2003-13 Police & Fire Pension Plan AmendmentORDINANCE NO. 13-2003
AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF
NORTH PALM BEACH, FLORIDA; AMENDING DIVISION 4, PENSION
AND CERTAIN OTHER BENEFITS FOR FIRE AND POLICE
EMPLOYEES, OF ARTICLE V, OF CHAPTER 2, ADMINISTRATION, OF
THE CODE OF ORDINANCES OF THE VILLAGE; PROVIDING FORAN
AMENDMENT TO THE NORMAL FORM OF RETIREMENT;
PROVIDING FOR REDUCTION IN THE EARLY RETIREMENT
FACTOR; PROVIDING FOR CHANGES TO THE DISABILITY
RETIREMENT BENEFIT; PROVIDING FOR AMENDMENT TO THE
OPTIONAL FORMS OF BENEFITS; PROVIDING FORAN EFFECTIVE
DATE; PROVIDING FOR REPEAL OF CONFLICTING PROVISIONS;
AND PROVIDING FOR CODIFICATION.
WHEREAS, Florida Statutes Chapters 175 & 185 providing for municipal
firefighter and police officer pensions has been revised to require all municipal
firefighter and police officer funds who receive the premium excise monies from
Chapters 175 & 185 to provide certain minimum benefits;
WHEREAS, the North Palm Beach Fire and Police Retirement Fund ("Fund"),
receives the premium excise monies from Chapters 175 & 185;
WHEREAS, the pension plan document must be amended to provide the
mandatory minimum benefits;
WHEREAS, the Board of Trustees of the Fund has determined that it is in the
best interest of the Participants and Beneficiaries of the Fund to provide for the
minimum benefits in accordance with the law; and
WHEREAS, the Village Council of the Village of North Palm Beach, Florida,
desires to revise its Fire and Police Pension Ordinance in order implement these
minimum benefits to the extentthat additional premium tax monies are available tofund
Page 1 of 11
same;
NOW, THEREFORE, BE IT ORDAINED, BY THE VILLAGE COUNCIL OF THE
VILLAGE OF NORTH PALM BEACH, PALM BEACH COUNTY, FLORIDA, that:
Section 1. Division 4, Pension and certain other benefits for fire and police
employees, of Article V, of Chapter 2, Administration, of the Code of
Ordinances of the Village, is hereby amended by changing 2-161(a) to
read as follows:
Sec. 2-161. Benefit Amounts.
(a) Normal Retirement benefit.
(1) Amount. Each memberwho retires on orafter his normal retirement date
shall be eligible ro receive a normal retirement benefit commencing on
his actual retirement date. The monthly normal retirement benefit shall
be an amount equal to two and one half (2'/2) percent of his average
monthly earnings multiplied by the member's credited service. The
maximum benefit is sixty (60) percent.
(2) Form of benefit. The normal retirement benefit shall commence on the
member's actual retirement date and be payable on the first day of each
month thereafter, with the last payment being the one next preceding the
retiree's death, with 120 monthly payments guaranteed (10 years). If the
member should die before 120 monthly payments are made, payments
are then continued to the designated beneficiary until 120 monthly
Page 2 of 11
payments in all have been made, at which time the benefits cease.
(3) Optional forms of benefit. In lieu of the form of benefit just described, a
member may choose an optional form of benefit as provided in section
2-162 below.
(4) One hundred (100) percent vesting. Each member who attains normal
retirement date or reaches 10 years of credited service shall be one
hundred (100) percent vested in their accrued benefit.
Section 2. Division 4, Pension and certain other benefits for fire and police
employees, of Article V, of Chapter 2, Administration, of the Code of
Ordinances of the Village, is hereby amended by changing 2-161(b) to
read as follows:
Sec. 2-161. Benefit amounts.
