each member included in subparagraph (3)
above to the extent of the actuarial equivalent, as described in (1)
above, of the accrued normal retirement benefit, less the amount
apportioned in subparagraph (3), 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.
(d) 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.
(c) Upon termination of the Fund by the Village for any reason, or
because of a transfer, merger, or consolidation of governmental units, services, or
functions as provided in Chapter 121, Florida Statutes, or upon written notice to
the Board by the Village that contributions under the Fund are being permanently
discontinued, the rights of all employees to benefits accrued to the date of such
termination or discontinuance and the amounts credited to the employees'
accounts are nonforfeitable. The Fund shall be distributed in accordance with the
following procedures:
(1) The Board shall determine the date of distribution and the asset
value required to fund all the nonforfeitable benefits, after taking
into account the expenses of such distribution. The Board shall
inform the Village if additional assets are required, in which event
the Village shall continue to financially support the plan until all
nonforfeitable benefits have been funded.
(2) The Board shall determine the method of distribution of the asset
value, whether distribution shall be by payment in cash, by the
maintenance of another or substituted trust fund, by the purchase
of insured annuities, or otherwise, for each Member entitled to
benefits under the plan, as specified in subsection (3).
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(3) The Board shall distribute the asset value as of the date of
termination in the manner set forth in this subsection, on the basis
that the amount required to provide any given retirement income is
the actuarially computed single-sum value of such retirement
income, except that if the method of distribution determined under
subsection (2) involves the purchase of an insured annuity, the
amount required to provide the given retirement income is the
single premium payable for such annuity. The actuarial single-sum
value may not be less than the employee's accumulated
contributions to the plan, with interest if provided by the Fund, less
the value of any plan benefits previously paid to the employee.
(4) If there is asset value remaining after the full distribution specified
in subsection (3), and after payment of any expenses incurred with
such distribution, such excess shall be returned to the Village.
(5) The Board shall distribute, in accordance with the manner of
distribution determined under subsection (2), the amounts
determined under subsection (3).
Section 13. The Village Council hereby amends Chapter 2, “Administration,” Article V,
“Pension and Retirement Systems,” Division 3, “Pension and Certain Other Benefits for General
Employees,” of the Village Code of Ordinances by amending Section 2-156 to read as follows
(new language is underlined and deleted language is stricken through):
Sec. 2-156. Miscellaneous.
(a) Discharged members. Members entitled to a pension as approved
by the pension board Board shall not forfeit the same upon dismissal from the
village Village, but shall be retired as herein described.
(b) Nonassignability. No benefit provided for herein shall be
assignable or subject to garnishment for debt or for other legal process. However,
the Board shall honor income deduction orders for alimony or child support in
accordance with rules and procedures by the Board.
(c) Pension validity. The board 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. The board 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
division if the same is found to be erroneous, fraudulent or illegal for any reason;
Page 19 of 29
and to reclassify any pensioner who has heretofore under any prior or existing law
or who shall hereafter under this division be erroneously, improperly or illegally
classified.
(d) Incompetents. If any member or beneficiary is a minor or is, in the
judgment of the board Board, otherwise incapable of personally receiving and
giving a valid receipt for any payment due him under the system, the board 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 Board, in its sole discretion, to have incurred
expenses or assumed 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.
(e) Bargaining unit employees. Nothing herein shall limit the village
Village's authority to provide alternate retirement benefits to employees in each of
the bargaining units provided:
(1) The benefit is provided pursuant to the terms of a collective
bargaining agreement ratified by the village Village council or is
the subject of a waiver of bargaining or a memorandum of
understanding.
(2) No vested benefit is reduced or eliminated.
(3) An actuarial impact statement disclosing the cost and effect of the
modification is made and reviewed by the village Village council
prior to ratification of the collective bargaining agreement.
(4) The terms of the modification are incorporated in this chapter of
the village Village Code by amendatory ordinance.
(f) Maximum Pension.
