Ordinance 06-2012 Retirement ORDINANCE NO. 6-2012
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, AMENDING SUBDIVISION I, IN GENERAL,
BY AMENDING SECTION 82-51, GENERAL, AS AMENDED BY
ORDINANCE NO. 4-2012, ADOPTED MARCH 13, 2012; BY AMENDING
SECTION 82-52, DEFINITIONS; BY AMENDING SECTION 82-54,
CREDITED SERVICE; LOSS OF CREDITED SERVICE;
REINSTATEMENT OF CREDITED SERVICE; BY AMENDING
SECTION 82-56, BENEFIT GROUPS; BY AMENDING SECTION 82-59,
TRANSFER OF SERVICE BETWEEN TOWN PLANS, BY AMENDING
SECTION 82-63, AMOUNT OF POST-RETIREMENT
REDETERMINATION OF PENSIONS; BY AMENDING SECTION 82-65,
ALLOWANCE OF INTEREST; RATES OF INTEREST; BY AMENDING
SECTION 82-66, REFUND OF MEMBER'S ACCUMULATED
CONTRIBUTIONS; BY AMENDING SECTION 82-699
ADMINISTRATIVE EXPENSES; BY AMENDING SECTION 82-70,
ASSIGNMENTS PROHIBITED; BY AMENDING SECTION 82-729
ROLLOVER DISTRIBUTIONS, BY AMENDING SECTION 82-73,
METHOD OF MAKING PAYMENTS; AMENDING SUBDIVISION II,
RESERVE ACCOUNTS, BY AMENDING SECTION 82-80, RESERVE
FOR MEMBER CONTRIBUTIONS; BY AMENDING SECTION 82-83,
RESERVE FOR UNDISTRIBUTED INVESTMENT INCOME; BY
DELETING SECTION 82-85, PLANS AND ASSETS SEGREGATED; BY
DELETING SECTION 82-86, CHAPTERS 175 AND 185, FLORIDA
STATUTES; AMENDING SUBDIVISION III, FIREFIGHTERS, BY
DELETING SECTION 82-90, FIREFIGHTER BOARD OF TRUSTEES;
BY DELETING SECTION 82-91, TERM OF OFFICE; OATH OF OFFICE:
VACANCY; BY DELETING SECTION 82-92, OFFICERS,
ADMINISTRATIVE SERVICES; BY DELETING SECTION 82-93,
INVESTMENT LIMITATIONS; BY AMENDING SECTION 82-94,
RETIREMENT AGE AND SERVICE CONDITIONS; BY AMENDING
SECTION 82-95, AMOUNT OF PENSION; BY AMENDING SECTION 82-
96, OPTIONAL FORMS OF PAYMENT OF A PENSION; BY DELETING
SECTION 82-97, SUPPLEMENTAL PENSION DISTRIBUTIONS; BY
AMENDING SECTION 82-98, CHAPTER SHARE ACCOUNTS, BY
AMENDING SECTION 82-99, DEFERRED___RETIRE-MENT__....._OPTION
PROGRAM, BY AMENDING SECTION 82-100, _DISABILITY
RETIREMENT; BY AMENDING SECTION 82-102, CONTINUATION
SUBJECT TO RE-EXAMINATION; RETURN TO EMPLOYMENT:
EFFECT OF GAINFUL EMPLOYMENT; BY AMENDING SECTION 82-
103, DEATH AFTER_ RETIREMENT; AUTOMATIC SURVIVOR
PENSION TO MINOR CHILDREN AND/OR SURVIVING SPOUSE; BY
AMENDING SECTION 82-104, DEATH WHILE AN EMPLOYEE OF THE
TOWN; .AUTOMATIC SURVIVOR PENSION TO MINOR CHILDREN
AND/OR SPOUSE; BY AMENDING SECTION 82-105, ELECTIVE
SURVIVOR PENSION; AMENDING SUBDIVISION IV , POLICE
OFFICERS, BY DELETING SECTION 82-110, POLICE- OFFICER
BOARD OF TRUSTEES; BY DELETING SECTION 82-111, TERM OF
OFFICE; OATH OF OFFICE; VACANCY; BY DELETING SECTION 82-
112, OFFICERS, ADMINISTRATIVE SERVICES; BY DELETING
SECTION 82-113, INVESTMENT LIMITATIONS; BY AMENDING
SECTION 82-114, RETIREMENT AGE AND SERVICE CONDITIONS;
BY AMENDING SECTION 82-115, AMOUNT OF PENSION; BY
AMENDING SECTION 82-116, OPTIONAL FORMS OF PAYMENT OF A
PENSION; BY DELETING SECTION 82-117, SUPPLEMENTAL
PENSION DISTRIBUTIONS; BY AMENDING SECTION 82-119,
DEFERRED RETIREMENT OPTION PROGRAM; BY AMENDING
SECTION 82-120, DISABILITY RETIREMENT; BY AMENDING
SECTION 82-122, CONTINUATION SUBJECT TO RE-EXAMINATION;
RETURN TO EMPLOYMENT; EFFECT OF GAINFUL EMPLOYMENT;
BY AMENDING SECTION 82-123, DEATH AFTER RETIREMENT;
AUTOMATIC SURVIVOR PENSION TO MINOR CHILDREN AND/OR
SURVIVING SPOUSE; BY AMENDING SECTION 82-124, DEATH
WHILE AN EMPLOYEE OF THE TOWN: AUTOMATIC SURVIVOR
PENSION TO MINOR CHILDREN AND/OR SPOUSE; BY AMENDING
SECTION 82-125, ELECTIVE SURVIVOR PENSION, AMENDING
SUBDIVISION V, GENERAL EMPLOYEES AND LIFEGUARDS, BY
DELETING SECTION 82-130, GENERAL EMPLOYEE BOARD OF
TRUSTEES; BY DELETING SECTION 82-131, TERM OF OFFICE;
OATH OF OFFICE; VACANCY; BY DELETING SECTION 82-132,
OFFICERS, ADMINISTRATIVE SERVICES, BY AMENDING SECTION
82-134, RETIREMENT AGE AND SERVICE CONDITIONS; BY
AMENDING SECTION 82-135, AMOUNT OF PENSION; BY AMENDING
SECTION 82-136, OPTIONAL FORMS OF PAYMENT OF A PENSION;
BY DELETING SECTION 82-137, SUPPLEMENTAL PENSION
DISTRIBUTIONS; BY AMENDING SECTION 82-139, DEFERRED
RETIREMENT OPTION PROGRAM; BY AMENDING SECTION 82-140,
DISABILITY RETIREMENT; BY AMENDING SECTION 82-143, DEATH
AFTER RETIREMENT; AUTOMATIC SURVIVOR PENSION TO
MINOR CHILDREN AND/OR SURVIVING SPOUSE BY AMENDING
SECTION 82-144, DEATH WHILE AN EMPLOYEE OF THE TOWN;
AUTOMATIC SURVIVOR PENSION TO MINOR CHILDREN AND/OR
SPOUSE; AMENDING SECTION 82-145, ELECTIVE SURVIVOR
PENSION, PROVIDING FOR SEVERABILITY; PROVIDING FOR
REPEAL OF ORDINANCES IN CONFLICT; PROVIDING FOR
CODIFICATION; PROVIDING AN EFFECTIVE DATE.
Ordinance No. 6-2012 Page 2 of 74
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 Il, Employee Benefits; Division 2, Retirement System;
Subdivision 1, In General; Section 82-51, as amended by Ordinance No. 4-2012 adopted
March 13,2012,to read as follows:
"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, the retirement system
shall be administered by a board of trustees as provided in subsection (b) below. Such board
shall operate in the manner provided by this division, and in accordance with applicable
provisions of by the United States Internal Revenue Code and 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 March 14, 2012
ttpon the .,deptio of this ,,,,ding ee:
(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 existing 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
accounting 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 employee benefit groups.
Ordinance No. 6-2012 Page 3 of 74
(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 any benefit applications
submitted by plan members are processed in a timely 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 timely manner.
(c) Effective May 1, 2012, and notwithstanding any other provision of this Division 2:
The accrued benefits of all members of the retirement system who have not attained
normal retirement eligibility based on credited service as of May 1, 2012, excluding credited
service purchased pursuant to section 82-54, and who are employed by the town and not
participating in the DROP on May 1, 2012, shall be frozen. All such members shall be 100%
vested in their frozen accrued benefit as of May 1, 2012 regardless of length of service. The
value of each member's frozen accrued benefit shall be calculated in accordance with the
provisions of the retirement system in effect on April 30 2012 and based on the member's
credited service and average final compensation on April 30, 2012, and such frozen accrued
benefit shall be payable to the member upon attaining eligibility for receipt of retirement
benefits under the provisions of the system in effect on April 30 2012, and termination of
town employ_ ment. For service on and after May 1, 2012, all members of the retirement
system who have not attained normal retirement eligibility as of May 1, 2012 based on
credited service, excluding credited service purchased pursuant to section 82-54. and who are
employed by the town and not participating in the DROP on May 1, 2012 shall accrue
benefits in accordance with the provisions of the retirement system as amended by this
ordinance. Members of the retirement system who have not attained normal retirement
eligibility based on credited service as of May 1, 2012, excluding credited service purchased
pursuant to section 82-54, and who are 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 and average
final compensation prior to May 1, 2012, payable upon attaining eligibility for receipt of
retirement benefits under the provisions of the system in effect on April 30 2012, and entry
into the DROP or termination of employment; and (2) the accrued benefit based on credited
service on and after May 1, 2012, payable upon attaining age 65 with 10 or more years of
credited service, and entry into the DROP or termination of employment.
Q Members of the retirement system 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 May 1,
2012 shall continue to accrue benefits in accordance with the provisions of the system in
effect on April 30, 2012 for as long as they are employed by the town and eligible to accrue
benefits under the system.
Ordinance No. 6-2012 Page 4 of 74
Members of the retirement system who retired or entered the DROP prior to May 1, 2012
shall continue to receive benefits in accordance with the provisions of the system in effect on
the date of their retirement or DROP entry.
Members of the retirement system who terminated employment with ten or more years of
credited service prior to May 1. 2012 and did not receive a refund of accumulated member
contributions shall be eligible to receive benefits in accordance with the provisions of the
system in effect on the date of their termination."
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 82-52, 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:
Accumulated member contributions means the sum of all amounts credited to a member's
individual account in the reserve for employee contributions.
Average final compensation means:
(a) For 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, half the total amount of
compensation paid a member during the 24 consecutive months of credited service in which the
total amount of compensation paid a member is greatest. The greatest 24 consecutive months of
credited service must fall within the member's last five years of credited service prior to
retirement, termination, or death.
(b) For 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, average final
compensation for benefits based on credited service prior to May 1, 2012. means half the total
amount of compensation paid a member during the 24 consecutive months of credited service in
which the total amount of compensation paid a member is greatest. The greatest 24 consecutive
months of credited service must fall within the member's last five years of credited service prior
to May 1, 2012.
(c) For members who did not attain normal retirement eligibility based on credited service as
of May 1, 2012, and for members hired on or after that date, average final compensation for
benefits based on credited service on or after May 1, 2012 means the total amount of
compensation paid a member during the final 60 consecutive months of credited service, divided
by five. Provided, if a member terminates town employment or enters the DROP after May 1,
2012 with less than 60 months of credited service after that date, average final compensation for
benefits based on credited service on or after May 1, 2012 shall be based on the total amount of
compensation paid on and after May 1, 2012, divided by the total months of credited service on
and after date, multiplied by twelve.
Ordinance No. 6-2012 Page 5 of 74
(d) In applying the above definition of average final compensation, periods of credited
service granted while being on long-term disability and/or worker's compensation shall not be
considered, nor shall it interrupt consecutive months for the purpose of computing average final
compensation.
Beneficiary means an individual who is being paid or who has entitlement to the future payment
of a pension or other benefit by the retirement system for a reason other than the individual's
membership in the retirement system.
Board of trustees or board means the mlevant board of trustees responsible for managing this
retirement system retiremet# betiefits for the group of employees to whiek the member belongs,
either the general employee a fl-- r �; +o, board i �� i,
-b���efigh� the poliee�eerboard�or, i
applieable, all-tree bozo.
Chapter 75 wansF.S. eh. 175, rters'Pomsion T+u&t Fund, a3 may be amended f
time to time—.
Gh 6#er 185 means c „h. 145, p„liee O ffieers' n etir-e,. ei# T,.,,.,+ Fund, as may be—amended
ftomrtime time.
Child means the natural and adopted children of the member.
Compensation means the salary or wages paid a member for personal service rendered the town
while a member of the retirement system, as follows:.
(a) Compensation for 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 include
base salary or wages; longevity pay; cost-of-living allowances; salary or wages while absent
from work on account of vacation, holiday or illness; overtime pay; special assignment overtime
pay; shift premiums; educational incentive payments; and the value of housing furnished a
member by the town. Compensation shall not include lump sum payments for accumulated leave
paid to or at the direction of a member. Special detail pay shall not be included as compensation.
(b) Compensation for members who did not attain normal retirement eligibility based on
credited service as of Mav 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, for
credited service prior to May 1, 2012, shall include base salary or wages; longevity pay; cost-of-
living allowances, salary or wages while absent from work on account of vacation. holidav or
illness, overtime pav; special assignment overtime pay; shift premiums; educational incentive
payments, and the value of housing furnished a member by the town. Compensation shall not
include lump sum pavments for accumulated leave paid to or at the direction of a member..
Special detail pav shall not be included as compensation.
(c) Compensation for members who did not attain normal retirement eligibility based on
credited service as of Mav 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 for
members hired on or after Mav 1, 2012, for credited service on and after Mav 1, 2012, shall
include only base salary and shall exclude anv other compensation that is not base salarv.
Defined contribution plan means the retirement plan established by Resolution No. 22-2012.
Ordinance No. 6-2012 Page 6 of 74
i
DROP means deferred retirement option program.
DROP participant means any member who elects to retire and participate in the deferred
retirement option program as provided for his or her employee group.
1;';,.,,x;,,7 t r board ine-a s the fi f ht r board of trustees established by Fierid Statutes .1,-,.1 by
Q7 ost 1 ter the tiro r1 1'01.1'. fo f 1-,one i lTtllilH
se�tior. .,� «9-�1}i;;h i:, .,.a'oli lies' to /—e���n�����s«zo
Genera!enTleyee board means the general employee beard of tmste as ostablish2d by eet;l1
92 130 whieh is established to administer-the retirement system for- gonoral, benefi t
group 1;f.uar-r1 a- r1 rot;ra is from a groups._
Pension means a series of monthly payments by the retirement system, for a temporary period or
throughout the life of a retirant or beneficiary.
D„1;. offieer board means the „1; affieer boat 1 of tr, sta established by Florid Statute
and by seetion 82 110 w-hieh is established to administer the retir-efflefit system fOf benefit grottp
Retirant means an individual who is being paid a pension on account of credited service
acquired by the individual as a member of the retirement system.
Retirement system means the Town of Palm Beach Retirement System.
Service means personal service rendered the town while a member of the retirement system and
military service qualifying under section 82-55.
Town means Town of Palm Beach, Florida.
Vesting or vested status means the attainment of ten or more vears of credited service.
Notwithstandina the orecedinia sentence, all members of the retirement system who did not attain
normal retirement eliaibilitv based on credited service as of May 1, 2012, excluding credited
service purchased pursuant to section 82-54, and who were emploved by the town and not
participating in the DROP on that date shall be 100% vested in their frozen accrued benefit as of
Mav 1, 2012, reaardless of length of credited service."
Section 3. The Code of Ordinances of the Town of Palm Beach is hereby amended at
Chapter 82, Personnel; Article I1, Employee Benefits; Division 2, Retirement System;
Subdivision I, In General; Section 82-54, to read as follows:
"Sec. 82-54 Credited service; loss of credited service; reinstatement of credited service.
(a) Service rendered by a member shall be credited to the member's individual credited
service account in accordance with rules the boards of trustees shall from time to time prescribe.
In no case shall more than one year of credited service be credited on account of all service
rendered by a member in any one year, nor shall less than 85 hours of service in a calendar
month be credited as 1/12 year of credited service. Service shall be credited to the nearest 1/12
year.
(b) Except as provided in section 82-80, credited service shall be forfeited and no longer in
force if an individual has a break in town employment of more than 12 months or if an
Ordinance No. 6-2012 Page 7 of 74
individual's accumulated member contributions are withdrawn from the reserve for employee
contributions and paid to the individual or a beneficiary(including an estate).
(c) A member may have forfeited credited service restored upon satisfaction of each of the
following conditions:
(1) The break in town employment is not more than 12 months; and
(2) The retirement system is paid the total amount of accumulated member contributions
previously withdrawn, plus interest from the date of withdrawal to the date of repayment.
Repayment shall be made in accordance with rules the boards shall from time to time prescribe.
Repayment must be completed within one year of recommencement of membership.
(d) Unless otherwise prohibited by law, a vested member who has not purchased service
credit under section 82-64, may purchase years or fractional parts of years of service to be added
to years of credited service provided that:
(1) The member contributes to the retirement system the sum that would have been
contributed, based on the applicable employee contribution rate in effect at the time that the
credited service is requested for the years or fractional parts of years for which the credit is
requested, plus payment of costs for all professional services rendered to the board in connection
with the purchase of years of credited service, plus the amount actuarially determined so that the
crediting of service does not result in any costs to the retirement system.
(2) Payment by the member of the required amount may be made within six months of the
request for credit and in one lump sum payment, or over a period equal to the length of time
being purchased or five years, whichever is less, at an interest rate which is equal to the interest
rate determined under section 82-65. No credit shall be given for any service until all years of
service which are to be purchased,have been purchased.
(3) The credited service purchased under this section shall count for all purposes except
vesting. No more than five years of credited service may be purchased.
(4) If a member who is in the process of purchasing service terminates before completing the
purchase, the unpaid purchase price due from the former member may be set-off against benefits
payable to the former member.
(5) A purchase of service may be made no more than three times during the course of
employment and no purchase may be made until any previous purchase is fully paid.
(6) Purchases of service by members of benefit group firefighter may only be based upon
actual prior service as a firefighter or service in the military and purchases of service by a
member of benefit group police officer may only be based upon actual prior service as a police
officer or service in the military. "
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 I, In General; Section 82-56, to read as follows:
"Sec. 82-56. Benefit groups.
(a) The following benefit groups are designated for the purpose of determining benefit
conditions, benefit amounts and contribution amounts applicable to a member:
Ordinance No. 6-2012 Page 8 of 74
(1) Benefit group general, consisting of all members not included in benefit groups
firefighter,police officer or lifeguard.
(2) Benefit group firefighter, consisting of members employed in the fire-rescue department
who hold the rank of firefighter, paramedic, or higher (including probationary firefighters),
provided that they are certified pursuant to F.S. § 633.35.
(3) Benefit group police officer, consisting of members employed in the police department
who hold the rank of police officer or higher (including probationary police officers), provided
that they are certified pursuant to F.S. § 943.1395.
(4) Benefit group lifeguard, consisting of members employed in the ocean rescue unit beae
pa+re' departm°„*who hold the rank of lifeguard or higher, including probationary lifeguards.
(b) Benefit eligibility conditions shall be those applicable to the benefit group under which
the member has the largest amount of credited service.
(c) Pension amounts shall be separately determined for each benefit group based on
retirement system provisions in effect at time of termination of membership."
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 1, In General; Section 82-59,to read as follows:
"Sec. 82-59. Transfer of service between town plans.
In the event that a member changes his or her job status after October 4, 2007 and prior to May
1, 2012, such that he or she becomes a member of a different benefit group, he or she shall be
subject to the following:
(1) If he or she is not fully vested, the accumulated contributions in the previous benefit
group, if any, will be retained by the plan for such benefit group. The member shall be treated
the same as terminated vested member of such plan and, therefore, entitled to benefits in
existence in such plan on the date of transfer to the new benefit group, provided that the member
attains at least ten years of credited service credited service. Credited service up to the date of
transfer to the new benefit group will be counted for purposes of determining eligibility for
benefits in the new benefit group, but not for purposes of pension calculations. Service in the
first benefit group shall be credited with the multiplier for that benefit group at the time of
transfer, and service in the new benefit group shall be credited with the multiplier for that benefit
group. Upon retirement, the member shall receive pension payments from each benefit group
using the average final compensation at the time of transfer or retirement, whichever is
applicable, based upon the service and multiplier of each benefit group at the time of termination
from participation in the plan of such benefit group, and pension payments shall become due and
payable on the early or normal retirement date of the benefit group in which the member most
recently participated.
(2) If already vested in a benefit group, the member shall be entitled to all of the rights and
benefits according to the plan for that benefit group, and, upon transferring into a different
benefit group, shall be entitled to all rights and benefits as a new employee in such benefit group.
(3) To become eligible for a pension from both plans, the member must have satisfied the
service requirements for vesting, that is, ten years of total combined service credited service.
Ordinance No. 6-2012 Page 9 of 74
N) Thus-co„+;,,,, o��,.+;�,o nor ennplayees who transfer benefit n after the off,.tive date_o of
this seetio
Section 6. 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 82-63, to read as follows:
"Sec. 82-63. Amount of post-retirement redetermination of pensions.
(a) The amount of each pension that became effective after September 30, 1968, and prior to
October 1, 1990, shall be increased each October 1, starting with the October 1 that is at least 12
full months after the effective date. The amount of increase shall be one percent of the base
amount of pension that would be payable had no increases been granted under the provisions of
this section.
(b) The amount of each pension that became effective after September 30, 1990 for members
who retired, entered the DROP or terminated employment with 10 or more vears of credited
service prior to Mav 1, 2012, and members who attained normal retirement eliaibility based on
credited service as of Mav 1, 2012, excluding credited service purchased pursuant to section 82-
54, and who were emploved by the town and not participatina in the DROP on that date, shall be
increased on the first day of the month which is at least 36 full months after the effective date
and shall be further increased on an annual basis thereafter. The amount of annual increase shall
be two percent.
