Ordinance 12-2016 Retirement 7.7.16
ORDINANCE NO. 12-2016
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 82-55, UNIFORMED SERVICES EMPLOYMENT AND
REEMPLOYMENT; BY AMENDING SECTION 82-57, BOARD OF
TRUSTEES; ADMINISTRATIVE DUTIES; INVESTMENT OF
RETIREMENT SYSTEM ASSETS; BY AMENDING SECTION 82-67,
UNITED STATES INTERNAL REVENUE CODE QUALIFICATION; BY
AMENDING SECTION 82-72, ROLLOVER DISTRIBUTIONS; BY
AMENDING SECTION 82-80, RESERVE FOR MEMBER
CONTRIBUTIONS; AMENDING SUBDIVISION III, FIREFIGHTERS, BY
AMENDING SECTION 82-94, RETIREMENT AGE AND SERVICE
CONDITIONS FOR FIREFIGHTERS; BY AMENDING SECTION 82-95,
AMOUNT OF PENSION—FIREFIGHTERS; AMENDING SUBDIVISION
IV, POLICE OFFICERS, BY AMENDING SECTION 82-114,
RETIREMENT AGE AND SERVICE CONDITIONS FOR POLICE
OFFICERS; BY AMENDING SECTION 82-115,AMOUNT OF PENSION—
POLICE OFFICERS; 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 82-55, to read as follows:
"Sec. 82-55. - Uniformed services employment and reemployment.
A member shall be eligible for up to five additional years of credited service under the
retirement system for service in the uniformed services of the United States as provided in the
Uniformed Services Employment and Reemployment Rights Act of 1994 (28 U.S.C. §§ 4301 et
seq.), as amended, provided that the member:
(1) Was employed by the town when he or she entered the uniformed services;
(2) Is reemployed by the town within the time specified in such Act; and
(3) Members of the general and benefit group lifeguard deposit into the fund within a period
that does not exceed the period of uniformed service the member contributions that would
have been required to have been made by members during the period of such service
based on the members' town compensation prior to entering uniformed service, for each
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month of credited service,together with interest equal to the overall rate of return on fund
investments from the date of reemployment to the date of deposit.
(4) Effective with respect to deaths occurring on or after January 1, 2007, while a member is
performing qualified military service (as defined in chapter 43 of title 38, United States
Code), to the extent required by section 401(a)(37) of the Internal Revenue Code,
survivors of such member are entitled to any additional benefits that the retirement system
would provide if the member had resumed employment and then died, such as accelerated
vesting or survivor benefits that are contingent on the member's death while employed.
In any event, a deceased member's period of qualified military service must be counted
for vesting purposes.
(5) Beginning January 1, 2009, to the extent required by section 414(u)(12) of the Internal
Revenue Code, an individual receiving differential wage payments (as defined under
section 3401(h)(2) of the Internal Revenue Code) from an employer shall be treated as
employed by that employer, and the differential wage payment shall be treated as
compensation for purposes of applying the limits on annual additions under section
415(c) of the Internal Revenue Code. This provision shall be applied to all similarly
situated individuals in a reasonably equivalent manner.
This section is intended to comply with all applicable provisions of the Uniformed Services
Employment and Reemployment Rights Act of 1994 (28 U.S.C. §§ 4301 et seq.), as amended, and
in the event of any conflict or inconsistency with such Act, the provisions of the Act shall be
controlling.
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; Section 82-57, 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. § 112.661, 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, subject to
all terms, conditions, limitations and restrictions imposed by law on the investments of
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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) (a) The Retirement Board may, unless restricted by law, transfer all or any portion of the
assets of the Retirement Fund to a collective or common group trust, as permitted under
Revenue Ruling 81-100, Revenue Ruling 2011-1, and Revenue Ruling 2014-24 (or
subsequent guidance), that is operated or maintained exclusively for the commingling
and collective investment of monies, provided that the funds in the group trust consist
exclusively of trust assets held under plans qualified under section 401(a) of the Internal
Revenue Code, individual retirement accounts that are exempt under section 408(e) of
the Internal Revenue Code, eligible governmental plans that meet the requirements of
section 457(b) of the Internal Revenue Code, and governmental plans under section
401(a)(24) of the Internal Revenue Code. For this purpose, a trust includes a custodial
account or separate tax-favored account maintained by an insurance company that is
treated as a trust under section 401(f) or under section 457(g)(3) of the Internal Revenue
Code.
