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2020-22 Code Amendment - General Employee Retirement FundORDINANCE NO. 2020-22 AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF NORTH PALM BEACH, FLORIDA, AMENDING CHAPTER 2, "ADMINISTRATION," ARTICLE V, "PENSIONS AND RETIREMENT SYSTEMS," DIVISION 3, "PENSION AND CERTAIN OTHER BENEFITS FOR GENERAL EMPLOYEES," OF THE VILLAGE CODE OF ORDINANCES BY AMENDING SECTION 2-146.1, "CREATION OF PLAN AND TRUST," TO PROVIDE FOR THE ADOPTION OF A POLICY TO MAINTAIN THE TAX QUALIFIED STATUS OF THE PLAN AND -SECTION 156, "MISCELLANEOUS," TO INCREASE THE REQUIRED MINIMUM DISTRIBUTION AGE FROM SEVENTY AND ONE-HALF TO SEVENTY- TWO; PROVIDING FOR CODIFICATION; PROVIDING FOR SEVERABILITY; PROVIDING FOR CONFLICTS; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Village sponsors a retirement plan for its general employees known as the Village of North Palm Beach General Retirement Fund ("Plan"), which is administered by a Board of Trustees ("Board"); and WHEREAS, the Board has requested amendments to the Plan to recognize a recent amendment to the Internal Revenue Code increasing the required minimum distribution age and to provide a mechanism for the Board to make appropriate changes to the Plan to maintain the Plan's tax qualified status in response to changes to the Internal Revenue Code, which often happen quickly; 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, 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," by amending Division 3, "Pension and Certain Other Benefits for General Employees," of the Village Code of Ordinances to read as follows (new language is underlined and deleted language is s+rieke tIffough : 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 the corresponding Treasury Regulations applicable Page 1 of 3 to meet the requirements of a governmental plan as defined in Code Section 414(d). In recognition of the changing requirements of System qualifications, the Board shall adopt an administrative policy setting forth the required provisions for tax qualification Such policy shall be amended by the Board as required to maintain continuing compliance with the Internal Revenue Code and that policy and any amendments thereto shall have the force of law as if adopted by the Village Council. See. 2-156. Miscellaneous. (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 ^Ne hc-4f /7014l seventy-two (72) Drovided the Member had not attained age seventy and one-half (70Y2) by December 31, 2019, 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. (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: Page 2 of 3 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 (1) 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 seventy and one half (70' 0 seventy-two 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 3. 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 4. 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 5. All ordinances and resolutions, or parts of ordinances and resolutions, in conflict herewith are hereby repealed to the extent of such conflict. Section 6. This Ordinance shall becom( PLACED ON FIRST READING THIS 12T PLACED ON SECOND, FINAL READING i (Village Seal) ATTEST: Q VILLAGf, CLERK N PROVED AS TO FORM AND LEGAL SUFFICIENCY: --- VILLAGE ATTORNEY Page 3 of 3 2020.