Ordinance 19-2018 Retirement ORDINANCE NO. 19-2018
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 III, FIREFIGHTERS, BY AMENDING SECTION
82-99, DEFERRED RETIREMENT OPTION PROGRAM FOR
FIREFIGHTERS; AMENDING SUBDIVISION IV, POLICE
OFFICERS, BY AMENDING SECTION 82-119, DEFERRED
RETIREMENT OPTION PROGRAM FOR POLICE OFFICERS;
AMENDING SUBDIVISION V, GENERAL EMPLOYEES AND
LIFEGUARDS, BY AMENDING SECTION 82-139, DEFERRED
RETIREMENT OPTION PROGRAM 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 III. —Firefighters; by amending Section 82-99 to read as follows:
Sec. 82-99. - Deferred retirement option program for firefighters.
* * *
(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. Except as provided in subsection (c)(4) below, P—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, except as provided in subsection (c)(4) below,
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.
(2) Submission of required information. Upon electing to participate in the DROP, the
member shall submit on forms required by the retirement system:
Ord No 19-2018 Page 1 of 8
a. A written election to retire effective no more than 60 months after entering
participation in the DROP;
b. A written election to participate in the DROP;
c. An irrevocable resignation from service to the town and withdrawal from the
DROP, both effective after no more than 60 months participation in the
DROP;
d. A properly completed DROP application for service retirement as provided
in this section; and
e. Any other information required by the retirement system.
(3) Re-employed retirants. Re-employed retirants of the town's retirement system are
not eligible to participate in DROP.
4) Effective on and after January 1, 2019 until January 1, 2022, members who are
participating in the DROP may, if authorized by the Town Manager, extend their
DROP participation for up to 36 months, in 12 month increments, beyond the 60
month maximum DROP participation period. Members who seek to extend their
DROP participation must submit, at least 30 days before the termination of the
current DROP period, the following information to the town manager on forms
provided by the town:
a. A revised, written election to retire effective up to 12 months after the end
of the current DROP period;
b. A written election to extend DROP participation by up to 12 months;
c. The member's new DROP termination date (not more than 12 months after
the end of the current DROP period);
d. The member's new DROP teiiiiination date;
e. A revised, irrevocable resignation from service to the town and withdrawal
from the DROP, effective on or before the new DROP termination date; and
f. Any other information required by the town or retirement system.
The town manager's decision to authorize the extension of a member's DROP
period shall be based on the operational needs of the town,and shall not be subject
to grievance or other review. Extended DROP participation is not a guarantee of
continued employment for any specified period. DROP participants who have
not been approved for the 36-month extended DROP participation period
pursuant to this subsection(c)(4) by January 1, 2022 are not eligible for extended
DROP. All provisions of the DROP shall continue to apply during any period of
extended DROP participation.
(d) Compensation for work performed while participating in the DROP. Starting pay shall
be at the base pay rate in effect on the employee's last working day of employment,
prior to participation in the DROP. Job performance will be evaluated under the town's
pay for performance system, and perfoimance pay increases will be permitted as
established by town policy. General pay increases shall also be awarded, as approved
Ord No.19-2018 Page 2 of 8
by the town council and the town manager. The base pay rate for DROP participants
who are authorized by the Town Manager to extend DROP participation for up to 36
calendar months beyond the 60-month period shall be the rate of pay in effect at the
end of 60-month DROP period; and that rate shall not be eligible for performance pay
increase, general pay increases approved by the Town Council, or future Longevity
Pay or Longevity Bonuses. Performance pay increases and general pay increases
awarded to DROP participants will be reflected in their salary but will not be reflected
in pension payments made to DROP accounts or made after DROP participation.
(3) Except as otherwise provided in this subsection (d), Eemployee benefits, other
than benefits under the retirement system, which are normally granted to
employees, will be provided to DROP participants. Such DROP participants are
members of the retirement system.
(4) At the conclusion of the participant's DROP, any credits made to a DROP
participant's account will cease. Membership in the DROP will automatically
terminate 60 months after the effective date of participation in the DROP, except
as provided in subsections (c)(1) and (c)(4) above. DROP participants may elect to
discontinue membership in the DROP at any time, provided a two-week written
notice of termination of employment has been submitted to the town and notice has
been submitted to the plan administrator.
