Ordinance 04-2012 Retirement Plan ORDINANCE NO. 4 -2012
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,
SECTION 82 -51, GENERAL, BY AMENDING SAID SECTION
82 -51 TO CREATE SUBSECTIONS (A) AND (B); PROVIDING
IN SECTION (A) AN AMENDMENT EFFECTIVE APRIL 1,
2012 PROVIDING THAT THE RETIREMENT SYSTEM
SHALL BE ADMINISTERED BY A SINGLE BOARD OF
TRUSTEES AS PROVIDED IN SUBSECTION (B); CREATING
A NEW SUBSECTION B TO PROVIDE FOR A
CONSOLIDATED RETIREMENT PLAN COVERING ALL
ELIGIBLE TOWN EMPLOYEES; ESTABLISHING A PLAN
FOR TRANSITION AND IMPLEMENTATION; AMENDING
SECTION 82 -57 ESTABLISHING A NEW BOARD OF
TRUSTEES, ABOLISHING AS OF APRIL 1, 2012, THE
FIREFIGHTER BOARD OF TRUSTEES, POLICE OFFICER
BOARD OF TRUSTEES AND GENERAL
EMPLOYEE /LIFEGUARD BOARD OF TRUSTEES; SETTING
FORTH TERMS OF OPERATION AND PROVIDING THAT
THE NEW BOARD OF TRUSTEES ESTABLISHED HEREIN
SHALL BE RESPONSIBLE FOR ADMINISTERING THE
RETIREMENT SYSTEM AND INVESTING ALL ASSETS OF
THE SYSTEM IN ACCORDANCE WITH THE TERMS
HEREOF; 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; Section
82 -51, to read as follows;
"Section 1. Sec. 82 -51. General.
(a) The town retirement system established as of July 1, 1947, as amended, is
continued for the purpose of providing retirement income to certain employees
and former employees, and survivor income to certain of their beneficiaries.
Effective April 1, 2012. tThe retirement system shall be}s administered by a e
boards of trustees as provided in subsection (b) below. th e fi` titer boar' of
t to . ��,o o f „f'f�e board o f truste emp bo of
�� - -.___ _ ca��cnc� ccrcrir� =oo c� - uvuiu
tees. Such boards shall operate in the manner provided by this
division, subdivisio n , b s„>,a,ivis; II, ✓x, tale i.a t i.61 i a fl a l
applieable to - them,, and in accordance with applicable provisions of y the Floc- �
Statutes. No 1 a er-at t ie�ftlIts -Coda - the United States
Internal Revenue Code ands the Florida Statutes as they may be amended from
time to time. The retirement system shall be operated for the exclusive benefit of
members, retirants and their beneficiaries.
(b) Notwithstanding any other provision of this Division 11. and effective
upon the adoption of this ordinance:,
(1) A new board of trustees is created as provided in section 82 -57. The.
members of the new board of trustees shall be selected no later than March,
29. 2012. and shall be sworn in on or before March 30, 2012. The existin¢
boards of trustees of the firefighter, police officer and general /lifeguard
retirement plans shall continue to operate through March 31.. 2012. for the
primary purpose of facilitating the transfer of contracts, investment
holdings, assets and liabilities of the existing firefighter. police officer and
general /lifeguard retirement plans, as well as all documents and records of
those plans. to the new board of trustees. The existing boards of trustees
shall take all necessary and appropriate action to carry out this purpose in
a timely manner.
(2) All existing contracts, investment holdings, assets and liabilities of the
existing firefighter, police officer and general /lifeguard retirement plans
shall be transferred to and become contracts, investment holdings, assets
and liabilities of the new board of trustees on April 1, 2012, or as soon,
thereafter as administratively possible. The existing firefighter, police
officer and general /lifeguard retirement funds shall be separately managed
by the new board of trustees for up to six months following April 1, 2012.
until such time as the new board of trustees determines that it .is prudent to.
consolidate one or more of the funds. The existing firefighter. police
officer and general /lifeguard retirement funds shall be consolidated into.
one retirement fund on or before October 1, 2012. Notwithstanding the
consolidation of the retirement funds, the new board of trustees shall.
provide for a separate accountin¢_ of the assets and liabilities attributable to
the firefighter. police officer and general /lifeguard employee benefit
groups. and all actuarial valuations and studies performed on and after,
April 1. 2012 shall include a separate accounting of the assets and
liabilities attributable to the firefighter. police officer and general /lifeguard
emplovee benefit groups.