(c) The amount of each pension that became effective after September 30, 1990 based on
credited service prior to Mav 1, 2012 for members who did not attain normal retirement
eligibility based on credited service as of Mav 1, 2012, excluding credited service purchased
pursuant to section 82-54, and who were emploved by the town and not participating in the
DROP on that date, shall be increased on the first day of the month which is at least 36 full
months after the effective date and shall be further increased on an annual basis thereafter. The
amount of annual increase applicable to the pension based on credited service prior to Mav 1,
2012 shall be two percent.
(d) There shall be no post-retirement increase applied to anv pension based on credited
service on and after Mav 1, 2012 for members who did not attain normal retirement eligibility
based on credited service as of Mav 1, 2012, excluding credited service purchased pursuant to
section 82-54, and who were emploved by the town and not mrticipatina in the DROP on that
date, and for members hired on or after Mav 1, 2012."
Section 7. 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 82-65, to read as follows:
"Sec. 82-65. Allowance of interest; rates of interest.
The boards of trustees of the retirement system shall, at the end of each fiscal year, credit interest
on the individual balances in the reserve for member contributions, and on the balances in the
reserve for employer contributions and the reserve for retired benefit payments. The amounts so
credited shall be charged to the reserve for undistributed investment income. The boards shall
determine the rate of interest to be used in the crediting and charging of interest."
Ordinance No. 6-2012 Page 10 of 74
Section 8. 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 82-66, to read as follows:
"Sec. 82-66. Refund of member's accumulated contributions.
(a) An individual who ceases to be a member for any reason except retirement or death prior
to satisfying any of the applicable age and service requirements for retirement shall be paid his
accumulated member contributions upon written request filed with the plan administrator-beard
of+f, ste
(b) If an individual dies and no pension becomes or will become payable by the retirement
system on account of the death, the deceased individual's accumulated member contributions
shall be paid to such individual or individuals as the deceased individual shall have named by
written designation duly executed and filed with the board. If there is no such named individual
surviving the deceased individual, the accumulated member contributions shall be paid to the
deceased individual's estate.
(c) Payment of accumulated contributions as provided in this section may be made in
installments."
Section 9. 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 82-69, to read as follows:
"Sec. 82-69. Administrative expenses.
The administrative expenses of the retirement system shall be borne by the plan, and allocated to
each employee benefit group in proportion to the assets attributable to each aroun as of the end
of the most recent plan year. with those generati by the boards-or- r the benefit of the
employee gfeups al.1.9eated to ie ^„rds or employee groups."
Section 10. 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 82-70, to read as follows:
"Sec. 82-70. Assignments prohibited.
(a) The right of an individual to a pension, to the return of accumulated contributions, the
pension itself, any optional benefit, any other right accrued or accruing to any individual under
the provisions of the retirement system, and any moneys belonging to the retirement system shall
not be subject to execution, garnishment, attachment, the operation of bankruptcy or insolvency
law, or any other process or law whatsoever, and shall be unassignable, except as is otherwise
specifically provided in this section.
(b) If a member is covered by a group insurance or prepayment plan participated in by the
town, and should the member be permitted to and elect to continue such coverage as a retirant,
the member may authorize the relevant board of trustees to have deducted from his pension the
payments, if any, required of the retirant to continue coverage under such group insurance or
prepayment plan. The town shall have the right of setoff for any claim arising from
embezzlement or fraud by a member, retirant or beneficiary, unless prohibited by law eh-apter
175 or ehapter 185."
Ordinance No. 6-2012 Page 11 of 74
Section 11 The Code of Ordinances of the Town of Palm Beach is hereby amended at
Chapter 82, Personnel; Article I1, Employee Benefits; Division 2, Retirement System;
Subdivision I, In General; Section 82-72, to read as follows:
"Sec. 82-72. Rollover distributions.
(a) General. Notwithstanding any provision of the plan to the contrary that would otherwise
limit a distributee's election under this subsection, a distributee may elect, at the time and in the
manner prescribed by the board, to have any portion of an eligible rollover distribution paid
directly to an eligible retirement plan specified by the distributee in a direct rollover.
(b) Definitions.
(1) Eligible rollover distribution. An eligible rollover distribution is any distribution of all or
any portion of the balance to the credit of the distributee, except that an eligible rollover
distribution does not include: any distribution that is one of a series of substantially equal
periodic payments (not less frequently than annually) made for the life (or life expectancy) of the
distributee or the joint lives (or joint life expectancies) of the distributee and the distributee's
designated beneficiary, or for a specified period of ten years or more; any distribution to the
extent such distribution is required under section 401(a)(9) of the Internal Revenue Code
("code"); and the portion of any distribution that is not includible in gross income. Any portion
of any distribution which would be includible in gross income will be an eligible rollover
distribution if the distribution is made to an individual retirement account described in code
section 408(a), to an individual retirement annuity described in code section 408(b) or to a
qualified defined contribution plan described in code section 401(a) or 403(a) that agrees to
separately account for amounts so transferred, including separately accounting for the portion of
such distribution which is not so includible.
(2) Eligible retirement plan. An eligible retirement plan is an individual retirement account
described in section 408(a) of the code, an individual retirement annuity described in section
408(b) of the code, an annuity plan described in section 403(a) of the code, an eligible deferred
compensation plan described in section 457(b) of the code which is maintained by an eligible
employer described in section 457(e)(1)(A) of the code and which agrees to separately account
for amounts transferred into such plan from this plan, an annuity contract described in section
403(b) of the code, or a qualified trust described in section 401(a) of the code, that accepts the
distributee's eligible rollover distribution. This definition shall also apply in the case of an
eligible rollover distribution to the surviving spouse.
(3) Distributee. A distributee includes a member or former member. In addition, the
member's or former member's surviving spouse is a distributee with regard to the interest of the
spouse.
(4) Direct rollover. A direct rollover is a payment by the plan to the eligible retirement plan
specified by the distributee, or a payment to the plan from an eligible retirement plan for the
purchase of credited service under the plan."
Section 12. 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 1, In General; Section 82-73, to read as follows:
Ordinance No. 6-2012 Page 12 of 74
"Sec. 82-73. Method of making payments.
All payments from moneys of the retirement system shall be made according to procedures
governing the disbursement of town general fund moneys. No payment shall be made unless it
shall have been previously authorized by a specific or continuing resolution of one 0 the boards
of trustees. Benefits shall accrue from the day following the date of retirement, death, or
disability and shall be payable monthly."
Section 13. 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 II, Reserve Accounts; Section 82-80, to read as follows:
"Sec. 82-80. Reserve for member contributions.
(a) The reserve for member contributions is the account in which is accumulated the
contributions deducted from the compensation of members, or otherwise paid to the retirement
system by the member or on the member's behalf, and from which shall be made refunds and
transfers of accumulated member contributions.
(b) For 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
emploved by the Town and not participating in the DROP on that date, their contribution rate
both before and after May 1, 2012 shall be 7.21% for benefit group lifeguard. 6.98% for benefit
group police officer, 6.82% for benefit group firefighter, and 6.47% for benefit group general.
(be) For 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, Mmember
contributions to the retirement system shall be at the applicable following rates:
Contribution Rate (percent) Contribution Rate (percent)
Benefit Group
Before May 1, 2012 On and After May 1, 2012
Benefit group general — hired before 6.47 4.47
May 1, 1992
Benefit group general — hired on or 6.47 2.47
after May 1, 1992
Benefit group firefighter 6.82 4.82
Benefit group police officer 6.98 4.98
Benefit group lifeguard — hired
7.21 5.21
before May 1, 1992
Benefit group lifeguard—hired on or 7.21 3.21
after May 1, 1992
Ordinance No. 6-2012 Page 13 of 74
(ed) The individual responsible for preparing the town payroll shall cause the contributions
provided for in subsection (b) of this section to be deducted from the compensation of each
member on each payroll. The deducted contributions shall be paid to the retirement system and
shall be credited to the member's individual accounts in the reserve for member contributions.
Member's contributions shall be made notwithstanding that the minimum compensation provided
by law for any member shall be changed thereby. Every member shall be deemed to consent and
agree to the deductions made and provided herein. Payment of compensation, less the deduction,
shall be a full and complete discharge and acquittance of all claims and demands whatsoever for
services rendered by the member during the period covered by such payment, except as to
benefits provided by the retirement system.
(de) The accumulated contributions of a member shall be transferred from the reserve for
member contributions to the reserve for retired benefit payments upon a member's retirement or
death. At the expiration of a period of four years from the date an individual without entitlement
to a vested termination pension provided in section 82-94, 82-114, or 82-134 ceases to be a
member, any balance in the reserve for member contributions unclaimed by the individual or the
individual's legal representative shall be transferred to the reserve for undistributed investment
income. Provided, however, that a former firefighter member or a former police officer member
may voluntarily leave his or her contributions in the fund for a period of five years after leaving
the employ of the town, pending the possibility of being rehired by the same department, without
losing credit for the time he or she has participated actively as a member. If such former member
is not re-employed as such with the same department within five years, his or her contributions
shall be returned without interest."
Section 14. 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 II, Reserve Accounts; Section 82-83, to read as follows:
"Sec. 82-83. Reserve for undistributed investment income.
The reserve for undistributed investment income is the account to which is credited all interest,
dividends and other income from the investment of retirement system assets; all gifts and
bequests received by the retirement system; all unclaimed accumulated contributions and
pensions; and all other moneys received by the retirement system the disposition of which is not
specifically provided. There shall be transferred from the reserve for undistributed investment
income all amounts required to credit interest to the reserve for member contributions, reserve
for employer contributions, and the reserve for retired benefit payments. Whenever the boards of
trustees determines the balance in the reserve for undistributed investment income is more than
sufficient to cover current charges to the account, the excess or any part thereof may be used to
provide contingency reserves or to meet special requirements of the other reserve accounts of the
retirement system; pfevided, however-, that the reserves and ffeeoutAs of eaeh board of trustees
shall not be eonHningled and no transfer -.hall be made to the of anothe
beafd. Whenever the balance in the reserve for undistributed investment income is insufficient to
meet the current charges to the account, the amount of the insufficiency shall be transferred from
the reserve for employer contributions."
Ordinance No. 6-2012 Page 14 of 74
Section 15. 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;
Subdivision 1I, Reserve Accounts, by deleting Sections 82-85 and 82-86 in their entirety.
See. 82 85. Phans and- assets segregated.
The plan, Meney or assets for the benefit of benefit groups shall be seises„+oa from those 0
+h benefit t grops(e eept benefit group gene.:1 and benefit group lifeguard,which shall be
eer.-A ingled), and the egfegation, invest ent, aa."oke-aping and disbursement of sueh Mersey or
assets shall be the esponsilxli<y of the+,., stee of the olo ant boa-rdT
See. . s 175 end 185, Florida_Statutes.
if my tems or-e9nditi^ons of this e 3aptei applieable to the fire ;gh4e,. board,benefit gFeup
f fi hter, „r the „„liee „ffieer hoar-d4 benefit group „liee officer, are i.-Roonsistent with 1~ C eham
-3r 185, ar, arne nd ,l from time to ti c, F.S. e'20. 1,--5-and485, ar, arn&n`e fr-of' time to time,
shall ,.only-o
Section 16. 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 111, Firefighters; by deleting Sections 82-90, 82-91, 82-92 and 82-93 in their
entirety.
See. 2 90. Fir-efighter- board of trustees.
(a) the firefighter board of trustees (the "firefighter board" or "b ard") shall cansist of the
following i„diyid,,.,ls•
(1) Two me1T s covered by benefit group firefi.,hter, to he eleeted by members of that benefit
(2) T legal r side„ts of the to<,,,,, to bc-appqinted by the t,,.,.r,
�?)
The fifth member- of the f f:,.
ehter hoard shall hem, a major.n., of the Previous far
members and s ,..h person'r, name shall b&-subrmitted to the t„<,,,, , nil .,.h;ch-, as a ."Y.-N-MAerml
shall app t l i person to the fi efig tei boar's its fifkl� membe
, � pia is � board its .........�
!h\ Eleetior,s of meim m trustees shall be hold in aeeordanee with-rulas adopted by the
firefigl,+er-board and.,,itl, F.S. ,.1, 175
(e) The firefighter her hall meet at least himonth! , shall adopt its o rules of procedure
and shall ked orris of its p eedi gs. Three trustees shall V
of the board, d at least three eo c;irtnng veto:, shall ba r for ., decisior by thth- e board.
Eaehh tmstee shall-hv. entitled to on vote on eaeh „es+i.,n before the board. T�a trus €€'-s [;hall nit
s„+io„ but„ expenses and-per-diem. as pravided by state law.
(d) The firefighter board shall be a lagal entity Wi±h, in addition to other- and
sib.ilities , „t.,ir,ed here n and 4w-powers and responsibilities set forth in-F.S. ch. 17-5 the
power to bring and defend lawsuits of el,cry kind, ature and deseriptie„, and to .,dm „ister
separate plans for the benefit of its i ember-s and retirants
(e) If a el.,im for benefits is denied by the firefighter beard—, the claimant shall. lee notified of the
denial, in IVY iting, within 30 d. of the board's etion. The notifiec-Aim shall Jet forth the masons
Ordinance No. 6-2012 Page 15 of 74
per-des al. The olalr:art � appeal the denial and Nequest a hearlrg befog the board. The
appeal shall be in �wifing to the tovffi elerk and filed within 90 days of the erual. The
request shall n+,,;n written statement the of te ofai r-.as# osi-t-ionz d e-elaim. The board
shall sel,edi o a marine within in 60 days of reee n+ .f+lie , M
See. 82 91. Term of of-flee; oath of office; yae-flney.
(a) The r-egulaf term of offiee of member elected trustees of the firefighter board and hinted
trustees shhall be two years and they may sueeeed themselves in off;
(b) Each tmstee shall, befere us;-ar?-rg the dtAies of+,.,,s+oc, qualify l—i b ar. oath of offiee
t"e administered by the t,,,,,,, „lerl
C„1 A vacancy shall occur on the f;ref;g ter boa-rd f-
��1 membo elected tmstee eeases to be ., ml.er of benefit group f;refig ter.
C(2) A iy member
�
consecutive meetings of the firefighlef 1,,,af each ease a• cause by the
trustees attending the meeting.
(3) Any town citizen or legal r2s dent appointed by the t,,,,.n eouneil fails to remain sue-h; and
(4` Any tpds+ee--resignsc�r is remeved from off;,,e
(d) T�f a vFaea-neyLoocum on the firefighter board, the vaeane , shall ba filled within 30 days, for
the unex-pir-ed term. in the tho po"'t; , was previotisly filled
See. 82 92. -"fr-eers, administmfiv
The off eery and employed services oft the firefighter b d c)rall b2 as follows:
(1) Ghai .
The firefighter- h d shall annually elee a chair and a oha r pt•g term from
=mbors.
(2)—Qeepe-t,,,., The fir-ef;g ter heard srhall annually elect ., fe+.,f f ro: among itsmember�
(3) Pnanee a t and ti-easwer The to.ffi finance direeter and treastircr -Imll b2 finanee
director- an cusurer -Af tl c--I 1e h , unless the firefighter ter >,n-A—del gates-such
authority o a plan a tr-atc-: The atmots, other-than operating eeeoui+to, steal.' bo places
,stud., of a nationally ehartered bars- or tfust m. .parcy. The—board n# a plan
administrator-to administer the opefating aeeounts at the f„nd'R e n
(4) Legal adviso The firefighter hoard m pley legal . sel e++he fimd's exp.onsg-
(5) Aetuwy. The firefighter board 'n appoint and compensate an actuary :,,10 shall 'ache
technical .,dvisof to the 1,o rd regarding the operation of the retirement system on an aetuarial
'ou;ICs, and-who shall pd f such required in that , on. Tho t " !
as used in this .,r+;.,lv :gall mean a mamh r of the American n A e dem„ of Actuaries,
who has demonstrated an edueational background neeessafy for the #uarlal s Renee
and has at least five y of relev.,n+ pension actuarial c..perionee n partnership or corporation
may bo app
;�; ,n of an individual who meet #lip preceding qualifiaatiors.
Ordinance No. 6-2012 Page 16 of 74
()Sw-ioiees. The firefighter i,,,.,,.a m play s ie pr-e feasiona? and—ether eervie c as are
required for the proper-administration of the retirement system at the Aind's e)c-peflse.
(7) r s.,, nf ft . t. The firefighter board shall employ an invest „+ eonsttltai4 at the
fps expenso.
2. 92. InVestment limitations.
Upon eonsultafien with its itwestment advisefs and staff-, the board may exeeed e ' r:ta4ens
on ; ostme„+s in eenunon steey and pi4a stook s eifiea i i F.S.
Section 17., 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.
(a) A firefighter may retire upon satisfaction of each of the following requirements:
(1) The firefighter has filed written application for retirement with the board setting forth the
date, not less than 30 days nor more than 120 days subsequent to the execution and filing thereof,
retirement is to be effective.
(2) Unless the firefighter is an applicant for a DROP, the firefighter terminates all town
employment prior to the date retirement is to be effective.
(3) The firefighter has met an applicable age and service condition for retirement.
(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 Mav
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 [he per hao aq.eified age 50 with years ^r oldef and has ten or
more years of credited service; or when the firefighter's member's age to last completed month
plus credited service totals 65 years or more and the membern4ividualhas ten or more years of
credited service; or when the member Chas 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
emploved by the town and not participating in the DROP on that date, shall be eligible for
normal retirement upon attainina age 50, or when the member's age to last completed month plus
credited service totals 65 vears or more, or upon completion of 20 vears of credited service
reaardless 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 Mav 1,
2012 upon attaining age 65 with ten or more vears of credited service.
3. Members hired on or after Mav 1, 2012, shall be elia_ible for normal retirement upon
attaining age 65 with ten or more vears of credited service."
Ordinance No. 6-2012 Page 17 of 74
Section 18. 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:
"Sec. 82-95. Amount of pension - firefighters.
(a) The amount of a member's or a vested former member's pension under the standard form
of payment shall be equal to the sum of separately determined amounts for which the individual
has credited service in force, and in no event shall the amount of a member's or a vested former
member's pension under the standard form of payment be less than$1,200.00 per annum.
(b) The amount of pension attributable to a member who has credited service under another
benefit group shall be the amount determined by calculating credited service in this benefit group
plus the amount determined by calculating credited service in such other benefit group.
(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 10 or more years of credited service prior to Mav 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 best•: e, 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. Provided f•t-thel tha-�—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. j
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 Mav 1, 2012.
The standard form of payment for the frozen accrued benefit shall be life and ten vears certain.
3. For credited service on and after May 1, 2012, except as such service may be credited to
members who qualify under Section 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
Ordinance No. 6-2012 Page 18 of 74
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 10 or more years of credited
service and entry into the DROP or termination of employment."
Section 19. 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 82-96, to read as follows:
"Sec. 82-96. Optional forms of payment of a pension for firefighters.
(a) Firefighters who terminated employment with 10 or more years of credited service prior
to May 1, 2012, and 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, ^ m°mbef Or
vested m° may elect to be paid under one of the following optional forms of payment. The
election shall be in writing and filed with the board prior to the date retirement is effective.
Payment will be made under the standard form of payment if a timely election of an optional
form of payment is not made.
(1) Optional form of payment A100- 100 percent survivor pension. Under optional form of
payment Al 00, a retirant is paid a reduced pension for life. Upon the retirant's death the reduced
pension is paid to the beneficiary, if living, designated in writing and filed with the board at the
time of election of the optional form of payment. Payment to the designated beneficiary shall
terminate upon the death of the designated beneficiary. The amount of reduced pension is a
percentage of the amount of pension under the standard form of payment (SL). The percentage is
80 percent if the retirant and designated beneficiary are the same age on their last birthdays. The
80 percent is reduced by 0.5 percent for each year the age of the retirant exceeds the age of the
designated beneficiary, to a minimum of 60 percent for differences in age of 40 or more years.
The 80 percent is increased by 0.5 percent for each year the age of the designated beneficiary
exceeds the age of the retired member, to a maximum of 90 percent for differences in age of 20
or more years.
(2) Optional form of payment A50--50 percent survivor pension. Under optional form of
payment A50, a retirant is paid a reduced pension for life. Upon the retirant's death, 50 percent of
the reduced pension is paid to the beneficiary, if living, designated in writing and filed with the
board at the time of election of the optional form of payment. Payment to the designated
beneficiary shall terminate upon the death of the designated beneficiary. The amount of reduced
pension is a percentage of the amount of pension under the standard form of payment. The latter
percentage is 90 percent if the retirant and designated beneficiary are the same age at their last
birthdays. The 90 percent is reduced by 0.25 percent for each year the age of the retirant exceeds
the age of the designated beneficiary, to a minimum of 80 percent for differences in age of 40 or
more years. The 90 percent is increased by 0.25 percent for each year the age of the designated
beneficiary exceeds the age of the retired member, to a maximum of 95 percent for differences in
age of 20 or more years.
(3) Form of payment (SL)--Straight life pension. Under form of payment (SL) the retirant is
paid a pension for life. The (SL) payment amount is an increased amount based on the actuarial
equivalent of the life with ten-year guarantee standard form of payment computed pursuant to
section 82-95(c).
Ordinance No. 6-2012 Page 19 of 74
(4) Such members may also elect to receive the following optional benefit forms:
a. A75--75 percent survivor pension. Under optional form of payment A75, a retirant is
paid a reduced pension for life. Upon the retirant's death, 75 percent of the reduced pension is
paid to the beneficiary, if living, designated in writing and filed with the board at the time of
election of the optional form of payment. Payment to the designated beneficiary shall terminate
upon the death of the designated beneficiary, or upon the tenth anniversary of the retirant's
retirement date, if later. The amount of the reduced pension is based on the actuarial equivalent
of the standard form of payment.
b. A66-2/3--66 213 Pei-cent survivor pension. Under optional form of payment A66-2/3, a
retirant is paid a reduced pension for life. Upon the retirant's death, 66 2/3 percent of the reduced
pension is paid to the beneficiary, if living, designated in writing and filed with the board at the
time of election of the optional form of payment. Payment to the designated beneficiary shall
terminate upon the death of the designated beneficiary, or upon the tenth anniversary of the
retirant's retirement date, if later. The amount of the reduced pension is based on the actuarial
equivalent of the standard form of payment.
