24-013 1 ORDINANCE NO. 24-013
2 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF
3 BOYNTON BEACH, FLORIDA, AMENDING ARTICLE III OF CHAPTER
4 18 OF THE BOYNTON BEACH CODE OF ORDINANCES ENTITLED
5 MUNICIPAL POLICE OFFICERS' RETIREMENT TRUST FUND
6 AMENDING SECTION 18-165 TO UPDATE DEFINITION OF
7 COMPENSATION OR SALARY TO REFLECT CURRENT PRACTICE;
8 AMENDING SECTION 18-169 TO ADD 20 YEAR RETIREMENT FOR
9 MEMBERS HIRED AFTER OCTOBER 1, 2019 WHO RETIRE AFTER
10 OCTOBER 1, 2024; AMENDING SECTION 18-174 TO UPDATE
11 REQUIRED MINIMUM DISTRIBUTION AGE IN COMPLIANCE WITH
12 SECURE ACT 2.0 CHANGES; AMENDING SECTION 18-175 DEFERRED
13 RETIREMENT OPTION PLAN TO REFLECT CHANGE IN DEFINITION
14 OF COMPENSATION OR SALARY; PROVIDING FOR CODIFICATION
15 CONFLICT, SEVERABILITY, AND AN EFFECTIVE DATE.
16 WHEREAS, the City and the Palm Beach County Police Benevolent Association
17 ("Union") have agreed in collective bargaining to provide for a 20 year retirement for
18 members who were hired after October 1 , 2019, and retire after October 1, 2024; and
19 WHEREAS, the definition of Compensation or Salary needs to be updated to
20 reflect the current practice of limitations on overtime and accumulated leave included in
21 the pension computation; and
22 WHEREAS, the Internal Revenue Code was amended to provide for a required
23 minimum distribution age of 73 going forward for individuals who had not reached age 72
24 by December 31 , 2022; and
25 WHEREAS, the City Commission of the City of Boynton Beach, Florida, desires to
26 amend the Boynton Beach Police Officers Pension Fund.
27 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE
28 CITY OF BOYNTON BEACH, FLORIDA:
29 Section 1 . The foregoing "WHEREAS" clauses are hereby certified as true and
30 correct and incorporated herein by this reference.
31 Section 2. Section 18-165(a) of Article III of Chapter 18 of the Boynton Beach
32 Code of Ordinances is hereby amended at the definition of "Compensation or Salary" as
33 follows:
34 Sec. 18-165. Definitions.
35 (a) The following words or phrases, as used in this article, shall have the
36 following meaning:
37 ***
ORDINANCE 24-013
38 Compensation or salary. The total cash remuneration, including lump sum
39 .- . --- - - --- - - - - -- - - - - - . ... paid by the
40 primary employer City to a police officer for services rendered, but not including
41 any payments for extra duty or special detail work performed on behalf of a second
12 party employer paid directly to the police officer by the second party employer and
amounts paid to a police officer after December 31 , 2008, as differential wages
11 during any period of active duty military service lasting more than 30 days.
Compensation or salary includes overtime and lump sum payments for
1f, accumulated sick and vacation leave without restriction prior to June 18,
17 2013. Effective June 18, 2013, overtime is limited to 300 hours per member
48 per year. Additionally, no hours of unused accumulated sick and vacation
49 leave earned after June 18, 2013, shall be considered annual earnings.
50 However, members may include all unused hours earned prior to June 18,
51 2013, provided that the number of hours is cashed in at retirement or entry
52 into DROP. This definition also excludes severance pay and other similar
53 payments which are not for services rendered.
54 The member's compensation or salary contributed as employee-elective salary
55 reductions or deferrals to any salary reduction, deferred compensation, or tax-
56 sheltered annuity program authorized under the Internal Revenue Code shall be
57 deemed to be the compensation or salary the member would receive if he or she
58 were not participating in such program and shall be treated as compensation for
59 retirement purposes under this article. For any person who first becomes a
60 member in any Plan year beginning on or after January 1 , 1996, compensation for
61 any Plan year shall not include any amounts in excess of section 401(a)(17) of the
62 Internal Revenue Code limitation (as amended by the Omnibus Budget
63 Reconciliation Act of 1993), which limitation of $150,000 shall be adjusted as
64 required by federal law for qualified government plans and shall be further adjusted
65 for changes in the cost of living in the manner provided by section 401(a)(17)(B)
66 of the Internal Revenue Code. For any person who first became a member prior to
67 the first plan year beginning on or after January 1, 1996, the limitation on
68 compensation shall be not less than the maximum compensation amount that was
69 allowed to be taken into account under the plan as in effect on July 1 , 1993, which
70 limitation shall be adjusted for changes in the cost of living since 1989 in the
71 manner provided by section 401(a)(17) of the Internal Revenue Code. F.S. Ch.