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Ordinance No. 4 -2012 Page 2 of 9
(3) The plan administrators for the existing firefighter, police officer and
general /lifeguard retirement plans are authorized to implement and.
facilitate the provisions of this subsection (b), and to act as plan
administrators for the consolidated retirement plan until otherwise
determined by the new board of trustees. During the period prior to April
1.2012 the boards of trustees of the existing firefighter. police officer and
general /lifeguard retirement plans and the plan administrators shall take all,
necessary and appropriate action to ensure that the benefits due retired,
plan members are not interrupted, and that anv benefit app_ lications
submitted by plan members are processed in a timelv manner.
Commencing April 1, 2012, the new board of trustees and the plan,
administrators shall take all necessary and appropriate action to ensure that,
the benefits due retired plan members are not interrupted, and that any
benefit applications submitted by plan members are processed in a timelv
manner."
Section 2. 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; Section
82 -57, to read as follows;
" Sec. 82 -57. Board of Trustees; Admi nistrative duties: Investment of
retirement system assets.
(a) Effective upon the adoption of this ordinance, a new board of
trustees shall be established in accordance with subsection (b) below. Effective
April 1, 2012, the firefighter board of trustees. police officer board of trustees and
general emplovee /lifeguard board of trustees shall be abolished, and the board of
trustees established in accordance with subsection (b) below shall be responsible
for administering the retirement system and investing all assets of the system in
accordance with subsections (c) through (k) below, for all emplovee benefit
rg oups.
(b) The board of trustees (the "board") shall consist of nine members
selected as follows:
(1) One employee who is a member of benefit group general or benefit
group lifeguard elected by the members of those benefit groups.
(2) One employee who is a member of benefit group firefighter elected
by the members of that benefit group.
(3) One employee who is a member of benefit group police officer
Ordinance No. 4 -2012 Page 3 of 9
elected by the members of that benefit rt g rou p .
(4) Five residents of the town who are not officers or employees of the
town, retirants or beneficiaries of the retirement system, appointed
by the town council.
(5) The town manager or. in the town manager's absence, the acting
town manager, who shall serve as a voting ex- officio member.
(c) The board shall meet at least auarterly, shall adopt its own rules of
procedure and shall keep records of its proceedings. Five trustees shall constitute
a quorum at any meeting of the board, and a vote of the maiority of the quorum
present at any meeting shall be necessary for a decision of the board. Each trustee
shall be entitled to one vote on each question before the board. The trustees shall .
not receive any compensation but may receive expenses and per diem as provided
by town ordinance.
(d) Trustees other than the town manager or acting town manager shall
serve staggered three year terms, and may succeed themselves in office. To
implement the staggered terms. the first elected trustee who is a member of
benefit group police officer shall serve a one year term: the first elected trustee
who is a member of benefit aroup firefighter shall serve a two year term: and the
first elected trustee who is a member of benefit group general or benefit group
lifeguard shall serve a three year term. The staggered terms for the appointed
trustees shall be implemented as follows: two appointed trustees shall serve an,
initial term of one year: two appointed trustees shall serve an initial term of two,
years: and one appointed trustee shall serve an initial term of three nears: as
determined by the town council. Trustees who are elected or appointed following;
the initial terms shall serve a term of three years. Each trustee shall, before .
assuming the duties of trustee. a_ualifv by taking_ an oath of office to be
administered by the town clerk.