(b) 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, may elect to receive
the frozen accrued benefit based on credited service prior to May 1, 2012 under one of the
following_ optional forms of payment. The election shall be in writing and filed with the board
prior to the date retirement is effective. Payment will be made under the standard form of
payment if a timelv election of an optional form of payment is not made.
(1) Optional form of pavment A100--100 nef•cent survivor pension. Under optional form of
payment A100, a retirant is paid a reduced pension for life. Upon the retirant's death the reduced
Pension is paid to the beneficiary, if living, designated in writing and filed with the board at the
time of election of the optional form of payment. Payment to the designated beneficiary shall
terminate upon the death of the designated beneficiary. The amount of reduced pension is a
percentage of the amount of pension under the standard form of payment (SL). The percentage is
80 percent if the retirant and designated beneficiary are the same age on their last birthdays. The
80 percent is reduced by 0.5 percent for each year the age of the retirant exceeds the age of the
designated beneficiary, to a minimum of 60 percent for differences in age of 40 or more years.
The 80 percent is increased by 0.5 percent for each year the age of the designated beneficiary
exceeds the age of the retired member, to a maximum of 90 percent for differences in age of 20.
or more years.
(2) Optional form of pavment A50--50 Percent survivor pension. Under optional form of
payment A50. a retirant is paid a reduced pension for life. Upon the retirant's death. 50 percent of
the reduced pension is paid to the beneficiary, if living, designated in writing and filed with the
board at the time of election of the optional form of pavment. Payment to the designated
beneficiary shall terminate upon the death of the designated beneficiary. The amount of reduced
pension is a percentage of the amount of pension under the standard form of pavment. The latter
percentage is 90 percent if the retirant and designated beneficiary are the same age at their last
birthdays. The 90 percent is reduced by 0.25 percent for each year the age of the retirant exceeds
the age of the designated beneficiary, to a minimum of 80 percent for differences in age of 40 or
Ordinance No. 6-2012 Page 20 of 74
more years. The 90 percent is increased by 0.25 percent for each year the age of the designated
beneficiary exceeds the age of the retired member, to a maximum of 95 percent for differences in
age of 20 or more years.
(3) Forin of pavment (SL)--Straizht life pension. Under form of payment (SL) the retirant is
paid a pension for life. The (SL) pavment amount is an increased amount based on the actuarial
equivalent of the life with ten-year guarantee standard form of payment computed pursuant to
section 82-95(c).
(4) A75--75 Pei-cent survivor pension. Under optional form of payment A75, a retirant is
paid a reduced pension for life. Upon the retirant's death, 75 percent of the reduced pension is
paid to the beneficiary, if living, designated in writing and filed with the board at the time of
election of the optional form of pavment. Payment to the designated beneficiary shall terminate
upon the death of the designated beneficiary, or upon the tenth anniversary of the retirant's
retirement date, if later. The amount of the reduced pension is based on the actuarial equivalent
of the standard form of pavment.
(5) A66-213--66 213 Percent survivor pension. Under optional form of pavment A66-2/3, a
retirant is paid a reduced pension for life. Upon the retirant's death, 66 2/3 percent of the reduced
pension is paid to the beneficiary, if living, designated in writing and filed with the board at the
time of election of the optional form of payment. Payment to the designated beneficiary shall
terminate upon the death of the designated beneficiary, or upon the tenth anniversary of the
retirant's retirement date, if later. The amount of the reduced pension is based on the actuarial
equivalent of the standard form of payment.
(c) A firefighter may elect to receive the accrued benefit based on credited service on and
after May 2012 as follows: the member may elect to receive a reduced pension for life, and
upon the retirant's death 100 percent, 75 percent, 66 and 2/3 percent or 50 percent of the reduced
pension is paid to the beneficiary, if living, designated in writing and filed with the board at the
time of election of the optional form of payment. Payment to the designated beneficiary shall
terminate upon the death of the designated beneficiary. The amount of the reduced pension
payable to the retirant shall reflect an actuarial reduction in the standard form of pavment based
on the age of the member and the age of the beneficiary, such that the total value of the benefit
payable to the retirant and beneficiary is actuarially equivalent to the standard form of pavment
to the retirant. The election of an optional form of pavment under this subsection (c) must be in
writing and filed with the board prior to the date retirement is effective. Pavment will be made
under the standard form of pavment if a timely election of an optional form of pavment is not
made."
Section 20. 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 deleting Section 82-97 in its entirety.
See. 82 97. Supplemental pension distributions-.
(tea The board ef a-stees rr-.wf annuall-y authori c oupplemmtal pmsion distributions to eligible
persons, the ameu-PA of which sJ1t-C11 bodetermined . of eaeh September-30 beginning September
er
30, 200�1, The amount of the supplernen4al pen ien of an-eligibl"erso < ,;» be
determined as fellaws!
Ordinance No. 6-2012 Page 21 of 74
"1) The arraunt shall be aqual to the +„+.,1 °ligiblo p-o-rsans-€ram bonefi+ group r;,.°r;ghte,
divided into the positive amount of 4westment return, if Year ending
September
exeeeds ghtr +b does + ° edte r „+
(2) T�., ,.a shall a + whether- the 1, � 2mep+.,1 distr;1,,,+ s
C"/ 1 ° €����ir_€ � € a .,�ppl ��n based
on the following f„tors.
a. The ,,,.+,,.,r„ ai plan administrator chali d + the „+° of; estme„+ r°+„r„ di ffin. +1,°
fiseal year „ding eaeh September 39. The rates deterzr nine pt. VII.
the rater o�*°d o-n the mast
reeent °.,tu r;.,l repo s -,ubinl,4ed pursuant to F.S. A'112,pt VII.
b. The aetuaf3,-ar plan administrator- shall, as of September 3 n determine the amount, if.,,,,, of
investment return ,,,1,;°t, after- expenses, exeeeds eight p + of the f retired benLii fesefve
payment assets btA does not exeeed ten per-eent of sueh assets,
(3) If the investment r°+„r„ on these assets is less et than 'ght pereen+, s e „ts el:all be
��
eaffied forward to be against sal lati, „f supp'terrert-a-l--ensi,,, distfibut;, a„
the next year and ei:all sontifine to era tintil sQeh eaffy €envards-are OfAet by
investmefft r°+, ms eiieeedin° eight„ +, if the net e „even ° Unfavorable, „1.,+;,.°l„
with the ° periennee4or the yeaf ended September 39,2001, and thereafter, no
supplemental distfi,„+;ails reriene� fav �.>� , and the-te��si
must amortize the losses until ;+ is offset by curnulati:v favor-able e Eperienees.-tithe ne t
e -oumulati;elyEe ei�g with-the-experience r the , , ing perience-i o1
�epte er 0,?nn' after-off-se#-4ar all pr' c' pp' e°rr,ion d�a�tie„n—th e
iar a n,����
r„r + 1 „ensio,, distr;L,,,+;a is, may-b°.,,.,de to eligible per-sons of the beflie�lu--group.
if ° supplemental distr;l,,,+o report or rep eris is or ar, not state aeeepted pn-or to
distribution:,, and if a defie-ieney to the fund results, the de fie ens-- > shall bye up 5),
withholding and eharging-sue-h-defleieney against the next avadn b'e-suppl:x zant 1 pension
distribtAion, .,less sooner- made up by agreornent between the baan-the tov,%. No-sueh
awe, shall be permitted to , ntin,° rar a ptr i^d greater than +twee years f,.,Y. the date o
paym t-sf a cupplomental distribution „hie resulted in a aefieien
(b) if the aett ar-y or plan administratordedeternvines that may be a suppLenwnI4
distribution the the board of tfustees shall aut4wize cupplenrerrt€.' pera gn distb ions ur-'.ese
the administrative expenses of distribtAion exeeed the amount available for the distribution, i
w-hieh evepA, no distfibution may be authorized or-made.
(e) "Eligible per-sons” are��
(1) Retie-°„+s•
(il) A°+;r.,nts' estates.
(d) the supplemmantal p aicn distribution, if ° shall be made on of .,1,,.,,+ May 1 arnuall-7-
€4giblo Msons retired for less than one year- afe entitled to a prorata share of their suppl-eflffefitffil
pension distr;but o based an the number- of months retired. A ret rant's estate is entitled to
Ordinance No. 6-2012 Page 22 of 74
.non ��,„ro of the ao,.o—A ro+;r, Vc, supplemental „ r distrilfat;er base „r the number of
mon4hs that !he deeeased fetir-ant reeeived a pension during the year ending the September- 30
prior to+ho retir-ant's death.
(e) Swappl2mo„+al pension a;s4r butions, payable to eligible persons who ., pai4ieip nts in --
-DROP „+the time of p o„t shall be added to suet, eligible per-san's DRQP—aeee
€)--8"plemo ntal pensian distributions to benefieiafies of deeeased irants shall have r
s"plemental pension distribtAions ed e in the same prop V m as 1ra the r4n i
,
Section 21. 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 82-98, to read as follows:
"Sec. 82-98. Chapter 175 share accounts.
(a) Individual member accounts. A separate individual member account shall be established
and maintained in each group firefighter member's name effective on or after October 1, 1998.
Firefighter DROP participants shall participate or continue to participate in this supplemental
plan and the accounts for such participants shall be treated as individual member accounts under
this section 82-98.
(b) Share account funding.
(1) Each individual member account shall be credited with a share in accordance with the
formula set forth in subsection (3) below of all available tax revenues received from F.S. ch. 175,
from October 1, 1998, and thereafter.
(2) Available tax revenues shall be those moneys received pursuant to F.S. ch. 175, which,
according to the board actuary, have not been otherwise committed for benefits for members.
Notwithstanding any other provision of this section 82-98, in the event there are no available tax
revenues or no monies received pursuant to F.S. ch. 175 after Mav 1, 2012, the then-existing
member share accounts shall be administered by the board in accordance with this section 82-98,
except that there shall be no annual allocations of ch. 175 tax revenues to the existing member
accounts. No new member accounts shall be established on or after Mav 1, 2012.
(3) In addition, any forfeitures as provided in subsection (e) below shall be credited to the
individual member accounts in like manner.
(c) Annual allocation of accounts.
(1) Moneys shall be credited to each individual member account in an amount directly
proportionate to the number of pay periods for which the member or DROP participant was paid
compared to the total number of pay periods for which all members and DROP participants were
paid, counting the pay periods in the calendar year preceding the date for which F.S. ch. 175, tax
revenues were received.
(2) Upon receipt of the annual disbursement of tax revenues from F.S. ch. 175 each
individual member account shall be adjusted to reflect the earnings or losses resulting from
investment, as well as reflecting costs, fees and expenses of administration.
(3) Until a member becomes vested, the investment earnings or losses credited to or debited
from the individual member accounts shall be in the same percentage as are earned or lost by the
Ordinance No. 6-2012 Page 23 of 74
total investment earnings or losses of the retirement plan for benefit group firefighter members as
a whole as reported by the fund's investment monitor/consultant less administrative expenses,
unless the board dedicates a separate investment portfolio for F.S. ch. 175, share accounts, in
which case the investment earnings or losses shall be measured by the investment earnings or
losses of the separate investment portfolio. Once vested, a member may, on a semi-annual basis,
chose for his/her share account assets to be invested in the system investment method or the self-
directed investment method. The board shall by policy establish the procedure for such elections.
The two investment methods are:
a. The system investment method The share accounts shall accrue in the retirement system
on behalf of the member, plus earnings (losses) at the rate of investment return earned (or lost)
on pension fund assets as reported by the fund's investment monitor/consultant for the period that
the share account assets remain in the plan. Earnings are credited on a quarterly basis. Share
account assets are commingled with the pension fund assets for investment purposes and are
subject to payment of prorata share of the fund's administrative expenses.
b. The self-directed investment method. For members who are vested in the share account
benefit on or after May 12, 2009, each member shall have an individual investment account to
which his or her share account benefits shall be transferred. The board shall select a third-party
administrator or provider for this purpose. After such selection, each member shall direct the
manner in which the amounts in his or her individual investment account shall be invested from
an array of options selected by the board. The assets invested in the self-directed method are
subject to the administrative and investment management fees assessed by the third-party
administrator or provider.
(4) Costs, fees, and expenses of administration shall be debited from the individual member
accounts on a proportionate basis, taking the cost, fees, and expenses of administration of the
retirement system for firefighter members as a whole, multiplied by a fraction, the numerator of
which is the total assets in all individual member accounts and the denominator of which is the
total assets of the fund as a whole. The proportionate share of the costs, fees, and expenses shall
be debited from each individual member account on a pro rata basis in the same manner as set
forth in subsection(3)a.
(5) If the entire balance of an individual member account is withdrawn before September 30
of any year, there will be no adjustment made to that individual member account to reflect either
investment earnings, losses, costs, fees, or expenses of administration.
(d) Eligibility for benefits. Any member or DROP participant who terminates employment
shall, upon application filed with the fifefighte board, be entitled to be paid 100 percent of the
value of his individual member account, provided the member meets any of the following
criteria:
(1) The member is eligible to receive a pension; or
(2) The member has ten or more years of credited service and is eligible to receive either:
a. A disability pension as provided in section 82-100; or
b. A duty disability pension as provided in section 82-101.
Ordinance No. 6-2012 Page 24 of 74
(e) Forfeitures. Any member who has less than ten years of credited service and who is not
eligible for payment of benefits after termination of employment credited service shall forfeit his
or her individual member account. The amounts credited to said individual member account shall
be redistributed to the other individual member accounts as set forth in subsection (c)(1) above.
(f) Payment of benefits. The normal form of benefit payment shall be a lump sum payment
of the entire balance of the individual member account: or, upon the written election of the
member or DROP participant, upon a form prescribed by the board,payment may be made either
over three years in annual installments or in the form of a monthly annuity.
(g) Death of a member. If a member or DROP participant dies and is eligible for benefits
from the individual member account, the entire balance of the individual member account shall
be paid in a lump sum to the member's beneficiaries.
(h) Rollovers from qualified plans. A member of benefit group firefighter may roll over all
or part of his or her assets in another qualified plan to his or her chapter share account provided
all of the following requirements are met:
(1) Some or all of the amount distributed from the other plan is rolled over to this plan no
later than the 60th day after distribution was made from such plan or, if distributions are made in
installments, no later than the 60th day after the last distribution was made.
(2) The amount rolled over to the share account does not include any amounts contributed by
the member to such plan on a post-tax basis.
(3) The rollover is made in cash.
(4) The member certifies that the distribution is eligible for a rollover.
(5) Amounts which are accepted as a rollover to this retirement system shall, along with any
earnings allocated to the share account, be fully vested at all times.
The rollover may also be made to a member's individual share account from individual
retirement accounts qualified under Internal Revenue Code section 408 when the individual
retirement account was merely used as a conduit for funds from another qualified plan and the
rollover is made in accordance with the rules provided in subsections (1)--(5) above. Amounts
roiled over may be segregated from other retirement plan assets. The fir-efiglAe board shall
separately account for gains, losses, and administrative expenses on rollovers. In addition, the
retirement system may accept the direct transfer of a member's benefits from another qualified
retirement plan. The retirement system shall account for direct transfers in the same manner as a
rollover and shall obtain certification from the member that the amounts are eligible for a
rollover or direct transfer to this retirement system.
(i) Administration and Interpretation. The share accounts shall be administered by a third-
party administrator as directed by the firefigh4er board. The expense of such third-party
administrator shall be paid from emplovee accountsmoneys ree €d purauan**9 F.S. sh. 175.
Interpretation of this part by such administrator or administrators shall be resolved as directed by
the firefigWe board."
Section 22. The Code of Ordinances of the Town of Palm Beach is hereby amended at
Chapter 82, Personnel; Article 11, Employee Benefits; Division 2, Retirement System;
Subdivision III, Firefighters; Section 82-99, to read as follows:
Ordinance No. 6-2012 Page 25 of 74
"Sec. 82-99. Deferred retirement option program for firefi hters.
(a) Generally. In general, and subject to the provisions of this section, the deferred
retirement option program, hereinafter referred to as the DROP, is a program under which an
eligible firefiahte ...ember of the retirement system may elect to retire, participate, and become a
retirant of the retirement system, deferring receipt of retirement benefits while continuing
employment credited service. For members who are DROP participants or have entered the
DROP after May 12, 2009, a member may, on a semi-annual basis, chose for his/her DROP
account assets to be invested in the system investment method or the self-directed investment
method. The board shall bye policy establish the procedure for such elections. The two
investment methods are:
(1) The system investment method. The deferred monthly benefits of a DROP participant
shall accrue in the retirement system on behalf of the DROP participant, plus earnings (losses) at
the rate of investment return earned (or lost) on pension fund assets as reported by the fund's
investment monitor/consultant during the period of DROP participation. Earnings are credited on
a quarterly basis. DROP assets are commingled with the pension fund assets for investment
purposes and are subject to payment of pro-rata share of the fund's administrative expenses.
(2) The self-directed investment method. For members entering the DROP after May 12,
2009, each DROP participant may choose to have a self directed individual investment account
to which his or her monthly benefits shall be transferred. The board shall select a third-party
administrator or provider for this purpose. After such selection, each participant shall direct the
manner in which the amounts in his or her self-directed individual investment account shall be
invested from an array of options selected by the board. DROP assets invested under the self-
directed investment method shall receive DROP statements as prepared and distributed by the
third party administrator or provider. The assets invested in the self-directed method are subject
to the administrative and investment management fees assessed by the third-party administrator
or provider.
(3) During the period of DROP participation, neither the town nor the DROP participant is
obligated to make additional contributions to the retirement system on behalf of the DROP
participant. Upon termination of employment and participation in the DROP, the DROP
participant shall receive his or her total DROP benefits and begin to receive his or her previously
determined normal retirement benefits. Employment while participating in the DROP does not
guarantee employment for any specified period. A DROP participant is a retirant of the
retirement system.
(b) Eligibility of member to participate in the DROP. Retirement system members are
eligible to elect participation in the DROP provided that they elect to retire and provided that:
(1) Election to participate may be made when the member first reaches normal retirement
date or age, as follows:.
a. Members who were emploved by the town and not participating in the DROP on Mav 1,
2012 shall be eligible to participate in the DROP upon attaining af4e 50: or the date on which the
member's age to last completed month plus credited service totals 65 vears or more: or 20 vears
of credited service regardless of aye. Upon entry into the DROP the benefit pavable to such
member's DROP account shall be the frozen accrued benefit based on credited service prior to
Ordinance No. 6-2012 Page 26 of 74
Mav 1, 2012. The accrued benefit based on credited service on and after Mav 1, 2012 shall be
navable to the member's DROP account, or directiv to the member if DROP participation has
ceased, upon attaininv aRe 65.E€ar a r-e-:�°r who first r-eaehed normal retirement a„+° of age
prior to the eff-eetive date of the ordinanee ffom whieh th ctic'n is defived, eleetion to
pai4ieipate may be made within 84 months of the eff-eetive da4e of the ordinanee from whieh this
seetion is derived; p ;a°a h°••eve ° Such member who fails to make an election within 84
months after the member has 20 years of credited service shall forfeit all rights to participate in
the DROP.
b. Members hired on or after Mav 1, 2012 shall be eligible to participate in the DROP upon
attaining ate 65 with 10 or more vears of service
(2) There is no break in service to the town between the member's last working day as an
employee and first day as a retirant and DROP participant.
(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. 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, unless the
member first reached normal retirement age or date prior to the effective date of the ordinance
from which this section derives.
(2) Submission of required information. Upon electing to participate in the DROP, the
member shall submit on forms required by the retirement system and/or the third-party
administrator:
a. A written election to retire;
b. A written election to participate in the DROP;
C. An irrevocable resignation from service to the town and withdrawal from the DROP
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 or by the third-party
administrator.
(3) Re-employed retirants. Re-employed retirants of the town's retirement system are not
eligible to participate in DROP.
(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 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. Performance pay increases and general pay increases
Ordinance No. 6-2012 Page 27 of 74
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.
(1) Effective with the date of DROP participation, the member's initial normal monthly
pension benefit, calculated in accordance with section 82-95 and based on creditable service and
average final compensation and the effective date of retirement, shall be fixed. Retirement
system amendments which become effective after the establishment date of participation in the
DROP will not be applicable to the DROP participant, unless so stated by the amendment. The
monthly pension benefit (minus any reduction as determined by the board of trustees as provided
by subsection(h) of this section), cost of living adjustments, interest and earnings thereon, if any,
shall accrue monthly in the retirement system or the individual investment account as applicable.
Interest under the system investment method only shall accrue at an effective annual rate to be
determined hereunder as set forth in subsection (h) of this section, and will be compounded
monthly, on the prior month's accumulated ending balance, up to the month of termination of the
DROP or death.
(2) The monthly pension benefits payable to the DROP (minus any reduction as determined
by the board of trustees as provided by subsection (h)) and interest thereon, if any, shall continue
to accrue in the DROP until the established termination date of the DROP, or until the DROP
participant terminates employment or dies prior to such date. For DROP participants who are
invested under the system investment method described above in subsection (a)(1), a separate
accounting of each DROP participant's accrued benefits under the DROP shall be calculated and
provided to DROP participants at least quarterly. DROP assets invested under the self-directed
investment method shall receive DROP statements as prepared and distributed by the third party
administrator or provider.
(3) Employee benefits, other than benefits under the retirement system, which are normally
granted to employees, will be provided to DROP participants. Such DROP participants are not
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 subsection (c)(1) 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 and the third-party administrator.