(1) 415(b) Internal Revenue Code Limits
a. Basic Limitations. Notwithstanding anything to the
contrary in this Plan, the provisions of Section 415 and its
regulations are hereby incorporated by reference into this
Plan. Subject to the adjustments in Code Section 415, the
maximum amount of the actual annual retirement income
paid in any year with respect to a Participant under this
Plan attributable to employer provided benefits shall not
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exceed the dollar amount allowable for any calendar year
pursuant to Code Section 415(b), as adjusted in such
calendar year for increases in the cost of living in
accordance with Regulations issued by the Secretary of the
Treasury under Code Section 415(d). For purposes of
applying the basic limitation, benefits payable in any form
other than a straight life annuity with no ancillary benefits
shall be adjusted, as provided by Treasury Regulations, so
that such benefits are the Actuarial Equivalent of a straight
life annuity. For purposes of this subsection Article, the
following benefits shall not be taken into account:
(i) Any ancillary benefit which is not directly related to
retirement income benefits;
(ii) Any other benefit not required under Code Section
415(b)(2) and Treasury Regulations thereunder to
be taken into account for purposes of the limitation
of Code Section 415(b)(1).
b. For purposes of applying the limitations of Code Section
415(b), compensation includes those items as set forth in
Reg. 1.415-2(d). This definition specifically includes the
crediting of compensation while absent from service for
military duty; such crediting shall to exceed the
compensation that would have been credited under the
System if System services had continued.
(2) Additional Limitation on Pension Benefits. Notwithstanding
anything herein to the contrary:
a. The normal retirement benefit or pension to a retiree who
becomes a Member of the Plan and who has not previously
participated in such Plan, on or after January 1, 1980, shall
not exceed one hundred (100) percent of his/her average
final compensation. However, nothing contained in this
section shall apply to supplemental retirement benefits or to
pension increases attributable to cost-of-living increases or
adjustments. In all events, distributions shall be limited by
the applicable provisions of Code Section 415(b) limits.
b. No Member of the Plan who is not now a Member of such
Plan shall be allowed to receive a retirement benefit or
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pension which is in part or in whole based upon any service
with respect to which the Member is already receiving, or
will receive in the future, a retirement benefit or pension
from another retirement system or plan. This restriction
does not apply to social security benefits or federal benefits
under Chapter 67, Title 10, U.S. Code.
(g) 401(a)(17) Limitation on Compensation. For any person who first
becomes a Member in any plan year beginning on or after January 1, 1996,
compensation for any plan year shall not include any amounts in excess of the
limitation set forth in Code Section 401(a)(17) (as amended by the Omnibus
Budget Reconciliation Act of 1993), which limitation shall be adjusted as required
by federal law for qualified government plans and shall be further adjusted for
changes in the cost of living in the manner provided by Code Section 415(d).
(h) Distribution of Benefits. Notwithstanding any other provision of
this Plan to the contrary, a form of retirement income payable from this Plan after
the effective date of this ordinance, shall be made in accordance with the
requirements of Code Section 401(a)(9), including the minimum distribution
incidental benefit requirements of section 1.401(a)(9)-2 Code Section
401(a)(9)(G) to satisfy the following conditions:
(1) If the retirement income is payable before the Member’s death,
a. it shall either be distributed or commence to the Member
not later than April 1 of the calendar year following the
later of the calendar year in which the Member attains age
seventy and one half (70½), or the calendar year in which
the Member retires,
b. the distribution shall commence to them not later than the
calendar year defined above; and shall be paid over the life
of the Member or over the lifetimes of the Member and
spouse, or dependent, or, shall be paid over the period
extending not beyond the life expectancy of the Member
and spouse, or dependent.
Where a form of retirement income payment has
commenced in accordance with the preceding paragraphs
and the Member dies before his/her entire interest in the
Plan has been distributed, the remaining portion of such
interest in the Plan shall be distributed no less rapidly than
under the form of distribution in effect at the time of the
Member’s death.