(b) Any collective or common group trust to which assets of the Retirement Fund are
transferred pursuant to subsection(a) above shall be adopted by the Retirement Board as
part of the Plan by executing appropriate participation, adoption agreements, and/or trust
agreements with the group trust's trustee.
(c)The separate account maintained by the group trust for the Plan pursuant to subsection
(a) above shall not be used for, or diverted to, any purpose other than for the exclusive
benefit of the members and beneficiaries of the Plan.
(d) For purposes of valuation, the value of the separate account maintained by the group
trust for the Plan shall be the fair market value of the portion of the group trust held for
the Plan, determined in accordance with generally recognized valuation procedures.
(6) 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.
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(1) The board shall also provide administrative support and coordination for the town's defined
contribution plan, retirement health savings plan, and 457 plan.
* *
Section 3. 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 82-67, to read as follows:
"Sec. 82-67. - United States Internal Revenue Code qualifications.
(a) The town intends the retirement system to be a qualified pension plan under section 401 of
the United States Internal Revenue Code,as amended,or successor provisions of law, and that
the trust be an exempt organization under section 501 of the United States Internal Revenue
Code. The board of trustees may adopt such additional provisions to the retirement system as
are necessary to fulfill this intent.
(b) In accordance with section 415 of the United States Internal Revenue Code, as amended, the
following limitations on benefits are adopted:
(1) Except as provided in the remainder of this subsection,the annual benefit as described by
section 415(b)(2) of the United States Internal Revenue Code provided by the retirement
system shall not exceed the lesser of$160,000.00, or 100 percent of the retirant's average
compensation for his highest three years of compensation while employed.
(2) If the annual benefit under the plan begins before age 62, or after age 65, the limit set
forth in subsection (b)(1) above shall be reduced or increased so that such limitation
equals an annual benefit which is equivalent to a $160,000.00 annual benefit beginning
at age 62, or age 65, respectively, as set forth in regulations prescribed by the United
States Secretary of the Treasury.
(3) All definitions, limitations and exceptions set forth in or incorporated in section 415 of
the United States Internal Revenue Code are applicable to this section.
(4) The provisions of this division notwithstanding, the board of trustees shall at all times
administer the retirement system in compliance with the provisions of section 415 of the
United States Internal Revenue Code which are applicable to public employee retirement
plans who have not elected the grandfather provision.
(5) Employee-elective salary reductions or deferrals to any salary reduction, deferred
compensation, or tax-sheltered annuity program authorized under the rules of the Internal
Revenue Code shall be included in compensation for retirement purposes. Compensation
in excess of the limitations set forth in section 401(a)(17) of the code, adjusted in
accordance with U.S. Treasury Department regulations, shall be disregarded.
(c) Adjustments to Basic 415(b) Limitation for Form of Benefit. If the benefit under the
plan is other than the form specified below, then the benefit shall be adjusted so that it is the
equivalent of the annual benefit, using factors prescribed in Treasury Regulations.
(1) If the form of benefit without regard to the automatic benefit increase feature is
not a straight life annuity or a qualified joint and survivor annuity,then the preceding sentence
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is applied by either reducing the section 415(b) of the Internal Revenue Code limit applicable
at the annuity starting date or adjusting the form of benefit to an actuarially equivalent amount
[determined using the assumptions specified in Treasury Regulation section 1.415(b)-
1(c)(2)(ii)] that takes into account the additional benefits under the form of benefit in
subsections below.
