24-009 1 ORDINANCE NO. 24-009
2 AN ORDINANCE OF THE CITY OF BOYNTON BEACH, FLORIDA;
3 AMENDING PART II, CHAPTER 18, ARTICLE IV, "PENSIONS FOR
4 FIREFIGHTERS" OF THE CITY CODE OF ORDINANCES; BY
5 AMENDING SECTIONS 18-180.2 AND 18-194 TO CREATE A 2.8% COLA
6 FOR FIREFIGHTERS WHO COMPLETE EIGHT YEARS OF DROP
7 PARTICIPATION TO BE FUNDED WITH A 6% EMPLOYEE PICK-UP
8 CONTRIBUTION DURING DROP PARTICIPATION; AMENDING
9 SECTION 18-180.2 TO DELAY THE 2% COLA FOR DISABILITY
10 RETIREES UNTIL FIVE YEARS FOLLOWING THE DATE THAT
11 WOULD HAVE BEEN THE DISABILTY RETIREE'S NORMAL
12 RETIREMENT DATE; AND AMENDING SECTION 18-182 TO LOWER
13 THE SERVICE CONNECTED DISABILITY PAYMENT FROM 66 2/3%
14 TO 60% FOR DISABILITY RETIREMENT AFTER THE EFFECTIVE
15 DATE; PROVIDING FOR SEVERABILITY; PROVIDING FOR A
16 REPEALER; PROVIDING FOR CODIFIATION; AND PROVIDING FOR
17 AN EFFECTIVE DATE.
18 WHEREAS, the City of Boynton Beach desires to amend Chapter 18 of the Code of
19 Ordinances of the City of Boynton Beach to (i) create a 2.8% COLA to be funded solely with
20 member contributions, (ii) delay the COLA for disability retires, and (iii) decrease the service
21 incurred disability payment; and
22 WHEREAS, Boynton Beach Firefighters and Paramedics, International Association of
23 Firefighters, Local 1891 has waived bargaining; and
24 WHEREAS, adopting an Ordinance amending Part II, Chapter 18, Article IV, "Pensions
25 for Firefighters"of the City Code of Ordinances is necessary; and
26 WHEREAS, the City Commission of the City of Boynton Beach, Florida, finds that the
27 pension plan amendments described herein are in the best interest of the City and its employees.
28 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY
29 OF BOYNTON BEACH, FLORIDA,THAT:
30 Section 1: Section 18-180.2 of the Code of Ordinances of the City of Boynton Beach
31 is hereby amended to read as follows:
32 Sec. 18-180.2. Cost of living increases.
33 (a) Effective December 1, 2011, an automatic two percent (2%) annual cost of living
34 adjustment (COLA) is created for all members who retire or enter into the DROP on or
35 after December 1, 2006. Payment of annual COLA benefits shall not begin until five (5)
36 years after retirement or entry into the DROP. As of each October first, retirees in pay
37 status and beneficiaries receiving monthly survivorship benefits on behalf of deceased
38 members, shall have their benefits adjusted annually, following the five (5)-year delay.
39 Retirees eligible to receive annual COLA benefits shall include all retirees electing early
40 retirement and all disability retirees who enter pay status on or after December 1, 2006.
41 Effective October 1, 2023, COLA benefits will commence beginning on the October 1
42 following separation from service, for DROP participants who elect to extend their DROP
43 participation beyond five (5) years. Effective June 1, 2024, the 2% COLA for disability
44 retirees shall commence, beginning five years after what would have been the member's
45 normal retirement date.
46 (b) Notwithstanding anything to the contrary, effective June 1,2024,an automatic 2.8%annual
47 COLA is created for DROP participants who complete at least three years of DROP
48 participation while contributing 5% to cover the cost of the 2.8% COLA and 1% which
49 shall be applied to unfunded liabilities of the retirement system, as follows:
50 (i) Current DROP participants: a mandatory 6% employee pick-up contribution shall be
51 deducted effective June 1, 2024 (or as soon as administratively possible thereafter), which
52 shall continue for three years;
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53 (ii) Future DROP participants: a mandatory 6% employee pick-up contribution shall be
54 deducted for the first three years of DROP participation. Should a DROP participant
55 separate from service prior to completing three years of contributions, the 6% employee
56 contribution shall be refunded to the member;,
57 (iii) Commencement date for the 2.8% COLA: The 2.8% COLA shall commence on
58 October 1st after completing eight years of DROP participation. Any member who does
59 not remain in the DROP for eight years but completes three years of member contributions
60 at the 6% rate shall receive the 2.8% COLA on October 1St following the eight-year
61 anniversary of DROP entry.
