§ 33.58. SEPARATE RETIREMENT SYSTEMS ESTABLISHED FOR POLICE OFFICERS AND FIREFIGHTERS.

Notwithstanding any other provision of this Chapter:

(A)

Effective October 1, 2016 separate retirement systems for police officers and firefighters shall be established as provided in Sections 33.59 through 33.72 for police officers (to be known as the Police Officers' Retirement System), and Sections 33.73 through 33.91 for firefighters (to be known as the Firefighters' Retirement System); and the existing City of Delray Beach Police and Firefighters Retirement System shall be replaced by the Police Officers' Retirement System and the Firefighters' Retirement System, as provided herein.

(B)

Effective October 1, 2016, all assets and liabilities of the City of Delray Beach Police and Firefighters Retirement System attributable to active, terminated and retired police officer

members and their beneficiaries, shall be transferred to and become assets and liabilities of the Police Officers' Retirement System created by Section 33.59, to be invested and utilized as provided in Sections 33.60 through 33.72. Effective October 1, 2016, all active, terminated and retired police officer members of the City of Delray Beach Police and Firefighters Retirement System and their beneficiaries shall become members and beneficiaries of the Police Officers' Retirement System, and shall be entitled to benefits as provided in Sections 33.60 through 33.72.

(C)

Effective October 1, 2016, all assets and liabilities of the City of Delray Beach Police and Firefighters Retirement System attributable to active, terminated and retired firefighter members and their beneficiaries, shall be transferred to and become assets and liabilities of the Firefighters' Retirement System created by Section 33.73, to be invested and utilized as provided in Sections 33.74 through 33.91. Effective October 1, 2016, all active, terminated and retired firefighter members of the City of Delray Beach Police and Firefighters Retirement System and their beneficiaries shall become members and beneficiaries of the Firefighters' Retirement System, and shall be entitled to benefits as provided in Sections 33.74 through 33.91.

(D)

In determining the assets and liabilities of the City of Delray Beach Police and Firefighters Retirement System attributable to police officers and firefighters as provided in subsections (B) and (C) above, the actuary shall utilize one of the following methods: (1) the ratio of the present value of accrued benefits for each of the police officer and firefighter members (and beneficiaries of such members, if applicable) to the total present value of accrued benefits; (2) a methodology based on the funded ratio of the Police Officers' Retirement System and Firefighters' Retirement System, which shall be the same as the funded ratio of the City of Delray Beach Police and Firefighters Retirement System on the date of the most recent actuarial valuation; or (3) such other method as may be approved by the Board of Trustees of the City of Delray Beach Police and Firefighters Retirement System.

(E)

Effective October 1, 2016, all existing contracts of the City of Delray Beach Police and Firefighters Retirement System shall become contracts of the Police Officers' Retirement System and Firefighters' Retirement System, and the Board of Trustees of each system shall work with each contractor to revise the contractor's fees and other contract terms, as appropriate, to reflect the assets of each system and any other changes in the scope of the contractor's duties resulting from the change in the structure of the plans. All investment holdings of the City of Delray Beach Police and Firefighters Retirement System shall be divided, to the extent legally permissible, in the same proportion as the assets attributable to police officers and firefighters as provided in subsection (D) above, and shall become holdings of the Police Officers' Retirement System and Firefighters' Retirement System, respectively.

(F)

Effective October 1, 2016, the plan administrator for the City of Delray Beach Police and Firefighters Retirement System shall become the plan administrator for the Police Officers' Retirement System and the Firefighters' Retirement System, and shall work with the Board of Trustees for each system to implement and facilitate the provisions of this section 33.58 and the other changes in this Chapter, and shall continue to act as plan administrator until otherwise determined by each Board of Trustees. During the period prior to October 1, 2016, the Board of Trustees of the City of Delray Beach Police and Firefighters Retirement System shall take all necessary and appropriate action to implement and facilitate the provisions of this Section 33.58 and the other changes in this Chapter, and to ensure that the benefits due retired plan members and beneficiaries are not interrupted and that any benefit applications submitted by plan members are processed in a timely manner. Commencing October 1, 2016, the Boards of trustees for the Police Officers' Retirement System and Firefighters' Retirement System shall take all necessary and appropriate action to implement and facilitate the provisions of this Section 33.58 and the other changes in this Chapter, and 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.

(G)

The Board of Trustees for the City of Delray Beach Police and Firefighters Retirement System in effect prior to October 1, 2016, may continue to operate in a ministerial capacity on and after that date through November 30, 2016, for the sole purpose of facilitating the separation of the police officers' and firefighters' retirement systems, allocating and transferring the assets and liabilities to the Police Officers' Retirement System and the Firefighters' Retirement System, and otherwise implementing the provisions of this Section 33.58 and the other changes in this Chapter. However, if all assets and liabilities of the City of Delray Beach Police and Firefighters Retirement System are transferred to the police officers' and firefighters' retirement systems sooner than November 30, 2016, the Board of Trustees for the City of Delray Beach Police and Firefighters Retirement System shall cease to exist on the date that all assets and liabilities have been transferred, and the terms of the trustees of that system shall expire on the same date.

(Ord. No. 17-16 , § 2, passed 10/4/16)