(2) For a benefit paid in a form to which section 417(e)(3) of the Internal Revenue
Code does not apply (generally, a monthly benefit), the actuarially equivalent straight life
annuity benefit that is the greater of:
(A) The annual amount of the straight life annuity(if any)payable to the
member under the plan commencing at the same annuity starting date as the form of
benefit to the member, or
(B) The annual amount of the straight life annuity commencing at the
same annuity starting date that has the same actuarial present value as the form of
benefit payable to the member, computed using a 5% interest assumption (or the
applicable statutory interest assumption) and (i) for years prior to January 1, 2009, the
applicable mortality tables described in Treasury Regulation section 1.417(e)-1(d)(2)
(Revenue Ruling 2001-62 or any subsequent Revenue Ruling modifying the applicable
provisions of Revenue Ruling 2001-62), and(ii) for years after December 31,2008,the
applicable mortality tables described in section 417(e)(3)(B) of the Internal Revenue
Code (Notice 2008-85 or any subsequent Internal Revenue Service guidance
implementing section 417(e)(3)(B) of the Internal Revenue Code); or
(3) For a benefit paid in a form to which section 417(e)(3) of the Internal Revenue
Code applies (generally, a lump sum benefit), the actuarially equivalent straight life annuity
benefit that is the greatest of:
(A) The annual amount of the straight life annuity commencing at the annuity
starting date that has the same actuarial present value as the particular form of benefit
payable,computed using the interest rate and mortality table,or tabular factor,specified
in the plan for actuarial experience;
(B) The annual amount of the straight life annuity commencing at the annuity
starting date that has the same actuarial present value as the particular form of benefit
payable, computed using a 5.5 percent interest assumption (or the applicable statutory
interest assumption) and (i)for years prior to January 1, 2009, the applicable mortality
tables for the distribution under Treasury Regulation section 1.417(e)-1(d)(2) (the
mortality table specified in Revenue Ruling 2001-62 or any subsequent Revenue
Ruling modifying the applicable provisions of Revenue Ruling 2001-62), and (ii) for
years after December 31, 2008, the applicable mortality tables described in section
417(e)(3)(B)of the Internal Revenue Code (Notice 2008-85 or any subsequent Internal
Revenue Service guidance implementing section 417(e)(3)(B) of the Internal Revenue
Code); or
The annual amount of the straight life annuity commencing at the annuity starting date
that has the same actuarial present value as the particular form of benefit payable
(computed using the applicable interest rate for the distribution under Treasury
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Regulation section 1.417(e)-1(d)(3) (prior to January 1, 2009, using the rate in effect
for the month prior to retirement, and on and after January 1, 2009, using the rate in
effect for the first day of the plan year with a one-year stabilization period and (i) for
years prior to January 1, 2009,the applicable mortality tables for the distribution under
Treasury Regulation section 1.417(e)- 1(d)(2) (the mortality table specified in Revenue
Ruling 2001-62 or any subsequent Revenue Ruling modifying the applicable
provisions of Revenue Ruling 2001-62), and(ii)for years after December 31,2008,the
applicable mortality tables described in section 417(e)(3)(B) of the Internal Revenue
Code (Notice 2008-85 or any subsequent Internal Revenue Service guidance
implementing section 417(e)(3)(B) of the Internal Revenue Code), divided by 1.05.
(d) Other Adjustments in 415(b) Limitation.
(1) In the event the member's retirement benefits become payable before age sixty-
two (62), the limit prescribed by this section for the member's annuity starting date shall
be equal to the lesser of(i)the annual amount of a benefit payable in the form of a straight
life annuity commencing at the member's annuity starting date that is the actuarial
equivalent of the one hundred sixty thousand dollar ($160,000) annual limit (as adjusted
under section 415(d) of the Internal Revenue Code and, if required, for years of
participation less than ten (10)), with actuarial equivalence computed using a five percent
(5%) interest rate assumption and the applicable mortality table for the annuity starting
date as defined in the plan (expressing the member's age based on completed calendar
months as of the annuity starting date), and (ii) the one hundred sixty thousand dollar
($160,000) annual limit (as adjusted under section 415(d) of the Internal Revenue Code
and, if required, for years of participation less than ten (10)) multiplied by the ratio of the
annual amount of the immediately commencing straight life annuity under the plan at the
member's annuity starting date to the annual amount of the immediately commencing
straight life annuity under the plan at age sixty-two (62), both determined without applying
the limitations of this section.
