Ordinance 26-2017 Employees ORDINANCE NO. 26-2017
AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN
OF PALM BEACH, PALM BEACH COUNTY, FLORIDA,
AMENDING THE TOWN CODE OF ORDINANCES AT
CHAPTER 82, PERSONNEL, ARTICLE II, EMPLOYEE
BENEFITS, DIVISION 3, OTHER POST-EMPLOYMENT
BENEFITS, AT SECTION 82-150, DEFINITIONS; SECTION
82-151, STATEMENT OF PURPOSE; SECTION 82-154,
CONTRIBUTIONS TO OPEB TRUST; SECTION 82-158,
MISCELLANEOUS; 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 3, Other Post-
Employment Benefits, at Section 82-150, Definitions, at Section 82-151 Statement of
Purpose, at Section 82-154, Contributions to OPEB Trust, and at Section 82-158,
Miscellaneous, in the manner and form set forth below (as shown in the strikeouts and
underlined):
"Division 3. Other Post-Employment Benefits
Sec. 82-150. Definitions.
The following words, terms and phrases, when used in this Division,
shall have the meanings ascribed to them in this section, except where the
context clearly indicates a different meaning:
Actuary means a member of the American Academy of Actuaries, or
a person who has demonstrated an educational background necessary for
the practice of actuarial science and has at least five (5) years of relevant
actuarial experience. A partnership or corporation may be appointed
actuary if the duties of the actuary are performed by or under direct
supervision of an individual who meets the preceding qualifications.
Ordinance No.
Beneficiary means a person designated by Participating Retiree to
be entitled to benefits under an OPEB Plan in the case of death of the
Participating Retiree in accordance with the terms of the applicable
OPEB Plan.
GASB Statements mean statements issued by the Governmental
Accounting Standards Board regarding financial reporting for the OPEB
Plan as amended or modified from time to time.
Investment Advisory Committee means the committee created under
Section 2-567 of the Code.
Investment Manager means either(i) a registered investment advisor
under the Investment Advisory Act of 1940, as amended; (ii) a bank as
defined in that Act; or (iii) an insurance company qualified to perform the
services described herein under the laws of more than one state.
Investment Policy means the investment policy to be created by the
Trustees and approved by the Town Council, as may be amended from time
to time.
IRC means the Internal Revenue Code of 1986, as amended.
OPEB Plan means the post employment benefit plan or plans, other
than pension plans, which are maintained by the Town pursuant to any
applicable statute, regulation, ordinance, resolution, plan, program, policy,
agreement, understanding or other arrangement for the benefit of .
Participating Retirees and their Beneficiaries.
Other Post Employment Benefits (OPEB) mean post employment
benefits other than pensions as that term is defined in the GASB
Statements, including post employment health care benefits, regardless of
the type of plan that provides them, and all post employment benefits
provided separately from a pension plan, excluding benefits defined as
termination offers and benefits.
Participating Retiree means any former employee of the Town who
is eligible to receive benefits under an OPEB Plan.
Property means any property, real or personal, or part interest
therein, wherever situated, including but not limited to, preferred and
common stocks, shares of investment companies, bonds, notes,
debentures and mortgages, investment trust certificates, investments in
partnerships whether limited or general, or any insurance contract, policy,
annuity or other investment offered by an insurance company.
Ordinance No.26-2017
2
Trustees mean the individuals appointed from time to time by the
Town Council. The initial Trustees shall be the Investment Advisory
Committee.
Section 82-151. Statement of Purpose.
The Town provide OPEB benefits to Participating Retirees and their
Beneficiaries. Under the GASB Statements, if OPEB Plan assets are held
in trust, or an equivalent arrangement, the GASB Statements will allow the
assumed investment return to reflect the diversified mix of investments held
by the trust or equivalent arrangement.
Section 82-152. Establishment of OPEB Trust.