(5) At the conclusion of the participant's DROP, participants in the self-directed investment
method shall exercise such options as provided by the third-party administrator's plan; or for
participants in the system investment method, the retirement system may distribute the
participant's total accumulated DROP benefits, subject to the following provisions:
a. The retirement system shall receive verification that such DROP participant has
terminated membership in the DROP.
b. The terminated DROP participant, or if deceased, such DROP participant's named
beneficiary, shall elect on forms provided by the retirement system to receive payment of the
DROP benefits in accordance with one of the options listed below.
Ordinance No. 6-2012 Page 28 of 74
1. Lump sum. All accrued DROP benefits, plus interest and earnings, if any, less
withholding taxes remitted to the United States Internal Revenue Service, shall be paid to the
DROP participant or surviving beneficiary.
2. Direct rollover. All accrued DROP benefits, plus interest and earnings, if any, shall be
paid from the DROP directly to the custodian of an eligible retirement plan as defined in section
402(c)(8)(B) of the United States Internal Revenue Code. However, in the case of an eligible
rollover distribution to the surviving spouse of a deceased DROP participant, an eligible
retirement plan is an individual retirement account or an individual retirement annuity as
described in section 402(c)(9) of the United States Internal Revenue Code.
3. Partial lump sum. A portion of the accrued DROP benefits shall be paid to the DROP
participant or surviving spouse, less withholding taxes remitted to the United States Internal
Revenue Service, and the remaining DROP benefits shall be transferred directly to the custodian
of an eligible retirement plan as defined in section 402(c)(8)(B) of the United States Internal
Revenue Code. However, in the case of an eligible rollover distribution to the surviving spouse
of a deceased DROP participant, an eligible retirement plan is an individual retirement account
or an individual retirement annuity as described in section 402(c)(9) of the United States Internal
Revenue Code. The proportions shall be specified by the DROP participant or surviving
beneficiary.
C. The form of payment selected by the DROP participant or surviving beneficiary complies
with the minimum distribution requirements of the United States Internal Revenue Code and
payments begin no later than the date on which the participant reaches age 70 years and six
months.
(6) The accrued benefits of any DROP participant, and any contributions accumulated under
such program, shall not be subject to assignment, execution, attachment, or to any legal process
whatsoever, except for income deduction orders and federal income tax levies.
(7) DROP participants shall not be eligible for disability retirement benefits as provided in
sections 82-100 or 82-101. In the event a DROP participant becomes incapacitated for
employment by the town as defined under sections 82-100 or 82-101, the DROP participation
will terminate, and the former DROP participant will elect one of the alternatives under
subsection(d)(5)b of this section.
(8) The effective date of retirement of a DROP participant shall be the day selected by the
member to begin participation in the DROP.
(e) Death benefits under the DROP.
(1) Upon the death of a DROP participant, the named beneficiary shall be entitled to apply
for and receive the accrued benefits in the DROP as provided under subsection (d)(5)b of this
section.
(2) The pension benefit paid to the DROP during the month of a DROP participant's death
shall be the final pension benefit credited for such DROP participant.
(3) Eligibility to participate in the DROP terminates upon the death of a DROP participant. If
the DROP participant dies on or after the effective date of enrollment in the DROP, but prior to
Ordinance No. 6-2012 Page 29 of 74
the first monthly benefit being credited to the DROP, retirement system benefits shall be paid in
accordance with section 82-103.
(4) A DROP participant's survivor shall not be eligible for retirement system death benefits
as provided in section 82-104.
(f) Cost of living adjustment. The DROP participants' normal pension benefit shall be
increased as provided in section 82-63(b).
(g) Renewed membership. Participants of the DROP will not be permitted to be members of
the town's retirement system. Contributions that normally would be made by the employee and
the town will not be paid into the retirement system upon an individual's election to participate in
the DROP.
(h) Administration of the program. The board of trustees shall make such rules as are
necessary for the effective and efficient administration of this subsection. The board of trustees
shall not be required to advise participants of the federal tax consequences of an election related
to the DROP but may advise participants to seek independent advice.
(1) The DROP will be cost-neutral to the town. To maintain the cost-neutral basis to the
town, the earnings (losses) and any reduction in the DROP participants' monthly pension benefits
payable to the DROP will be reviewed by the board of trustees from time to time as other
actuarial assumptions are reviewed. All costs of the DROP and any increase or decrease in the
cost of administering the DROP will be absorbed by:
a. A change of the or establishment of a reduction of the DROP participants' monthly
pension benefits payable to the DROP; and/or
b. An increase in the fees charged by the third-party administrator to the individual
investment accounts;
As determined by the board of trustees with approval by the town council.
(2) Administrative expenses shall be debited from the individual member accounts on a
proportionate basis, taking the cost, fees, and expenses of administration of the fund as a whole,
multiplied by a fraction, the numerator of which is the total assets in all individual member
accounts and the denominator of which is the total assets of the fund as a whole.
(3) Notwithstanding anv other provision of this section 82-99 or the Code. a member who
receives anv DROP benefits for the portion of their pension benefits earned on or after Mav 1,
2012 shall be an at-will employee for the entire DROP period."
Section 23. 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 82-100,to read as follows:
"Sec. 52-100. FirefiLyhters: Disability retirement.
(a) Upon the application of a member or the member's department head, a firefighter
who becomes incapacitated for employment by the town by reason of a personal injury or
disease may be retired by the board of trustees subject to the following conditions:
Ordinance No. 6-2012 Page 30 of 74
(1) The member has ten or more years of credited service in force or was emploved by the
town and not participating in the DROP on Mav 1, 2012;
(2) The member is medically examined by a duly-qualified physician or surgeon selected by
theme board of trustees for that purpose;
(3) The physician or surgeon certifies to the r;"i== board that the member is wholly
prevented from rendering useful and efficient service as a firefighter, and he is likely to remain
so disabled continuously and permanently; and
(4) The board of trustees concurs with the certification of the physician or surgeon.
(b) Upon disability retirement, a member shall be paid a pension computed according to
section 82-95, provided that the disability pension benefit payable to a member of the benefit
group firefighter shall not be less than 30 percent of the member's average final compensation at
the time of disability, which minimum amount shall be applicable for at least five years if the
member attains such age for retirement less than five years after disability benefits commence.
(c) A member shall not be entitled to receive disability pension benefits if the disability is a
result of:
(1) Excessive or habitual use of drugs, intoxicants or narcotics by the member;
(2) Injury or disease sustained by the member while willfully and illegally participating in
fights, riots or civil insurrections, or while committing a crime;
(3) Injury or disease sustained by the member while serving in any armed forces;
(4) Injury or disease sustained by the member after his employment has terminated."
Section 24. 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;
Subdivision III, Firefighters; Section 82-102, to read as follows:
"Sec. 82-102. Continuation subject to re-examination; return to employment; effect of
gainful employment.
(a) The board of trustees may require a disability retirant to undergo periodic medical
examination by or under the direction of a physician selected by the board of trustees if the
disability retirant has not attained the age for retirement required in section 82-94. If a disability
retirant refuses to submit to a medical examination,payment of the pension may be suspended by
the board until withdrawal of the refusal. Should refusal continue for one year, all the disability
retirant's rights in and to a disability pension may be revoked by the board. The terminated
disability retirant may be restored to active employment credited service. A disability pension
shall be discontinued if, following the medical examination, the physician certifies that the
disability retirant is no longer disabled, and the board concurs in the certification of the
physician. The town shall be allowed reasonable latitude in placing the terminated disability
retirant in a position commensurate with the position held at time of disability retirement.
(b) A disability retirant who has been restored to employment credited service as provided in
subsection (a) of this section shall again become a member of the retirement system if employed
in a membership position. The disability retirant's credited service at time of retirement shall be
restored to full force. Service shall be credited for the period the disability retirant was being
Ordinance No. 6-2012 Page 31 of 74
paid a disability pension, if the provisions of section 82-101 were applicable; otherwise credited
service shall not be given for the period of disability retirement.
(c) A terminated disability retirant who does not return to town employment and who had ten
or more years of credited service at time of disability retirement shall become a vested former
member and entitled to deferred retirement as provided in section 82-58.
(d) E eept to the extent prohibited b , F S c". 17-5-,41f a disability retirant is or becomes
engaged in gainful occupation, business or employment, paying more than the difference
between the retirant's average final compensation and the amount of pension, the disability
pension shall be reduced to the amount of the difference. Should the retirant's earnings later
change, the disability pension shall be adjusted. The limitation of this subsection shall apply until
the retirant meets an age and service requirement for retirement as provided in section 82-94."
Section 25. 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 82-103, to read as follows:
"Sec. 82-103. Firefighters: Death after retirement; automatic survivor pension to minor
children and/or surviving spouse.
(a) For members who retired or entered the DROP after September 30. 1995 and prior to
May 1, 2012, members who terminated emplovment with 10 or more vears of credited service
Prior to May 1, 2012, and 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 ernWoved by the town and not participating in the DROP on that date. death benefits
after retirement shall be pavable as follows:
(1,) Surviving children.
a.(I)—The surviving children of a deceased retirant shall be paid a pension terminating upon the
attainment of age 18 or death, if the following conditions are satisfied:
Ia. The retirant retired after September 30, 1995.
2b. A valid election of optional form of payment under section 82-105 is not in effect.
b.(-2)--Payment of the pension shall be made for months beyond age 18 years, but not beyond
the month in which age 25 is attained, if a pension payment would not otherwise be made for the
month under the provisions of subsection(b) of this section.
c.()—The amount of each surviving child's pension is 25 percent of the retirant's pension at
time of death, not to exceed an equal share of 75 percent of the retirant's pension when there are
four or more surviving children being paid. Pension payments shall be made to the legal guardian
of each child.
(2b) Surviving spouse. The surviving spouse of a deceased retirant shall be paid a pension
terminating upon death. The amount of a surviving spouse's pension for a month is the
difference, if any, between 75 percent of the retirant's pension and the aggregate amount paid to
surviving children for the month.
Ordinance No. 6-2012 Page 32 of 74
(3e) Ten year certain. If a retirant dies within ten years of retirement, the total monthly
payments due under subsection (a) and/or (b) above shall not be reduced from that which may
have been due to the retirant until the tenth anniversary of the retirant's retirement date.
(b) For 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, who were
emploved by the town and not participatina in the DROP on that date, death benefits after
retirement shall be pavable as follows:
(1) Survivinz children.
a. The surviving children of a deceased retirant shall be paid a pension terminating upon the
attainment of age 18 or death, if the following conditions are satisfied:
1. The retirant was employed and not varticipatina in the DROP on May 1, 2012 and retired
thereafter.
2. A valid election of optional form of payment under section 82-105 is not in effect.
b. Payment of the pension shall be made for months beyond age 18 years, but not beyond
the month in which age 25 is attained, if a pension payment would not otherwise be made for the
month under the provisions of subsection (b) of this section.
C. The amount of each surviving child's pension is 25 percent of the retirant's pension based
on the retirant's frozen accrued benefit as of May 1, 2012, not to exceed an equal share of 75
Percent of the retirant's pension when there are four or more surviving children being paid.
Pension pavments shall be made to the legal guardian of each child.
(2) Surviviniz spouse. The surviving spouse of a deceased retirant shall be raid a pension
terminating upon death. The amount of a surviving spouse's pension for a month is the
difference, if any, between 75 percent of the retirant's pension based on the retirant's frozen
accrued benefit as of May 1, 2012, and the aggregate amount paid to surviving children for the
month.
(3) Ten year certain. If a retirant dies within ten years of retirement, the total monthly
payments due under subsection (a) and/or (b) above shall not be reduced from that which may
have been due to the retirant until the tenth anniversary of the retirant's retirement date.
(c) 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
emploved by the town and not participating in the DROP on that date, and members hired on or
after May 1, 2012, may elect an optional form of benefit pursuant to section 82-96(c) for benefits
based on credited service on and after May 1, 2012, but there shall be no automatic survivor
Pension for death after retirement based on such credited service on and after Mav 1, 2012."
Section 26. 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 I11, Firefighters; Section 82-104,to read as follows:
"Sec. 82-104. Firefighters: Death while an employee of the town; automatic survivor
pension to minor children and/or spouse.
(a) Surviving children.
Ordinance No. 6-2012 Page 33 of 74
(1) The surviving children of a deceased member shall be paid a pension terminating upon
the attainment of age 18 or death if the following conditions are satisfied:
a. The member has ten or more years of credited service, or was emploved by the Town and
not participating in the DROP on Mav 1, 2012, and dies while in the employ of the town aftef
September 30, 1995; and
b. A valid election of optional form of payment under section 82-105 is not in effect.
(2) Payment of the pension shall be made for months beyond such a beneficiary age of 18
years, but not beyond the month in which the age 25 is attained, if a pension payment would not
otherwise be made for the month under the provisions of subsection(b) of this section.
(3) The amount of each surviving child's pension, which shall be paid to the legal Ruardian of
each child, is:
a. For members who attained normal retirement eligibility based on credited service as of
May 1, 2012, excludiniz credited service purchased aursuant to section 82-54, and who were
employed by the town and not participating in the DROP on that date, 25 percent of the amount
of pension computed according to section 82-95, based on the deceased member's average final
compensation and credited service at time of death. A child's pension shall not exceed an equal
share of 75 percent of the amount of pension computed according to section 82-95, based on the
deceased member's average final compensation and credited service at time of death, where there
are four or more surviving children being paid.
b. For members who did not attain normal retirement eli6bility based on credited service as
of May 1, 2012, excludinj4 credited service purchased pursuant to section 82-54. and who were
employed by the town and not participating in the DROP on that date, 25 percent of the amount
of pension computed according to section 82-95, based on the deceased member's frozen accrued
benefit as of May 1, 2012, plus 25 percent of the amount of pension computed according to
section 82-95, based on the deceased member's accrued benefit for credited service on or after
Mav 1, 2012. A child's pension shall not exceed an equal share of 75 percent of the amount of
Pension computed accordini4 to section 82-95, based on the deceased member's frozen accrued
benefit as of May 1, 2012, plus 75 percent of the amount of pension computed accordinja to
section 82-95, based on the deceased member's accrued benefit for credited service on or after
Mav L 2012, where there are four or more surviving children beini4 paid.
C. For members hired on or after Mav 1, 2012, 25 percent of the amount of pension
computed according to section 82-95, based on the deceased member's accrued benefit for
credited service on or after Mav 1, 2012. A child's pension shall not exceed an eaual share of 75
percent of the amount of pension computed accordiniz to section 82-95. based on the deceased
member's accrued benefit for credited service on or after Mav 1, 2012, where there are four or
more surviving children being paid.
Pension payments-steal'.he rnade to the legal guardian o f ea eh ,.hild,
(b) Suf•viving spouse.
(1) The surviving spouse of a deceased member shall be paid a pension terminating upon
death if the following conditions are satisfied:
Ordinance No. 6-2012 Page 34 of 74
a. The member has ten or more years of credited service, or was emploved by the Town and
not narticipatina in the DROP on Mav 1, 2012, and dies while in the employ of the town;
b. A valid election of optional form of payment under section 82-105 is not in effect; and
C. The member was married to the surviving spouse at the time of death.
(2) Payment of a surviving spouse's pension shall commence the first day of the month
following the date the deceased member would have met an age and service condition for normal
retirement in the absence of death.
(3) The amount of a surviving spouse's pension is:
a. For members who attained normal retirement eligibility based on credited service as of
May 1, 2012, excludina credited service purchased pursuant to section 82-54. and who were
emploved by the town and not participatina in the DROP on that date, the difference, if any,
between 75 percent of the retirant's pension computed according to section 82-95, based on the
deceased member's average final compensation and credited service at time of death, and the
aggregate amount paid to surviving children for the month.
b. For 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
emploved by the town and not participating in the DROP on that date, the difference, if anv,
between 75 percent of the retirant's pension computed according to section 82-95. based on the
deceased member's frozen accrued benefit as of Mav 1, 2012, plus 75 percent of the retirant's
pension computed according to section 82-95, based on the deceased member's accrued benefit
for credited service on and after of Mav 1, 2012, and the aggregate amount paid to surviving
children for the month.
C. For members hired on or after Mav 1, 2012, the difference, if anv, between 75 percent of
the retirant's pension computed according to section 82-95, based on the deceased member's
accrued benefit for credited service on and after Mav 1, 2012, and the aggregate amount raid to
surviving children for the month.
(c) Ten year certain. If survivors of a deceased member are due payments under subsection
(a) and/or (b) above, they shall not be reduced until the tenth anniversary of the commencement
of payments."
Section 27. The Code of Ordinances of the Town of Palm Beach is hereby amended at
Chapter 82, Personnel; Article I1, Employee Benefits; Division 2, Retirement System;
Subdivision III, Firefighters; Section 82-105,to read as follows:
"Sec. 82-105. Firefighters: Elective survivor pension.
(a) The elected surviving beneficiary of a deceased member shall be paid a pension
terminating upon death if the following conditions are satisfied:
(1) The member has elected a survivor beneficiary.
(2) The member dies while in the employ of the town with at least ten years of credited
service, or the member was emploved by the Town and not participating in the DROP on Mav 1,
2012 and thereafter dies while in the emplov of the town.
Ordinance No. 6-2012 Page 35 of 74
(b) The election of a survivor beneficiary shall be in writing and filed with the human
resources department . The election of a survivor beneficiary shall be null and
void upon the member's retirement or prior termination of town employment. A member may
revoke a nomination of survivor beneficiary at any time and again elect a survivor beneficiary.
(c) The amount of a surviving dependent elected beneficiary's pension shall be_
(1) For members who attained normal retirement eligibility based on credited service as of
Mav 1, 2012, excluding credited service purchased pursuant to section 82-54, and who were
emploved by the town and not participating in the DROP on that date. a benefit computed
according to section 82-95 as if the deceased member had elected optional form of payment
A100 provided in section 82-96 and retired the day preceding death, notwithstanding that the
deceased member may not have satisfied the section 82-94 conditions for retirement.
(2) For members who did not attain normal retirement eligibility based on credited service as
of Mav 1, 2012, excluding credited service purchased pursuant to section 82-54, and who were
emploved by the town and not participating in the DROP on that date, a benefit computed
according to section 82-95, based on the member's frozen accrued benefit as of Mav 1, 2012 plus
the benefit based on the member's credited service on and after that date. as if the deceased
member had elected optional form of pavment A100 provided in section 82-96 and retired the
day preceding death, notwithstanding that the deceased member may not have satisfied the
section 82-94 conditions for retirement.
(3) For members hired on or after Mav 1, 2012, a benefit computed according to section 82-
95 based on credited service on and after that date computed as if the deceased member had
elected optional form of pavment A100 provided in section 82-96 and retired the day preceding
death, notwithstanding that the deceased member may not have satisfied the section 82-94
conditions for retirement."
Section 28. 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 deleting Sections 82-110, 82-111, 82-112 and 82-113 in their
entirety.
See. 82 110.n Poll oereer board trustees
1' board f " ff; board" th ail " shall co6i3Slst
of the following individuals!
(1) Two mb,ers . re.l 1,., l,ene-11 b po—Ijec of-ner-�to be by niic-mcbers of that
by-
benefit
(2) Two legal r-esidents of+rt e town,to be appai„+°a by the+.,w eoun ;1
(3) The fifth, m mb e of the line „ff eer board shall be i.hose„ by a majority of the pre viou�
r yr
four irwrnybors and sucb per:,on'a :pane shall be; subrm.<<ed to the +,,.,.,, eouneil Which, as
ministerial duty, shall appai„+ sueh sue person to +hc police „ffieer board as its frfth nx-.-nber:
(b) Eleetio,,s of member +rusteos .hall be held in aeeor-danee with rules adopted by the Police
off eer board- and with F Q ch. 1 Q5.
Ordinance No. 6-2012 Page 36 of 74
(c) The p„lice eff;eer heard shall m.,et at least rthly shall „dept its rates of
"d Nall keep z-eC6id s-if proeeedings. Three tru stees shall nv„sti+ute ° quorum at
any et;„ of the board, and at least three eoneurrin gate, shall b-C fleeessary decis6�on by
the heard. E eb, +ridstee sha'1 bo entitled to-one vote on eaek-questiebefore the board.Tl,o
trustee, shall n + -___-.e -- ✓ -__--„ ns-t-e„ -,,+ ,-.y expenses and per--diem a, pravided
by state V6r.
poliee „ff ee l,e rd shall b, a legal „+;+„ .th in addition to other-powers
responsibilities „+„;„ed b,ere;n and the r xr.- and rospans b,;l;t;es set fo h in F.S. ah. 185, the
power to bring and defend lawsuits of every kind, nature and deseription, and to admiffiste
separate plans. for the b,er,ef;+of;t;,mem-ern an r-et rants
(e) If a elaim f benefits is denied by the poliee eff;eer board, the claimant Nall be notified o
dial, ir. ° iting, within 30 days of the board's aetior,. The natifieation shall ,a+ forth the
reasons for denial. The-c-11ainra,t*bay-i pea1the --l—ial and requerst a hearing befofe-Ihe boar
The appeal shall be in rating to the +e,,,,, c1erlc and filed within 90 days of the board's rd's denial.
The request shall ,.+,;, r;++e„ statement ,f e Eiabl;art'” position re rd;,,n the-el-aim. T1,8
beard shall ,e'' dµle a hears within 60 days of reeeipt of the appeal.
See: 1 111. Term of offiee9 oath of offiee,; vacaney.
(a) The regular term of ffi,.e of member elected-trio tees of the poliee ff eer board d
appointed trustees shall be two years and the),r~, eed n-:
the ,ol: e;-
(b) Each trustee shall, bafere assuming the d„ties of trustee, ^ 1el;fy by taking an oath of offer
t"e administered by the te,,,,, elery
(e)A vas aney shall oeeur on the poliee „ff eer 1,P
(4),,momber elected trustee e n + b,e ., ,r,l,er of benefit group poliee eff;eer.