72 185.
73 Section 3. Section 18-169(a) Requirements for retirement benefit amounts of
74 Article III of Chapter 18 of the Boynton Beach Code of Ordinances is hereby amended
75 as follows:
76 Sec. 18-169. Requirements for retirement- benefit amounts.
77 (a) Normal retirement.
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ORDINANCE 24-013
78 (1 ) Normal retirement date. The normal retirement date of:
79 a. For Police officers hired before October 1 , 2019, the normal retirement date
80 is -14e the first day of the month coinciding with, or next following, the date on which
81 they have he or she has attained and completed 20 years of credited service, or the first
82 day of the month coinciding with, or next following, the date on which the police officer
83 has attained age 55 and completed ten years of credited service or age 50 and completed
84 15 years of service. In the case of a retirement with 20 years of service, effective January
85 1 , 2017, normal retirement age is the age a police officer has attained when retired at 20
86 years of service.
87 b. Effective October 1, 2024, For Police officers hired on and after October 1 ,
88 2019, the normal retirement date is vibe the first day of the month coinciding with, or
89 next following, the date on which they have he or she has attained and completed 20 25
90 years of credited service, or the first day of the month coinciding with, or next following,
91 the date on which the police officer has attained age 55 and completed ten years of
92 credited service. In the case of a retirement with 20 25 years of service, effective October
93 1, 2019, normal retirement age is the age a police officer has attained when retired at 20
94 25 years of service.
95 (2) Benefit commencement date for ten-year vesting.
96 a. Police officers hired before October 1, 2019,_and on or after October 1 , 2016: If
97 any member who had been in the service of the city for at least ten years elects to leave
98 their his or her accrued contributions in the fund, such police officer upon attaining age
99 50 years or more (without reaching what would have been 20 years of service had he or
100 she not terminated his or her employment) may receive an early retirement benefit at the
101 actuarial equivalent of the amount of such retirement income otherwise payable to them
102 him or her at normal retirement. Or, upon attaining what would have been normal
103 retirement had they he or she not terminated his or her employment, such police officer
104 may receive their his or her accrued normal retirement benefit.
105 b. Police officers hired on or after October 1, 2019: If any member who had been in
106 the service of the city for at least ten years elects to leave their his or her accrued
107 contributions in the fund, such police officer upon attaining age 50 years or more (without
108 reaching what would have been 20 25 years of service had they he or she not terminated
109 their his or her employment) may receive an early retirement benefit at the actuarial
110 equivalent of the amount of such retirement income otherwise payable to them him or
111 her at normal retirement or upon attaining what would have been normal retirement had
112 he or she not terminated his or her employment, such police officer may receive his or
113 her accrued normal retirement benefit.
114 (3) Benefit commencement date for five-year vesting.
115 a. Police officers hired before October 1 , 2016Lwho have more than five years of
116 service and less than ten years of service at time of termination: If any member who had
117 been in the service of the city for at least five years but less than ten years elects to leave
118 their his or her accrued contributions in the fund, the police officer upon attaining age 55
119 with ten or more years of service (had they he or she not terminated employment) or
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ORDINANCE 24-013
120 reaching what would have been 20 years of service (had they he or she not terminated
121 his or her employment), may receive the accrued normal retirement benefit. The member
122 may receive the benefits payable in the normal form or any option available under Section
123 18-170. These members are not eligible for an early retirement benefit or the age 50 with
124 15 years of service benefit.
125 b. Police officers hired before October 1, 2016,_who have more than ten years of
126 service at time of termination: If any member who had been in the service of the city for
127 at least ten years elects to leave their his or her accrued contributions in the fund, such
128 police officer upon attaining age 50 or more (without reaching what would have been 20
129 years of service had they he or she not terminated his or her employment) may receive
130 an early retirement benefit at the actuarial equivalent of the amount of such retirement
131 income otherwise payable to them him or her at normal retirement. Or, upon attaining
132 what would have been normal retirement had they he or cho not terminated his or her
133 employment, such police officer may receive their his or her accrued normal retirement
134 benefit. The member may receive the benefits payable in the normal form or any option
135 available under Section 18-170.
136 Section 4. Section 18-174 (f) Miscellaneous of Article III of Chapter 18 of the
137 Boynton Beach Code of Ordinances is hereby amended as follows:
138 Sec. 18-174. Miscellaneous.
139 ***
140 (f) Required distributions.
141 (1 ) In accordance with section 401(a)(9) of the Internal Revenue Code, all benefits
142 under this plan will be distributed, beginning not later than the required beginning date
143 set forth below, over a period not extending beyond the life expectancy of the member or
144 the life expectancy of the member and a beneficiary.