62 Section 2: Section 18-182 of the Code of Ordinances of the City of Boynton Beach is
63 hereby amended to read as follows:
64 Sec. 18-182. Disability retirement and death benefits.
65 (a) Service incurred. Prior to June 1, 2024, Any member who receives a medically
66 substantiated service connected injury, disease or disability, which injury, disease or
67 disability totally and permanently disables such member to the extent that, in the opinion
68 of the board of trustees,the member is wholly prevented from rendering useful and efficient
69 service as a firefighter, shall receive a monthly benefit equal to sixty-six and two-thirds(66
70 2/3) percent of the member's basic rate of earnings in effect on the date of disability.
71 Effective June 1, 2024, the service incurred disability benefit shall be the greater of sixty
72 percent (60%) of the member's basic rate of earnings in effect on the date of disability or
73 their accrued benefit. Such benefit shall be payable on the first day each month,
74 commencing on the first day of the month following the latter to occur of the date on which
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75 the disability has existed for three (3) months and the date the board of trustees approved
76 the payment of such retirement income. In the event of recovery prior to the otherwise
77 normal retirement date, credit for service during the period of disability shall be granted
78 for purposes of subsequent retirement benefits.The amount of the disability benefit payable
79 from the fund shall be reduced by any amounts paid or payable as disability benefits from
80 workers' compensation and the federal social security system. The reduction for social
81 security benefits shall be in the amount of the primary insurance amount (PIA) only, and
82 future increase, if any, in the disabled member's social security disability benefit shall not
83 serve to reduce any further the disability benefit from the fund. The reduction for social
84 security shall terminate upon the attainment of age sixty-five (65). For purposes of
85 compliance with Chapter 175, Florida Statutes, service-incurred disability benefits shall
86 not be offset below 42% of average final compensation. The maximum benefit cap
87 established in 2019 shall apply to service incurred disability retirement benefits under this
88 subsection.
89 Section 3: Section 18-194(a)(3) & (15) of the Code of Ordinances of the City of
90 Boynton Beach is hereby amended to read as follows:
91 Sec. 18-194. Deferred retirement option plan.
92 (3) Participation in the DROP must be exercised within the first 30 years of
93 employment; provided, however, that participation in the DROP, when combined with
94 participation in the retirement plan as an active member, may not exceed 30 years. The maximum
95 period of participation in the DROP is five years. An employee's election to participate in the
96 DROP plan shall be irrevocable and shall be made by executing a resignation notice on a form
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97 prescribed by the city. Effective October 1, 2023 the maximum period of DROP participation shall
98 be eight (8) years; provided that the maximum period of active membership when combined with
99 DROP participation shall not exceed thirty-three(33) years. " e ' :: - . '.. - - • - - .•-
100 •- ! e ' . . - - _ •_ - . . - -- . . - ". .
101 the rate of six percent (6%) as follows: Five percent (5%) shall be allocated to COLA funding
102 under Section 18 180.2(c) and the remaining one percent (1%) shall be applied to unfunded
103 . . . . - ' - - - - .
104 ***
105 (15) Notwithstanding anything to the contrary, effective June 1, 2024, an automatic
106 2.8% annual COLA is created for DROP participants who complete at least three years of DROP
107 participation while contributing 5% to cover the cost of the 2.8% COLA and 1% which shall be
108 applied to unfunded liabilities of the retirement system, as follows:
109 (i) Current DROP participants: a mandatory 6% employee pick-up contribution shall be
110 deducted effective June 1, 2024 (or as soon as administratively possible thereafter), which
111 shall continue for three years;
112 (ii) Future DROP participants: a mandatory 6% employee pick-up contribution shall be
113 deducted for the first three years of DROP participation. Should a DROP participant
114 separate from service prior to completing three years of contributions, the 6% employee
115 contribution shall be refunded to the member;
116 (iii) Commencement date for the 2.8% COLA: The 2.8% COLA shall commence on the
117 first October 1st after completing eight years of DROP participation. Any member who
118 does not remain in the DROP for eight years but completes three years of member
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119 contributions at the 6%rate shall receive the 2.8%COLA on the first October 1St following
120 the eight-year anniversary of DROP entry.
121 Section 4: The City Commission intends, and it is hereby ordained, that the provisions
122 of this Ordinance shall become and be made a part of the Code of Ordinances of the City of
123 Boynton Beach,that the sections of the Ordinance may be renumbered or re-lettered to accomplish
124 such intentions, and that the word "Ordinance" shall be changed to "Section" or other appropriate
125 word.
126 Section 5: If any clause, section, or other part or application of this Ordinance shall be
127 held in any court of competent jurisdiction to be unconstitutional or invalid, such unconstitutional
128 or invalid part or application shall be considered eliminated and shall not affect the validity of the
129 remaining portions or applications which shall remain in full force and effect.
130 Section 6: All ordinances, or parts of ordinances, resolutions, or parts of resolutions,
131 in conflict herewith are hereby repealed to the extent of such conflict.