(2) Any member eleeted-trustee or the h memb-or of-the-poliee off eer r.,,rd fn;ln to attend
three eonseoulive meetings of the board unless i-a eaeh ease exeused for eatise by the trustees
attending the mecting;
(3) Any town citizen or lag al resident-appointed by the te,,.,., , ei fails to real„s"a3h, and
(4) A , trustee resigns ed from off e
if,, the poliee off;. r board, the vaeaney shell be filled within 30 d
for the, ed tdrm, in the oame ma iner as the position, previously filled
See. 82 112. Offieers, ad tr-ati �e a eyes:
The of eves and employed say.iees of the pol1Ve off eer heard shall be ._ll
follows:
(1tGhah-. The pe11wee off;.er "oar d shal' aru ually eleet a c'hair and-a-ehair pro tuts
Members.
(2) Seereta;y. The poliee offieer—beard ohall aru ua: from amang its
members.
3) F4nEtnC-£' dii-eetoi- and tweaww-er. The town finanee cdireetoei and-ti-rrcas; lrer ahall-be ce
d;reeter an t,.casurcr af-the police qffieer board, „less the poliee eff;eer board delegates s eb,
Ordinance No. 6-2012 Page 37 of 74
a play adlinistfater. The sets, other than ,,, efaling n ,.,ts, shah bo plaeed in+l,o
rated of a nationally ehai e ed bar'{ ar±adst eempany. The board may appa r_t a plat;
adrn nistrutgr to administef the op--rating aeeottnts at the fund's
(4)Legadviser—Thc police or�eef board m ploy legal eaun3el at the fund's expense.
(5) Aetua y. The p„1; off;, f bear shall appoint ana eompensate an aetuafy who shall be +1,0
+ 11 1 advisor the board regarding the efat of the r +;, m „+ ,I-Aer on an astuar�l
leLSl ellSelll u
N N
1
bass, aroma shal_?porfofm stieh no 0 r-equired in that , etion. The y€ "aetuW
as used in this afticle shall rnaan a tn=bcr a f the A mer.;,,a A eademy of A etua.ion
whD has tuarial see
and has at least five years of relo„n„+ pension as aarial expofienee. n paftne,ship of eorpofafiefl-
may
be
individual who moo+n the „ ..o. ing qu li fie
LLL1t,11U.
(6)-46 , vag. The paliee offleer pal beafd m efflploy sueh sue professional and „truer ser fleas as are
r-equifed for the proper-ad strat o of the retirement system at the fiind's expe-nsa;-
(7) T yestnie nt eans-Hltaw The p9liee offieef 11 . ,1 strap employ an investment , „1+n,1+ at
the fund's expense.
"- 113. !wvestment
Upon eonsultation .,.;+1 its ; on+mor+ advisors and n+nff 111 board may o 00 l the lim;+n+;or,n
on; estments in eonunon stook and a ,1;+.,1 stoe r n,11.zr ca`1-rill F.S. ch, 185.
Section 29. 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; Section 82-114, to read as follows:
"Sec. 82-114. Retirement age and service conditions for police officers.
(a) A police officer may retire upon satisfaction of each of the following requirements:
(1) The police officer has filed written application for retirement with the board setting forth
the date, not less than 30 days nor more than 120 days subsequent to the execution and filing
thereof, retirement is to be effective.
(2) Unless the police officer is an applicant for a DROP, the police officer terminates all
town employment prior to the date retirement is to be effective.
(3) The police officer has met an applicable age and service condition for retirement.
(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 Mav
1, 2012, excluding credited service purchased pursuant to section 82-54, and who were emploved
by the town and not varticivatina in the DROP on that date, shall be eligible for normal.
retirement upon attaining the pollee officer has a4tamed age 50 with years or older and has ten or
more years of credited service; or when the i's-member's age to last completed
month plus credited service totals 65 years or more and the memberi-ndiv-iclual has ten or more
years of credited service; or when the memberi3oliee ^ffi^°r has 20 or more years of credited
service.
Ordinance No. 6-2012 Page 38 of 74
2. Members who did not attain normal retirement eli6bility 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 elis4ible for
normal retirement upon attaining ate 50, or when the member's aRe to last completed month plus
credited service totals 65 vears or more, or upon completion of 20 vears of credited service
regardless of aye, 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 Mav 1,
2012 upon attaining ate 65 with ten or more vears of credited service.
3. Members hired on or after Mav 1, 2012, shall be elij4ible for normal retirement upon
attaining ate 65 with ten or more vears of credited service."
Section 30. 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; Section 82-115,to read as follows:
"Sec. 82-115. Amount of pension—police officers.
(a) The amount of a member's or a vested former member's pension under the standard form
of payment shall be equal to the sum of separately determined amounts for which the police
officer has credited service in force, and in no event shall the amount of a member's or a vested
former member's pension under the standard form of payment be less than$1,200.00 per annum.
(b) The amount of pension attributable to a member who has credited service under another
benefit group shall be the amount determined by calculating credited service in this benefit group
plus the amount determined by calculating credited service in such other benefit group.
(c) The benefit formula for police officers is:
1. For pension payments payable after October 1, 2005 to police officers who were actively
employed on and after October 1, 2005 and who retired, entered the DROP, or terminated
emolovment with 10 or more vears of credited service prior to Mav 1, 2012, and to police
officers 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 emploved by the
town and not participating in the DROP on that date, the benefit formula shall besuch date,
average final compensation multiplied by the sum of 3.5 percent of credited service rendered 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
vears certain (i.e., Provided f,..ther that, 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 desi mated beneficiary until the tenth anniversary of the
retirant's retirement date.
2. For police officers who did not attain normal retirement eligibility based on credited
service as of Mav 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 police officers shall be frozen on
Ordinance No. 6-2012 Page 39 of 74
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 Section 82-115 (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. Police officers 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 and average final compensation 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
(2) the accrued benefit based on credited service on and after May 1, 2012, payable upon
attaining age 65 with 10 or more years of credited service, and termination of employ_ ment or
entry into the DROP."
Section 31. 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; Section 82-116, to read as follows:
"Sec. 82-116. Optional forms of payment of a pension for Police officers.
(a) Police officers who terminated employment with 10 or more years of credited service
prior to May 1, 2012, and police officers 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, A
member or a weed f rmer member-may elect to be paid under one of the following optional
forms of payment. The election shall be in writing and filed with the board prior to the date
retirement is effective. Payment will be made under the standard form of payment if a timely
election of an optional form of payment is not made.
(1) Optional form of payment A100--100 percent survivor pension. Under optional form of
payment A100, a retirant is paid a reduced pension for life. Upon the retirant's death, the reduced
pension is paid to the beneficiary, if living, designated in writing and filed with the board at the
time of election of the optional form of payment. Payment to the designated beneficiary shall
terminate upon the death of the designated beneficiary. The amount of reduced pension is a
percentage of the amount of pension under the standard form of payment (SL). The percentage is
80 percent if the retirant and designated beneficiary are the same age on their last birthdays. The
80 percent is reduced by 0.5 percent for each year the age of the retirant exceeds the age of the
designated beneficiary, to a minimum of 60 percent for differences in age of 40 or more years.
The 80 percent is increased by 0.5 percent for each year the age of the designated beneficiary
exceeds the age of the retired member, to a maximum of 90 percent for differences in age of 20
or more years.
Ordinance No. 6-2012 Page 40 of 74
(2) Optional form of payment A50--50 percent survivor pension. Under optional form of
payment A50, a retirant is paid a reduced pension for life. Upon the retirant's death, 50 percent of
the reduced pension is paid to the beneficiary, if living, designated in writing and filed with the
board at the time of election of the optional form of payment. Payment to the designated
beneficiary shall terminate upon the death of the designated beneficiary. The amount of reduced
pension is a percentage of the amount of pension under the standard form of payment. The latter
percentage is 90 percent if the retirant and designated beneficiary are the same age at their last
birthdays. The 90 percent is reduced by 0.25 percent for each year the age of the retirant exceeds
the age of the designated beneficiary, to a minimum of 80 percent for differences in age of 40 or
more years. The 90 percent is increased by 0.25 percent for each year the age of the designated
beneficiary exceeds the age of the retired member, to a maximum of 95 percent for differences in
age of 20 or more years.
(3) Form of payment (SL)--Straight life pension. Under form of payment (SL), the retirant is
paid a pension for life. The (SL) payment amount is an increased amount based on the actuarial
equivalent of the life with ten-year guarantee standard form of payment computed pursuant to
section 82-115(c).
(4) Members may also elect to receive the following optional benefit forms:
a. A75--75 percent survivor pension. Under optional form of payment A75, a retirant is
paid a reduced pension for life. Upon the retirant's death, 75 percent of the reduced pension is
paid to the beneficiary, if living, designated in writing and filed with the board at the time of
election of the optional form of payment. Payment to the designated beneficiary shall terminate
upon the death of the designated beneficiary, or upon the tenth anniversary of the retirant's
retirement date, if later. The amount of the reduced pension is based on the actuarial equivalent
of the standard form of payment.
b. A66-213--66 213 percent survivor pension. Under optional form of payment A66-2/3, a
retirant is paid a reduced pension for life. Upon the retirant's death, 66 2/3 percent of the reduced
pension is paid to the beneficiary, if living, designated in writing and filed with the board at the
time of election of the optional form of payment. Payment to the designated beneficiary shall
terminate upon the death of the designated beneficiary, or upon the tenth anniversary of the
retirant's retirement date, if later. The amount of the reduced pension is based on the actuarial
equivalent of the standard form of payment.
(b) Police officers 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 emploved by the town and not participating in the DROP on May 1, 2012, may elect to
receive the frozen accrued benefit based on credited service prior to May 1, 2012 under one of
the following optional forms of payment. The election shall be in writing and filed with the
board prior to the date retirement is effective. Payment will be made under the standard form of
payment if a timely election of an optional form of payment is not made.
(1) Optional form of payment A100-400 percent survivor pension. Under optional form of
payment A100, a retirant is paid a reduced pension for life. Upon the retirant's death the reduced
pension is paid to the beneficiary, if living, designated in writing and filed with the board at the
time of election of the optional form of payment. Payment to the designated beneficiary shall
terminate upon the death of the designated beneficiary. The amount of reduced pension is a
Ordinance No. 6-2012 Page 41 of 74
percentaize of the amount of pension under the standard form of payment (SL). The percentage is
80 percent if the retirant and designated beneficiary are the same aye on their last birthdays. The
80 percent is reduced by 0.5 percent for each year the aye of the retirant exceeds the ajQe of the
designated beneficiary, to a minimum of 60 percent for differences in aye of 40 or more years.
The 80 percent is increased by 0.5 percent for each year the age of the desiEnated beneficiary
exceeds the aae of the retired member, to a maximum of 90 percent for differences in aae of 20
or more years.
(2) Optional form of pavment A50--50 percent survivor pension. Under optional form of
payment A50, a retirant is paid a reduced pension for life. Upon the retirant's death. 50 percent of
the reduced pension is paid to the beneficiary, if living, designated in writing and filed with the
board at the time of election of the optional form of payment. Payment to the designated
beneficiary shall terminate upon the death of the desiiznated beneficiary. The amount of reduced
pension is a percentai4e of the amount of pension under the standard form of payment. The latter
percentage is 90 percent if the retirant and designated beneficiary are the same ai4e at their last
birthdays. The 90 percent is reduced by 0.25 percent for each year the aae of the retirant exceeds
the aae of the designated beneficiary, to a minimum of 80 percent for differences in aize of 40 or
more years. The 90 percent is increased by 0.25 percent for each year the aze of the desij4nated
beneficiary exceeds the aae of the retired member, to a maximum of 95 percent for differences in
age of 20 or more years.
(3) Form of payment (SL)--Straight life pension. Under form of payment (SL) the retirant is
paid a pension for life. The (SL) pavment amount is an increased amount based on the actuarial
eauivalent of the life with ten-vear Guarantee standard form of payment computed pursuant to
section 82-95(c).
(4) A75--75 percent survivor pension. Under optional form of payment A75, a retirant is
Paid a reduced pension for life. Upon the retirant's death, 75 percent of the reduced pension is
Paid to the beneficiary, if living, designated in writing and filed with the board at the time of
election of the optional form of payment. Payment to the designated beneficiary shall terminate
upon the death of the designated beneficiary, or upon the tenth anniversary of the retirant's
retirement date, if later. The amount of the reduced pension is based on the actuarial equivalent
of the standard form of payment.
(5) A66-213--66 213 percent survivor pension. Under optional form of pavment A66-2/3, a
retirant is paid a reduced pension for life. Upon the retirant's death. 66 2/3 percent of the reduced
Pension is paid to the beneficiary, if living, desijanated in writing and filed with the board at the
time of election of the optional form of payment. Payment to the designated beneficiary shall
terminate upon the death of the designated beneficiary, or upon the tenth anniversary of the
retirant's retirement date, if later. The amount of the reduced pension is based on the actuarial
eauivalent of the standard form of payment.
(c) A police officer may elect to receive the accrued benefit based on credited service on and
after May 1, 2012 as follows: the member may elect to receive a reduced pension for life, and
upon the retirant's death 100 percent, 75 percent, 66 and 2/3 percent or 50 percent of the reduced,
Pension is paid to the beneficiary, if living, designated in writinj4 and filed with the board at the
time of election of the optional form of payment. Payment to the designated beneficiary shall
terminate upon the death of the designated beneficiary. The amount of the reduced pension
Ordinance No. 6-2012 Page 42 of 74
payable to the retirant shall reflect an actuarial reduction in the standard form of payment based
on the aae of the member and the aae of the beneficiary, such that the total value of the benefit
payable to the retirant and beneficiary is actuarially equivalent to the standard form of payment
to the retirant. The election of an optional form of payment under this subsection (b) shall be in
writing and filed with the board prior to the date retirement is effective. Payment will be made
under the standard form of payment if a timely election of an optional form of payment is not
made."
Section 32. 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 deleting Section 82-117 in its entirety.
See. 82 .
) The board of+r„n , may annually-axthorizo Tapplem°n+nl pension dist.ibutions to elig
persons, theamount of<,,hich shall-be-dete-rmincd as of eael, September 30, beginning Septe,v be
30, 2001. Theamount of then pl°m°„+.11 pension distribut o of an °1;..;1,1° pc-rsorl made i3rio>
will be determined as follows:
(1)o arrzourt -I,.all bs his of her prarata s-hn,.°, based upon the years of n°,.<„n° of the ,.°+;,.n„+
to the+own, , r +!< .l ”3:imurr.years of serviee r°d,'+ of 25, of the positive n r,+ of inyen+m°„+
.°+llr„ if n eamed during f;nnnl tears ending-Sep+embor 39 on the reserve f feti na 1,enefit
paym°„+ n °+n .,,1<;nl, ° °d eight p „+but d„ not exeeed to rperC��
(2) The baar-d shall determine whether- there may-be a -.applvm°r,+nl pension distributio base
on the following faetors,
a. The °+„ or plan administfator shall deter-mine the ate of investment etu during the
f;nnnl year ending eaeh September 30 The rates detefmi d shall bo the on the m„s+
:arial rcp°,.*n submitted pureuar—;to F.S:, °h 112,„+ VII
b. The aE4tary-or plar. administrator shall, as of Septeml,°,�tormine tho amoun+,, ' ,
investment retu whieh, after expenses, exeeeds eight rereent of the ° for- retired benefit
payment assets but d„°n not ° °d to p + s
�-a such a,�gts:
(3) if the investment retuf on these assets is less than ° gh "e eent> le n *+; shall be
ea-rfied for-ward to be ehaf ed against nnl.,lllatio,,n of supplemental r.cansior, d,n+ribtAions dufin<
the-next car and shall oantinuc to o for-ward until e for-wards e „f&et by ear-fy
iwvestmei+t retums ° eedin eight r ent if the net ° r,er-tenees are unfavorable, ,llatiyely
with +1,c- e.£penonee for the yeaf ended September3v,, 2001, and therea=er-, no
stip ,l°m°„+al distributions m be rondo until the net expefienees are Arable, and the tow
must amortize the losses until it is offset by eu 7mlatiye fa orabie experienees. if the next.
e p@riene.-is favofable, eumulatively, eoffflneneing with the ° perieflee for- the yc°-c^cr-eritirng
�eptembe�-38-2001. -Aftlef offse--t—f3t. all prior suppl2mepAl pension distributisns, the
GuppLam;awel-pensien distr;l.,,+;ons maybe made to eligible persons of the borxfit gro".
If a supplemental pension distfibu4ion repoA or repoAs is of are not state aeeepted p r to
d; =, and if a defic-ie-ney to the fund results, the deney shall be up by
wi"oldirng and ehafgil g,stie r aefieie ey against the n t aTallc;J12 suppleme
d sttr-ibtAiez, r l° --ner ndc up buy agreement l,et =cell the board and the +° rn. No such
Ordinance No. 6-2012 Page 43 of 74
a o'ial.? bo permitted to eontinue for--a-period greater- than ee years f„m the date „�
payme.-Al of a suppio m real distribution :hieh resulted a aefteieney..
�
(b) If the—aetuar3 or plan administrator- detenninesthat there may be a aupplarnental
distribution, then the board of trustetm shah author- ,e supplemental pension distributions unless
the adminis4ative ex-penses of distribution exeeed the amount .allable for- the distribution,
„1,;,,1, event-, no dietr bu ien m l.e .,,,+1, r; ,ed ,de
(el "Eligible pefsons” a-re:
lJ ;
(2) Surviving spouse-Rt
(3) "ar; vift dere„de„4 b;ldre„ grre+;r,,,+�,
(4) Retir-ants' estates.
(eke stqT4emefftal penasian distr;b„tio , if , shall be made on .,bout May , an uall,,
Eligible persons fetired for less than one year- ar-e-e—ii,led to a pror-ata share of t sir supple-mc tel
pension distribution based „ the numbe. of...—I'lirretire"t A r tir-a is estate titled t„
���°ccm-�rn�-v�cccc�rre�entitled
share of the deeeased ret;ran '-.-auppl rtal pon'-fian distribution based on the nurrbrr of
months that the deeeased retirant reeeived a pension during the year- ending the September 30
prior to the retir-a,t's death
(o)
Su
pplemorrtal perman distributions payable to eligible per-sons who are p rt;e;,,a is in the
DROP at the time of payment shall be added to ar-sofils DROP aeeount.
(f) Supplemental ponsi-on distr but;^N� + >,erer; ;�r;e� r de e �ed ret;r�„ts shall ha;ie their
supplementa4ension d•str;b„t;gas red„eed in the same epertimn as ar2 theirper:ian payer
Section 33. 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; Section 82-119, to read as follows:
"Sec. 82-119. Deferred retirement option program for police officers.
(a) Generally. In general, and subject to the provisions of this section, the deferred
retirement option program, hereinafter referred to as the DROP, is a program under which an
eligible police officemember of the retirement s-ystern may elect to retire, participate, and
become a retirant of the retirement system, deferring receipt of retirement benefits while
continuing employment credited service.
(1) The system investment method For participants who entered the DROP prior to January
1, 2003, unless the self-directed investment method was chosen by the participant, the deferred
monthly benefits of a DROP participant shall accrue in the retirement system on behalf of the
DROP participant, plus interest, compounded monthly, for the specified period of DROP
participation.
(2) The self-directed investment method. For participants entering the DROP after January 1,
2003, each DROP participant shall have an individual investment account to which his or her
monthly benefits shall be transferred. The board shall select a third-party administrator or
provider for this purpose. After such selection, each participant shall direct the manner in which
Ordinance No. 6-2012 Page 44 of 74
the amounts in his or her individual investment account shall be invested from an array of
options selected by the board.
(3) During the period of DROP participation, neither the town nor the DROP participant is
obligated to make additional contributions to the retirement system on behalf of the DROP
participant. Upon termination of employment and participation in the DROP, the DROP
participant shall receive his or her total DROP benefits and begin to receive his or her previously
determined normal retirement benefits. Employment while participating in the DROP does not
guarantee employment for any specified period. A DROP participant is a retirant of the
retirement system.
(b) Eligibility of member to participate in the DROP. Retirement system members are
eligible to elect participation in the DROP provided that they elect to retire and provided that:
(1) Election to participate may be made when the member first reaches normal retirement
date or age as follows:
a. Members who were emploved by the town and not participating in the DROP on May 1,
2012 shall be eligible to participate in the DROP upon attaining age 50: or the date on which the
member's age to last completed month plus credited service totals 65 years or more; or 20 years
of credited service regardless of age: and upon entry into the DROP the benefit payable to such
member's DROP account shall be the frozen accrued benefit based on credited service prior to
May 1, 2012. The accrued benefit based on credited service on and after May 1, 2012 shall be
payable to the member's DROP account, or directly to the member if DROP participation has
ceased, upon attaining age 65., or for- ^ me er who first , .elted normal ret rcment dater-age
prior to the eff-eetive date of the ordinanee ffom whieh this seetion is derived, eleetion to
partieipate may-be made within 84 months of the effeetive date of the ofdina-nee from Whieh this
seetion is derived; »Ρ idea however, Such member who fails to make an election within 84
months after the member has 20 years of credited service shall forfeit all rights to participate in
the DROP.
b. Members hired on or after May 1, 2012 shall be eligible to participate in the DROP upon
attaining age 65 with 10 or more years of service.
(2) There is no break in service to the town between the member's last working day as an
employee and first day as a retirant and DROP participant.
(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. 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, unless the
member first reached normal retirement age or date prior to the effective date of the ordinance
from which this section derives.
(2) Subinission of regWred information. Upon electing to participate in the DROP, the
member shall submit on forms required by the retirement system and/or the third-party
administrator:
Ordinance No. 6-2012 Page 45 of 74
a. A written election to retire;
b. A written election to participate in the DROP;
C. An irrevocable resignation from service to the town and withdrawal from the DROP
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 or by the third-party
administrator.