Page 22 of 29
(2) If the Member’s death occurs before the distribution of his/her
interest in the Plan has commenced, the Member’s entire interest in
the Plan shall be distributed within five (5) years of the Member’s
death, unless it is to be distributed in accordance with the
following rules:
a. The Member’s remaining interest in the Plan is payable to
his/her spouse, or dependent;
b. The remaining interest is to be distributed over the life of
the spouse, or dependent or over a period not extending
beyond the life expectancy of the spouse, or dependent; and
c. Such distribution begins within one year of the Member’s
death unless the Member’s spouse, or dependent shall
receive the remaining interest in which case the distribution
need not begin before the date on which the Member would
have attained age 70½ and if the spouse, or dependent dies
before the distribution to the spouse, issue or dependent
begins, this Section shall be applied as if the spouse, or
dependent were the Plan Member.
Section 14. The Village Council hereby amends Chapter 2, “Administration,” Article V,
“Pension and Retirement Systems,” Division 3, “Pension and Certain Other Benefits for General
Employees,” of the Village Code of Ordinances by amending Section 2-157 to read as follows
(new language is underlined and deleted language is stricken through):
Sec. 2-157. Rollovers, Direct transfers of eligible rollover distribution.
(a)(1) General. This section applies to distributions made on or after
January 1, 1993. Notwithstanding any provision of the system to the contrary that
would otherwise limit a distributee’s election under this section, a distributee may
elect, at the time and in the manner prescribed by the board Board, to have any
portion of an eligible rollover distribution paid directly to an eligible retirement
plan specified by the distributee in a direct rollover.
(b)(2) Definitions.
(1)(a) Eligible rollover distribution: An eligible rollover distribution is
any distribution of all or any portion of the balance to the credit of
the distributee, except that an eligible rollover distribution does not
include: any distribution that is one of a series of substantially
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equal periodic payments (not less frequently than annually) made
for the life (or life expectancy) of the distributee or the joint lives
(or joint life expectancies) of the distributee and the distributee’s
designated beneficiary or for a specified period of ten (10) years or
more; any distribution to the extent such distribution is required
under section 401(a)(9) of the Code; and the portion of any
distribution that is not includable in gross income.
(2)(b) Eligible retirement plan: An eligible retirement plan is an
individual retirement account described in section 408(a) of the
Code, an individual retirement annuity described in section 408(b)
of the Code, an annuity plan described in section 403(a) of the
Code, or a qualified trust described in section 401(a) of the Code,
that accepts the distributee’s eligible rollover distribution.
However, in the case of an eligible rollover distribution to the
surviving spouse, an eligible retirement plan is an individual
retirement account or individual retirement annuity.
(3)(c) Distributee: A distributee includes an employee or former
employee. In addition, the employee’s or former employee’s
surviving spouse is a distributee with regard to the interest of the
spouse.
(4)(d) Direct rollover: A direct rollover is a payment by the plan to the
eligible retirement plan specified by the distributee.
(c) Rollovers from qualified plans.
(1) A Member may roll over all or part of his or her assets in another
qualified plan to this Plan for the purpose of purchasing service
provided all of the following requirements are met:
a. Some or all of the amount distributed from the other plan is
rolled over to this plan no later than the sixtieth (60) day
after distribution was made from the plan or, if distributions
are made in installments, no later than the sixtieth (60) day
after the last distribution was made.
b. The amount rolled over to the Plan does not include any
amounts contributed by the member to the other plan on a
post-tax basis.
c. The rollover is made in cash.
Page 24 of 29
d. The Member certifies that the distribution is eligible for a
rollover.
e. Amounts which the Board accepts as a rollover to this Fund
shall, along with any earnings allocated to the Board, be
fully vested at all times.
(2) In addition, the Fund may accept the direct transfer of a Member’s
benefits from another qualified retirement plan or Internal Revenue
Code section 457 plan for purposes of purchasing service.
