Ordinance 15-2016 Retirement8.1.16
ORDINANCE NO. 15-2016
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 82-67, UNITED STATES
INTERNAL REVENUE CODE QUALIFICATION; BY AMENDING
SECTION 82-72, ROLLOVER DISTRIBUTIONS; BY AMENDING
SECTION 82-94, RETIREMENT AGE AND SERVICE CONDITIONS
FOR FIREFIGHTERS; BY AMENDING SECTION 82-99, DEFERRED
RETIREMENT OPTION PROGRAM FOR FIREFIGHTERS;
AMENDING SUBDIVISION IV, POLICE OFFICERS, BY
AMENDING SECTION 82-114, RETIREMENT AGE AND SERVICE
CONDITIONS FOR POLICE OFFICERS; BY AMENDING SECTION
82-119, DEFERRED RETIREMENT OPTION PROGRAM FOR
POLICE OFFICERS; AMENDING SECTION 82-139, DEFERRED
RETIREMENT OPTION PLAN FOR MEMBERS OF BENEFIT
GROUP GENERAL AND BENEFIT GROUP LIFEGUARD;
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 82-67, to read as follows:
"Sec. 82-67. - United States Internal Revenue Code qualifications.
(f) The retirement system shall pay all benefits in accordance with a good faith
interpretation of the requirements of section 401(a)(9) of the Internal Revenue Code and the
regulations in effect under that section as applicable to a governmental plan within the
meaning of section 414(d) of the Internal Revenue Code. The retirement system is subject to
the following provisions:
Distribution of a member's benefit must begin by the required beginning date,
which is the later of the April 1 following the calendar year in which the
member attains age 70 1/2 or April 1 of the year following the calendar year
in which the member terminates. If a member fails to apply for retirement
benefits by the later of either of those dates, the Retirement Board shall begin
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distribution of the monthly benefit as required by this rule in the form provided
in sections 82-95, 82-115 and 82-135.
The member's entire interest must be distributed over the member's life or the
lives of the member and a designated beneficiary, or over a period not
extending beyond the life expectancy of the member or of the member and a
designated beneficiary.
The retirement system pursuant to a qualified domestic relations order may
establish separate benefits for a member and nonmember.
If a member dies after the required distribution of benefits has begun, the
remaining portion of the member's interest must be distributed at least as
rapidly as under the method of distribution before the member's death.
(51 If a member dies before required distribution of the member's benefits has
begun, the member's entire interest must be distributed within five (5) years
of his death, unless it is to be distributed in accordance with the following
rules:
a. If the member's surviving spouse is the sole designated beneficiary, the
member's remaining interest in the plan is distributed or begins to be
distributed by December 31 of the calendar year immediately following
the calendar year in which the member died or by December 31 of the
calendar year in which the member would have attained age 70 1/2, if
later, and if the surviving spouse dies before the distribution to the
surviving spouse begins, this section shall be applied as if the surviving
spouse were the plan member; or
b. If the member's surviving spouse is not the sole designated beneficiary,
the member's remaining interest is to be distributed over the life of the
designated beneficiary or over a period not extending beyond the life
expectancy of the designated beneficiary; and such distribution begins
no later than December 31 of the calendar year immediately following
the calendar year of the member's death.
(6) The amount of an annuity paid to a member's beneficiary may not exceed the
maximum determined under the incidental death benefit requirement of
section 401(a)(9)(G) of the Internal Revenue Code, and the minimum
distribution incidental benefit rule under Treasury Regulation Section
1.401(a)(9)-6, Q&A -2.
(7) The death and disability benefits provided by the retirement system are limited
by the incidental benefit rule set forth in section 401(a)(9)(G) of the Internal
Revenue Code and Treasury Regulation Section 1.401 -1 (b)(1)(i) or any
successor regulation thereto. As a result, the total death or disability benefits
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payable may not exceed 25% of the cost for all of the members' benefits
received from the retirement system.
(8) Notwithstanding the other provisions of this rule or the provisions of the
Treasury Regulations, benefit options may continue so long as the option
satisfies section 401(a)(9) of the Internal Revenue Code based on a reasonable
and good faith interpretation of that section.