(3) Re-employed retirants. Re-employed retirants of the town's retirement system are not
eligible to participate in DROP.
(d) Compensation for work performed while participatin-a inBenefits�ywble under 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 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. 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.
(1) Effective with the date of DROP participation, the member's initial normal monthly
pension benefit, calculated in accordance with section 82-115 and based on creditable service
and average final compensation and the effective date of retirement, shall be fixed. Retirement
system amendments which become effective after the establishment date of participation in the
DROP will not be applicable to the DROP participant, unless so stated by the amendment. The
monthly pension benefit (minus any reduction as determined by the board of trustees as provided
by subsection(h) of this section), cost of living adjustments, interest and earnings thereon, if any,
shall accrue monthly in the retirement system or the individual investment account as applicable.
Interest under the system investment method only shall accrue at an effective annual rate to be
determined hereunder as set forth in subsection (h) of this section, and will be compounded
monthly, on the prior month's accumulated ending balance, up to the month of termination of the
DROP or death.
(2) The monthly pension benefits payable to the DROP (minus any reduction as determined
by the board of trustees as provided by subsection (h) of this section) and interest thereon, if any,
shall continue to accrue in the DROP until the established termination date of the DROP, or until
the DROP participant terminates employment or dies prior to such date. Although individual
DROP accounts shall not be established under the system investment method described above in
subsection (a)(1), a separate accounting of each DROP participant's accrued benefits under the
DROP shall be calculated and provided to DROP participants annually.
(3) Employee benefits, other than benefits under the retirement system, which are normally
granted to employees, will be provided to DROP participants. Such DROP participants are not
members of the retirement system.
Ordinance No. 6-2012 Page 46 of 74
(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 subsection (c)(1) 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 and the third-party administrator.
(5) At the conclusion of the participant's DROP, participants in the self-directed investment
method shall exercise such options as provided by the third-party administrator's plan; or for
participants in the system investment method, the retirement system shall distribute the
participant's total accumulated DROP benefits, subject to the following provisions:
a. The retirement system shall receive verification that such DROP participant has
terminated membership in the DROP.
b. The terminated DROP participant, or if deceased, such DROP participant's named
beneficiary, shall elect on forms provided by the retirement system to receive payment of the
DROP benefits in accordance with one of the options listed below. For a DROP participant or
beneficiary who fails to elect a method of payment at least 60 days prior to termination of the
DROP, the retirement system will pay a lump sum as provided in subsection (d)(5)b.l. of this
section.
1. Lump sum. All accrued DROP benefits, plus interest and earnings, if any, less
withholding taxes remitted to the United States Internal Revenue Service, shall be paid to the
DROP participant or surviving beneficiary.
2. Direct rollover. All accrued DROP benefits, plus interest and earnings, if any, shall be
paid from the DROP directly to the custodian of an eligible retirement plan as defined in section
402(c)(8)(B) of the United States Internal Revenue Code. However, in the case of an eligible
rollover distribution to the surviving spouse of a deceased DROP participant, an eligible
retirement plan is an individual retirement account or an individual retirement annuity as
described in section 402(c)(9) of the United States Internal Revenue Code.
3. Partial lump sum. A portion of the accrued DROP benefits shall be paid to the DROP
participant or surviving spouse, less withholding taxes remitted to the United States Internal
Revenue Service, and the remaining DROP benefits shall be transferred directly to the custodian
of an eligible retirement plan as defined in section 402(c)(8)(B) of the United States Internal
Revenue Code. However, in the case of an eligible rollover distribution to the surviving spouse
of a deceased DROP participant, an eligible retirement plan is an individual retirement account
or an individual retirement annuity as described in section 402(c)(9) of the United States Internal
Revenue Code. The proportions shall be specified by the DROP participant or surviving
beneficiary.
C. The form of payment selected by the DROP participant or surviving beneficiary complies
with the minimum distribution requirements of the United States Internal Revenue Code and
payments begin no later than the date on which the participant reaches age 70 years and six
months.
Ordinance No. 6-2012 Page 47 of 74
(6) The accrued benefits of any DROP participant, and any contributions accumulated under
such program, shall not be subject to assignment, execution, attachment, or to any legal process
whatsoever, except for income deduction orders and federal income tax levies.
(7) DROP participants shall not be eligible for disability retirement benefits as provided in
section 82-120 or section 82-121. In the event a DROP participant becomes incapacitated for
employment by the town as defined under section 82-120 or section 82-121, the DROP
participation will terminate, and the former DROP participant will elect one of the alternatives
under subsection(d)(5)b of this section.
(8) The effective date of retirement of a DROP participant shall be the day selected by the
member to begin participation in the DROP.
(e) Death benefits under the DROP.
(1) Upon the death of a DROP participant, the named beneficiary shall be entitled to apply
for and receive the accrued benefits in the DROP as provided under subsection (d)(5)b of this
section.
(2) The pension benefit paid to the DROP during the month of a DROP participant's death
shall be the final pension benefit credited for such DROP participant.
(3) Eligibility to participate in the DROP terminates upon the death of a DROP participant. If
the DROP participant dies on or after the effective date of enrollment in the DROP, but prior to
the first monthly benefit being credited to the DROP, retirement system benefits shall be paid in
accordance with section 82-123.
(4) A DROP participant's survivor shall not be eligible for retirement system death benefits
as provided in section 82-124.
(f) Cost of living adjustment. The DROP participants' normal pension benefit shall be
increased as provided in section 82-63(b).
(g) Renewed membership. Participants of the DROP will not be permitted to be members of
the town's retirement system. Contributions that normally would be made by the employee and
the town will not be paid into the retirement system upon an individual's election to participate in
the DROP.
(h) Administration of the program. The board of trustees shall make such rules as are
necessary for the effective and efficient administration of this subsection. The board of trustees
shall not be required to advise participants of the federal tax consequences of an election related
to the DROP but may advise participants to seek independent advice.
(1) The DROP will be cost-neutral to the town. To maintain the cost-neutral basis to the
town, the credited interest rate and any reduction in the DROP participants' monthly pension
benefits payable to the DROP will be reviewed by the board of trustees from time to time as
other actuarial assumptions are reviewed. All costs of the DROP and any increase or decrease in
the cost of administering the DROP will be absorbed by:
a. A change in the interest rate credited to participants in the system investment method;
b. A change of the or establishment of a reduction of the DROP participants' monthly
pension benefits payable to the DROP; and/or
Ordinance No. 6-2012 Page 48 of 74
C. An increase in the fees charged by the third-party administrator to the individual
investment accounts;
As determined by the board of trustees with approval by the town council.
(2) For those participants under the system investment method, interest on DROP
participant's monthly pension benefits payable to the DROP shall accrue at an effective annual
rate of 7.5 percent compounded monthly. Such interest rate shall be reviewed by the board of
trustees from time to time as other actuarial assumptions are reviewed and may be redetermined
by the board of trustees with approval by the town council.
(3) Notwithstanding any other provision of this section 82-119 or the Code, a member who
receives any DROP benefits for the portion of their pension benefits earned on or after May 1,
2012 shall be an at-will employee for the entire DROP period."
Section 34., 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; Section 82-120, to read as follows:
"Sec. 82-120. Police Officers: Disability retirement.
(a) Upon the application of a member or the member's department head, a op lice
officermember who becomes incapacitated for employment by the town by reason of a personal
injury or disease may be retired by the board of trustees subject to the following conditions:
(1) The member has ten or more years of credited service in force, or was employed by the
town and not participating in the DROP on May 1, 2012;
(2) The member is medically examined by a duly-qualified physician or surgeon selected by
the rat board of trustees for that purpose;
(3) The physician or surgeon certifies to the power board that the member is wholly
prevented from rendering useful and efficient service as a police officer, and he is likely to
remain so disabled continuously and permanently; and
(4) The board of trustees concurs with the certification of the physician or surgeon.
(b) Upon disability retirement, a member shall be paid a pension computed according to
section 82-115, provided that the disability pension benefit payable to a member of the benefit
group police officer shall not be less than 30 percent of the member's average final compensation
at the time of disability, which minimum amount shall be applicable for at least five years if the
member attains such age for retirement less than five years after disability benefits commence.
(c) A member shall not be entitled to receive disability pension benefits if the disability is a
result of:
(1) Excessive or habitual use of drugs, intoxicants or narcotics by the member;
(2) Injury or disease sustained by the member while willfully and illegally participating in
fights, riots or civil insurrections, or while committing a crime;
(3) Injury or disease sustained by the member while serving in any armed forces;
(4) Injury or disease sustained by the member after his employment has terminated."
Ordinance No. 6-2012 Page 49 of 74
I
Section 35., 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; Section 82-122, to read as follows:
"Sec. 82-122. Continuation subject to re-examination; return to employment; effect of
gainful employment.
(a) The board of trustees may require a disability retirant to undergo periodic medical
examination by or under the direction of a physician selected by the board of trustees if the
disability retirant has not attained the age for retirement required in section 82-114. If a disability
retirant refuses to submit to a medical examination,payment of the pension may be suspended by
the board until withdrawal of the refusal. Should refusal continue for one year, all the disability
retirant's rights in and to a disability pension may be revoked by the board. The terminated
disability retirant may be restored to active employment credited service. A disability pension
shall be discontinued if, following the medical examination, the physician certifies that the
disability retirant is no longer disabled, and the board concurs in the certification of the
physician. The town shall be allowed reasonable latitude in placing the terminated disability
retirant in a position commensurate with the position held at time of disability retirement.
(b) A disability retirant who has been restored to employment credited service as provided in
subsection (a) of this section shall again become a member of the retirement system if employed
in a membership position. The disability retirant's credited service at time of retirement shall be
restored to full force. Service shall be credited for the period the disability retirant was being
paid a disability pension, if the provisions of section 82-121 were applicable; otherwise credited
service shall not be given for the period of disability retirement.
(c) A terminated disability retirant who does not return to town employment and who had ten
or more years of credited service at time of disability retirement shall become a vested former
member and entitled to deferred retirement as provided in section 82-58.
(d) & eor+ to the extep, prohibited by ch. 185, iIf a disability retirant is or becomes
engaged in gainful occupation, business or employment, paying more than the difference
between the retirant's average final compensation and the amount of pension, the disability
pension shall be reduced to the amount of the difference. Should the retirant's earnings later
change, the disability pension shall be adjusted. The limitation of this subsection shall apply until
the retirant meets an age and service requirement for retirement as provided in section 82-114."
Section 36. 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; Section 82-123, to read as follows:
"Sec. 82-123. Police Officers: Death after retirement; automatic survivor pension to minor
children and/or surviving spouse.
(a) For members who retired or entered the DROP after September 30, 1995 and prior to
Mav 1, 2012, members who terminated emplovment with 10 or more vears of credited service
prior to Mav 1, 2012, and 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, death benefits
after retirement shall be pavable as follows:
Ordinance No. 6-2012 Page 50 of 74
Surviving children.
(a4-) The surviving children of a deceased retirant shall be paid a pension terminating upon
the attainment of age 18 or death, if the following conditions are satisfied:
Ia. The retirant retired after September 30, 1995.
2b. A valid election of optional form of payment under section 82-125 is not in effect.
(b2) Payment of the pension shall be made for months beyond age 18 years, but not beyond
the month in which age 25 is attained, if a pension payment would not otherwise be made for the
month under the provisions of subsection(b) of this section.
(c ) The amount of each surviving child's pension is 25 percent of the retirant's pension at
time of death, not to exceed an equal share of 75 percent of the retirant's pension when there are
four or more surviving children being paid. Pension payments shall be made to the legal guardian
of each child.
(2b) Surviving spouse. The surviving spouse of a deceased retirant shall be paid a pension
terminating upon death. The amount of a surviving spouse's pension for a month is the
difference, if any, between 75 percent of the retirant's pension and the aggregate amount paid to
surviving children for the month.
(3e) Ten year certain. If a retirant dies within ten years of retirement, the total monthly
payments due under subsection (a) and/or (b) above shall not be reduced from that which may
have been due to the retirant until the tenth anniversary of the retirant's retirement date.
(b) For 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, who were
emploved by the town and not participating in the DROP on that date, death benefits after
retirement shall be pavable as follows:
(1) SurvivingQ children.
a. The surviving children of a deceased retirant shall be paid a pension terminating upon the
attainment of age 18 or death, if the following conditions are satisfied:
1. The retirant was employed and not participating in the DROP on May 1, 2012 and retired
thereafter.
2. A valid election of optional form of pavment under section 82-105 is not in effect.
b. Payment of the pension shall be made for months bevond age 18 years, but not beyond
the month in which age 25 is attained, if a pension pavment would not otherwise be made for the
month under the provisions of subsection (b) of this section.
C. The amount of each surviving child's pension is 25 percent of the retirant's pension based
on the retirant's frozen accrued benefit as of Mav 1, 2012, not to exceed an eaual share of 75
percent of the retirant's pension when there are four or more surviving children being paid.
Pension payments shall be made to the legal guardian of each child.
(2) Survivinz spouse. The surviving spouse of a deceased retirant shall be paid a pension
terminating upon death. The amount of a surviving spouse's pension for a month is the
difference, if any, between 75 percent of the retirant's pension based on the retirant's frozen
Ordinance No. 6-2012 Page 51 of 74
accrued benefit as of May 1, 2012, and the aggregate amount paid to surviving children for the
month.
(3) Ten vear certain. If a retirant dies within ten vears of retirement, the total monthly
payments due under subsection (a) and/or (b) above shall not be reduced from that which may
have been due to the retirant until the tenth anniversary of the retirant's retirement date.
(c) Members who did not attain normal retirement eligibility based on credited service as of
May 1, 2012, excludina credited service purchased pursuant to section 82-54. and who were
emploved by the town and not participating in the DROP on that date. and members hired on or
after May 1, 2012, may elect an optional form of benefit pursuant to section 82-96(c) for benefits
based on credited service on and after Mav 1, 2012, but there shall be no automatic survivor
pension for death after retirement based on such credited service on and after Mav 1, 2012."
Section 37. 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; Section 82-124,to read as follows:
"Sec. 82-124. Police Officers: Death while an employee of the town; automatic survivor
pension to minor children and/or spouse
(a) Surviving children.
(1) The surviving children of a deceased member shall be paid a pension terminating upon
the attainment of age 18 or death if the following conditions are satisfied:
a. The member has ten or more years of credited service, or was employed by the Town and
not participating in the DROP on Mav 1, 2012, and dies while in the employ of the town Aff
September 3nc ,1995; and
b. A valid election of optional form of payment under section 82-125 is not in effect.
(2) Payment of the pension shall be made for months beyond such a beneficiary age of 18
years, but not beyond the month in which the age 25 is attained, if a pension payment would not
otherwise be made for the month under the provisions of subsection(b) of this section.
(3) The amount of each surviving child's pension, which shall be paid to the legal guardian of
each child, is:
a. For members who attained normal retirement eligibility based on credited service as of
May 1, 2012, excludina credited service purchased pursuant to section 82-54. and who were
emploved by the town and not participating in the DROP on that date. 25 percent of the amount
of pension computed according to section 82-115, based on the deceased member's average final
compensation and credited service at time of death. A child's pension shall not exceed an equal
share of 75 percent of the amount of pension computed according to section 82-115, based on the
deceased member's average final compensation and credited service at time of death, where there
are four or more surviving children being paid.
b. For members who did not attain normal retirement eli6bility based on credited service as
of May 1, 2012, excludina credited service purchased pursuant to section 82-54, and who were
emploved by the town and not participating in the DROP on that date, 25 percent of the amount
of pension computed according to section 82-115, based on the deceased member's frozen
Ordinance No. 6-2012 Page 52 of 74
accrued benefit as of May 1, 2012, plus 25 percent of the amount of pension computed according
to section 82-115, based on the deceased member's accrued benefit for credited service on or
after May 1, 2012. A child's pension shall not exceed an equal share of 75 percent of the amount
of pension computed according to section 82-115, based on the deceased member's frozen
accrued benefit as of May 1, 2012, plus 75 percent of the amount of pension computed according
to section 82-115, based on the deceased member's accrued benefit for credited service on or
after May 1, 2012, where there are four or more surviving children being paid.
C. For members hired on or after May 1, 2012, 25 percent of the amount of pension
computed according to section 82-115, based on the deceased member's accrued benefit for
credited service on or after May 1, 2012. A child's pension shall not exceed an equal share of 75
percent of the amount of pension computed according to section 82-115, based on the deceased
member's accrued benefit for credited service on or after May 1, 2012, where there are four or
more surviving children being paid.
Pension paymepAs shal e made to the legal guardian of eaeh ehild.
(b) Surviving spouse.
(1) The surviving spouse of a deceased member shall be paid a pension terminating upon
death if the following conditions are satisfied:
a. The member has ten or more years of credited service, or was employed by the Town and
not participating in the DROP on May 1, 2012, and dies while in the employ of the town;
b. A valid election of optional form of payment under section 82-125 is not in effect; and
C. The member was married to the surviving spouse at the time of death.
(2) Payment of a surviving spouse's pension shall commence the first day of the month
following the date the deceased member would have met an age and service condition for normal
retirement in the absence of death.
(3) The amount of a surviving spouse's pension is:
a. For 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, the difference, if any,
between 75 percent of the retirant's pension computed according to section 82-115, based on the
deceased member's average final compensation and credited service at time of death, and the
aggregate amount paid to surviving children for the month.
b. For 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, the difference, if any,
between 75 percent of the retirant's pension computed according to section 82-115, based on the
deceased member's frozen accrued benefit as of May 1, 2012, plus 75 percent of the retirant's
pension computed according_ to section 82-115, based on the deceased member's accrued benefit
for credited service on and after of May 1, 2012, and the aggregate amount paid to surviving
children for the month.
Ordinance No. 6-2012 Page 53 of 74
C. For members hired on or after May 1, 2012, the difference, if any, between 75 percent of
the retirant's pension computed according to section 82-115, based on the deceased member's
accrued benefit for credited service on and after May 1, 2012, and the aggregate amount paid to
surviving children for the month.
(c) Ten year certain. If survivors of a deceased member are due payments under subsection
(a) and/or (b) above, they shall not be reduced until the tenth anniversary of the commencement
of payments."
Section 38. 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; Section 82-125,to read as follows:
"Sec. 82-125. Police Officers: Elective survivor pension.
(a) The elected surviving beneficiary of a deceased member be paid a pension terminating
upon death if the following conditions are satisfied:
(1) The member has elected a survivor beneficiary.
(2) The member dies while in the employ of the town with at least ten years of credited
service, or the member was employed by the Town and not participating in the DROP on May 1,
2012 and thereafter dies while in the emWov of the town.
(b) The election of a survivor beneficiary shall be in writing and filed with the human
resources department . The election of a survivor beneficiary shall be null and
void upon the member's retirement or prior termination of town employment. A member may
revoke a nomination of survivor beneficiary at any time and again elect a survivor beneficiary.
(c) The amount of a surviving dependent elected beneficiary's pension shall be_
(1) For 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. a benefit computed
according to section 82-115 as if the deceased member had elected optional form of payment
A100 provided in section 82-116 and retired the day preceding death, notwithstanding that the
deceased member may not have satisfied the section 82-114 conditions for retirement.
(2) For 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
emWoved by the town and not participating in the DROP on that date. a benefit computed
according to section 82-115, based on the member's frozen accrued benefit as of May 1, 2012
plus the benefit based on the member's credited service on and after that date, as if the deceased
member had elected optional form of pavment A100 provided in section 82-116 and retired the
day preceding death, notwithstanding that the deceased member may not have satisfied the
section 82-114 conditions for retirement.
(3) For members hired on or after May 1, 2012, a benefit computed according to section 82-
115 based on credited service on and after that date computed as if the deceased member had
elected optional form of payment A100 provided in section 82-116 and retired the day preceding
death, notwithstanding that the deceased member may not have satisfied the section 82-114
conditions for retirement."
Ordinance No. 6-2012 Page 54 of 74
Section 39. 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 V, General Employees and Lifeguards, by deleting Sections 82-130, 82-131 and 82-
132 in their entirety.
See. 82 130. General employee board of trustee-,-.
(a T�encr-ul empl encml baar " or the"board") sha'? Hof
the following individuals-
(1) The in&idual .,ho is eer:fin manager or, in that individual's absenee, the nn+;,,,.
(2) Two-eitizens of the-t who are of of eefs or employees of the hete��°etira is or
b enef;o;ories of the retirement system, to be appointed by the toy,% n n;l
(3) n member eovered by b enefit group general and/or benefit group lifeguard who is o+
employed publie works department,to be elee-ted by the member.—of b--ef;+ groups
qualified e for s,nb, position.
(4) A me or eovered by benefit goneral who is empl9yed in t he publie works
dep rtmepA,to b e elon+oa 6„,them mb er of t,eneft groups qualif o for-stieh position.
(S) The individual ser )r and the individual serving as president of the town eouneil
trustees.shall, in that order-, aet in the event of absettee of
(b) The genera board shall moo+ at least !, arter-I , ;shall adopt its o rules of proeed re an
shall boor, r or s of its r,r"
the beard, and a:leant dffee n otes shall be no y for n aodis;on hy.the bo ra >:ae
trustee shall be opAided to one vote on eaeh „ estio before the b.o--A The trtistees-shalt not
rood;,.o n eompensation but m ,.*—--Fro s and Per diems:ao prn ,idea 1,,, +ate 1
(e)- The—general-boar d shall b legal—eat ty wi h, _n action to other and the power to bring and defend lawsuits of every k4nd, naWre
Y1/Y
11 herein,
deseriptio and to administer sep r7to plans f�anef1t of its members and retlrn Ntn.
(d) if i 11441111
denial, in N,ritin., within 30 days of the hoard's action. They.-r otrreation shall cct f rtl, the r
fo"criial. The claimant n- y-appeal the enial and request n hearing before the board. The
appeal shall be in vffiting to the town elerk and filed within 90 days of the denial. The
request shall nor+nil, n written statement of the „ ro ar, ing the e-laim. The—board
s ha4-se�e ulo-a hearing within!n days of reecipt of theappeal.