(d) In the event of a mandatory distribution greater than $1,000 under
this Plan, if the participant does not elect to have such distribution paid directly to
an eligible retirement plan specified by the participant in a direct rollover or to
receive such distribution directly, then the Board will pay the distribution in a
direct rollover to an individual retirement plan designated by the Board. This
section is effective for mandatory distributions after October 1, 2006.
Section 15. The Village Council hereby amends Chapter 2, “Administration,” Article V,
“Pension and Retirement Systems,” Division 3, “Pension and Certain Other Benefits for General
Employees,” of the Village Code of Ordinances by deleting Section 2-158 in its entirety.
Sec. 2-158. Optional benefit plan.
(a) Applicability to employees. The optional benefit plan shall apply to
all employees hired subsequent to the effective date of the ordinance from which
this section derives and to all existing employees of the Village at the effective
date of the ordinance from which this section derives who elect in writing to be a
part of this optional benefit plan within thirty (30) days from the effective date of
this section. Existing employees of the Village at time of passage of this section
who do not elect to be covered under the optional plan within said thirty (30) day
period shall continue to be covered under the existing benefit plan for general
employees.
(b) Retirement date. A member's normal retirement date shall be the
first day of the month coincident with, or next following, attainment of his or her
sixtieth birthday and the completion of nine (9) full years of service with the
village. A member may retire on his or her normal retirement date or on the first
day of any month thereafter, and each member shall become one hundred (100)
percent vested in his or her accrued benefit on his normal retirement date. The
normal retirement date described above shall apply only to members who are
Page 25 of 29
hired as general employees from and after the effective date of the ordinance from
which this section derives.
The normal retirement date for a member who was a general employee of the
village prior to the effective date of the ordinance from which this section derives
shall be the first day of the month coincident with, or next following, attainment
of his or her sixtieth birthday.
Employees who are vested and eligible to retire shall have the right to file a
written election to be considered retired on the day before death if such employee
should die prior to retirement. If an employee who is vested and eligible to retire
dies prior to retirement without making the foregoing election, the election can be
made by the employee's beneficiary previously designated in the village records.
(c) 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, ceasing upon
death. The member's annual pension benefit shall either equal two and one-
quarter (2 1/4) percent or two and one-half (2 ½) percent of final average earnings
multiplied by the member's credited service for the first twenty (20) years of
credited service and one (1) percent for each year of credited service thereafter as
follows:
(1) All employees hired prior to the effective date of this section shall
have a one-time option for a period of thirty (30) days from the
effective date of this section to increase the pension benefit from
two and one-quarter (2 1/4) percent of final average earnings to
two and one-half (2 ½) percent of final average earnings by
thereafter making regular contributions to the fund at a rate equal
to two (2) percent of their respective earnings. If an employee fails
to make such election within said thirty (30) day period from the
effective date of ordinance, the employee's pension benefit shall
remain at two and one-quarter (2 1/4) percent of final average
earnings.
(2) All employees hired subsequent to the effective date of this section
shall be required to make regular contributions to the fund at a rate
equal to six (6) percent (including cost of living) of their respective
earnings and the employee's pension benefit shall be two and one-
half (2 ½) percent of final average earnings.
(d) Member contributions.
Page 26 of 29
(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.
(2) Duration. The Village shall pick-up, rather than deduct from each
member's pay, beginning with the date of employment, two (2)
percent of the member's basic compensation. The monies so
picked-up shall be deposited in the Fund on a monthly basis. An
account record shall be maintained continuously for each member.
Pick-up contributions shall continue until death, disability or
termination of service, whichever shall occur first. Contributions
shall remain in the fund unless withdrawn as provided in the Plan.
No member shall have the option to choose to receive the
contributed amounts directly instead of having them paid by the
village directly to the plan. All such pick-up contributions by the
village shall be deemed and be considered as part of the member's
accumulated contributions and subject to all provisions of the Plan
pertaining to accumulated contributions of members. The intent of
this provision is to comply with Section 414(h)(2) of the Internal
Revenue Code. For paying Social Security taxes, and for such
other purposes except as specified in this plan, the amount of
employee contributions "picked-up" or paid by the village will be
added to the amount distributed on a current basis in order to
determine total wages, salary, pay or compensation. In the event
that the employer agrees to assume and pay member contributions
in lieu of direct contributions by the member, such contributions
shall accordingly be paid into the plan on behalf of the members.