(2)In the event the member's benefit is based on at least fifteen(15)years of service
as a full-time employee of any police or fire department or on fifteen(15) years of military
service, the adjustments provided for in (1) above shall not apply.
(3) The reductions provided for in (1) above shall not be applicable to pre-
retirement disability benefits or pre-retirement death benefits.
(e) Effect of a Lump Sum Component on 415(b) Testing. With respect to a member
who receives a portion of the member's annual benefit in a lump sum, a member's applicable Limit
shall be applied taking into consideration both the portion of the member's benefit subject to
section 417(e)(3) of the Internal Revenue Code and the portion not subject to section 417(e)(3) of
the Internal Revenue Code, as required by section 415(b) of the Internal Revenue Code and
applicable Treasury Regulations.
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Section 4. 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 82-72, to read as follows:
"Sec. 82-72. - Rollover distributions.
(a) For purposes of subsection (b) and compliance with section 401(a)(31) of the Internal
Revenue Code, this section applies notwithstanding any contrary provision or retirement law that
would otherwise limit a distributee's election to make a rollover. A distributee may elect, at the
time and in the manner prescribed by the board, to have any portion of an eligible rollover
distribution paid directly to an eligible retirement plan specified by the distributee in a direct
rollover.
(b) "Eligible rollover distribution" means any distribution of all or any portion of the
balance to the credit of the distributee,except that an eligible rollover distribution does not include:
(1) any distribution that is one of a series of substantially equal periodic
payments (not less frequently than annually) made for the life (or the life expectancy) of the
distributee or the joint lives (or joint life expectancies) of the distributee and the distributee's
designated beneficiary, or for a specified period of ten years or more;
(2) any distribution to the extent such distribution is required under section
401(a)(9) of the Internal Revenue Code;
(3) the portion of any distribution that is not includible in gross income;
provided, however, effective January 1, 2002, a portion of a distribution shall not fail to be an
eligible rollover distribution merely because the portion consists of after-tax employee
contributions that are not includible in gross income,but such portion may be transferred only:
(A) to an individual retirement account or annuity described in section
408(a) or (b) of the Internal Revenue Code or to a qualified defined contribution plan
described in section 401(a) of the Internal Revenue Code that agrees to separately
account for amounts so transferred (and earnings thereon), including separately
accounting for the portion of the distribution that is includible in gross income and the
portion of the distribution that is not so includible;
(B) on or after January 1, 2007, to a qualified defined benefit plan
described in section 401(a) of the Internal Revenue Code or to an annuity contract
described in section 403(b) of the Internal Revenue Code, that agrees to separately
account for amounts so transferred (and earnings thereon), including separately
accounting for the portion of the distribution that is includible in gross income and the
portion of the distribution that is not so includible; or
(C) on or after January 1,2008,to a Roth IRA described in section 408A
of the Internal Revenue Code; and
(4) any other distribution which the Internal Revenue Service does not consider
eligible for rollover treatment, such as certain corrective distributions necessary to comply
with the provisions of section 415 of the Internal Revenue Code or any distribution that is
reasonably expected to total less than $200 during the year.
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Effective January 1, 2002, the definition of eligible rollover distribution also includes a
distribution to a surviving spouse, or to a spouse or former spouse who is an alternate payee under
a qualified domestic relations order, as defined in section 414(p) of the Internal Revenue Code.
(c) "Eligible retirement plan" means any of the following that accepts the distributee's
eligible rollover distribution:
(1) an individual retirement account described in section 408(a) of the Internal
Revenue Code,
(2) an individual retirement annuity described in section 408(b) of the Internal
Revenue Code,
(3) an annuity plan described in section 403(a) of the Internal Revenue Code,
(4) a qualified trust described in section 401(a) of the Internal Revenue Code,
(5)effective January 1, 2002,an annuity contract described in section 403(b) of the
Internal Revenue Code,
(6) effective January 1, 2002, a plan eligible under section 457(b) of the Internal
Revenue Code that is maintained by a state, political subdivision of a state, or any agency
or instrumentality of a state or a political subdivision of a state that agrees to separately
account for amounts transferred into that plan from the retirement system, or
(7) effective January 1, 2008, a Roth IRA described in section 408A of the Internal
Revenue Code.
