2006-26 Creates Defined Contribution Pension PlanORDINANCE 2006-26
AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF NORTH PALM
BEACH, FLORIDA, APPROVING THE CREATION OF A DEFINED CONTRIBUTION
PENSION PLAN FOR VILLAGE EMPLOYEE GROUPS TO BE ADMINISTRATED BY
THE ICMA RETIREMENT CORPORATION AND AUTHORIZING THE MAYOR AND
VILLAGE CLERK TO EXECUTE AN ADMINISTRATIVE SERVICES AGREEMENT AND
ADOPTION AGREEMENTS WITH ICMA; ESTABLISHING A VESTING SCHEDULE AND
VESTING PERIOD; PROVIDING FOR CONFLICTS; AND PROVIDING FOR AN
EFFECTIVE DATE.
WHEREAS, the pension and retirement benefits for Village employees are generally set forth in
Chapter 2, Article V, "Pension and Retirement Systems," of the Village Code of Ordinances; and
WHEREAS, the Village Council wishes to establish a defined contribution pension plan to be
administered by the ICMA Retirement Corporation as an alternative choice for Village
employees retroactive to October 1, 2006; and
WHEREAS, the Village wishes to offer the plan to certain employee groups, subject to the
necessary collective bargaining process for those employees within a bargaining unit; and
WHEREAS, the Village Council determines that the establishment of a defined contribution
pension plan for Village employees is in the best interests of the employees and residents of the
Village ofNorth Palm Beach.
NOW, THEREFORE, BE IT ORDAINED BY THE VILLAGE COUNCIL OF NORTH PALM
BEACH, FLORIDA as follows:
Section 1. The foregoing recitals are ratified as true and correct and are hereby incorporated
herein by this reference.
Section 2. The Village Council hereby approves the creation of an ICMA defined
contribution pension plan for each ofthe following Village employee groups:
(1) Department Directors;
(2) General Employees; and
(3) FPE Employees.
Section 3. The vesting period for each defined contribution plan shall be five (5) years, with
a vesting of zero percent (0%) in the first year and a vesting of twenty-five percent (25%) for
each year thereafter. While the plans will not provide for retroactive funding, the vesting period
shall run from each employee's original date of hire.
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Section 4. The Village Council hereby approves the Administrative Services Agreement and
Adoption Agreements with ICMA and authorizes the Mayor and Village Clerk to execute such
agreements on behalf of the Village. The Village Clerk shall transmit a copy of this Ordinance
to the State of Florida Division of Retirement.
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 be retroactive to October 1, 2006 and shall take effect upon
adoption. However, the provisions of this Ordinance shall not be implemented as to bargaining
unit employees until the Village and the union representing the bargaining unit agree to an
amendment of the collective bargaining agreement incorporating the additional benefits set forth
in this Ordinance and that agreement is ratified or the union waives bargaining and consents to
its implementation.
PLACED ON FIRST READING THIS 26th DAY OF OCTOBER, 2006.
PLACED ON SECOND, FINAL READING AND PASSED THIS
2006.
(Village Seal)
AT'i EST:
Village Clerk
DECEMBER,
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