The Town hereby establishes an OPEB Trust, which will be under
the supervision and management of the Trustees, for the exclusive benefit
of the Participating Retirees and their Beneficiaries. The OPEB Trust assets
shall consist of cash or other property acceptable to the Trustees as shall
be transferred to the Trustees from time to time for investment in the OPEB
Trust, together with the earnings, income, additions and appreciation
thereon.
Section 82-153. Administration of OPEB Trust.
(a) Except as otherwise set forth in this Section and except as
otherwise provided by law, the Trustees shall have exclusive authority and
discretion to manage and control the assets of the OPEB Trust held by them
pursuant to the Investment Policy.
(b) The Trustees shall receive and accept for purposes set forth
herein all property paid to them at the direction of the Town and Participating
Retirees and shall hold, invest, reinvest, manage, administer and distribute
property and the increments, proceeds, earnings and income thereof for the
exclusive benefit of the Participating Retirees and their Beneficiaries under
terms of the OPEB Plan. All such assets shall be held by the Trustees in
the OPEB Trust.
(c) The Trustees, from time to time, may appoint one or more
independent Investment Managers pursuant to a written investment
management agreement describing the powers and duties of the
Investment Manager to invest and manage all or a portion of the OPEB
Trust. The Investment Manager shall have the power to direct the
management, acquisition or disposition of that portion of the OPEB Trust
for which the Investment Manager is responsible. The Investment Manager
must acknowledge in writing to the Trustees that it is a fiduciary with respect
Ordinance No.26-2017
3
to the portion of the OPEB Trust for which the Investment Manager has
responsibility for the management, acquisition or disposition.
(d) Except as otherwise provided by any applicable provision of
any statute, regulation, ordinance, resolution or other OPEB Plan, no
portion of the vested principal or the income of the OPEB Trust shall revert
to the Town, or ever be used for or diverted to any purpose other than for
(i) the exclusive benefit of the Participating Retirees in the OPEB Plan and
persons claiming under and through them pursuant to such plans; and (ii)
the payment of reasonable expenses of such plans and the OPEB Trust.
Except for the payment of OPEB Plan benefits and reasonable
compensation for services rendered or expenses incurred, no part of the
net earnings of the OPEB Trust shall inure to the benefit of, or be
distributable to, the Trustees, employees of the Town, members of the Town
council or any other private persons.
Section 82-154. Contributions to OPEB Trust.
(a) Beginning fiscal year 2007, the OPEB Trust shall be credited
with all amounts appropriated or otherwise made available by the Town for the
purpose of meeting the current and future OPEB costs payable by the Town. The
OPEB Trust shall be credited with all amounts contributed or otherwise made
available by employees of the Town or Participating Retirees for the purpose of
meeting future OPEB costs payable by the Town.
(b) An Actuary shall perform an actuarial evaluation of the Town's
OPEB liabilities and funding schedule as of January 1, 2006 and no less frequently
than every second year thereafter. All determinations shall be made in accordance
with generally accepted actuarial standards and shall conform to the requirements
or the GASB Statements and the Actuary shall make a report of such
determinations to the Investment Advisory Committee and the Town Council. The
report shall, without limitation, detail the demographic and economic actuarial
assumptions used in making the determinations, and each such report after the
first report shall also include an explanation of the changes, if any, and the
demographic and economic actuary assumptions employed and the reasons for
any changes.
Section 82-155. Distributions from OPEB Trust.
(a) Beginning in fiscal year 2007, all payments for the purpose of
meeting the Town's costs of OPEB shall be paid from the OPEB Trust.
(b) The Trustees, or their designee, shall have the responsibility
for making payments from the OPEB Trust. Such payments shall be made
from the OPEB Trust on behalf of Participating Retirees and their
Ordinance No.26-2017
4
Beneficiaries to provide health benefits. Such payments shall be made in
the manner, in such amounts and for such purposes, including the payment
of benefits under the OPEB Plan, and the payment of expenses of
administration of the OPEB Plan, as may be specified in the OPEB Plan.