* * *
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 IV. -Police Officers;by amending Section 82-119 to read as follows:
Sec. 82-119. -Deferred retirement option program for police officers.
* * *
(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. Except as provided in subsection (c)(4) below, P—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, except as provided in subsection (c)(4) below,
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.
Ord No.19-2018 Page 3 of 8
(2) Submission of required information. Upon electing to participate in the DROP,the
member shall submit on forms required by the retirement system:
a. A written election to retire effective no more than 60 months after entering
participation in the DROP;
b. A written election to participate in the DROP;
c. An irrevocable resignation from service to the town and withdrawal from the
DROP, both effective after no more than 60 months participation in the
DROP;
d. A properly completed DROP application for service retirement as provided
in this section; and
e. Any other information required by the retirement system.
(3) Re-employed retirants. Re-employed retirants of the town's retirement system are
not eligible to participate in DROP.
(4) Effective on and after January 1, 2019 until January 1, 2022„ members who are
participating in the DROP may, if authorized by the town manager, extend their
DROP participation for up to 36 months, in 12 month increments, beyond the 60
month maximum DROP participation period. Members who seek to extend their
DROP participation must submit, at least 30 days before the termination of the
current DROP period, the following information to the town manager on forms
provided by the town:
a. A revised, written election to retire effective upon termination of the
member's participation in the DROP;
b. A written election to extend DROP participation, approved and signed by the
town manager;
c. The maximum term of the extended DROP participation;
d. The member's new DROP termination date;
e. A revised, irrevocable resignation from service to the town and withdrawal
from the DROP, effective on or before the end of the maximum DROP
participation period as extended; and
f. Any other information required by the retirement system.
The town manager's decision to authorize the extension of a member's DROP
period shall be based on the operational needs of the town, and shall not be subject
to grievance or other review. Extended DROP participation is not a guarantee of
continued employment for any specified period. DROP participants who have not
been approved for the 36-month extended DROP participation period pursuant to
this subsection (c)(4) by January 1, 2022 are not eligible for extended DROP. All
provisions of the DROP shall continue to apply during any period of extended
DROP participation.
(d) Compensation for work performed while participating in the DROP. Starting pay shall
be at the base pay rate in effect on the employee's last working day of employment,
Ord No 19-2018 Page 4 of 8
prior to participation in the DROP. Job performance will be evaluated under the town's
pay for performance system, and performance pay increases will be permitted as
established by town policy. General pay increases shall also be awarded, as approved
by the town council and the town manager. The base pay rate for DROP participants
who are authorized by the town manager to extend DROP participation for up to 36
calendar months beyond the 60-month period shall be the rate of pay in effect at the
end of 60-month DROP period; and that rate shall not be eligible for performance pay
increase, general pay increases approved by the Town Council, or future Longevity
Pay or Longevity Bonuses. Performance pay increases and general pay increases
awarded to DROP participants will be reflected in their salary but will not be reflected
in pension payments made to DROP accounts or made after DROP participation.
(3) Except as otherwise provided in this subsection (d), Eemployee benefits, other
than benefits under the retirement system, which are normally granted to
employees, will be provided to DROP participants. Such DROP participants are
members of the retirement system.
(4) At the conclusion of the participant's DROP, any credits made to a DROP
participant's account will cease. Membership in the DROP will automatically
terminate 60 months after the effective date of participation in the DROP, except
as provided in subsections (c)(1) and (c)(4) above. DROP participants may elect
to discontinue membership in the DROP at any time,provided a two-week written
notice of termination of employment has been submitted to the town, and notice
has been submitted to the plan administrator.
* * *
Section 3. The Code of Ordinances of the Town of Palm Beach is hereby
amended at Chapter 82, Personnel; Article H, Employee Benefits; Division 2, Retirement
System; Subdivision V. — General Employees and Lifeguards; by amending Section 82-
139 to read as follows:
Sec. 82-139. - Deferred retirement option program for members of benefit group general
and benefit group lifeguard.
* * *
(c) Participation in the DROP.
(1) Except as provided in subsection (c)(4) below, participation in the DROP may
not exceed a maximum of 60 months.
