§ 33.60. DEFINITIONS.

For the purpose of this subchapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.

Actuarial equivalence or Actuarially equivalent. This term shall mean that any benefit payable under the terms of the pension fund in a form other than the normal retirement pension shall have the same actuarial present value on the date payment commences as the normal retirement pension. For purposes of establishing the actuarial present value of any form of payment, all future payments shall be discounted for interest and mortality by using seven (7) percent interest and the 1983 Group Annuity Mortality Table for Males, with ages set ahead five (5) years in the case of disability retirees.

Agreement. The written instrument setting forth the provisions of the retirement system.

Average monthly earnings.

(1)

One thirty-sixth ( 1/36 )of the arithmetical average for the highest consecutive thirty-six-month period preceding the actual retirement or termination of a member; provided, however, the benefit derived shall not be less than the benefit that would have been paid based on a definition of average monthly earnings of one twenty-fourth ( 1/24 ) of the arithmetical average for the highest consecutive twenty-four-month period, as calculated prior to. March 11, 2004.

(2)

Notwithstanding paragraph (1) above, for members hired after July 7, 2015, average monthly earnings means one-sixtieth ( 1/60 ) of the arithmetical average for the highest five (5) years of the last ten (10) years preceding the actual retirement or termination of the member.

(3)

In addition to other applicable limitations set forth in the plan, and notwithstanding any other provisions of the plan to the contrary, for the plan years beginning on or after January 1, 1996, the annual compensation of each member taken into account under the plan shall not exceed the annual compensation limit of Section 401(a)(17)(B) of the Internal Revenue Code, as amended for cost of living increases, which is incorporated herein by reference.

Beneficiary. The person entitled to receive benefits hereunder at the death of a member who has been designated in writing by the member and filed with the Board of Trustees. If no designation is in effect at the time of death of the member, or if no person so designated is living at that time, the beneficiary shall be the estate of the member.

Board. The Board of Trustees which shall administer and manage the system herein provided and serve as Trustee of the Trust Fund.

City. The City of Delray Beach, Florida.

Continuous service.

(1)

Uninterrupted service by a member (expressed as years and completed months) from the date he last entered employment as an employee until the date his employment is terminated by death, disability, retirement, resignation or discharge.

(2)

However, the continuous service of any member shall not be deemed to be interrupted by:

(a)

Any authorized leave of absence or vacation, provided all members similarly situated in similar circumstances shall be treated alike pursuant to uniform, nondiscriminatory rules. No credit for benefit eligibility for computation purposes under the system shall be allowed for any such period of leave of absence.

(b)

Any service, whether voluntary or involuntary, in the armed forces of the United States, provided the member is legally entitled to reemployment under the provisions of the Uniformed Services Employment and Reemployment Rights Act of 1994 and any amendments thereto, or any law applicable to such reemployment, and provided that a member shall apply for reemployment within three (3) months following termination of such service, or as otherwise allowed by the Uniformed Services Employment and Reemployment Rights Act of 1994, and any amendments thereto. Nothing aforementioned shall serve to reduce the accrued accredited services of the members on the effective date of the plan.

(3)

Continuous service shall also include, for reemployed members, those years and completed months for which the reemployed member had withdrawn his contributions to the Trust Fund, where the reemployed member repays into the Fund the contributions he had withdrawn, with interest based upon the plan's annual total rate of return for the pension funds, as computed by the actuaries or the City, for those years and completed months, within ninety (90) days after his reemployment date. A reemployed member may also repay only a portion of the withdrawn funds with interest and receive a like credit for continuous service; however, repayments, whether partial or total, shall only be permitted once within the ninety-day limit.

(4)

For members who are employed by the City on or after the effective date of this Section who have five (5) or more years of continuous service based on City employment, continuous service shall also include up to three (3) years of active service in the U.S. armed forces or full-time employment as a police officer with another governmental entity prior to employment by the City, purchased by the member in accordance with this paragraph; provided the member has not received and will not receive a benefit from another retirement plan based on such prior employment. Such a member may purchase continuous service under the plan, in years and tenths of a year, for all or a portion of the period of their active service in the U.S. armed forces or full-time employment as a police officer with another governmental entity prior to employment by the City, by paying into the plan the full actuarial cost of such continuous service, as determined by the plan actuary. Such payment may be made at any time after employment by the City, and must be made in full prior to entering the DROP or separation from City employment, whichever occurs earlier. In the event full payment is not made prior to such date, the member shall receive only the amount of continuous service, as determined by the actuary, for which the payment made, excluding interest, is the full actuarial cost. In the event a member makes payment for additional continuous service in accordance with this paragraph prior to attaining five (5) years of continuous service based on City employment, and separates from City employment before attaining five (5) years of continuous service based on City employment, such member shall receive a full refund of all payments made, plus interest based on the assumed rate of return of the plan. A member purchasing such additional continuous service must pay the full cost of any actuarial calculations required. Payment for the purchase of continuous service pursuant to this paragraph may be made using any one or a combination of the following options:

(a)

[Cash Payment.] Cash lump sum payment.