145 (2) Any and all benefit payments shall begin by the later of:
146 a. April 1 of the calendar year following the calendar year of the member's retirement
147 date; or
148 b. April 1 of the calendar year following the calendar year in which the member
149 attains age 73, provided that the member did not reach aqe 72 by December 31,
150 2022, and provided the member did has not reached age 70.5 by December 31 , 2019.
151 (3) If an employee dies before their his or her entire vested interest has been
152 distributed to them him or her, the remaining portion of such interest will be distributed at
153 least as rapidly
154 Section 5. Section 18-175 (e) Deferred retirement option plan of Article III of
155 Chapter 18 of the Boynton Beach Code of Ordinances is hereby amended as follows:
156 Sec. 18-175. Deferred retirement option plan.
157 ***
ORDINANCE 24-013
158 (e) Upon a member's members election to participate in the DROP, they he or she
159 shall cease to be a member and is precluded from accruing any additional benefit under
160 the Pension Fund. For all fund purposes, the member becomes a retirant. The amount of
161 credited service and final average salary freeze as of the date of entry into the DROP.
162 Accumulated, unused sick and vacation leave earned before June 18, 2013, in
163 accordance with the definition of Compensation or Salary in Section 18-165 of this
164 Plan shall be included in the compensation calculation; provided however, that a
165 minimum balance of 120 hours of sick leave and 120 hours of vacation leave shall be
166 maintained by the employee and excluded from this calculation. The retained leave
167 balance, including any additions, shall be distributed at the conclusion of DROP
168 participation and separation from service. DROP participants who remain in the DROP
169 beyond sixty (60) months will make a contribution of 3% during their DROP participation
170 beginning with the sixty-first (61) month of participation.
171 ***
172 (j) Upon termination of employment, participants in the DROP will receive the balance
173 of the DROP account in accordance with the following rules:
174 (1 ) Members may elect to begin to receive payment upon termination of employment
175 or defer payment of DROP until the latest day as provided under sub-subparagraph (3).
176 (2) Payments may be made in the following ways:
177 a. Lump sum. The entire account balance will be paid to or on behalf of the retirant
178 upon approval of the Board of Trustees.
179 b. Installments. The account balance will be paid out to the retirant in five equal
180 annual payments paid over five years, the first payment to be made upon approval of the
181 Board of Trustees.
182 c. Monthly installments. The account balance will be paid out to the retirant on a
183 monthly basis until the account balance is paid out based on actuarial tables provided by
184 the actuary.
185 d. Partial lump sum withdrawals. Part of the account balance will be paid to or on
186 behalf of the retirant upon approval of the Trustees.
187 (3) Any form of payment selected by a police officer must comply with the minimum
188 distribution requirements of section 401(A)(9) of the Internal Revenue Code, and is
189 subject to the requirements of Section 18-174(f), e.g., payments must commence by age
190 73, provided that the member did not reach age 72 by December 31, 2022, and
191 provided the member did has not reached age 70.5 by December 31 , 2019.
192 Section 6. It is the intention of the City Commission of the City of Boynton Beach
193 that the provisions of this Ordinance shall become and be made a part of the Code of
194 Ordinances of the City of Boynton BeachLFlorida. The Sections of this ordinance may be
195 renumbered re-lettered and the word Ordinance may be changed to Section Article or
196 such other word or phrase in order to accomplish such intention.
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ORDINANCE 24-013
197 Section 7. All Ordinances or parts of Ordinances Resolutions or parts of
198 Resolutions in conflict herewith be and the same are hereby repealed to the extent of
199 such conflict. If any clause, section, or other part or application of this Ordinance shall be
200 held by any court of competent jurisdiction to be unconstitutional or invalid, such
201 unconstitutional or invalid part or application shall be considered as eliminated and so not
202 affect the validity of the remaining portions or applications remaining in full force and
203 effect.
204 Section 8. This Ordinance shall become effective immediately upon adoption,
205 provided that the changes approved herein are effective as provided in this Ordinance.
206 FIRST READING THIS /(rDAY OF Ut^) , 2024.
207 SECOND, FINAL READING and PASSAGE THIS ' DAY OF us4"
208 2024.
209 CITY OF BOYNTON BEACH, FLORIDA
210 YES NO
211 Mayor Ty Penserga
212 Vice Mayor— Aimee Kelley
213 Commissioner— Angela Cruz
214 Commissioner— Woodrow L. Hay
215 Commissioner— Thomas Turkin
216
217 VOTE
218 ATTES :
219
220 • ,1,, �- i10
221 Maylee De es'_ MPA, MM Ty Pens- 0111111 " S * zlt
222 City Clerk Mayor
223 (Corporate Sea
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224 ' O�QORATE •• �y I,
•225 f 0:`) �,�co: •� APPROVED AS T FpW:
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227 �� '••.,,,,,.•• P: Shawna G. Lamb
228 , ' ` Fz:=��OCity Attorney
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