See. 82 131. Term of voi le; oath of o e
(a) The regular- term of offiee of member eleeted tfustees of the general board and appointed
tfustecs-shall be t,,,o years and they m sueeeed themselves in off ee
(b.) Eaeh tr„stne- shall, before assuming the—cditties fir trustee, qualify by taking bcrrof offee
to be administered by the to„>n elerlt.
(e) n vaeaney shall oeeur on the general board ;f•
Ordinance No. 6-2012 Page 55 of 74
(71) A member eleeted +r....+ee ee en to be n member o eeases + b+e i eluded in the n in+e
be e4,+ group-,
r2` n tmstee holding +c.ffi office eeases to bold the offi that qual-feed the indi-Tdual ac a
tfustee,
(33) A„ ,+ ei+iz r lcgal reaiden4 appoipAed by the to eouffeil fails to remain eh; and
(4) n ffy+r„s+ee r ed f„m „f e,
(d) if a vaeaney-ovv'ur roi44+e-g:t_ra`ll lJam , the vaeaney shall be filled < ,i+l,i,, 30 days, f r-the
term,, in then e as the position pr-eviously gilled manner-
4
Se .- 2 Offieers, administra-ti�e per iee
The offieer-s and employed sevviees of the g ral b emd shall ba as T
( ) Chair. The gem-ral board shall annually eleet n eh it n„a n £;hair pro tem from i+n member-s.
(2) Seeretary. The general board rd shall ammally eleet n seeretary f.,, among its members.
(3) F4nanee ,7.reete,. and ti, wur- ,. THe +,.<,,,, Finanee direetor and +reasufer shall be finanee
direetor and tfeasurer of the general > exeept that the assets, other than operating aeeoutft
shall be pin ed in the n+„d< of n nationally nl'aftered b.ftk or tfus+ eo a
(4) Legal advisor. The town a#orney shall be legal advisof to the general board.
(5 Aetuary. The general b d shall appai„+ an aetuafy who sha l,e the technic-al advisor to
the-b„nrd regarding the operation of the retirement as atrial basis and who
Per=form sRehserviees n red in that eomeetion. The t etua"," as used in this
artie?e shall meam a mg�nber of the n mcriean n nndemy of n n+„nrien, or a person Who has
domons+ + d a...eational bae µrd ...,eels for the aefiee o fµn+ svienee „d b.nn
< . „ .,gr .. �,� �..r Yr � ..�uar�al ,
at least five years of rele< apA rennin„ aetuarinl e „erienee. A p nership p„rn+io m l,e
appointed aetu ry if the duties of aetu fy are performed b y of under the .Brent n r.
pe ,inio of Y f
individual who meets the r eedi„n nlif;nn+ions
(6) Serviees. The general board is authorized and empowered to employ sueh professional an-,
other serviees as are required for- the proper administration of the retireme.." -, the I
fund's i
(7t7) PIaTradnfiHki�-a#6y� ,,
personnel direntor chall bg-the e p-a„ ad,,,i,.in+rn+.,r
Section 40. 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 V, General Employees and Lifeguards; Section 82-134,to read as follows:
"Sec. 82-134. Retirement age and service conditions for benefit group general and benefit
coup lifeguard.
(a) An individual may retire upon satisfaction of each of the following requirements:
(1) The individual has filed written application for retirement with the board setting forth the
date, not less than 30 days nor more than 120 days subsequent to the execution and filing thereof,
retirement is to be effective.
Ordinance No. 6-2012 Page 56 of 74
(2) Unless the individual is an applicant for a DROP, the individual terminates all town
employment prior to the date retirement is to be effective.
(3) The individual has met an applicable age and service condition for retirement.
(b) The age and service conditions for normal retirement are as follows:
(1) Benefit group general.
a. Normal retirement.
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 emploved
by the town and not participating in the DROP on that date. shall be eligible for normal
retirement upon attaining the m€-mber hap attamed age 55 years or older and has with ten or more
years of credited service, or has 30 or more years of credited service without regard to age.
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
emploved by the town and not participating in the DROP on that date, shall be eligible for
normal retirement upon attaining age 55, or 30 or more years of credited service without regard
to 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.
b. Benefit group general 20 year early retirement option. 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 emploved by the town and not
Participating in the DROP on that date. may elect to retire, subject to the early retirement
reduction specified in section 82-135(c)(1)eb, upon attaining the member- does not qualify rnr
normal retirement bttt has attained age 50 or older with 20 or more years of credited service-and
has eleeted early retirement.
C. Benefit group general ten-year early retirement option. 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 emploved by the town and not
participating in the DROP on that date, may elect to retire, subject to the early retirement
reduction specified in section 82-135(c)(1)fe, upon attainingthe member does not qualify f r
normal tir-e ent but has attained age 50 or older with ten or more years of credited service-and
d. Benefit zroup Qeneral age 60 early retirement option. 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 emploved by the town and not
participating in the DROP on that date, and members hired on or after May 1, 2012. may elect to
retire at age 60 subject to the early retirement reduction specified in section 82-135(c)(1)g.
(2) Benefit group lifeguard.
Ordinance No. 6-2012 Page 57 of 74
a. 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 emploved
by the town and not participating in the DROP on that date, shall be eligible for normal
retirement upon attaining idual has a4tamed age 50 years or older a„a has with ten or
more years of credited service; or when the member's individual's age to last completed month
plus credited service totals 65 years or more and the memberindividual has ten or more years of
credited service.
b. 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
emploved by the town and not participating in the DROP on that date, shall be eligible for
normal retirement upon termination of town emplovment and attaining age 50, or when the
member's age to last completed month plus credited service totals 65 vears or more: and upon
such retirement shall be eligible to receive the frozen accrued benefit based on credited service
and average final compensation on Apri130, 2012. Such members shall be eligible to receive the
accrued benefit based on credited service on and after Mav 1, 2012 upon attaining age 65 with
ten or more vears of credited service.
C. Benefit group lifekuard ajze 60 early retirement obtion. Members who did not attain
normal retirement eligibility based on credited service as of Mav 1, 2012, excluding credited
service purchased pursuant to section 82-54, and who were emploved by the town and not
participating in the DROP on that date, and members hired on or after Mav 1, 2012. may elect to
retire at age 60 subiect to the earlv retirement reduction specified in section 82-135(c)(0a.
d. Members hired on or after Mav 1, 2012, shall be eligible for normal retirement upon
attaining age 65 with ten or more vears of credited service."
Section 41., The Code of Ordinances of the Town of Palm Beach is hereby amended at
Chapter 82, Personnel; Article I1, Employee Benefits; Division 2, Retirement System;
Subdivision V, General Employees and Lifeguards; Section 82-135,to read as follows:
"Sec. 82-135. Amount of pension for benefit group general and benefit group lifeguard.
(a) The amount of a member's or a vested former member's pension under the standard form
of payment shall be equal to the sum of separately determined amounts for which the individual
has credited service in force, and in no event shall the amount of a member's or a vested former
member's pension under the standard form of payment be less than$1,200.00 per annum.
(b) The amount of pension attributable to a member who has credited service under another
benefit group shall be the amount determined by calculating credited service in this benefit group
plus the amount determined by calculating credited service in such other benefit group.
(c) The benefit formulas are:
(1) For benefit group general.
a. For 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
emploved by the town and not participating in the DROP on that date: average final
compensation multiplied by the sum of 2.75 percent of credited service rendered after September
30, 1990, to a maximum of 82.5 percent, plus 2.35 percent of credited service rendered prior to
Ordinance No. 6-2012 Page 58 of 74
October 1, 1990, plus 1.0 percent of credited service, if any, in excess of 30 years, provided that
years of credited service under the first two clauses of this subsection shall not exceed 30 and
provided further that the second clause shall apply only to the extent that years of credited
service under the first clause are less than 30.
b. Effective May 1, 2012, the accrued benefits of all 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 frozen. The value of each member's frozen accrued benefit
shall be calculated in accordance with subparagraph a., above, based on credited service and
average final compensation on April 30, 2012.
C. For credited service on and after May 1, 2012, except as such service may be credited to
members who qualify under section 82-135 (c) (1) a above, the benefit formula shall be 1.25% of
average final compensation multiplied by years of credited service.
d. 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
emWoved by the town and not participating in the DROP on that date, shall, upon retirement, be
eligible to receive a retirement benefit consisting of two parts: (1) the frozen accrued benefit
based on credited service and average final compensation on April 30. 2012, payable upon
attaining age 55 or completion of 30 years of credited service regardless of age. and termination
of town employment or entry into the DROP, and (2) the accrued benefit based on credited
service on and after May 1, 2012, payable upon attaining age 65 with 10 or more years of
credited service, and termination of town employment or entry into the DROP.
e. For benefits based on credited service prior to May 1, 2012, an early retirement reduction
of 0.003 percent shall apply for each month that early retirement under section 82-134(b)(1)b
precedes a date the member would have met age and service conditions for normal retirement
under section 82-134(b)(1)a, if the member had not elected early retirement.
f. For benefits based on credited service prior to May 1, 2012, an early retirement reduction
of 0.006 percent shall apply for each month that early retirement under section 82-134(b)(1)c
precedes a date the member would have met age and service conditions for normal retirement
under section 82-134(b)(1)a, if the member had not elected early retirement.
g. An early retirement reduction equal to the full actuarial cost of each month that early
retirement under section 82-134(b)(1)d precedes a date the member would have met the
applicable age and service conditions for normal retirement under section 82-134(b)(1)a, if the
member had not elected early retirement.
(2) For benefit group lifeguard.
a. For 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: average final
compensation multiplied by the sum of 2.85 percent of credited service to a maximum of 71.25
percent, plus 1.0 percent of credited service, if any, in excess of 25 years for benefit group
lifeguard.
Ordinance No. 6-2012 Page 59 of 74
b. Effective May 1, 2012, the accrued benefits of all members who did not attain normal
retirement eligibility based on credited service as of that date, 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 frozen. The value of each member's frozen accrued benefit
shall be calculated in accordance with subparagraph a., above, based on credited service and
average final compensation on April 30, 2012.
C. For credited service on and after May 1, 2012, the benefit formula shall be 1.25% of
average final compensation multiplied by years of credited service.
d. 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
emploved by the town and not participating in the DROP on that date. shall be eligible to receive
a retirement benefit consisting of two parts: (1) the frozen accrued benefit based on credited
service and average final compensation on April 30, 2012, payable upon attaining age 50 or the
date on which the member's age to last completed month plus credited service totals 65 vears or
more, and termination of town emplovment or entry into the DROP; and (2) the accrued benefit
based on credited service on and after May 1, 2012, payable upon attaining age 65 with 10 or
more years of credited service, and termination of town emplovment or entry into the DROP.
e. Benefit mun lifeguard ajze 60 early retirement option. 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 members hired on or after Mav 1, 2012, may elect to
retire at age 60 and receive a benefit based on credited service on and after May 1, 2012, subiect
to an early retirement reduction equal to the full actuarial cost of each month that early
retirement precedes the date the member would have met the applicable age and service
conditions for normal retirement under section 82-134(b)(2)d, if the member had not elected
early retirement."
Section 42. 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;
Subdivision V, General Employees and Lifeguards; Section 82-136,to read as follows:
"Sec. 82-136. Optional forms of payment of a pension for benefit group general and benefit
group lifeguard.
(a) Members of benefit group general and benefit group lifeguard who terminated
emplovment with 10 or more years of credited service prior to May 1, 2012, and members of
those groups 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 emploved
by the town and not participating in the DROP on that date, may, prior to retirement, elect A
member- o r -— er-memo°r m elect t e paid ndef one of the following optional
forms of payment. The election shall be in writing and filed with the board prior to the date
retirement is effective. Payment will be made under the standard form of payment if a timely
election of an optional form of payment is not made.
(1) Optional form of payment A100--100 percent survivor pension. Under optional form of
payment A100, a retirant is paid a reduced pension for life. Upon the retirant's death the reduced
Ordinance No. 6-2012 Page 60 of 74
pension is paid to the beneficiary, if living, designated in writing and filed with the board at the
time of election of the optional form of payment. Payment to the designated beneficiary shall
terminate upon the death of the designated beneficiary. The amount of reduced pension is a
percentage of the amount of pension under the standard form of payment (SL). The percentage is
80 percent if the retirant and designated beneficiary are the same age on their last birthdays. The
80 percent is reduced by 0.5 percent for each year the age of the retirant exceeds the age of the
designated beneficiary, to a minimum of 60 percent for differences in age of 40 or more years.
The 80 percent is increased by 0.5 percent for each year the age of the designated beneficiary
exceeds the age of the retired member, to a maximum of 90 percent for differences in age of 20
or more years.
(2) Optional form of payment A50--50 percent survivor pension. Under optional form of
payment A50, a retirant is paid a reduced pension for life. Upon the retirant's death 50 percent of
the reduced pension is paid to the beneficiary, if living, designated in writing and filed with the
board at the time of election of the optional form of payment. Payment to the designated
beneficiary shall terminate upon the death of the designated beneficiary. The amount of reduced
pension is a percentage of the amount of pension under the standard form of payment. The latter
percentage is 90 percent if the retirant and designated beneficiary are the same age at their last
birthdays. The 90 percent is reduced by 0.25 percent for each year the age of the retirant exceeds
the age of the designated beneficiary, to a minimum of 80 percent for differences in age of 40 or
more years. The 90 percent is increased by 0.25 percent for each year the age of the designated
beneficiary exceeds the age of the retired member, to a maximum of 95 percent for differences in
age of 20 or more years.
(3) Form ofpayment (SL)--Straight life pension. Under form of payment (SL) the retirant is
paid a pension for life. The (SL) payment amount is the standard form of payment amount
computed pursuant to section 82-135(c).
(b) Members of benefit group general and benefit group lifeguard 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, may elect to receive the frozen accrued benefit based on credited
service prior to May 1, 2012 under one of the following optional forms of payment. The election
shall be in writing and filed with the board prior to the date retirement is effective. Payment will
be made under the standard form of payment if a timely election of an optional form of payment
is not made.
(1) Optional form of pavment A100--100 percent survivor pension. Under optional form of
payment A100, a retirant is paid a reduced pension for life. Upon the retirant's death the reduced
pension is paid to the beneficiary, if living, designated in writing and filed with the board at the
time of election of the optional form of payment. Payment to the designated beneficiary shall
terminate upon the death of the designated beneficiary. The amount of reduced pension is a
percentage of the amount of pension under the standard form of pavment (SL). The percentage is
80 percent if the retirant and designated beneficiary are the same age on their last birthdays. The
80 percent is reduced by 0.5 percent for each year the age of the retirant exceeds the age of the
designated beneficiary, to a minimum of 60 percent for differences in age of 40 or more years.
The 80 percent is increased by 0.5 percent for each year the age of the designated beneficiary
Ordinance No. 6-2012 Page 61 of 74
exceeds the age of the retired member, to a maximum of 90 percent for differences in age of 20
or more years.
(2) Optional forum of payment A50--50 percent survivor pension. Under optional form of
payment A50, a retirant is paid a reduced pension for life. Upon the retirant's death 50 percent of
the reduced pension is paid to the beneficiary, if living, designated in writing and filed with the
board at the time of election of the optional form of payment. Payment to the designated
beneficiary shall terminate upon the death of the designated beneficiarv. The amount of reduced
pension is a percentage of the amount of pension under the standard form of pavment. The latter
percentage is 90 percent if the retirant and designated beneficiary are the same age at their last
birthdays. The 90 percent is reduced by 0.25 percent for each year the age of the retirant exceeds
the age of the designated beneficiary, to a minimum of 80 percent for differences in age of 40 or
more years. The 90 percent is increased by 0.25 percent for each year the age of the designated
beneficiary exceeds the age of the retired member, to a maximum of 95 percent for differences in
age of 20 or more years.
(3) Form of_pavment (SL)--Straizht life pension. Under form of payment (SL) the retirant is
paid a pension for life. The (SL) payment amount is the standard form of payment amount
computed pursuant to section 82-135(c).
(c) Members of benefit group general and benefit group lifeguard may elect to receive the
accrued benefit based on credited service on and after May 1, 2012 as follows: the member may
elect to receive a reduced pension for life, and upon the retirant's death 100 percent, 75 percent,
66 and 2/3 percent or 50 percent of the reduced pension is raid to the beneficiary, if living,
designated in writing and filed with the board at the time of election of the optional form of
payment. Payment to the designated beneficiary shall terminate upon the death of the designated
beneficiary. The amount of the reduced pension payable to the retirant shall reflect an actuarial
reduction in the standard form of payment based on the age of the member and the age of the
beneficiary, such that the total value of the benefit payable to the retirant and beneficiary is
actuarially equivalent to the standard form of payment to the retirant. The election of an optional
form of payment under this subsection(b) shall be in writing and filed with the board prior to the
date retirement is effective. Payment will be made under the standard form of pavment if a
timely election of an optional form of payment is not made."
Section 43. 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 V, General Employees and Lifeguards, by deleting Section 82-137 in its entirety.
See. 82 137. Supplemental pension.O.S.IrMutions.
(a) The board of trustees may annually authorize supplemental pension distribtAions to eligible
persons;the awourA-ofwI4zh shall be c.=knod ar, of eaeh September 30, beginning September
1 tal distribution o„ F eligible will l b
determined as follows:
1. Tln; aiT'JUr�v��prcriZCnccn�°cir�roircascrro urror�8z tci� ,mob
(, € amunt s!iall be his or he prorata --1:are, based up=the years of sen4ee of the retirant
to the to,,,,-,, up to a rra-xi.=am years of serviee ered;t of 25, of the positive amount of investment
return if any, earned during fiscal yours ending September 30 on the reserve for retire benefi,
payment assets ,,-hieb, o eed eight per�,e t but do aotexeeed to r�n�
v..
c-nvov
Ordinance No. 6-2012 Page 62 of 74
i
(2) The board shall detefin ne whether- +Moro may be a su lfy-ne zr.Io distribution L...se
on the following faetor-s,
a. The a-swafy play admi-Ristr„t„r shall detemnine the rates of ; estnie t return d-ur-in. tl,o
f seal „ding eaeh September-30. 'T'',e ra-tes determined shall be the rater ot4ed on the m„s+
=event a0tuarial raports submitted pufstiant to l S. A 112, pt vTT
1, The aetaai , or Elan admi-nistr or s'ialll., as 9f +lie amount, if any, o
nvestment retum whie-h, after- expenses, ,.___as eight pefeent of the reserve for retired benefit.
payment assets btA does of o eeed to Y r.t of s e assets.
'� o
(3) if the investment rot,,,.,, on those assets is less than eight pereent, ah am ou its shall be
eaffied forward to be ehar-ged against ..1. ,1.,+.o off supple,.nentatl pension distribt4io during
the next year d shall eontintte to earry f:.fwafd until Mch saffy forwards aro of` et b
,
with t e-,-poriganee for- the year ended 30, 2001, and Cher afilc-,-
supplemental distr-ib t;m, ma;-be made-tintil the net e). te—forable, and n
must amortize the losses-art'lcri it is offset by—out-.ulati« able expet=lenees. if nexA.
e pe6enee-is favor-able, etinnilatively, eonimeneing with he ex-Per-iene-e-46r the year ending
Septemb er-0;2001, after—offset—for all p6of supplemental dist- tie„ the
supplemen#al p€`. -.-,.•r distribtit;ons may be made to eligible-per-sons of the benefit
If a aapp-1Qmental pension distribution ot4 of reports is are not eepted „ r +
distribution,, and if a defieieney to the fund results, the ayea, shall 'ado up by
supplemental pension
distribu+ior, rAe "de up by agFeement between the board and the town..No site
def Fieney shall ba-pefinitted to eontiffue for a period greater than three years from the date of
pent-o,f a supplame supply 1 distribution >1 1, resulted in n de fieiefley.
(b) if the aet„ary or plan administrator determines—that—there may—be a supplemental
distr;>,„+;o , the the board of tfustoos- shall aw.4o ize— „leme tnl ns pe o distributions unless
the adr:istrative expenses
i, 1, event, no distribution m y be authorized or made
"Eligible persons” n
(1) no+;rant-s
,
(2) Surviving spouses;
(3) dependent eh ldren r&—karts;--and
(4) Roofs ts' estates.
(d) The supplemental pension distribution, f any, shallbe,-made on o about-Ma), 1 anunually-.
Eligible persons retired for less than one year are entitled to a pr-or-ata share of t_...,�....���., sir cupplarne-ntal
pension distr; #loT: ba,,�on-the number- of months retired. n re+�t� estate s-entrtr va to
pr-ofata share of the deeeased rot;rnnt's pplem #al per-s-la distribution Lased on the numb---f--of
month-, that the deeeased retirant feeeived a pension during the year ending the September
prior-to the re fir-nut's death-.
Ordinance No. 6-2012 Page 63 of 74
(e) Supp? ta' distr-;r.,,+ians payable to eligible per-sons who are partielpants4n4he
r,nO4 time of payment A i� �,e added to sueh sue eligible »Ρv Jori's DR0
(f) Supplemen4al pension distributions to belie eiar es of deeeas°a etir n 3 shall ha-,,e thei
aippldmd-ntal pension distfibti4ions,.edue°a in t e sure p:opeAian as are their pension paymepAs.
Section 44. 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 V, General Employees and Lifeguards; Section 82-139,to read as follows:
"Sec. 82-139. Deferred retirement option program for members of benefit group general
and benefit group lifeguard.
(a) Generally. In general, and subject to the provisions of this section, the deferred
retirement option program, hereinafter referred to as the DROP, is a program under which an
eligible member of benefit group general and benefit group lifeguard the retirement syst°.,, may
elect to retire, participate, and become a retirant of the retirement system, deferring receipt of
retirement benefits while continuing employment credited service.
