§ 35.089. DEFINITIONS.

Actuarial (actuarially) equivalence (equivalent). Equality in value of the aggregate amounts expected to be received under different forms of payment. For the purpose of determining the actuarial equivalent value of an optional benefit form, an interest rate of seven and twenty-five hundredths (7.25) percent per annum compounded annually shall be utilized with the following mortality tables:

(a)

For heathy lives, a fifty (50) percent/fifty (50) percent blend of the following tables:

1.

Male — the RP-2000 mortality table for annuitants with mortality improvements projected to all future years after 2000 using Scale BB, fifty (50) percent annuitant white collar/fifty (50) percent annuitant blue collar.

2.

Female — the RP-2000 mortality table for annuitants with mortality improvements projected to all future years after 2000 using Scale BB, one hundred (100) percent annuitant white collar.

(b)

For disabled lives: a fifty (50) percent/fifty (50) percent blend of the following tables:

1.

Male — the RP-2000 mortality table for disabled annuitants with a four-year set-back and no provision being made for future mortality improvements.

2.

Female — the RP-2000 mortality table for disabled annuitants with a two-year set-forward and no provision being made for future mortality improvements.

For the purpose of converting DROP account balances to an equivalent lifetime annuity as required under Section 415 of the Internal Revenue Code, "actuarial equivalent" shall mean a benefit amount of equal value based upon the applicable mortality table as provided under Section 415 of the Internal Revenue Code and an interest rate of five and one-half (5.5) percent per annum. For other purposes of actuarial equivalent adjustments required under Section 415 of the Internal Revenue Code, the statutory basis shall be used as applicable.

Basic compensation. The compensation actually paid to a participant by the City, including participant contributions picked up by the City in accordance with Section 35.095(A)(1) of this subchapter, and exclusive of overtime pay, Commissions, bonuses, expense allowances, and all other extraordinary compensation. An employee's earnings, compensation or salary contributed as employee-elective salary reductions or deferrals to any salary reduction, deferred compensation, or tax-sheltered annuity program authorized under the Internal Revenue Code shall also be deemed to be compensation the employee would receive if he or she were not participating in such program and shall be treated as compensation for retirement purposes. For any person who first becomes a participant in any plan year beginning on or after January 1, 1996, compensation for any plan year shall not include any amounts in excess of the Internal Revenue Code section 401 (a)(17) limitation, which limitation shall be adjusted as required by federal law for qualified government plans and shall be further adjusted for changes in the cost of living in the manner provided by Internal Revenue Code Section 401(a)(17)(B).

Beginning January 1, 2009, to the extent required by Internal Revenue Code section 414(u)(12), an individual receiving differential wage payments, as defined under Internal Revenue Code section 3401(h)(2), from an employer shall be treated as employed by the City, and the differential wage payment shall be treated as compensation for purposes of applying the limits on annual additions under Internal Revenue Code section 415(c). This provision shall be applied to all similarly situated individuals in a reasonably equivalent manner.

Beneficiary. The person (or persons), designated in writing by a participant and filed with the board, who is entitled to receive benefits hereunder upon the death of the participant. If no such designation has been made in writing by the participant, or if no designated beneficiary is living at the time of the participant's death, the beneficiary is the participant's estate.

City. The City of Delray Beach, Florida.

Credited service. The period of continuous City employment from the employee's most recent date of hire to the date of termination of City employment up to a maximum of thirty (30) years, except as otherwise provided in Section 35.093 or Section 35.094 of this subchapter. Credited service shall include all periods of paid leave, and unpaid leave up to and including thirty (30) days in any calendar year. Unpaid leave in excess of thirty (30) days in any calendar year shall be excluded from credited service, except as otherwise required by the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA), as amended from time to time. The credited service of any participant whose City employment is terminated by reason of the participant's death within thirty (30) days prior to attaining five (5) years of credited service shall be deemed to include the period between the participant's death and the date on which the participant would have attained five (5) years of credited service.

A participant shall receive credited service for all purposes, including vesting, for the years or fractional parts of years that he or she performs "Qualified Military Service" including voluntary or involuntary service in the armed forces of the United States as defined under USERRA, after separation from employment with the City, to perform training or service, provided that:

(a)

The participant returns to employment with the City within one (1) year following the date of military discharge or release from active service.

(b)

The participant is entitled to reemployment under the provisions of USERRA,

(c)

The participant pays to the plan the amount he or she would have contributed to the plan as pick-up contributions if his or her employment would have continued during the period of absence due to Qualified Military Service. Such payment must be made by the earlier of a period equal to three (3) times the period of absence or five (5) years.

(d)

The maximum credit for military service pursuant to this paragraph shall be five (5) years.

(e)

This section is intended to satisfy the minimum requirements of USERRA, as may be amended from time to time. To the extent that this section does not meet the minimum requirements of USERRA, the provisions of USERRA shall govern.

If a participant dies on or after January 1, 2007, while performing Qualified Military Service as defined by USERRA, the participant's beneficiaries shall be entitled to any benefits to which the participant would have been entitled had he or she resumed employment and then died while employed.

Credited service shall also include, for purposes of vesting and determining eligibility for normal retirement only, the years and completed months of a participant's full-time employment with the City as a police officer or firefighter subsequent to membership in this plan. Such service shall not be considered in determining the amount of a participant's benefits under this plan.

Employee. Any regular full-time employee of the City, except as otherwise provided herein.