(e) A vacancy shall occur on the board if:
(1) A member - elected trustee ceases to be a member or ceases to be,
included in the appropriate benefit group;
(2) A resident appointed by the town council fails to maintain town,
residency as determined by the town council: or
(3) Any trustee resigns or is removed from office.,
(4) A trustee fails to attend more than two meetings in any one
calendar year without an excused absence. Excused absence due to
illness, a death in the family, religious holidays and requirements
Ordinance No, 4 -2012 Page 4 of 9
of legal process shall not constitute lack of attendance. In order for,
an absence to be excused. the member must notifv the chair in
writina no later than noon on the Friday prior to a scheduled
meeting, unless the absence is an emergencv. Failure to timely
notify the chair in writing of an absence will result in an unexcused
absence, unless the absence is an emergency. Excused and
unexcused absences shall be recorded in the minutes of the
meetina_ at which the absence occurred, at the direction of the,
chair. The chair may excuse an absence at the next regularly
scheduled meetina for good cause shown.
(f) If a vacancy occurs on the board. the vacancy shall be filled within
90 days. for the unexpired term. in the same manner as the position was
previously filled.
(a) The board shall be a legal entity with, in addition to other powers
and responsibilities contained herein. the power to bring and defend lawsuits of
every kind. nature and description, and to administer the retirement system for the
benefit of its members, retirants and beneficiaries.
(h) The officers and advisors of the board shall be as follows:.
(1) Chair The board shall annually elect a chair and a chair pro tem
from its members.
(2) Secretarv. The board shall annually elect a secretary from among;
its members.
(3) Finance director and treasurer. The town finance director and,
treasurer shall be finance director and treasurer of the board.,
(4) Lezal advisor. The town attornev or an attorney desia_ nated by the
town attorney shall be legal advisor to the board.
(5) Actuarv. The board shall appoint an actuary who shall be the
technical advisor to the board regarding the operation of the
retirement system on an actuarial basis and who shall perform such
services as are rea_uired in that connection. The term "actuary" as
used in this article shall mean an enrolled actuary as defined in F.S.
section 112.625. A partnership or corporation may be appointed
actuary if the duties of the actuary are performed by or under the
direct supervision of an individual who meets the preceding
qualifications.
Ordinance No. 4 -2012 Page 5 of 9
(6) Services. The board is authorized and empowered to employ
such professional and other services as are required for the proper
administration of the retirement system at the fund's expense.
(7) Plan administrator. The board is authorized to contract for the,
professional services of a plan administrator. In the event the,
board does not contract for the professional services of a plan ,
administrator, or in the event of anv lapse in such services, the
human resources director shall be the plan administrator
(i) The board shall direct the investment of retirement system assets in
accordance with the following provisions:
(1) The board shall adopt an investment policy in accordance with F.S.
section 218.415, and shall regularly review, evaluate and. if
deemed in the best interest of the retirement system, revise the
investment policy, subject to the approval of the town council..
(2) In exercising its discretionary authority with respect to the
management of the monevs and assets of the retirement system, the
board shall exercise the care, skill, prudence and diligence under
the circumstances then prevailing. that a person of prudence, acting
in a like capacity and familiar with such matters, would use in the,
conduct of an enterprise of like character and with like aims.,
(3) The board shall have full power and authority to invest and
reinvest the moneys and assets held for the benefit of the members,,
retirants and beneficiaries of the system, subiect to all terms,
conditions. limitations and restrictions imposed by law on the
investments of public emplovee retirement system assets. and
subiect to investment policy adopted by the board.
(4) The board may invest in securities o£ or other interests in. any
open -end or closed -end management type investment companv or
investment trust registered under the Investment Company Act of
1940, 15 USC 80A -1 et seq., and in such other investments,
authorized by law and by the board's investment policy.
(5) The board shall retain an independent consultant professionally
aualified to advise the board on all investment matters and evaluate.
the performance of professional monev managers. The independent
consultant shall assist the board in developing and revising its
investment policv, and make recommendations regarding the
selection of monev managers. These recommendations shall be
considered by the board at its meetings.