(d) "Distributee" means an employee or former employee. It also includes the employee's
or former employee's surviving spouse and the employee's or former employee's spouse or former
spouse who is the alternate payee under a qualified domestic relations order, as defined in section
414(p) of the Internal Revenue Code. Effective January 1, 2007, a distributee further includes a
nonspouse beneficiary who is a designated beneficiary as defined by section 401(a)(9)(E) of the
Internal Revenue Code. However, a nonspouse beneficiary may only make a direct rollover to an
individual retirement account or individual retirement annuity established for the purpose of
receiving the distribution, and the account or annuity shall be treated as an "inherited" individual
retirement account or annuity.
(e) "Direct rollover" means a payment by the plan to the eligible retirement plan specified
by the distributee.
Section 5. 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 82-80, to read as follows:
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Sec. 82-80. - Reserve for member contributions.
(a) The reserve for member contributions is the account in which is accumulated the
contributions deducted from the compensation of members, or otherwise paid to the retirement
system by the member or on the member's behalf, and from which shall be made refunds and
transfers of accumulated member contributions.
(b) For members who attained normal retirement eligibility based on credited service as
of May 1, 2012, excluding credited service purchased pursuant to section 82-54, and who were
employed by the town and not participating in the DROP on that date, their contribution rate both
before and after May 1, 2012 shall be 7.21 percent for benefit group lifeguard, 6.98 percent for
benefit group police officer, 6.82 percent for benefit group firefighter, and 6.47 percent for benefit
group general.
(c) For members who did not attain normal retirement eligibility based on credited service
as of May 1, 2012, excluding credited service purchased pursuant to section 82-54, member
contributions to the retirement system shall be at the applicable following rates:
Contribution Contribution Rate
Rate (percent) Contribution Rate
Benefit Group (percent) May 1, 2012 (percent)
Before May 1, through On and After
2012 September 30, October 1, 2013
2013
Benefit group general—Hired 6.47 4.47 2.47
before May 1, 1992
Benefit group general—Hired on 6.47 2.47 2.47
or after May 1, 1992
Benefit group firefighter 6.82 4.82 4.82
(bargaining unit)
Benefit group firefighter (non- 6.82 4.82 2.47
bargaining unit)
Benefit group police officer 6.98 4.98 2.47
Benefit group lifeguard—Hired
7.21 5.21 2.47
before May 1, 1992
Benefit group lifeguard—Hired on
7.21 3.21 2.47
or after May 1, 1992
(d) Notwithstanding the provisions of subsection(c)above,the member contribution rate
for benefit group police officer members and non-bargaining unit benefit group firefighter
members who were employed but did not attain normal retirement eligibility based on credited
service as of May 1, 2012, excluding credited service purchased pursuant to section 82-54, and
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benefit group police officer members and non-bargaining unit benefit group firefighter members
hired on or after May 1,2012, effective the first full pay period after October 1, 2016 shall be 10%
of compensation. The member contribution rate for such members shall be subject to adjustment
the first full pay period following October 1, 2017 and the first full pay period following October
1 of each year thereafter based on the investment performance of the retirement system, as set forth
in subsection(e) below.
(e) The member contribution rate for benefit group police officer members and non-
bargaining unit benefit group firefighter members who were employed but did not attain normal
retirement eligibility based on credited service as of May 1, 2012, excluding credited service
purchased pursuant to section 82-54,and benefit group police officer members and non-bargaining
unit benefit group firefighter members hired on or after May 1,2012, shall be subject to adjustment
on the first full pay period following October 1, 2017, and the first full pay period following
October 1 of each year thereafter as follows: The annual actuarial valuation for the plan year
ending September 30, 2016 and each plan year thereafter shall reflect an adjustment to the member
contribution rate for the following plan year based on funding the difference between the assumed
rate of investment return and the actual rate of investment return for the plan year ending on the
valuation date, net of investment expenses, and such that the ratio of employer to member
contributions for the plan year ending on the valuation date is maintained for the plan year
following the adjustment; subject in any event to a minimum member contribution rate of 8% and
a maximum member contribution rate of 12% of compensation.