132 Section 7: This Ordinance shall become effective immediately upon adoption unless
133 otherwise provided.
134
135
136 (REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK)
137
138
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139 FIRST READING this W,Q`4‘day of -cv- \ , 2024.
140 SECOND, FINAL READING, AND PASSAGE this 14" day of , 2024.
141 CITY OF BOYNTON BEACH, FLORIDA
142 YES NO
143
144 Mayor—Ty Penserga
145
146 Vice Mayor— Aimee Kelley
147
148 Commissioner—Woodrow L. Hay
149
150 Commissioner—Angela Cruz
151 ✓
152 Commissioner—Thomas Turkin
153
154 VOTE
155 AT T:
156
157 I.r 11 .� Zir
158 Mayle; P - esus, MMC Ty Penser_
159 City C e Mayor
160 off g... . 't
161 �•;•to P0R,9).• <<`1,1 APPROVED AS TO FORM:
162 (Corporate Seal) o SEAL �_
163 ftINCORPORATED 1 !/ J.
wean
164 i
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165 11'1 1 Shawna G. Lamb
166 „b City Attorney
167
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Business Impact Estimate
This form should be included in the agenda packet for the item under which the proposed
ordinance is to be considered and must be posted on the City's website by the time notice of the
proposed ordinance is published.
Proposed ordinance's title/reference:
Proposed Ordinance No. 24-009- Second Reading, An Ordinance of the City of Boynton
Beach, Florida Amending Part II, Chapter 18, Article IV, "Pensions for Firefighters" of the
City Code of Ordinances; by Amending Sections 18-180.2 and 18-194 to create a 2.8%
COLA for Firefighters who complete eight years of drop participation to be funded with a
6% employee pick-up contribution during drop participation; amending section 18-180.2 to
delay the 2% cola for disability retirees until five years following the date that would have
been the disability retiree's normal retirement date; and amending Section 18-182 to lower
the service-connected disability payment from 66 2/3% to 60% for disability retirement after
the effective date; providing for severability.
This Business Impact Estimate is provided in accordance with section 166.041(4), Florida
Statutes. If one or more boxes are checked below, this means the City is of the view that
a business impact estimate is not required by state law' for the proposed ordinance, but
the City is, nevertheless, providing this Business Impact Estimate as a courtesy and to
avoid any procedural issues that could impact the enactment of the proposed ordinance.
This Business Impact Estimate may be revised following its initial posting.
Applicable Exemptions:
❑ The proposed ordinance is required for compliance with Federal or State law or
regulation;
❑ The proposed ordinance relates to the issuance or refinancing of debt;
❑ The proposed ordinance relates to the adoption of budgets or budget
amendments, including revenue sources necessary to fund the budget;
❑ The proposed ordinance is required to implement a contract or an agreement,
including, but not limited to, any Federal, State, local, or private grant or other
financial assistance accepted by the municipal government;
❑ The proposed ordinance is an emergency ordinance;
❑ The ordinance relates to procurement; or
El The proposed ordinance is enacted to implement the following:
1 See Section 166.041(4)(c), Florida Statutes.
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a. Part II of Chapter 163, Florida Statutes, relating to growth policy, county and
municipal planning, and land development regulation, including zoning,
development orders, development agreements and development permits;
b. Sections 190.005 and 190.046, Florida Statutes, regarding community
development districts;
c. Section 553.73, Florida Statutes, relating to the Florida Building Code; or
d. Section 633.202, Florida Statutes, relating to the Florida Fire Prevention Code.
In accordance with the provisions of controlling law, even notwithstanding the fact that an
exemption noted above may apply, the City hereby publishes the following information:
1. A summary of the proposed ordinance (must include a statement of the public
purpose, such as serving the public health, safety, morals, and welfare):
The City of Boynton Beach desires to amend Chapter 18 of the Code of Ordinances of
the City of Boynton Beach to (i) create a 2.8% COLA to be funded solely with member
contributions, (ii) delay the COLA for disability retires, and (iii) decrease the service
incurred disability payment. Boynton Beach Firefighters and Paramedics, International
Association of Firefighters, Local 1891 has waived bargaining.
2. An estimate of the direct economic impact of the proposed ordinance on private, for-
profit businesses in the City, if any:
(a) An estimate of direct compliance costs that businesses may reasonably incur
if the ordinance is enacted:
None.
(b) Any new charge or fee imposed by the proposed ordinance or for which
businesses will be financially responsible:
None
(c) An estimate of the City's regulatory costs, including estimated revenues from
any new charges or fees to cover such costs.
None
3. Good faith estimate of the number of businesses likely to be impacted by the proposed
ordinance:
None
4. Additional information the governing body deems useful (if any):
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