No member subject to such agreement shall have the option of
choosing to receive the contributed amounts directly instead of
having them paid by the employer directly to the plan. All such
contributions by the employer shall be deemed and considered as
part of the member's accumulated contributions and subject to all
provisions of this plan pertaining to accumulated contributions of
members. The intent of this language is to comply with section
414(h)(2) of the Internal Revenue Code.
(3) Interest. Interest shall be credited to member contributions as of
September 30 of each year at a rate equal to the change in the
consumer price index, published by the U.S. Bureau of Labor
Statistics, over the twelve-month period ending on the previous
June 30. The maximum rate for any year shall be seven (7) percent
and the minimum rate shall be zero (0) percent.
Page 27 of 29
(e) The board shall have the power and authority to recommend an
increase or decrease in the benefits payable hereunder, through the adoption of an
amendment to this article but provided such action is based on an actuarial review
by an enrolled actuary who is a member of the Society of Actuaries.
(f) All portions of Division 3, Pension and Certain Other Benefits for
General Employees, of Article V of Chapter 2 of the Code of Ordinances that are
not in conflict with this Section 2-158 shall have full applicability to this optional
benefit plan.
Section 16. The Village Council hereby amends Chapter 2, “Administration,” Article V,
“Pension and Retirement Systems,” Division 3, “Pension and Certain Other Benefits for General
Employees,” of the Village Code of Ordinances by renumbering Section 2-158.1 and amending
it to read as follows (new language is underlined and deleted language is stricken through):
Sec. 2-158.1. Optional benefit plan no. 2 Cost of living adjustment.
Cost of living adjustment . The amount of pension benefit will be
increased or decreased in accordance with the changes in the consumer price
,
index for urban wage earners (CPI-W) South published by the U.S. Bureau of
Labor Statistics. Adjustments 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 April 1 of that year. The maximum increase or decrease in the
member's pension benefit for any one (1) year is three (3) percent. However, the
member's pension benefit can never be reduced below the amount the member
received at date of retirement. Such adjustments shall apply to each retirement,
survivor or disability benefit in pay status as of each October 1.
This provision is mandatory for all employees hired after the effective date
of this section May 11, 2000 and such employees shall contribute two (2) percent
of their salary for this benefit. The cost of living adjustment and contribution of
salary as specified in this section shall be optional with all employees who were
hired prior to the effective date of this ordinance May 11, 2000.
The cost of living adjustment (COLA) set forth herein shall apply to all
forms of benefits set forth in sections 2-148, and 2-149 and 2-158 of this Code.
For general employee group members and bargaining unit employee group
participants, the cost of living adjustment (COLA) shall not apply to lump sum
calculations for employees hired by the village subsequent to the effective date of
the ordinance from which this section derives.
Section 17. The provisions of this Ordinance shall become and be made a part of the Code of
the Village of North Palm Beach, Florida.
Page 28 of 29
•
Section 18. If any section, paragraph, sentence, clause, phrase or word of this Ordinance 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 this Ordinance.
Section 19. All ordinances or parts of ordinances and resolutions or parts of resolutions in
conflict herewith are hereby repealed to the extent of such conflict.
Section 20. This Ordinance shall take effect retroactive to February 25, 2010.
PLACED ON FIRST READING THIS 13th DAY OF MAY. 2010.
PLACED ON SECOND, FINAL READING AND PASSED THIS 27th DAY OF MAY, 2010.
MAYOR
(Village Seal)
ATTEST: _
VILLAGE CLERK
APPROVED AS TO FORM AND
LEGAL SUFFICIENCY:
VILLAGE ATTORNEY
•
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