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CITY OF RIVIERA BEACH CITY COUNCIL AGENDA ITEM SUMMARY

Meeting Date:	1/20/2016
Agenda Category:	ORDINANCE ON FIRST READING

Subject:

AN ORDINANCE OF THE CITY OF RIVIERA BEACH, PALM BEACH COUNTY, FLORIDA, RESTATING ARTICLE II ENTITLED “GENERAL EMPLOYEES”, CHAPTER 14 ENTITLED “PENSIONS AND RETIREMENT PROGRAMS”; PROVIDING FOR SIMPLIFIED, UPDATED, AND MODERNIZED LANGUAGE; PROVIDING A LIMITATION ON NUMBER OF POST-RETIREMENT BENEFICIARY CHANGES; REMOVING AGE SEVENTY MANDATORY RETIREMENT AGE; CLARIFYING OPTIONAL FORMS OF RETIREMENT; ACKNOWLEDGING TRUSTEES’ DUTY TO ATTEND PENSION SCHOOLS AND OTHER EDUCATIONAL FUNCTIONS; REMOVING REQUIREMENT THAT MEMBERS ENTERING DROP MUST ATTEND A CITY-SPONSORED EDUCATION PROGRAM; PROVIDING THAT MEMBERS ENTERING DROP ARE ENCOURAGED TO ATTEND CITY-SPONSORED EDUCATION PROGRAM; PROVIDING FOR IRS LANGUAGE CONCERNING PREVIOUS EMPLOYEES; PROVIDING FOR CONFLICTS, SEVERABILITY AND CODIFICATION; AND PROVIDING AN EFFECTIVE DATE.

Recommendation/Motion:

It is recommended that the ordinance be passed on first reading.

Originating Dept	City Attorney's Office	Costs
User Dept.	All Departments.	Funding Source
Advertised	No	Budget Account Number
Date
Paper
Affected Parties	Not Required

Background/Summary:

BACKGROUND:

Some time ago, the Board for General Employees’ Pension Plan submitted a proposed “ restatement” ordinance of the Plan to simplify, modernize, and clarify several sections of the ordinance. City staff felt that it was prudent to dispose of the Florida Retirement System (FRS) ordinances before making any significant changes to the Plan. After the council enacted the final FRS ordinance in June 2015, city staff met with the pension attorney, Ken Harrison, to discuss each change proposed. Although the Plan is now closed to new members, the Plan will continue in effect for the retirees and current employees in the Plan. In the future, city staff may make recommendations concerning the composition of the pension board since the Plan is now closed to new members. In the meantime, it is recommended that the ordinance be passed with the underlined or stricken through revisions.

SUMMARY:

After months of working together and thorough review of the Plan, the fifty plus page document is proposed for your consideration. In addition to clean-up language, some of the substantive changes include:

· Clarifying and removing restrictions for military personnel to purchase past service under the definition of “continuous service”.

· Clarifying and refining the definition of “Earnings”

· Removing the mandatory retirement of age of 70 to comply with state and federal laws.

· Limiting post-retirement beneficiary changes to two times without board approval.

· Clarifying the optional forms of benefits so that they are more easily understood.

· Clarifying that employees may only include sick and vacation leave in the pension in accordance with Florida statute section 112.66(11).

· Removing the mandatory educational conditions for participating in DROP.

· Adds language to provide certain survivor benefits for those who die in military service.

· Adding language that the board should have written policies for expenses and travel.

· Clarifying that board members must attend educational functions and focusing on attending classes in the State of Florida.

· Adding language to clarify that the city could rehire past employees so long as the city is in compliance with IRS regulations.

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III. Review Comments

A. Finance Department Comments:

B. Purchasing/Intergovernmental Relations/Grants Comments:

C. Department Director Review:

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ATTACHMENTS:
File Name	Description	Upload Date	Type
011316_RIVB_General_Employees_Pension_Plan_Revised_Restatement_Final_pdf_1_8_16.pdf	Pension Restatement Ordinance	1/14/2016	Ordinance

REVIEWERS:
Department	Reviewer	Action	Date
Attorney	Answerer	Approved	1/11/2016 - 1:31 PM
Finance	sherman, randy	Rejected	1/12/2016 - 9:09 AM
Human Resources	Answerer	Approved	1/13/2016 - 3:29 PM
Finance	sherman, randy	Approved	1/13/2016 - 4:27 PM
City Clerk	Robinson, Claudene	Approved	1/13/2016 - 4:41 PM
City Manager	Answerer	Approved	1/13/2016 - 4:48 PM