(c) The Trustees are authorized to pay all reasonable expenses
of the OPEB Trust from the assets of the OPEB Trust. Expenses which are
allocable to a particular investment account may be allocated and charged
to such investment account as determined by the Trustees. All expenses of
the OPEB Trust which are not allocable to a particular investment account
shall be charged to each such investment account in a manner determined
by the Trustees.
Section 82-156. Amendment of OPEB Trust.
The OPEB Trust may be amended by subsequent ordinance.
Provided, however, the OPEB Trust may not be amended so as to change
its purpose as set forth herein or to permit the diversion or application of
any funds of the OPEB Trust for any purpose other than those specified in
this Division.
Section 82-157. Prohibition of Assignment of Interest.
No interest, right or claim in or to any part of the OPEB Trust, or any
payment therefrom shall be assignable, transferable or subject to sale,
mortgage, pledge, hypothecation, commutation, anticipation, garnishment,
attachment, execution or levy of any kind and the Trustees shall not
recognize any attempt to assign, transfer, sell, mortgage, pledge,
hypothecate, commute or anticipate the same, except to the extent required
by law.
Section 82-158. Miscellaneous.
(a) In resolving any conflict or uncertainty as to the meaning or
intention of any provision of the OPEB Trust, an interpretation that(i) causes
the OPEB Trust to be exempt from tax under IR Sections 115 and 501(a),
and (ii) causes the OPEB Trust to comply with the GASB Statements and
all other applicable requirements of law shall prevail over any different
interpretation.
(b) The OPEB Trust shall be interpreted, construed and enforced,
and the OPEB Trust shall be administered in accordance with the laws of
the United States and the State of Florida.
Ordinance No.26-2017
5
(c) The situs of the OPEB Trust is the State of Florida. All
questions pertaining to its validity, construction, administration shall be
determined in accordance with the laws of the State of Florida. Venue for
any action regarding the OPEB Trust is Palm Beach County, Florida.
(d) The OPEB Trust shall operate on a fiscal year from 12:01 a.m.
on October 1st to midnight on the last day of September in the
following year."
Section 2. 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 3. 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 4. Codification.
This Ordinance shall be codified and made a part of the official Code of Ordinances
of the Town of Palm Beach.
Section 5. Effective Date.
This Ordinance shall take effect immediately upon its passage and approval, as
provided by law.
Ordinance No.26-2017
6
PASSED AND ADOPTED in a regular, adjourned session on first reading this 19th
day of September, 2017, and for a second and final reading on this 10th day of October,
2017.
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Ga 7/ oniglio, a or / Richard M. Kleid, Town Council President
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Danielle H. Moore, Council 'resident Pro Tern
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J - Aras. :, •wn Council ember
ATTEST: Bobbie Linds. own Coun .i .l em•
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Kathleen Dominguez, Town le k 0- Margat* A. Zei• :n, Town ouncil Member
P:\DOCS\13156\00008\DOC\1 ST3705.DOCX
Ordinance No.26-2017
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'aim Beach,FL Code of Ordinances about:blank
Sec. 82-150. - Definitions.
The following words, terms and phrases,when used in this division, shall have the meanings
ascribed to them in this section, except where the context clearly indicates a different meaning:
Actuary means a member of the American Academy of Actuaries, or a person who has
demonstrated an educational background necessary for the practice of actuarial science and has at
least five years of relevant actuarial experience. A partnership or corporation may be appointed
actuary if the duties of the actuary are performed by or under direct supervision of an individual
who meets the preceding qualifications.
Beneficiary means a person designated by participating retiree to be entitled to benefits under
an OPEB plan in the case of death of the participating retiree in accordance with the terms of the
applicable OPEB plan.
GASB 43 and 45 means statements 43 and 45 of the Governmental Accounting Standards
Board as amended or modified from time to time.
Investment advisory committee means the committee created under section 2-567 of the Code.