(1) The system investment method. For participants who entered the DROP prior to January
1, 2003, unless the self-directed investment method was chosen by the participant, the deferred
monthly benefits of a DROP participant shall accrue in the retirement system on behalf of the
DROP participant, plus interest, compounded monthly, for the specified period of DROP
participation.
(2) The self-directed investment method. For participants entering the DROP after January 1,
2003, each DROP participant shall have an individual investment account to which his or her
monthly benefits shall be transferred. The board shall select a third-party administrator or
provider for this purpose. After such selection, each participant shall direct the manner in which
the amounts in his or her individual investment account shall be invested from an array of
options selected by the board.
(3) During the period of DROP participation, neither the town nor the DROP participant is
obligated to make additional contributions to the retirement system on behalf of the DROP
participant. Upon termination of employment and participation in the DROP, the DROP
participant shall receive his or her total DROP benefits and begin to receive his or her previously
determined normal retirement benefits. Employment while participating in the DROP does not
guarantee employment for any specified period. A DROP participant is a retirant of the
retirement system.
(b) Eligibility of member to participate in the DROP. Retirement system members are
eligible to elect participation in the DROP provided that they elect to retire and provided that:
(1) Election to participate may be within 84 months following the date on which the member
first reaches normal retirement date or age as follows:.
a. Members of benefit group general who were employed by the town and not participating
in the DROP on May 1, 2012 shall be eligible to participate in the DROP upon attaining age 55
or upon completion of 30 vears of credited service regardless of age. e fbr a momber who
°,,,.i,°a „ -.,l r°*;,.°ffi-e + date or age p;1ar to the e ffee ve date of the ordi,anee ffe Whieh this
Ordinance No. 6-2012 Page 64 of 74
the d ftofn whieh this t a Such member who fails to make an election
within such 84-month election period shall forfeit all rights to participate in the DROP.
b. Members of benefit group lifeguard who were employed by the town and not
participating in the DROP on Mav 1, 2012 shall be eligible to participate in the DROP upon
attaining ate 50 or the date on which the member's aye to last completed month plus credited
service totals 65 vears or more. The benefit pavable to such member shall be the frozen accrued
benefit based on credited service prior to Mav 1, 2012. The accrued benefit based on credited
service on and after Mav 1, 2012 shall be payable to such member's DROP account, or directiv
to the member if DROP participation has ceased. upon attainini4 aj4e 65. Such member who fails
to make an election within such 84-month election period shall forfeit all rights to participate in
the DROP.
C. Members of benefit group general and benefit Group lifeguard hired on or after Mav 1,
2012 shall be eligible to participate in the DROP upon attaining age 65 with 10 or more vears of
service.
(2) The member is not utilizing an early retirement option.
(3) There is no break in service to the town between the member's last working day as an
employee and first day as a retirant and DROP participant.
(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. 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, unless the
member first reached normal retirement age or date prior to the effective date of the ordinance
from which this section derives.
(2) Submission of required information. Upon electing to participate in the DROP, the
member shall submit on forms required by the retirement system and/or the third-party
administrator:
a. A written election to retire;
b. A written election to participate in the DROP;
C. An irrevocable resignation from service to the town and withdrawal from the DROP
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 or by the third-party
administrator.
(3) Re-employed retirants. Re-employed retirants of the town's retirement system are not
eligible to participate in DROP.
Ordinance No. 6-2012 Page 65 of 74
(d) Compensation for work verformed while varticivating in Be ,. yaL���er 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 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. 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.
(1) Effective with the date of DROP participation, the member's initial normal monthly
pension benefit, calculated in accordance with section 82-135 and based on creditable service
and average final compensation and the effective date of retirement, shall be fixed. Retirement
system amendments which become effective after the establishment date of participation in the
DROP will not be applicable to the DROP participant, unless so stated by the amendment. The
monthly pension benefit (minus any reduction as determined by the board of trustees as provided
by subsection(h) of this section), cost of living adjustments, interest and earnings thereon, if any,
shall accrue monthly in the retirement system or the individual investment account as applicable.
Interest under the system investment method only shall accrue at an effective annual rate to be
determined hereunder as set forth in subsection (h) of this section, and will be compounded
monthly, on the prior month's accumulated ending balance, up to the month of termination of the
DROP or death. Provided, however the monthly pension benefit payable to members of benefit
group general or benefit group lifeguard who elect to become DROP participants shall be
reduced by two percent to fund the probability of increased cost to the retirement system of
members of such employment group electing to participate in DROP, which reduced amount
shall thereafter be such participants' normal retirement or pension benefits. This reduction will be
reviewed by the board of trustees from time to time as other actuarial assumptions are reviewed
and may be modified by the town council.
(2) The monthly pension benefits payable to the DROP (minus any reduction as determined
by the board of trustees as provided by subsection (h) of this section) and interest thereon, if any,
shall continue to accrue in the DROP until the established termination date of the DROP, or until
the DROP participant terminates employment or dies prior to such date. Although individual
DROP accounts shall not be established under the system investment method described above in
subsection (a)(1), a separate accounting of each DROP participant's accrued benefits under the
DROP shall be calculated and provided to DROP participants annually.
(3) Employee benefits, other than benefits under the retirement system, which are normally
granted to employees, will be provided to DROP participants. Such DROP participants are not
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 subsection (c)(1)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 and the
third-party administrator.
Ordinance No. 6-2012 Page 66 of 74
i
(5) At the conclusion of the participant's DROP, participants in the Self-Directed Investment
Method shall exercise such options as provided by the third-party administrator's plan; or for
participants in the system investment method, the retirement system shall distribute the
participant's total accumulated DROP benefits, subject to the following provisions:
a. The retirement system shall receive verification that such DROP participant has
terminated membership in the DROP.
b. The terminated DROP participant, or if deceased, such DROP participant's named
beneficiary, shall elect on forms provided by the retirement system to receive payment of the
DROP benefits in accordance with one of the options listed below. For a DROP participant or
beneficiary who fails to elect a method of payment within 60 days of termination of the DROP,
the retirement system will pay a lump sum as provided in subsection(d)(5)b.1. of this section.
1. Lump sum. All accrued DROP benefits, plus interest and earnings, if any, less
withholding taxes remitted to the United States Internal Revenue Service, shall be paid to the
DROP participant or surviving beneficiary.
2. Direct rollover. All accrued DROP benefits, plus interest and earnings, if any, shall be
paid from the DROP directly to the custodian of an eligible retirement plan as defined in section
402(c)(8)(B) of the United States Internal Revenue Code. However, in the case of an eligible
rollover distribution to the surviving spouse of a deceased DROP participant, an eligible
retirement plan is an individual retirement account or an individual retirement annuity as
described in section 402(c)(9) of the United States Internal Revenue Code.
3. Partial lump sum. A portion of the accrued DROP benefits shall be paid to the DROP
participant or surviving spouse, less withholding taxes remitted to the United States Internal
Revenue Service, and the remaining DROP benefits shall be transferred directly to the custodian
of an eligible retirement plan as defined in section 402(c)(8)(B) of the United States Internal
Revenue Code. However, in the case of an eligible rollover distribution to the surviving spouse
of a deceased DROP participant, an eligible retirement plan is an individual retirement account
or an individual retirement annuity as described in section 402(c)(9) of the United States Internal
Revenue Code. The proportions shall be specified by the DROP participant or surviving
beneficiary.
C. The form of payment selected by the DROP participant or surviving beneficiary complies
with the minimum distribution requirements of the United States Internal Revenue Code and
payments begin no later than the date on which the participant reaches age 70 years and six
months.
(6) The accrued benefits of any DROP participant, and any contributions accumulated under
such program, shall not be subject to assignment, execution, attachment, or to any legal process
whatsoever, except for income deduction orders and federal income tax levies.
(7) DROP participants shall not be eligible for disability retirement benefits as provided in
section 82-140 or 82-141. In the event a DROP participant becomes incapacitated for
employment by the town as defined under section 82-140 or 82-141, the DROP participation will
terminate, and the former DROP participant will elect one of the alternatives under subsection
(d)(5)b of this section.
Ordinance No. 6-2012 Page 67 of 74
(8) The effective date of retirement of a DROP participant shall be the day selected by the
member to begin participation in the DROP.
(e) Death benefits under the DROP.
(1) Upon the death of a DROP participant, the named beneficiary shall be entitled to apply
for and receive the accrued benefits in the DROP as provided under subsection (d)(5)b of this
section.
(2) The normal pension benefit accrued to the DROP during the month of a DROP
participant's death shall be the final monthly pension benefit credited for such DROP participant.
(3) Eligibility to participate in the DROP terminates upon the death of a DROP participant. If
the DROP participant dies on or after the effective date of enrollment in the DROP, but prior to
the first monthly benefit being credited to the DROP, retirement system benefits shall be paid in
accordance with section 82-143.
(4) A DROP participant's survivor shall not be eligible for retirement system death benefits
as provided in section 82-144.
(f) Cost of living adjustment. The DROP participants' normal pension benefit shall be
increased as provided in section 82-63(b).
(g) Renewed membership. Participants of the DROP will not be permitted to be members of
the town's retirement system. Contributions that normally would be made by the employee and
the town will not be paid into the retirement system upon an individual's election to participate in
the DROP.
(h) Administration of the program. The board of trustees shall make such rules as are
necessary for the effective and efficient administration of this subsection. The board of trustees
shall not be required to advise participants of the federal tax consequences of an election related
to the DROP but may advise participants to seek independent advice.
(1) The DROP will be cost-neutral to the town. To maintain the cost-neutral basis to the
town, the credited interest rate and any reduction in the DROP participants' monthly pension
benefits payable to the DROP will be reviewed by the board of trustees from time to time as
other actuarial assumptions are reviewed. All costs of the DROP and any increase or decrease in
the cost of administering the DROP will be absorbed by:
a. A change in the interest rate credited to participants in the system investment method;
b. A change of the or establishment of a reduction of the DROP participants' monthly
pension benefits payable to the DROP; and/or
C. An increase in the fees charged by the third-party administrator to the individual
investment accounts;
As determined by the board of trustees with approval by the town council.
(2) For those participants under the system investment method, interest on DROP
participant's monthly pension benefits payable to the DROP shall accrue at an effective annual
rate of 7.5 percent compounded monthly. Such interest rate shall be reviewed by the board of
Ordinance No. 6-2012 Page 68 of 74
trustees from time to time as other actuarial assumptions are reviewed and may be redetermined
by the board of trustees with approval by the town council.
(3) Notwithstanding any other provision of this section 82-139 or the Code, a member who
receives any DROP benefits for the portion of their pension benefits earned on or after May 1,
2012 shall be an at-will emWovee for the entire DROP period."
Section 45. 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 V, General Employees and Lifeguards; Section 82-140, to read as follows:
"Sec. 82-140. Benefit Group General and Benefit Group Lifeguard: Disability retirement.
(a) Upon the application of a member or the member's department head, a member of benefit
aroup general and benefit group lifeguard who becomes incapacitated for employment by the
town by reason of a personal injury or disease may be retired by the board of trustees subject to
the following conditions:
(1) The member has ten or more years of credited service in force, or was emploved by the
town and not participating in the DROP on May 1, 2012;
(2) The member is medically examined by a duly-qualified physician or surgeon selected by
the relevant board of trustees for that purpose;
(3) The physician or surgeon certifies to the geneiral °mpleyee board that the member is
mentally or physically totally incapacitated for continued employment by the town, that such
incapacity is likely to be permanent, and that the member should be retired; and
(4) The board of trustees concurs with the certification of the physician or surgeon.
(b) Upon disability retirement, a member shall be paid a pension computed according to
section 82-135.
(c) A member shall not be entitled to receive disability pension benefits if the disability is a
result of:
(1) Excessive or habitual use of drugs, intoxicants or narcotics by the member;
(2) Injury or disease sustained by the member while willfully and illegally participating in
fights, riots or civil insurrections, or while committing a crime;
(3) Injury or disease sustained by the member while serving in any armed forces; or
(4) Injury or disease sustained by the member after his employment has terminated."
Section 46. 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 V, General Employees and Lifeguards; Section 82-143, to read as follows:
"Sec. 82-143. Benefit Group General and Benefit Group Lifeguard: Death after
retirement; automatic survivor pension to minor children and/or surviving spouse.
For members who retired or entered the DROP after September 30, 1995 and prior to May 1,
2012, members who terminated employment with 10 or more years of credited service prior to
May 1, 2012, and members who attained normal retirement eligibility based on credited service
Ordinance No. 6-2012 Page 69 of 74
as of May 1, 2012, excludina credited service purchased pursuant to section 82-54. and who
were employed by the town and not narticivatin4 in the DROP on that date, death benefits after
retirement shall be navable as follows:
Surviving children.
(44-) The surviving children of a deceased retirant shall be paid a pension terminating upon the
attainment of age 18 or death, if the following conditions are satisfied:
la. The retirant retired after September 30, 1995.
2b. A valid election of optional form of payment under section 82-145 is not in effect.
(b2-) Payment of the pension shall be made for months beyond age 18 years, but not beyond
the month in which age 25 is attained, if a pension payment would not otherwise be made for the
month under the provisions of subsection(b) of this section.
(c-3) The amount of each surviving child's pension is 25 percent of the retirant's pension at
time of death, not to exceed an equal share of 75 percent of the retirant's pension when there are
four or more surviving children being paid. Pension payments shall be made to the legal guardian
of each child.
(2b) Surviving spouse. The surviving spouse of a deceased retirant shall be paid a pension
terminating upon death. The amount of a surviving spouse's pension for a month is the
difference, if any, between 75 percent of the retirant's pension and the aggregate amount paid to
surviving children for the month.
(b) For members who did not attain normal retirement eligibility based on credited service as
of May 1, 2012. excludinj4 credited service purchased pursuant to section 82-54, who were
emploved by the town and not participating in the DROP on that date. death benefits after
retirement shall be payable as follows:
(1) Surviving children.
a. The surviving children of a deceased retirant shall be paid a pension terminatiniz upon the
attainment of ajae 18 or death, if the following conditions are satisfied:
1. The retirant was emoloved and not participating in the DROP on May 1, 2012 and retired
thereafter.
2. A valid election of optional form of pavment under section 82-105 is not in effect.
b. Payment of the pension shall be made for months bevond age 18 years, but not beyond
the month in which aye 25 is attained, if a pension payment would not otherwise be made for the
month under the provisions of subsection (b) of this section.
C. The amount of each surviving child's pension is 25 percent of the retirant's pension based.
on the retirant's frozen accrued benefit as of May 1. 2012, not to exceed an equal share of 75
percent of the retirant's pension when there are four or more surviving children beinp- paid.
Pension payments shall be made to the legal Guardian of each child.
(2) Surviving spouse. The surviving spouse of a deceased retirant shall be paid a pension
terminating upon death. The amount of a surviving spouse's pension for a month is the
difference, if any, between 75 percent of the retirant's pension based on the retirant's frozen.
Ordinance No. 6-2012 Page 70 of 74
accrued benefit as of May 1, 2012, and the aRRreRate amount paid to surviving children for the
month.
(3) Ten year certain. If a retirant dies within ten years of retirement, the total monthly
navments due under subsection (a) and/or (b) above shall not be reduced from that which may
have been due to the retirant until the tenth anniversary of the retirant's retirement date.
(c) 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 members hired on or
after May 1, 2012, may elect an optional form of benefit pursuant to section 82-96(c) for benefits
based on credited service on and after May 1, 2012, but there shall be no automatic survivor
pension for death after retirement based on such credited service on and after May 1, 2012."
Section 47. 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 V, General Employees and Lifeguards; Section 82-144,to read as follows:
"Sec. 82-144. Benefit Group General and Benefit Group Lifeguard; Death while an
employee of the town; automatic survivor pension to minor children and/or spouse.
(a) Surviving children.
(1) The surviving children of a deceased member shall be paid a pension terminating upon
the attainment of age 18 or death if the following conditions are satisfied:
a. The member has ten or more years of credited service, or was emploved by the Town and
not participating in the DROP on May 1, 2012, and dies while in the employ of the town after
Septe bef 30, 1 995; and
b. A valid election of optional form of payment under section 82-145 is not in effect.
(2) Payment of the pension shall be made for months beyond such a beneficiary age of 18
years, but not beyond the month in which the age 25 is attained, if a pension payment would not
otherwise be made for the month under the provisions of subsection(b) of this section.
(3) The amount of each surviving child's pension, which shall be paid to the legal guardian of
each child, is:
a. For members who attained normal retirement eli6bility based on credited service as of
May 1, 2012, excludiniz credited service purchased pursuant to section 82-54, and who were
emploved by the town and not participating in the DROP on that date, 25 percent of the amount
of pension computed according to section 82-135, based on the deceased member's average final
compensation and credited service at time of death. A child's pension shall not exceed an equal
share of 75 percent of the amount of pension computed according to section 82-135,based on the
deceased member's average final compensation and credited service at time of death, where there
are four or more surviving children being paid.
b. For 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
emploved by the town and not participatinv in the DROP on that date, 25 percent of the amount
of pension computed according to section 82-135, based on the deceased member's frozen
Ordinance No. 6-2012 Page 71 of 74
accrued benefit as of May 1, 2012, plus 25 percent of the amount of pension computed according
to section 82-135, based on the deceased member's accrued benefit for credited service on or
after May 1, 2012. A child's pension shall not exceed an equal share of 75 percent of the amount
of pension computed according to section 82-135, based on the deceased member's frozen
accrued benefit as of May 1, 2012, plus 75 percent of the amount of pension computed according
to section 82-135, based on the deceased member's accrued benefit for credited service on or
after May 1, 2012, where there are four or more surviving children being paid.
C. For members hired on or after May 1, 2012, 25 percent of the amount of pension
computed according to section 82-135, based on the deceased member's accrued benefit for
credited service on or after May 1, 2012. A child's pension shall not exceed an equal share of 75
percent of the amount of pension computed according to section 82-135. based on the deceased
member's accrued benefit for credited service on or after May 1, 2012, where there are four or
more surviving children being paid.
Pension payments shall be trade to the legal ,. ,,,.a;a of eaeh ehild.
(b) Surviving spouse.
(1) The surviving spouse of a deceased member shall be paid a pension terminating upon
death if the following conditions are satisfied:
a. The member has ten or more years of credited service, or was employed by the Town and
not participating in the DROP on May 1, 2012, and dies while in the employ of the town;
b. A valid election of optional form of payment under section 82-145 is not in effect; and
C. The member was married to the surviving spouse at the time of death.
(2) Payment of a surviving spouse's pension shall commence the first day of the month
following the date the deceased member would have met an age and service condition for normal
retirement in the absence of death.
(3) The amount of a surviving spouse's pension is:
a. For 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, the difference, if any,
between 75 percent of the retirant's pension computed according to section 82-135, based on the
deceased member's average final compensation and credited service at time of death, and the
aggregate amount paid to surviving children for the month.
b. For 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, the difference, if any,
between 75 percent of the retirant's pension computed according to section 82-135, based on the
deceased member's frozen accrued benefit as of May 1, 2012, plus 75 percent of the retirant's
pension computed according to section 82-135, based on the deceased member's accrued benefit
for credited service on and after of May 1, 2012, and the aggregate amount paid to surviving
children for the month.
Ordinance No. 6-2012 Page 72 of 74
C. For members hired on or after May 1, 2012, the difference, if any, between 75 percent of
the retirant's pension computed according to section 82-135, based on the deceased member's
accrued benefit for credited service on and after May 1, 2012, and the aggregate amount paid to
surviving children for the month."
Section 48. 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 V, General Employees and Lifeguards; Section 82-145,to read as follows:
"Sec. 82-145. Benefit Group General and Benefit Group Lifeguard: Elective survivor
pension.
(a) The elected surviving beneficiary of a deceased member shall be paid a pension
terminating upon death if the following conditions are satisfied:
(1) The member has elected a survivor beneficiary.
(2) The member dies while in the employ of the town with at least ten years of credited
service, or the member was employed by the Town and not participating in the DROP on May 1,
2012 and thereafter dies while in the employ of the town.
(b) The election of a survivor beneficiary shall be in writing and filed with the human
resources devartmentretirement system. The election of a survivor beneficiary shall be null and
void upon the member's retirement or prior termination of town employment. A member may
revoke a nomination of survivor beneficiary at any time and again elect a survivor beneficiary.
(c) The amount of a surviving dependent elected beneficiary's pension shall be:
(1) For 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, computed according to
section 82-135 as if the deceased member had elected optional form of payment A100 provided
in section 82-136 and retired the day preceding death, notwithstanding that the deceased member
may not have satisfied the section 82-134 conditions for retirement.
(2) For 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, a benefit computed
according to section 82-135, based on the member's frozen accrued benefit as of May 1, 2012
plus the benefit based on the member's credited service on and after that date, as if the deceased
member had elected optional form of payment A100 provided in section 82-136 and retired the
day preceding death, notwithstanding that the deceased member may not have satisfied the
section 82-134 conditions for retirement.
(3) For members hired on or after May 1, 2012, a benefit computed according to section 82-
135 based on credited service on and after that date computed as if the deceased member had
elected optional form of payment A100 provided in section 82-136 and retired the day preceding
death, notwithstanding that the deceased member may not have satisfied the section 82-134
conditions for retirement."
Ordinance No. 6-2012 Page 73 of 74
Section 49. 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 50. 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 51. Codification.
This Ordinance shall be codified and made a part of the official Code of Ordinances of
the Town of Palm Beach.
Section 52. 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 10"' day of April, 2012, and for second and final
reading on this 24"'day of April, 2012.
/Qu s�$
G ' L. Contglio, Mayot D A. Rosow, Town Council President
4
Ro e Wildrick, President Pr TOM-,4
VJillianJ. Diamon , To Council Me ,
K"
ATTEST: ichard lei Town Council Member
Swan A. wen , C, Town Clerk Mic i eI J Pucillo, Town�Council Member
\i ft i
? 6'r4inance -2012 Page 74 of 74