Ordinance 33-2017 Code of Ordinances EMERGENCY ORDINANCE NO. 33-2017
AN EMERGENCY 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 CREATING A
NEW SECTION 82-76, PRESERVATION OF BENEFITS PLAN;
PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEAL
OF ORDINANCES IN CONFLICT; PROVIDING FOR
CODIFICATION; PROVIDING AN EFFECTIVE DATE.
WHEREAS, Section 415 of the Internal Revenue Code establishes a maximum
limit on the annual benefits that can be paid from a qualified retirement plan; and
WHEREAS, the Town of Palm Beach recently became aware that the retirement
benefits of one current and one former Town employee have or will exceed the Section
415 limit; and
WHEREAS, Section 415(m) of the Internal Revenue Code authorizes a qualified
governmental excess benefit arrangement to provide for payment of retirement income
that would have been available to members of a qualified retirement plan if the benefit
provisions of the retirement plan were to apply without the limitation in Section 415; and
WHEREAS, it is in the interest of the Town and its employees to establish a
qualified governmental excess benefit arrangement; and
WHEREAS, to implement a qualified governmental excess benefit arrangement
in a timely manner such that there is no loss of benefits to any current or former Town
employee, it is necessary to adopt an emergency ordinance creating such plan,
denominated herein as a "Preservation of Benefits Plan;"
NOW THEREFORE, 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; by creating a new Section 82-76 to read as follows:
Section 82-76. Preservation of Benefits Plan.
(1) Effective November 1, 2017, a preservation of benefits plan is established for
members of the Town of Palm Beach Retirement System. This preservation of benefits
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plan is established as a qualified governmental excess benefits arrangement as described
in Section 415(m) of the U.S. Internal Revenue Code, to provide payment of retirement
income that would have been available to retired Town employees and their beneficiaries
if the benefit provisions of the retirement plan were to apply without the limitation in
Section 415(b) of the Internal Revenue Code.
(2) Eligibility to participate in preservation of benefits plan: A payee of the Town of
Palm Beach Retirement System who retires or enters the DROP on or after July 1, 2014
and before November 1, 2017, and the beneficiaries of such payee, shall participate in the
preservation of benefits plan whenever his or her benefit under the Retirement System is
reduced by application of Section 415(b) of the Internal Revenue Code. Participation in
the preservation of benefits plan shall continue for as long as the payee's benefit under the
Town Retirement System is reduced by application of Section 415(b) of the Internal
Revenue Code.
(3) Benefits payable under the preservation of benefits plan:
(a) The Town shall pay to each eligible payee of the Town of Palm Beach
Retirement System a supplemental retirement benefit equal to the difference,
determined on an annual basis, between the amount of the payee's monthly
retirement benefit which would have been payable under the Town Retirement
System if not for a reduction due to the application of Section 415(b) of the
Internal Revenue Code, and the reduced monthly retirement benefit paid by the
Retirement System to the payee. The preservation of benefits plan benefit shall
be computed and payable under the same terms and conditions and to the same
person as would have,applied under the Town of Palm Beach Retirement System
without application of Section 415(b) of the Internal Revenue Code. Benefits
under the preservation of benefits plan shall be paid only if the payee has
separated from Town employment and is receiving benefits from the Town of
Palm Beach Retirement System. Benefits under the preservation of benefits plan
shall not be payable during any period of DROP participation. The form of the
benefit paid under the preservation of benefits plan shall be the same as otherwise
selected by the payee and payable under the Town of Palm Beach Retirement
System.
(b) The benefits payable under the preservation of benefits plan may not be
assigned or alienated by a payee, except as otherwise permitted for benefits
payable under the Town of Palm Beach Retirement System.
(4) Contributions: The preservation of benefits plan shall be unfunded and unsecured
within the meaning of the federal tax laws. No payee contributions or deferrals, direct or
indirect, by election or otherwise shall be made or allowed under the preservation of
benefits plan.
(5) Administration: The preservation of benefits plan shall be administered by the
Town. Benefits due under the preservation of benefits plan as determined by the Town
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Finance Director shall be paid timely by the Town. The Finance Director may make
modifications to the benefits payable under the preservation of benefits plan as may be
necessary to maintain compliance with Section 415(m) and other relevant sections of the
Internal Revenue Code.
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.
PASSED AND ADOPTED in a regular session of the To Council of the Town
of Palm Beach on first and final reading this day of NOVentber;2017.
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. Coniglio, Mayor Richard M. Kleid, Town Council President
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Danielle H. Moore, President Pro Tem
ATTEST: Ju F ra ko , Town Co bil Member
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Kathleen Dominguez, Town Clerk Bobbie Lindsay, Tows Counci Member
Marg., : Zeidm , Town Council Member
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