04-22-2010 VC WS-MMINUTES OF THE WORKSHOP SESSION
VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA
• APRIL 22, 2010
Present: William L. Manuel, Mayor
Darryl C. Aubrey, Sc.D., Vice Mayor
David B. Norris, President Pro Tem
T.R. Hernacki, P.E., Councilman
Robert A. Gebbia, Councilman
Jimmy Knight, Village Manager
Leonard Rubin, Village Attorney
Melissa Teal, Village Clerk
ROLL CALL
Mayor Manuel called the meeting to order at 8:25 p.m. All members of Council were present. All
members of staffwere present.
CODE AMENDMENT -GENERAL EMPLOYEES PENSION BOARD
Discussion was held concerning a proposed ordinance amending and restating the General
Employees Pension Plan to comply with State and Federal law, clarify existing provisions,
provide an option for participation in the defined contribution plan; modify the composition of
the Board of Trustees and provide for terms of service; provide a manner of distribution of Plan
assets upon termination, provide for rollovers from qualified plans, and specify the consumer
price index to be utilized in adjusting the amount of pension benefit.
Mr. Knight related that the General Employees Pension Board agreed to retain Attorney
Bonni Jensen of Perry & Jensen, LLC to review and suggest necessary revisions to the pension
plan for general employees. Mr. Knight reported that the Board discussed altering the
composition of the Board to remove the Manager and Mayor (or councilman) from membership
in order to eliminate any potential conflict of interest. Additionally, Mr. Knight noted that the
Board recognized that elimination of lump sum distributions as an optional form of benefit
would be in the best interest of the viability of the plan. Mr. Knight noted that elimination of the
lump sum form of benefit was included in the collective bargaining agreements with both the
Police Benevolent Association (PBA) and the Federation of Public Employees (FPE). Mr. Knight
reported that FPE approved a defined contribution plan as an alternative to the defined benefit
plan. Mr. Knight advised that the defined contribution plan would be offered as an option to all
FPE covered employees; however, upon adoption of the proposed ordinance, all newly hired
general employees would be eligible to participate in the defined contribution plan only.
Human Resources Director Mary Kay McGann reviewed the substantive changes to the General
Employees Pension Plan as incorporated into the proposed ordinance. Mrs. McGann explained
differences between the defined benefit plan and defined contribution plan. Mr. Knight noted
that the defined contribution plan presents no liabilities for the Village.
• Attorney Bonni Jensen was present to answer questions concerning the draft ordinance.
Minutes of Village Council Workshop Session held Apri122, 2010 Page 2 of 2
Council discussed the proposed membership composition of the General Employees Pension
• Board, qualifications necessary for membership, and the Board's power to invest pension funds.
Mr. Rubin clarified that the fifth member of the Board would be chosen by the other four
members (two employee members and two Council-appointed members). Mr. Rubin stated that
there is no residency requirement for the fifth member; additionally, this member may not be a
current or past employee of the Village. Council discussed establishing qualifications for
membership on the Board. Ms. Jensen clarified that Council has the power to remove only those
members appointed by Council. It was suggested that instead of establishing qualifications by
ordinance, Council consider certain factors when making its appointments to the Board,
including experience related to investments, finances, or pensions, and that this criteria be
specified when advertising for Board applicants.
Mr. Knight noted that the Board is advisory in nature, and any changes in the plan must be
approved and enacted by Council.
Brief discussion took place concerning the definition of "earnings." Mr. Knight noted that any
changes to this definition would be subject to collective bargaining. Discussion ensued on the
definition of "final average earnings" regarding members employed for fewer than five years.
Discussion was held concerning Section 2-150(b)(2) regarding the term `dick up" and Section 2-151(8)
concerning the power of the Board to recommend increases or decreases in benefits.
ADJOURNMENT
With no further business to come before the Council, the meeting adjourned at 8:45 p.m.
Melissa Teal, CMC, Village Clerk
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