(g) The trust fund must not revert, and no contributions shall be permitted to be
returned, to the employer, except due to a mistake of fact as permitted by Revenue Ruling
91-4.
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 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
19 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,
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8.1.16
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.
The provisions of this paragraph shall apply to non -bargaining unit members who are
participating in the DROP on October 1, 2016, and to non -bargaining unit members
who retire or enter the DROP on or after that date, but shall not apply to non -
bargaining unit members who retired or separated from employment before October
1, 2016.
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 III, Firefighters; Section 82-99, to read as follows:
Sec. 82-99. - Deferred retirement oution program for firefiLFhters.
(b) Eligibility of member to participate in the DROP. Retirement system members
are eligible to elect participation in the DROP provided that they elect to retire as of a date
certain and provided that:
(1) Election to participate may be made when the member first reaches normal
retirement date or age, as follows:
a. Members who were employed by the town and not participating in the DROP
on May 1, 2012, shall be eligible to participate in the DROP upon attaining age 50;
or the date on which the member's age to last completed month plus credited service
totals 65 years or more; or 20 years of credited service regardless of age. Upon entry
into the DROP the benefit payable to such member's DROP account shall be the
frozen accrued benefit based on credited service prior to May 1, 2012. The accrued
benefit based on credited service on and after May 1, 2012 shall be payable to the
member's DROP account, or directly to the member if DROP participation has ceased,
upon attaining age 65. Such member who fails to make an election within 84 months
after the member has 20 years of credited service shall forfeit all rights to participate
in the DROP. Notwithstanding the preceding two sentences, effective October 1, 2016
for non -bargaining unit members who are participating in the DROP on that date or
who enter the DROP after that date, the accrued benefit based on credited service on
and after May 1, 2012 shall be payable to the member's DROP account upon attaining
age 56, and such members who fail to make an election within 84 months after the
member attains 20 years of credited service shall not forfeit the right to participate in
the DROP.
b. Members hired on or after May 1, 2012, shall be eligible to participate in the
DROP upon attaining age 56 with ten or more years of service.
(2) There is no break in service to the town between _the member's last working
day prior to DROP participation and the member's first day as a DROP participant.
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(c) Participation in the DROP.
(1) The date on which participation in the DROP must terminate is within 120
months of the commencement of the election period provided in subsection (b)(1) of
this section. Participation in the DROP may not exceed a maximum of 60 months. No
DROP participant may continue to be eligible to participate in the DROP for more
than 60 months or for any time after 120 months following the date on which the
member first reaches normal retirement age or date, unless the member first reached
normal retirement age or date prior to the effective date of the ordinance from which
this section derives. Notwithstanding the preceding sentence, effective October 1,
2016 for non -bargaining unit members who are participating in the DROP on that
date or who enter the DROP after that date, the maximum DROP participation period
shall be 60 months, but such members may continue to participate in the DROP
beyond 120 months following the date on which the member first reaches normal
retirement age or date.
Section 4. The Code of Ordinances of the Town of Palm Beach is hereby
amended at Chapter 82, Personnel; Article Il, 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. The preceding sentence
shall apply to members who are participating in the DROP on October 1, 2016, and to
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8.1.16
members who retire or enter the DROP on or after that date, but shall not apply to
members who retired or separated from employment before October 1, 2016.
(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 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 IV, Police Officers; Section 82-119, to read as follows:
Sec. 82-119. - Deferred retirement option program for police officers.
(b) Eligibility of member to participate in the DROP. Retirement system members are
eligible to elect participation in the DROP provided that they elect to retire as of a date
certain and provided that:
(1) Election to participate may be made when the member first reaches normal
retirement date or age as follows:
a. Members who were employed by the town and not participating in the
DROP on May 1, 2012, shall be eligible to participate in the DROP upon
attaining age 50; or the date on which the member's age to last completed
month plus credited service totals 65 years or more; or 20 years of credited
service regardless of age; and upon entry into the DROP the benefit payable to
such member's DROP account shall be the frozen accrued benefit based on
credited service prior to May 1, 2012. The accrued benefit based on credited
service on and after May 1, 2012 shall be payable to the member's DROP
account, or directly to the member if DROP participation has ceased, upon
attaining age 65. Such member who fails to make an election within 84 months
after the member has 20 years of credited service shall forfeit all rights to
participate in the DROP. Notwithstanding the preceding two sentences,
effective October 1, 2016 for members who are participating in the DROP on
that date or who enter the DROP after that date, the accrued benefit based on
credited service on and after May 1, 2012 shall be payable to the member's
DROP account upon attaining age 56, and such members who fail to make an
election within 84 months after the member attains 20 years of credited service
shall not forfeit the right to participate in the DROP.
