2023-01 Code Amendment - Fire and Police Pension BenefitsORDINANCE NO. 2023-01
AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF NORTH
PALM BEACH, FLORIDA AMENDING DIVISION 4, PENSIONS AND
CERTAIN OTHER BENEFITS FOR FIRE AND POLICE EMPLOYEES," OF
CHAPTER 2, "ADMINISTRATION," OF THE VILLAGE CODE OF
ORDINANCES BY AMENDING SECTION 2-159, "CREATION OF PLAN AND
TRUST," TO AUTHORIZE THE BOARD TO ADOPT AN ADMINISTRATIVE
POLICY FOR TAX QUALIFICATION TO ENSURE CONTINUED
COMPLIANCE WITH INTERNAL REVENUE CODE REQUIREMENTS;
AMENDING SECTION 2-161, "BENEFIT AMOUNTS," AND SECTION 2-170.1,
"DEFERRED OPTION BENEFIT PLAN," TO INCREASE THE REQUIRED
MINIMUM DISTRIBUTION AGE; PROVIDING FOR CODIFICATION;
PROVIDING FOR SEVERABILITY; PROVIDING FOR CONFLICTS; AND
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the Village sponsors a retirement plan for its police and fire employees known as the
Village of North Palm Beach Fire and Police Retirement Fund (the "Plan"). The Plan is administered
by a Board of Trustees (the "Board");
WHEREAS, the Village Council recognizes that changes to the Internal Revenue Code may happen
quickly and frequently and that there is a benefit in authorizing the Board, in consultation with its
legal counsel, to make appropriate changes to the Plan in order to maintain the Plan's tax qualified
status; and
WHEREAS, effective January 1, 2020, the Internal Revenue Code was amended by increasing the
required minimum distribution age from 70%2 to 72; and
WHEREAS, the Village Council wishes to amend the Plan to incorporate an administrative policy on
tax qualification and to raise the required minimum distribution age and determines that the adoption
of this Ordinance is in the interest of the public health, safety and welfare of the Village and its
residents.
NOW, THEREFORE BE IT ORDAINED BY THE VILLAGE COUNCIL OF THE VILLAGE OF
NORTH PALM BEACH, FLORIDA as follows:
Section 1. The foregoing "whereas" clauses are hereby ratified as true 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," of the Village Code of Ordinances as follows (additional language is underlined and
deleted language is stri ke thfa,,gh :
Sec. 2-159. Creation of plan and trust.
(a) Creation of trust. A pension and retirement system for full-time
firefighters and police officers of the village is hereby established to provide
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retirement, survivor and disability benefits as provided by this division. The system
shall be known as the Village of North Palm Beach Fire and Police Retirement Fund
and is intended to be a tax qualified plan under Internal Revenue Code Section 401(a)
licable to meet the
and the corresponding Treasury Regulations app requirements of a
governmental plan as defined in Internal Revenue Code Section 414(d). In recognition
of the changing requirements of retirement system qualification, the Board shall adopt
an administrative policy setting forth the required provisions for tax qualification.
Such a 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.
Sec. 2-161. Benefit amounts.
(i) 401(a) (9) Required Distributions.
(1) Effective for distributions after December 31, 1996, in accordance with
Internal Revenue Code Section 401(a)(9), all benefits under this Plan
will be distributed, beginning not later than the required beginning date
set forth below, over a period not extending beyond the life expectancy
of the member or the life expectancy of the member and a beneficiary.
(2) Any and all benefit payments shall begin by the later of:
a. April 1 of the calendar year following the calendar year of the
member's retirement date; or
b. April 1 of the calendar year following the calendar year in
which the member attains age rimer -y and one half /'7V2)
seventy-two (72), provided the Member had not attained age
seventy and one-half by December 31, 2019.
(3) If an employee dies before his entire vested interest has been distributed
to him, the remaining portion of such interest will be distributed at least
as rapidly as provided for under this Plan and will comply with the
incidental death benefit under Internal Revenue Code Section
401(a)(9)(G).
(4) All distributions under this Plan will be made in accordance with this
section, Internal Revenue Code Section 401(a)(9) and the regulations
thereunder, notwithstanding any provisions of this Plan to the contrary,
effective beginning.
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Sec. 2-170.1. Deferred option benefit plan (DROP).
(p) Any form of payment selected by the employee must comply with the
minimum distribution requirements of the IRC 401(A)(9), i.e., payments must
commence by age 70.58 72.
Section 3. All other provisions of Division 4 of Article V of Chapter 2 of the Village Code of
Ordinances not expressly amended as set forth above shall remain unchanged by the adoption of this
Ordinance.
Section 4. The provisions of this Ordinance shall become and be made part of the Code of the
Village of North Palm Beach, Florida.
Section 5. If any action, paragraph, sentence, clause, phrase or word of this Ordinance is for any
reason held be a court of competent jurisdiction to be unconstitutional, inoperative or void, such
holding shall not affect the remainder of this Ordinance.
Section 6. All ordinance or parts of ordinances and resolutions or parts of resolutions of the
Village of North Palm Beach, Florida, which are in conflict with this Ordinance are hereby repealed
to the extent of such conflict.
Section 7. This Ordinance shall be effective immediately upon adoption.
PLACED ON FIRST READING THIS 8TH DAY OF DECEMBER, 2022.
PLACED ON SECOND, FINAL READING AND PASSED THIS 9"H DAY OF FEBRUARY, 2023.
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ATTEST:
ILLAGE CLERK
APPROVED AS TO FORM AND
LEGAL SUFFICIENCY:
VILLAGE ATTORNEY
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