Ordinance 16-2013 Retirement ORDINANCE NO. 16-2013
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 V, GENERAL
EMPLOYEES AND LIFEGUARDS, BY AMENDING SECTION 82-139,
DEFERRED RETIREMENT OPTION PLAN FOR MEMBERS OF
BENEFIT GROUP GENERAL AND BENEFIT GROUP LIFEGUARD;
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:
Sectionl. 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 II, Reserve Accounts; Section 82-139, Deferred retirement option plan for members
of benefit group general and benefit group lifeguard, subsection(d),to read as follows:
Sec. 82-139. - Deferred retirement option program for members of benefit group general
and benefit group lifeguard.
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(d) Compensation for work performed while participating in the DROP. Starting pay shall be at
the base pay rate in effect on the employee's last working day of employment, prior to
participation in the DROP. Job performance will be evaluated under the town's pay for
performance system, and performance pay increases will be permitted as established by town
policy. General pay increases shall also be awarded, as approved by the town council and the
town manager. Performance pay increases and general pay increases awarded to DROP
participants will be reflected in their salary but will not be reflected in pension payments
made to DROP accounts or made after DROP participation.
(1) Effective with the date of DROP participation, the member's initial normal monthly
pension benefit, calculated in accordance with section 82-135 and based on creditable
service and average final compensation and the effective date of retirement, shall be
fixed. Retirement system amendments which become effective after the establishment
date of participation in the DROP will not be applicable to the DROP participant, unless
so stated by the amendment. The monthly pension benefit (minus any reduction as
determined by the board of trustees as provided by subsection (h) of this section), cost of
living adjustments, interest and earnings thereon, if any, shall accrue monthly in the
retirement system or the individual investment account as applicable. Interest under the
system investment method only shall accrue at an effective annual rate to be determined
hereunder as set forth in subsection (h) of this section, and will be compounded monthly,
on the prior month's accumulated ending balance, up to the month of termination of the
DROP or death. Provided, however the monthly pension benefit payable to members of
benefit group general or benefit group lifeguard who entered the DROP before May 1,
2012 or who were employed on that date and attained normal retirement based on
credited service as of May 1, 2012, excluding credited service purchased pursuant to
section 82-54, and who elect to become DROP participants shall be reduced by two
percent to fund the probability of increased cost to the retirement system of members of
such employment group electing to participate in DROP, which reduced amount shall
thereafter be such participants' normal retirement or pension benefits. The monthly
pension benefit payable to members of benefit group general or benefit group lifeguard
who did not attain normal retirement based on credited service as of May 1, 2012,
excluding credited service purchased pursuant to section 82-54, and who enter the DROP
on or after May 1, 2012 shall not be reduced. The reduction in the DROP benefit
provided in this paragraph will be reviewed by the board of trustees from time to time as
other actuarial assumptions are reviewed and may be modified by the town council.
* * *
$ection2. 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.
$ection3. 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.
Section4. Codification.
This Ordinance shall be codified and made a part of the official Code of Ordinances of
the Town of Palm Beach.
Sections. Effective Date.
This Ordinance shall take effect immediately upon its passage and approval, as provided
by law.
Ordinance No. 16-2013 Page 2 of 3
PASSED AND ADOPTED in a regular, adjourned session of the Town Council of the Town of
Palm Beach on first reading this 10th day of September 2013, and for second and final reading on
this day of _2013.
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`ai L. Conig io, Mayor J David A. Rosow,Town Council President
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Robert N. Wildric Council President Pro Tern
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William J. )iamoo,Town ou i ember
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ATTEST: Richard M. Kleid,Town Council Member
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. san A, en , MC, Town Clerk lc'ael . Pucillo, To Council Member
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Ordinance No, 16-2013 Page 3 of 3