(f) The individual responsible for preparing the town payroll shall cause the
contributions provided for in subsection(b) of this section to be deducted from the compensation
of each member on each payroll. The deducted contributions shall be paid to the retirement
system and shall be credited to the member's individual accounts in the reserve for member
contributions. Member's contributions shall be made notwithstanding that the minimum
compensation provided by law for any member shall be changed thereby. Every member shall
be deemed to consent and agree to the deductions made and provided herein. Payment of
compensation, less the deduction, shall be a full and complete discharge and acquittance of all
claims and demands whatsoever for services rendered by the member during the period covered
by such payment, except as to benefits provided by the retirement system.
(g) The accumulated contributions of a member shall be transferred from the reserve
for member contributions to the reserve for retired benefit payments upon a member's retirement
or death. At the expiration of a period of four years from the date an individual without
entitlement to a vested termination pension provided in section 82-94, 82-114, or 82-134 ceases
to be a member, any balance in the reserve for member contributions unclaimed by the individual
or the individual's legal representative shall be transferred to the reserve for undistributed
investment income. Provided, however, that a former firefighter member or a former police
officer member may voluntarily leave his or her contributions in the fund for a period of five
years after leaving the employ of the town, pending the possibility of being rehired by the same
department, without losing credit for the time he or she has participated actively as a member. If
such former member is not re-employed as such with the same department within five years, his
or her contributions shall be returned without interest.
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Section 6. 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
III, Firefighters; Section 82-94, to read as follows:
Sec. 82-94. - Retirement age and service conditions for firefighters.
(b) The age and service conditions for normal retirement are as follows:
(1) Members who attained normal retirement eligibility based on credited service as of
May 1, 2012, excluding credited service purchased pursuant to section 82-54, and who
were employed by the town and not participating in the DROP on that date, shall be eligible
for normal retirement upon attaining age 50 with ten or more years of credited service; or
when the member's age to last completed month plus credited service totals 65 years or
more and the member has ten or more years of credited service; or when the member has
20 or more years of credited service.
(2) Members who did not attain normal retirement eligibility based on credited service as
of May 1, 2012, excluding credited service purchased pursuant to section 82-54, and who
were employed by the town and not participating in the DROP on that date, shall be eligible
for normal retirement upon attaining age 50, or when the member's age to last completed
month plus credited service totals 65 years or more, or upon completion of 20 years of
credited service regardless of age, and upon such retirement shall be eligible to receive the
frozen accrued benefit based on credited service and average final compensation on April
30, 2012. Such members shall be eligible to receive the accrued benefit based on credited
service on and after May 1, 2012 upon attaining age 65 with ten or more years of credited
service.
(3) Members hired on or after May 1, 2012, shall be eligible for normal retirement upon
attaining age 65 with ten or more years of credited service.
(4) Notwithstanding the provisions of paragraphs (2) and (3) above, effective October 1,
2016 non-bargaining unit members who did not attain normal retirement eligibility based
on credited service as of May 1, 2012, excluding credited service purchased pursuant to
section 82-54, and who were employed by the town and not participating in the DROP on
that date, and non-bargaining unit members hired on or after May 1, 2012, shall be eligible
to receive the accrued benefit based on credited service on and after May 1, 2012 upon
attaining age 56 with ten or more years of credited service.
Section 7. 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
III, Firefighters; Section 82-95, to read as follows:
Sec. 82-95. - Amount of pension—Firefighters.
