Ordinance 07-2013 Personnel ORDINANCE NO. 7-2013
AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF PALM
BEACH, PALM BEACH COUNTY, FLORIDA, AMENDING CHAPTER
82 OF THE TOWN CODE OF ORDINANCES RELATING TO
PERSONNEL, AT ARTICLE II, EMPLOYEE BENEFITS, DIVISION 2,
RETIREMENT SYSTEM, AMENDING SUBDIVISION I, IN GENERAL,
BY AMENDING SECTION 82-57, BOARD OF TRUSTEES;
ADMINISTRATIVE DUTIES; INVESTMENT OF RETIREMENT
SYSTEM ASSETS; AMENDING SUBDIVISION IV , POLICE OFFICERS,
BY CREATING A NEW SECTION 82-127, CHAPTER 185 SHARE PLAN;
PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEAL OF
ORDINANCES IN CONFLICT; PROVIDING FOR CODIFICATION;
PROVIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF PALM BEACH,
PALM BEACH COUNTY, FLORIDA, AS FOLLOWS:
Section 1. The Code of Ordinances of the Town of Palm Beach is hereby amended at
Chapter 82, Personnel; Article II, Employee Benefits; Division 2, Retirement System;
Subdivision I, In General; Section 82-57, Board of trustees; administrative duties; investment of
retirement system assets, subsection (i), to read as follows:
Sec. 82-57. - Board of trustees; administrative duties; investment of retirement system
assets.
* * *
(i) The board shall direct the investment of retirement system assets in accordance with the
following provisions:
(1) The board shall adopt an investment policy in accordance with F.S. § 112.661218.115,
and shall regularly review, evaluate and, if deemed in the best interest of the retirement
system, revise the investment policy, subject to the approval of the town council.
(2) In exercising its discretionary authority with respect to the management of the moneys
and assets of the retirement system, the board shall exercise the care, skill, prudence and
diligence under the circumstances then prevailing, that a person of prudence, acting in a
like capacity and familiar with such matters, would use in the conduct of an enterprise of
like character and with like aims.
(3) The board shall have full power and authority to invest and reinvest the moneys and
assets held for the benefit of the members, retirants and beneficiaries of the system,
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subject to all terms, conditions, limitations and restrictions imposed by law on the
investments of public employee retirement system assets, and subject to investment
policy adopted by the board.
(4) The board may invest in securities of, or other interests in, any open-end or closed-end
management type investment company or investment trust registered under the
Investment Company Act of 1940, 15 USC 80A-1 et seq., and in such other investments
authorized by law and by the board's investment policy, including alternative
investments.
(5) The board shall retain an independent consultant professionally qualified to advise the
board on all investment matters and evaluate the performance of professional money
managers. The independent consultant shall assist the board in developing and revising
its investment policy, and make recommendations regarding the selection of money
managers. These recommendations shall be considered by the board at its meetings.
Section 2. The Code of Ordinances of the Town of Palm Beach is hereby amended at
Chapter 82, Personnel; Article II, Employee Benefits; Division 2, Retirement System;
Subdivision I, In General; by creating a new Section 82-127, Police share plan, to read as
follows:
Sec. 82-127.—Police share plan.
(a) A supplemental "share plan" is hereby created for Town of Palm Beach police officers in
accordance with this section The supplemental retirement benefit shall consist of an
individual share account for each active police officer, including DROP participants,
employed on May 1, 2012. The supplemental retirement benefit shall be funded solely by
accumulated excess premium tax revenues received by the Town pursuant to Chapter 185,
Florida Statutes. The total amount of premium tax revenues to be allocated to the
participants' share accounts as provided herein is $118,579, which is the accumulated excess
premium tax revenues in the pension fund as of September 30, 2012. Participants' share
accounts will be credited and distributed as follows:
(1) Crediting of Excess Premium Tax Revenues: No later than 120 days after the adoption
of this Ordinance, the share account of each active police officer and DROP participant
on the Town's payroll as of May 1, 2012 shall be credited as follows. Each member who
was employed as a police officer on May 1, 2012 shall receive one share for each
complete month of credited service earned from date of hire through April 30, 2012. The
total number of shares thus determined shall be divided into the total amount of premium
tax revenues to be allocated to derive the value of each member's share.
(2) Distribution of Share Account Balance to Eligible Members. Each member who receives
a share account allocation and is employed by the Town on the date of distribution shall
Ordinance No. 7-2013 Page 2 of 4
receive payment from the Town equal to their share account balance. Employees who
wish to defer taxes on their share account payment may defer an amount equal to their
share account payment to the 457 plan, and will be able to invest the share plan proceeds
in the investment options provided through the 457 plan. Members who receive a share
account allocation and are not employed by the Town on the date of distribution shall
receive their share account balance in a cash payment, subject to withholding of
applicable taxes and penalties in accordance with federal law, or may elect to roll over all
or a portion of the distribution to an IRA or other qualified plan in accordance with
section 82-72.
(b) Effective October 1, 2013, the member contributions of police officer members shall be
increased by a percentage of compensation equal to the dollar amount of distributions
made by the Town pursuant to paragraph (2) above. Immediately following the increase
in member contributions of police officer members, the member contributions of police
officer members shall be reduced to the level in effect prior to the increase, such that
there is no change in the member contribution rate. The reduction in member
contributions of police officer members shall be funded by application of accumulated
excess premium tax revenues in the pension fund, with the result that the Town's
required annual contribution for the 2013-14 plan year shall be reduced by an amount
equal to the amount of accumulated excess premium tax revenues used to fund the
reduction in member contributions of police officer members.
Section 3. Severability.
If any provision of this Ordinance or the application thereof is held invalid, such
invalidity shall not affect the other provisions or applications of this Ordinance which can be
given effect without the invalid provisions or applications, and to this end the provisions of this
Ordinance are hereby declared severable.
Section 4. Repeal of Ordinances in Conflict.
All other ordinances of the Town of Palm Beach, Florida, or parts thereof which conflict
with this or any part of this Ordinance are hereby repealed.
Section 5. Codification.
This Ordinance shall be codified and made a part of the official Code of Ordinances of
the Town of Palm Beach.
Section 6. Effective Date.
This Ordinance shall take effect immediately upon its passage and approval, as provided
by law.
Ordinance No, 7-2013 Page 3 of 4
PASSED AND ADOPTED in a regular, adjourned session of the Town Council of the Town of
Palm Beach on first reading this 11th day of June 2013, and for second and final reading on this
th
9 day of July 2013.
7 ,
G.'` ,,CRiglio, Mayor / Di s A. Rosow, Town Council President
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v , 11.r. Re x t m Wild p
Ac, Council Preside ro Tem
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William J Diamond, Town Counci Member
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Rich •d M. Kleid, Town Council Member
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usan A. wens, MMC, Town Clerk Micha 1J. Pucillo, own Council Member
Ordinance No. 7-2013 Page 4 of 4