(b)

[Direct Transfer; Rollover.] Direct transfer or rollover of an eligible rollover distribution from a qualified plan, in accordance with Section 33.70.

(c)

Time Payment Plan. Under this option the member may elect to pay any remaining balance due for the purchase of continuous service through payroll deduction on a time payment plan over a period of not more than five (5) years, as approved by the Retirement Committee. Interest on such payments shall be paid based on the assumed rate of return of the plan. Payments deducted from an employee's pay shall be designated as employer contributions pursuant to Section 414(h) of the Internal Revenue Code.

Earnings. Prior to October 1, 2006, earnings shall mean base wages paid to a member, including state education compensation, police basic education and police career education compensation, but excluding overtime, bonuses and any other payments. Effective October 1, 2006, earnings shall mean base wages paid to the member including state education compensation, police basic education, police career education compensation and up to twenty-five (25) hours of overtime compensation per fiscal year, but excluding bonuses and any other payments. Effective July 7, 2015, earnings for members who are employed and have less than ten (10) years of continuous service on July 7, 2015, shall mean base wages paid to the member including state education compensation, police basic education, police career education compensation and up to twenty-five (25) hours per fiscal year of overtime compensation earned through July 7, 2015, but excluding overtime compensation earned after July 7, 2015, bonuses and any other payments. Earnings for members hired after July 7, 2015 shall mean basic wages paid to the member including state education compensation, police basic education, police career education compensation, but excluding overtime compensation, bonuses and any other payments.

Effective date. April 22, 1974.

Eligible retired public safety officer. An member who, by reason of disability or attainment of normal retirement age, is separated from service as a public safety officer.

Employee. All employees of the City classified as full-time, sworn police officers, as defined in F.S. Section 185.02, or classified as police officers in training, but shall exclude all civilian members of the Police Department and the Police Chief upon his or her written election not to participate in the system.

Fund. The Trust Fund established herein as part of the system.

Member. A member is any employee who satisfies the conditions of eligibility set forth in Section 33.61.

Public safety officer. The term "public safety officer" shall have the same meaning given such term by section 1204(9)(A) of the Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C. 3796b(9)(A)).

Qualified Health Insurance Premiums. Premiums for coverage for the eligible retired public safety officer, his spouse, and dependents (as defined in Section 152 of the Internal Revenue Code), by an accident or health plan or qualified long-term care insurance contract (as defined in Section 7702B(b) of the Internal Revenue Code).

Qualified Military Service. Any service in the uniformed service (as defined in chapter 43 of title 38, United States Code) by any individual if such individual is entitled to reemployment rights under such chapter with respect to such service (Section 414(u)(5) of the Internal Revenue Code).

Spouse. The lawful wife or husband of a member at time of retirement or death.

System. The City Police Officers' Retirement System as contained herein and all amendments thereto.

USERRA. Uniformed Services Employment and Reemployment Rights Act (P.L. 103-353).

(Code 1980, § 18-46; Am. Ord. No. 83-79, passed 12/10/79; Am. Ord. No. 38-83, passed 6/14/83; Am. Ord. No. 46-87, passed 5/26/87; Am. Ord. No. 53-89, passed 9/12/89; Am. Ord. No. 36-91, passed 4/9/91; Am. Ord. No. 50-95, passed 9/19/95; Am. Ord. No. 29-99, passed 8/17/99; Ord. No. 26-00, § 1, passed 9/26/00; Ord. No. 46-02, § 1, passed 10/1/02; Ord. No. 58-02, § 1, passed 1/7/03; Ord. No. 17-04, § 1, passed 3/11/04; Ord. No. 16-12, § 1, passed 6/19/12; Ord. No. 10-15 , § 2, passed 7/7/15; Ord. No. 06-16 , § 1, passed 2/16/16; Ord. No. 17-16 , § 2, passed 10/4/16)