(2) Submission of required information. Upon electing to participate in the DROP,the
member shall submit on forms required by the retirement system:
a. A written election to retire effective no more than 60 months after entering
participation in the DROP;
b. A written election to participate in the DROP;
Ord No 19-2018 Page 5 of 8
c. An irrevocable resignation from service to the town and withdrawal from the
DROP, both effective after no more than 60 months participation in the
DROP;
d. A properly completed DROP application for service retirement as provided
in this section; and
e. Any other information required by the retirement system.
(3) Re-employed retirants. Re-employed retirants of the town's retirement system are
not eligible to participate in DROP.
(4) Effective on and after January 1, 2019 until January 1, 2022, members who are
participating in the DROP may, if authorized by the town manager, extend their
DROP participation for up to 36 months, in 12 month increments, beyond the 60
month maximum DROP participation period. Members who seek to extend their
DROP participation must submit, at least 30 days before the termination of the
current DROP period, the following information to the town manager on forms
provided by the town:
a. A revised,written election to retire effective upon termination of the member's
participation in the DROP;
b. A written election to extend DROP participation, approved and signed by the
town manager;
c. The maximum term of the extended DROP participation;
d. The member's new DROP teimination date;
e. A revised, irrevocable resignation from service to the town and withdrawal
from the DROP, effective on or before the end of the maximum DROP
participation period as extended; and
f. Any other information required by the retirement system.
The town manager's decision to authorize the extension of a member's DROP
period shall be based on the operational needs of the town, and shall not be subject
to grievance or other review. Extended DROP participation is not a guarantee of
continued employment for any specified period. DROP participants who have not
been approved for the 36-month extended DROP participation period pursuant to
this subsection (c)(4) by January 1, 2022 are not eligible for extended DROP. All
provisions of the DROP shall continue to apply during any period of extended
DROP participation.
(d) Compensation for work performed while participating in the DROP. Starting pay shall
be at the base pay rate in effect on the employee's last working day of employment,
prior to participation in the DROP. Job perfounance will be evaluated under the town's
pay for performance system, and performance pay increases will be permitted as
established by town policy. General pay increases shall also be awarded, as approved
by the town council and the town manager. The base pay rate for DROP participants
who are authorized by the Town Manager to extend DROP participation for up to 36
calendar months beyond the 60-month period shall be the rate of pay in effect at the
Ord No 19-2018 Page 6 of 8
end of 60-month DROP period; and that rate shall not be eligible for performance pay
increase, general pay increases approved by the Town Council, or future Longevity
Pay or Longevity Bonuses. Performance pay increases and general pay increases
awarded to DROP participants will be reflected in their salary but will not be reflected
in pension payments made to DROP accounts or made after DROP participation.
(3) Except as otherwise provided in this subsection (d), Eemployee benefits, other
than benefits under the retirement system, which are normally granted to
employees, will be provided to DROP participants. Such DROP participants are
members of the retirement system.
(4) At the conclusion of the participant's DROP, any credits made to a DROP
participant's account will cease. Membership in the DROP will automatically
terminate 60 months after the effective date of participation in the DROP, except
as provided in subsections (c)(1) and (c)(4)a, above. DROP participants may
elect to discontinue membership in the DROP at any time, provided a two-week
written notice of termination has been submitted to the plan administrator.
* * *
Section 4. 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 5. 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 6. Codification.
This Ordinance shall be codified and made a part of the official Code of Ordinances
of the Town of Palm Beach.
Section 7. Effective Date.
This Ordinance shall take effect immediately upon its passage and approval, as
provided by law.
Ord No 19-2018 Page 7 of 8
PASSED AND ADOPTED in a regular, adjourned session of the Town Council
of the Town of Palm Beach on first reading this 13th day of September, 2018, and for
second and final reading on this 9th day of October, 2018.
. Al / ` 0tii /2Tk _
Jail L. oni'io ayorJ Danielle H. Moor- Town Council President
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Margaret A. ' e.man, Council President Pro Tem
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ATTEST: Lewis S.W. Crampton, own Council Member
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Kathleen Dominguez, Town Clic • Bo+`r'e Lindsay, Town •uncil Memb.
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ora No 19-2018 Page 8 of 8