b. Members hired on or after May 1, 2012, shall be eligible to participate in
the DROP upon attaining age 56 with ten or more years of service.
(2) There is no break in service to the town between the member's last working day
prior to DROP participation and the member's first day as a DROP participant.
(c) Participation in the DROP.
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(1) The date on which participation in the DROP must terminate is within 120
months of the commencement of the election period provided in subsection (b)(1)
of this section. Participation in the DROP may not exceed a maximum of 60 months.
No DROP participant may continue to be eligible to participate in the DROP for
more than 60 months or for any time after 120 months following the date on which
the member first reaches normal retirement age or date, unless the member first
reached normal retirement age or date prior to the effective date of the ordinance
from which this section derives. Notwithstanding the preceding sentence, effective
October 1, 2016 for members who are participating in the DROP on that date or
who enter the DROP after that date, the maximum DROP participation period shall
be 60 months, but such members may continue to participate in the DROP beyond
120 months following the date on which the member first reaches normal retirement
age or date.
as
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 IV, Benefit Group General and Benefit Group Lifeguard; Section 82-139,
to read as follows:
Sec. 82-139. - Deferred retirement option program for members of benefit group
general and benefit group lifeguard.
(b) Eligibility of member to participate in the DROP. Retirement system members are
eligible to elect participation in the DROP provided that they elect to retire as of a date
certain and provided that:
(1) Election to participate may be made at any time following the date on which the
member first reaches normal retirement date or age as follows:
a. Members of benefit group general who were employed by the town and not
participating in the DROP on May 1, 2012, shall be eligible to participate in the
DROP upon attaining age 55 or upon completion of 30 years of credited service
regardless of age. The benefit payable to such member shall be the frozen accrued
benefit based on credited service prior to May 1, 2012. The accrued benefit based
on credited service on and after May 1, 2012, shall be payable to such member's
DROP account, or directly to the member if DROP participation has ceased, upon
attaining age 65.
Ordinance No. 15-2016 Page 7 of 9
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b. Members of benefit group lifeguard who were employed by the town and not
participating in the DROP on May 1, 2012, shall be eligible to participate in the
DROP upon attaining age 50 or the date on which the member's age to last
completed month plus credited service totals 65 years or more. The benefit payable
to such member shall be the frozen accrued benefit based on credited service prior
to May 1, 2012. The accrued benefit based on credited service on and after May 1,
2012, shall be payable to such member's DROP account, or directly to the member
if DROP participation has ceased, upon attaining age 65.
c. Members of benefit group general and benefit group lifeguard hired on or after
May 1, 2012, shall be eligible to participate in the DROP upon attaining age 65 with
ten or more years of service.
(c) Participation in the DROP.
(1) Participation in the DROP may not exceed a maximum of 60 months.
Section 7. 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 8. 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 9. Codification.
This Ordinance shall be codified and made a part of the official Code of Ordinances
of the Town of Palm Beach.
Section 10. Effective Date.
This Ordinance shall take effect immediately upon its passage and approval, as
provided by law.
Ordinance No. 15-2016 Page 8 of 9
8.1.16
PASSED AND ADOPTED in a regular, adjourned session of the Town Council of the Town
of Palm Beach on first reading this 16th day of August, 2016, and for second and final reading
on this 13th day of September, 2016.
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a
v G� �. Coniglio, Mayor
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man A. 6wens, MMC, Town Clerk
Michael . Pucillo, Council President
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Richard M. Kleid, President Pr, Tem
Bobbie Lindsay, To Co it Member
'elle H. Moore, own Council Member
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Mar areA. Zeid , Townxouncil Member
Ordinance No. 15-2016 Page 9 of 9