(b) Early retirement benefit. A member retiring hereunder on or after his early
retirement date may receive either a deferred or an immediate monthly
retirement benefit as follows:
(1) A deferred monthly retirement benefit which shall commence on the
normal retirement date and shall be continued on the first day of each
month thereafter during his lifetime, guaranteed for 120 monthly
payments. The amount of the benefit shall be determined and paid in the
same manner as for retirement at the member's normal retirement date
except that average monthly earnings and credited service shall be
Page 3 of 11
determined as of his early retirement date, or
(2) An immediate monthly retirement benefit which shall commence on the
member's early retirement date and shall be continued on the first day of
each month thereafter during the member's lifetime and guaranteed for
120 monthly payments. The benefit payable shall be as determined in
subparagraph (1) above, reduced by three percent per year by which the
starting date of the benefit precedes the normal retirement date.
Section 3. Division 4, Pension and certain other benefits for fire and police
employees, of Article V, of Chapter 2, Administration, of the Code of
Ordinances of the Village, is hereby amended by changing 2-161(e) to
read as follows:
Sec. 2-161. Benefit amounts.
(e) Disability retirement.
(1) A member may retire from the service of the Village under the plan if,
prior to his normal retirement date, he becomes disabled as defined in
subsection (2) hereof. Such retirement shall herein be referred to a
disability retirement. To be eligible for anon-duty disability benefit, a
member shall have 10 or more years of credited service. There is no
years of service requirement for eligibility for a duty disability benefit.
(2) a. Non -duty disability. A member will be considered for anon-duty
disability benefit if in the opinion of the board, he is wholly prevented from
rendering useful and efficient service as a police officer orfirefighter, and
Page 4 of 11
such member is likely to remain so disabled continuously and
permanently. Provided howeverthe cause was not one of the exclusions
listed in subsection (10).
b. Duty disability. A member will be considered for a duty disability
benefit, if in the opinion of the board, he is wholly prevented from
rendering useful and efficient service as a police officer or firefighter, and
such member is likely to remain so disabled continuously and
permanently and the Board finds that his injury or illness arose out of and
in the course of his employment with the village. Provided however the
cause was not one of the exclusions listed in subsection (10).
(3) Disability benefit. A member retiring on a disability retirement from the
village shall receive a benefit as follows:
a. Non-duty disability benefit. The amount of the benefit for the non-duty
disability benefit is determined and paid in the same manner as for
retirement at the normal retirement date except that average monthly
earnings and credited service shall be determined as of the member's
last date of employment with the village. In any event the non duty
disability benefit shall be at least 25% of the disabled member's average
monthly earnings.
b. Duty disability benefit. The amount of the benefit for the duty disability
benefit is determined and paid in the same manner as for retirement at
the normal retirement date except that average monthly earnings and
Page 5 of 11
credited service shall be determined as of the member's last date of
employment with the village. In any event the duty disability benefit shall
be at least 42% of the disabled member's average monthly earnings.
(4) No member shall be permitted to retire under the provisions of this
section until examined by a duly qualified physician or surgeon, to be
selected by the Board for that purpose, and is found to be disabled in the
degree and in the manner specified in this section. Any member retiring
under this section shall be examined periodically by a duly qualified
physician or surgeon or board of physicians or surgeons to be selected
by the board for that purpose, to determine if such disability has ceased
to exist.
(5) The normal form of benefit payable to a memberwho retires with a total
and permanent disability as a result of a disability commencing prior to
his normal retirement date is the monthly income payable for ten (10)
years certain and life. The disability retiree may also choose any of the
optional benefits available in section 2-162 of this plan.
(6) a. The monthly retirement income to which a member is entitled in the
event of his disability retirement will be payable on the first day of each
month. The first payment will be made on the first day of the month
following the later to occur of:
1. The date on which the disability has existed for six (6)
months, or
Page 6 of 11
2. The date the board approves the payment of such
retirement income.
b. The last payment will be:
1. If the member recovers from the disability prior to his
normal retirement date, the payment due next preceding
the date of such recovery, or
2. If the member dies without recovering from his disability or
attains his normal retirement date while still disabled, the
payment due next preceding his death or the one hundred
twentieth (120`h) monthly payment, whichever is later.
c. Any monthly retirement income payments due after the death of a
disabled member shall be paid to the member's designated beneficiary.
(7) If the board finds that a member who is receiving a disability retirement
income is, at any time prior to his normal retirement date, no longer
disabled, as provided herein, the board shall direct that the disability
retirement income be discontinued. Recovery from disability as used
herein shall mean the ability of the memberto render useful and efficient
service as a police officer or firefighter.