(c) The benefit formula for firefighters is:
(1) For pension payments payable after October 1, 2005 to firefighters who were actively
employed on and after October 1, 2005 and who retired, entered the DROP, or terminated
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employment with ten or more years of credited service prior to May 1, 2012, and to firefighters
who attained normal retirement eligibility based on credited service as of May 1, 2012, excluding
credited service purchased pursuant to section 82-54, and who were employed by the town and not
participating in the DROP on that date, the benefit formula shall be, average final compensation
multiplied by the sum of 3.5 percent of credited service to a maximum of 87.5 percent, plus two
percent of average final compensation for credited service, if any, in excess of 43.75 years. The
standard form of payment for such benefit shall be life and ten years certain (i.e., unless a retirant
chooses an optional form of payment under section 82-96, payments for the benefit of a retirant
who dies within ten years of retirement shall continue to the retirant's designated beneficiary until
the tenth anniversary of the retirant's retirement date.
(2) For firefighters who did not attain normal retirement eligibility based on credited
service as of May 1, 2012, excluding credited service purchased pursuant to section 82-54, and
who were employed by the town and not participating in the DROP on that date, the benefit
formula shall be 3.5 percent of average final compensation on April 30, 2012, multiplied by
credited service on that date. The accrued benefit of all such firefighters shall be frozen on May 1,
2012. The standard form of payment for the frozen accrued benefit shall be life and ten years
certain.
(3) For credited service on and after May 1, 2012, except as such service may be credited
to members who qualify under subsection 82-95(c)(1) above, the benefit formula shall be 1.25
percent of average final compensation multiplied by years of credited service on and after that
date. The standard form of payment for benefits based on credited service on and after May 1,
2012 shall be a straight life annuity, payable for the member's lifetime.
(4) Firefighters who did not attain normal retirement eligibility based on credited service
as of May 1, 2012, excluding credited service purchased pursuant to section 82-54, and who were
employed by the town and not participating in the DROP on May 1, 2012 shall, upon retirement,
be eligible to receive a retirement benefit consisting of two parts: (1) the frozen accrued benefit
based on credited service prior to May 1, 2012, payable upon entry into the DROP or termination
of employment and attaining eligibility for receipt of retirement benefits under the provisions of
the system in effect on April 30 2012 and; and(2)the accrued benefit based on credited service on
and after May 1, 2012, payable upon attaining age 65 with ten or more years of credited service
and entry into the DROP or termination of employment.
(5) Notwithstanding the provisions of paragraphs (3) and (4) above, effective October 1,
2016,the benefit formula for non-bargaining unit firefighters who did not attain normal retirement
eligibility based on credited service as of May 1, 2012, excluding credited service purchased
pursuant to section 82-54, and who were employed by the town and not participating in the DROP
on that date, and non-bargaining unit firefighters hired on or after May 1, 2012, shall be 2.75% of
average final compensation multiplied by credited service on and after October 1, 2016, payable
upon attaining age 56 with ten or more years of credited service and entry into the DROP or
termination of employment.
006798004 Ordinance No. 12-2016 Page 12 of 15
7.7.16
Section 8. 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
IV, Police Officers; Section 82-114, to read as follows:
Sec. 82-114. - Retirement age and service conditions for police officers.
* * *
(b) The age and service conditions for normal retirement are as follows:
(1) Members who attained normal retirement eligibility based on credited service as of May
1, 2012, excluding credited service purchased pursuant to section 82-54, and who were
employed by the town and not participating in the DROP on that date, shall be eligible for
normal retirement upon attaining age 50 with ten or more years of credited service; or when
the member's age to last completed month plus credited service totals 65 years or more and the
member has ten or more years of credited service; or when the member has 20 or more years
of credited service.
(2) Members who did not attain normal retirement eligibility based on credited service as of
May 1, 2012, excluding credited service purchased pursuant to section 82-54, and who were
employed by the town and not participating in the DROP on that date, shall be eligible for
normal retirement upon attaining age 50, or when the member's age to last completed month
plus credited service totals 65 years or more,or upon completion of 20 years of credited service
regardless of age, and upon such retirement shall be eligible to receive the frozen accrued
benefit based on credited service and average final compensation on April 30, 2012. Effective
October 1, 2016, such members shall be eligible to receive the accrued benefit based on
credited service on and after May 1, 2012 upon attaining age 56 with ten or more years of
credited service.