Investment manager means either:
(1) A registered investment advisor under the Investment Advisory Act of 1940, as amended;
(2) A bank as defined in that Act; or
(3) An insurance company qualified to perform the services described
herein under the laws of more than one state.
Investment policy means the investment policy to be created by the trustees and approved by
the town council, as may be amended from time to time.
IRC means the Internal Revenue Code of 1986, as amended.
OPEB plan means the post employment benefit plan or plans, other than pension plans, which
are maintained by the town pursuant to any applicable statute, regulation, ordinance, resolution,
plan, program, policy, agreement, understanding or other arrangement for the benefit of
participating retirees and their beneficiaries.
Other post employment benefits (OPEB) means post employment benefits other than pensions
as that term is defined in GASB 43 and 45, including post employment health care benefits,
regardless of the type of plan that provides them, and all post employment benefits provided
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'alm Beach,FL Code of Ordinances about:blank
separately from a pension plan, excluding benefits defined as termination offers and benefits.
Participating retiree means any former employee of the town who is eligible to receive benefits
under an OPEB plan.
Property means any property, real or personal, or part interest therein, wherever situated,
including but not limited to, preferred and common stocks, shares of investment companies,
bonds, notes, debentures and mortgages, investment trust certificates, investments in partnerships
whether limited or general, or any insurance contract, policy, annuity or other investment offered
by an insurance company.
Trustees mean the individuals appointed from time to time by the town council. The initial
trustees shall be the investment advisory committee.
(Ord. No. 9-06, § 1, 10-10-06)
Sec. 82-151. - Statement of purpose.
The town provides OPEB benefits to participating retirees and their beneficiaries. Under GASB
43 and 45, if OPEB plan assets are held in trust, or an equivalent arrangement, GASB 43 and 45 will
allow the assumed investment return to reflect the diversified mix of investments held by the trust
or equivalent arrangement.
(Ord. No. 9-06, § 1, 10-10-06)
Sec. 82-154. - Contributions to OPEB trust.
(a) Beginning fiscal year 2007, the OPEB trust shall be credited with all amounts appropriated or
otherwise made available by the town for the purpose of meeting the current and future OPEB
costs payable by the town. The OPEB trust shall be credited with all amounts contributed or
otherwise made available by employees of the town or participating retirees for the purpose
of meeting future OPEB costs payable by the town.
(b) An actuary shall perform an actuarial evaluation of the town's OPEB liabilities and funding
schedule as of January 1, 2006 and no less frequently than every second year thereafter. All
determinations shall be made in accordance with generally accepted actuarial standards and
shall conform to the requirements of GASB 43 and 45 and the actuary shall make a report of
such determinations to the investment advisory committee and the town council. The report
shall, without limitation, detail the demographic and economic actuarial assumptions used in
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'alm Beach, FL Code of Ordinances about:blank
making the determinations, and each such report after the first report shall also include an
explanation of the changes, if any, and the demographic and economic actuary assumptions
employed and the reasons for any changes.
(Ord. No. 9-06, § 1, 10-10-06)
Sec. 82-158. - Miscellaneous.
(a) In resolving any conflict or uncertainty as to the meaning or intention of any provision of the
OPEB trust, an interpretation that(i) Causes the OPEB trust to be exempt from tax under IRC
sections 115 and 501(a); and (ii) causes the OPEB trust to comply with GASB 43 and 45 and all
other applicable requirements of law shall prevail over any different interpretation.
(b) The OPEB trust shall be interpreted, construed and enforced, and the OPEB trust shall be
administered in accordance with the laws of the United States and the state.
(c) The situs of the OPEB trust is the state. All questions pertaining to its validity, construction,
administration shall be determined in accordance with the laws of the state. Venue for any
action regarding the OPEB trust is Palm Beach County, Florida.
(d) The OPEB trust shall operate on a fiscal year from 12:01 a.m. on October 1st to midnight on
the last day of September in the following year.
(Ord. No. 9-06, § 1, 10-10-06)
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