(8) If the member recovers from the disability and reenters the service of the
village as a police officerorfirefighter, his service will be deemed to have
been continuous, but the period beginning with the first month for which
he received a disability retirement income payment and ending with the
Page 7 of 11
date he re-entered the service of the village will not be considered as
credited service for the purpose of the plan.
(9) Any condition or impairment of health of a member caused by
tuberculosis, hypertension, heart disease, hardening of the arteries,
hepatitis, or meningococcal meningitis resulting in total orpartial disability
or death, shall be presumed to be accidental and suffered in the line of
duty unless the contrarybe shown by competent evidence. Any condition
or impairment of health caused directly or proximately by exposure, which
exposure occurred in the active performance of duty at some definite time
or place without willful negligence on the part of the member, resulting in
total or partial disability, shall be presumed to be accidental and suffered
in the line of duty, provided that such member shall have successfully
passed a physical examination upon entering such service, which
physical examination including electrocardiogram failed to reveal any
evidence of such condition. In order to be entitled to presumption in the
case of hepatitis, meningococcal meningitis, ortuberculosis,the member
must meet the requirements of §112.181, Florida Statutes. The final
decision whether a member meets the requirements for duty disability
pension restswith the board and shall be based on substantial competent
evidence on the record as a whole.
(10) A member will not be entitled to receive any disability retirement income
if the disability is a result of:
Page 8 of 11
(a) Excessive and habitual use by the member of drugs, intoxicants,
or narcotics;
(b) Injury or disease sustained by the member while willfully and
illegally participating in fights, riots, civil insurrections or while
committing a crime;
(c) Injury or disease sustained by the member while serving in any
armed forces;
(d) Injury or disease sustained by the member after employment has
terminated;
(e) Injury or disease sustained by the member while working for
anyone other than the village and arising out of such employment.
Section 4. Division 4, Pension and certain other benefits for fire and police
employees, of Article V, of Chapter 2, Administration, of the Code of
Ordinances of the Village, is hereby amended by changing 2-162 to read
as follows:
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) of the
options hereinaftersetforth inlieu ofbenefits provided herein, 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 actuarially equivalent to the
Page 9 of 11
value of benefits otherwise payable, and the present value of payments to the
retiring member must be at least equal to fifty (50) percent of the total present
value of payments to the retiring member and his/her beneficiary. The member
shall make such an election bywritten request to the board, such request being
retained in the board's files.
(1) Option 1--Joint and last survivor option. The member may elect to
receive a benefit, which has been adjusted to the actuarial equivalent of
the normal form of benefit, during his/her lifetime and have such adjusted
benefit (or a designated fraction thereof, for example one hundred (100)
percent, seventy-five (75) percent, sixty-six and two-thirds (66 2/3)
percent or fifty (50) percent) continued after his death to and during the
lifetime of his beneficiary. The election of option 1 shall be null and void
if the designated beneficiary dies before the member's benefit payments
commence.
(2) Option 2--Social security adjustment option. If a member retires
before being eligible for social security benefits, he may elect this
option. A member may elect to receive a larger pension up to the
date he begins receiving social security benefits. The member's
pension benefits may be reduced or terminated after social
security payments begin. The amount of reduction shall be
actuarially determined.
(3) Option 3--Other. In lieu of the other optional forms enumerated in this
Page 10 of 11
section, benefits maybe paid in any form approved by the board so long
as actuarial equivalence with the benefits otherwise payable is
maintained.
Section 5. Should any section of this ordinance or a portion hereof be declared by
a court of competent jurisdiction to be invalid, such decision shall not
affect the remainder of this ordinance.
Section 6. Authority is hereby granted to codify said ordinance.
Section 7. This ordinance shall be effective upon passage.
PLACED ON FIRST READING THIS 24th DAY OF APRIL , 2003.
PLACED ON SECOND, FINAL READING AND PASSED THIS 8th DAY
OF MAY, 2003.
,. \
;~
(VILl~AGE SEAL)
ATTEST:
~~~~
V LLAGE CLERK
H:\NPB tOtlPlan Docs 8 RulesW mend\2002 +\2003\13-2003.wptl
Page 11 of 11