Ordinance 20-2017 Retirement 6.20.17
ORDINANCE NO.20-2017
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 82-52, DEFINITIONS; SECTION 82-67, UNITED STATES
INTERNAL REVENUE CODE QUALIFICATIONS; 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; 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 82-52,to read as follows:
Sec. 82-52.-Definitions.
The following words, terms and phrases, when used in this article, shall have the meanings
ascribed to them in this section, except where the context clearly indicates a different meaning:
* * *
Actuarial equivalent means, when converting DROP account balances to an equivalent
lifetime annuity as required under Section 415 of the Internal Revenue Code, a benefit amount of
equal value based upon the applicable mortality table as provided under Section 415 of the Internal
Revenue Code and an interest rate of five and one-half percent per annum.
* * *
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 82-67,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:
* * *
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6.20.17
(6) Upon retirement, the section 415(b) limitation will not be reduced to account for the
value of any cost-of-living-adjustment. In determining the annual update to the section 415(b)
limitation after retirement,the cost of living adjustment shall not operate to increase the limitation on
benefits contained in section 415(b)(1), and in no event will the amount payable to a member in any
limitation year be greater than the limit applicable at the annuity starting date, as increased in
subsequent years pursuant to Code section 415(d)and the regulations thereunder.
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 82-80,to read as follows:
Sec. 82-80.-Reserve for member contributions.
* * *
(d) Notwithstanding the provisions of subsection(c)above_;
(1) 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, 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.
(2) The member contribution rate for 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 bargaining unit benefit
group firefighter members hired on or after May 1, 2012, effective the first full pay period after
August 8, 2017 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 the benefit group members specified in subsection (d)
abovebenefit group police officer members and non bargaining unit benefit group firefighter
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.
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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
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.
(5) Notwithstanding the provisions of paragraphs (2) and (3) above, effective August 12,
2017 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 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 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
III,Firefighters; Section 82-95,to read as follows:
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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
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.
(6) Notwithstanding the provisions of paragraphs (3) and (4) above, effective August 12,
2017, the benefit formula for bargaining unit firefighters who did not attain normal retirement
eligibility based on credited service as of May 1, 2012, excluding credited service purchased
00833050-1 Ordinance No. 20-2017 Page 4 of 5
6.20.17
pursuant to section 82-54, and who were employed by the town and not participating in the DROP on
that date, and 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 August 12, 2017, payable upon
attaining age 56 with ten or more years of credited service and entry into the DROP or termination of
employment.
Section 6. 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 7. 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 8. Codification.
This Ordinance shall be codified and made a part of the official Code of Ordinances of the
Town of Palm Beach.
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 Pal Beach on first rea 'ng this Vli day of July, 2017, and for second and final reading
on this ' day of , 2017.
A.Ni_
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Gail . Comgho,Mayor Richard M. Kleid, Town Council President
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Danielle H. Moore,Pres''.-nt Pro Tem
- - ,.-- I , 4,tt„ -.. \ le ) ... Fol
1 r, L,,,`‘ ' Ju 6 Araskog,Town Member
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- A-TIE T bbie Lindsay T,wn ar,ember
Gwendolynn Pei , CMC,Acting Town Clerk Marga IF A. Zeidm,n,Town Council Member
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