(3) Members hired on or after May 1, 2012, shall be eligible for normal retirement upon
attaining age 56 with ten or more years of credited service.
Section 9. 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
IV, Police Officers; Section 82-115, to read as follows:
Sec. 82-115. - Amount of pension—Police officers.
* * *
(c) The benefit formula for police officers is:
(1) For pension payments payable after October 1, 2005 to police officers who were actively
employed on and after October 1, 2005 and who retired, entered the DROP, or terminated
employment with ten or more years of credited service prior to May 1, 2012, and to police
officers who attained normal retirement eligibility based on credited service as of May 1,2012,
excluding credited service purchased pursuant to section 82-54, and who were employed by
the town and not participating in the DROP on that date, the benefit formula shall be average
final compensation multiplied by the sum of 3.5 percent of credited service rendered to a
00679800-1 Ordinance No. 12-2016 Page 13 of 15
7.7.16
maximum of 87.5 percent,plus two percent of average final compensation for credited service,
if any, in excess of 43.75 years. The standard form of payment for such benefit shall be life
and ten years certain (i.e., unless a retirant chooses an optional form of payment under section
82-96, payments for the benefit of a retirant who dies within ten years of retirement shall
continue to the retirant's designated beneficiary until the tenth anniversary of the retirant's
retirement date.
(2) For police officers who did not attain normal retirement eligibility based on credited
service as of May 1,2012, excluding credited service purchased pursuant to section 82-54, and
who were employed by the town and not participating in the DROP on that date, the benefit
formula shall be 3.5 percent of average final compensation on April 30, 2012 multiplied by
credited service on that date. The accrued benefit of all such police officers shall be frozen on
May 1, 2012. The standard form of payment for the frozen accrued benefit shall be life and ten
years certain.
(3) For credited service on and after May 1, 2012, except as such service may be credited to
members who qualify under subsection 82-115(c)(1) above, the benefit formula shall be: 1.25
percent of average final compensation multiplied by years of credited service between May 1,
2012 and September 30, 2016; and 2.75 percent of average final compensation multiplied by
years of credited service on and after October 1, 2016. The standard form of payment for
benefits based on credited service on and after May 1, 2012 shall be a straight life annuity,
payable for the member's lifetime.
(4) Police officers who did not attain normal retirement eligibility based on credited service
as of May 1, 2012, excluding credited service purchased pursuant to section 82-54, and who
were employed by the town and not participating in the DROP on May 1, 2012 shall, upon
retirement, be eligible to receive a retirement benefit consisting of two parts: (1) the frozen
accrued benefit based on credited service and average final compensation prior to May 1,2012,
payable upon entry into the DROP or termination of employment and attaining eligibility for
receipt of retirement benefits under the provisions of the system in effect on April 30 2012;
and (2) the accrued benefit based on credited service on and after May 1, 2012, payable
effective October 1, 2016,_upon attaining age 56 with ten or more years of credited service,
and termination of employment or entry into the DROP.
Section 10. 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 11. 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 12. Codification.
This Ordinance shall be codified and made a part of the official Code of Ordinances of the
Town of Palm Beach.
00679800-1 Ordinance No. 12-2016 Page 14 of 15
7.7.16
Section 13. Effective Date.
This Ordinance shall take effect immediately upon its passage and approval, as provided
by law.
PASSED AND ADOPTED in a regular, adjourned session of the Town Council of the
Town of Palm Beach on first reading this 12th day of July, 2016, and for second and final reading
on this 16th day of August, 2016.
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` ghio, Mayor Michael . Pucill� cwn Council President
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144
Richard M. leid President Pro Tem
ATTESTS Bobbie Lindsay, Town C. ncil Me,niber
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san A: Owens, MMC, Town Clerk6 .44...._ — --j--
Danielle . . Moore Town Council Member
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Margaret':eidman,/Town Council Member
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00679900-1 Ordinance No. 12-2016 Page 15 of 15