Ordinance No. 4 -2012 Page 6 of 9
(il The date, time. place and subject of regular board meetings shall
be posted at least ten days prior to the date of such meetings.
(kl If a claim for benefits is denied by the board, the claimant shall be
notified of the denial, in writing_ , within 30 days following the board's action. The
notification shall set forth the reasons for denial. The claimant may appeal the
denial and reauest a hearing before the board. The appeal shall be in writing to the
town clerk and filed within 90 days of the board's denial. The request shall.
contain a written statement of the claimant's position regarding the claim. The
board shall schedule a hearing within 60 days of receipt of the appeal. The
hearing shall be conducted in accordance with rules adopted by the board. The
board's action following the hearing shall be final and binding on all affected
parties.
(1) The board shall also provide administrative support and,
coordination for the town's defined contribution plan and 457 plan.,
(ma) The boards of trustees for the existing firefighter, police officer
and general /lifeguard retirement plans shall continue to operate through March,
31, 2012. for the primary purpose of facilitating the transfer of contracts.
investment holdings, assets and liabilities of the existing firefighter, police officer
and general /lifeguard retirement plans, as well as all documents and records of
those plans. to the new board of trustees established pursuant to subsection (b)
above. During the period prior to April 1, 2012, the boards of trustees for the
existing firefighter, police officer and general /lifeguard retirement plans shall.
continue to:
(I1 shad be the trustees of the moneys and assets of the employee
groups of members and retirants of the retirement system for
whose benefit such boards are formed.
(2b) The bear-d° shal have full power and authority to invest and
reinvest the moneys and assets held for the benefit of members for
whose benefit such boards are formed, subject to all terms,
conditions, limitations and restrictions imposed by law on the
investments of public employee retirement systems and subject to
investment policies and limitations adopted by resolution of the
town council or the boards from time to time.
(3e) Eae" oard rnay invest in securities of, or other interests in, any
open -end or closed -end management type investment company or
investment trust registered under the Investment Company Act of
1940, 15 USC 80A -1 et seq., as amended, and provided such
Ordinance No, 4 -2012 Page 7 of 9
investment company or investment trust takes delivery of such
collateral either directly or through an authorized custodian.
(4d) Th beards mey employ outside investment counsel to advise each
board in the making and disposition of investments. All moneys
and assets of the retirement system shall be held for the sole
purpose of meeting disbursements authorized in accordance with
the provisions of the retirement system and shall be used for no
other purposes.
(Se) in exer-e exercise discretionary authority with respect to the
management of the moneys and assets of the retirement system,
andeaeh beard shall exercise the care, skill, prudence and diligence
under the circumstances then prevailing, that a person of prudence,
acting in a like capacity and familiar with such matters, would use
in the conduct of an enterprise of like character and with like aims.
(6f) Eaeh board of tmstees shall retain an independent consultant
professionally qualified to evaluate the performance of
professional money managers. The independent consultants shall
make recommendations regarding the selection of money
managers. These recommendations shall be considered by the
boards at their meetings. The date, time, place and subject of
regular board meetings shall be posted at least ten days prior to the
date of such meetings."
Section 3. 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 4. 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.
Ordinance No. 4 -2012 Page 8 of 9
Section 5. Codification.
This Ordinance shall be codified and made a part of the official Code of Ordinances of
the Town of Palm Beach.
Section 6. 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 Palm Beach on first reading this 16 day of February, 2012, and for second and final
reading on this 14 day of March, 2012.
lkuk /) Poav
Gar L. Coniglio, Mayor David A. Rosow, Town Council President
Ro e, Wildric , residenPro_Tem
William J. Diamond, Town Council Member
R a� coq
ATTEST: qich M. Kle id, Town Council Member
a�n 1�'. ;ei1s,1lVIC, Town Clerk J. Pucillo, Town Council Member
Ordinance No. 4 -2012 Page 9 of 9
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