(1)

The term "employee" shall not include: City Commissioners; the City Manager (and assistants); the City Attorney (and assistants); department heads upon their written election not to participate in the plan; former department heads who have elected not to participate in the plan; any person not classified by the City as a regular, full-time employee; any participant who retires and receives early or normal retirement benefits under the plan, is subsequently re-employed by the City, and elects to continue receiving retirement income during the period of employment pursuant to Section 35.090(E) of this subchapter; and firefighters and police officers employed by the City who participate in another retirement plan.

(2)

Effective January 7, 2003, the term "employee" shall include the City Manager (and assistants) upon their written election to participate in the plan; the City Attorney (and assistants) upon their written election to participate in the plan; department heads; and the Sustainability Officer/Public Information Officer who previously elected not to participate in the plan, upon their written election to participate in the plan. Such written election shall be irrevocable.

Employment. Regular, full-time employment as a City employee.

Final monthly compensation. For participants who retire or terminate employment with five (5) or more years of credited service prior to October 6, 2010, final monthly compensation means the total basic compensation received by a participant during the highest-paid twenty-four (24) consecutive months of the one hundred twenty (120) months immediately preceding the termination of employment, divided by twenty-four (24). For participants who are employed on October 5, 2010, and who retire or terminate employment with five (5) or more years of credited service on or after October 6, 2010, final monthly compensation means the total basic compensation received by a participant during the highest-paid thirty-six (36) consecutive months of the one hundred twenty (120) months immediately preceding the termination of employment, divided by thirty-six (36). Notwithstanding the preceding sentence, in no event shall the average final compensation of any participant who is employed on October 5, 2010, be less than the total basic compensation received by the participant during the highest-paid twenty-four (24) consecutive months of the one hundred twenty (120) months immediately preceding October 5, 2010, divided by twenty-four (24). For participants hired on or after October 6, 2010, final monthly compensation means the highest paid sixty (60) consecutive months of the one hundred twenty (120) months immediately preceding the termination of employment, divided by sixty (60). In computing final monthly compensation for a participant who has returned to active City employment following an approved leave of absence, disability retirement or termination of employment with a vested benefit, the period of leave of absence, disability retirement, or following termination of employment shall be ignored in determining the highest paid twenty-four (24), thirty-six (36) or sixty (60) consecutive months, as applicable, of the one hundred twenty (120) months immediately preceding the subsequent termination of employment. Notwithstanding any other provision of this paragraph, the definition of final monthly compensation contained in the first sentence of this paragraph shall continue to apply to participants who are employed in a position included in a bargaining unit on October 5, 2010, until such time as changes to the definition are implemented through the collective bargaining process.

Normal retirement date. For participants who retire or terminate employment with five (5) or more years of credited service prior to October 6, 2010, and for participants who are employed on October 5,2010, and within ten (10) years of attaining age sixty (60) or thirty (30) years of credited service as of that date, normal retirement date means the first day of the month coincident with or next following the date a participant attains the age of sixty (60) and completes ten (10) years of credited service, or the date on which a participant attains thirty (30) years of credited service, regardless of age, whichever occurs first. Effective October 6, 2010, for participants who are employed on October 5, 2010, and not within ten (10) years of attaining age sixty (60) or thirty (30) years of credited service as of that date, normal retirement date means the first day of the month coincident with or next following the date a participant attains the age of sixty-two (62) and completes ten (10) years of credited service, or the date on which a participant attains thirty (30) years of credited service, regardless of age, whichever occurs first. The normal retirement date for participants hired on or after October 6, 2010, shall be the date a participant attains the age of sixty-five (65) and completes ten (10) years of credited service. A participant who terminates employment with five (5) or more years of credited service prior to October 6, 2010, does not receive a return of participant contributions in accordance with Section 35.095(A), and is subsequently reemployed in a position covered by this plan, shall be entitled to receive a benefit in two (2) parts as follows: the vested accrued benefit based on credited service prior to October 6, 2010, payable on the date the participant attains the age of sixty (60) and completes ten (10) years of credited service; and the vested accrued benefit based on credited service on or after October 6, 2010, payable on the date the participant attains the age of sixty-five (65) and completes ten (10) years of credited service. A participant may continue in the employ of the City and continue to participate in the plan beyond the normal retirement date. Notwithstanding any other provision of this paragraph, the definition of normal retirement date contained in the first sentence of this paragraph shall continue to apply to participants who are employed in a position included in a bargaining unit on October 5, 2010, until such time as changes to the definition are implemented through the collective bargaining process.

Participant. An employee who is eligible to participate and who actually participates in the plan.

Retire (retired). To separate (be separated) from City employment with eligibility for immediate receipt of benefits under the plan and commence receipt of (be receiving) benefits.

Retirement. Either termination of City employment with immediate entitlement to receive normal, early or disability retirement income under the plan, or entry into the Deferred Retirement Option Plan ("DROP") with immediate entitlement to receive normal retirement income from the general employees retirement plan to the DROP.

Retirement Committee. A five (5) member committee appointed by the City Commission, responsible for the administration of the plan as provided herein (hereinafter "the Committee").

Spouse. The legal spouse, as permitted under applicable law, of an employee at the time of the employee's retirement or death, whichever is applicable.

Terminated participant. A plan participant with at least five (5) years of credited service whose City employment is terminated for any reason other than death, early retirement or disability retirement prior to the normal retirement date.

(Ord. No. 78-93, 12/7/93; Am. Ord. No. 96-94, passed 12/13/94; Am. Ord. No. 41-95, passed 8/8/95; Am. Ord. No. 12-96, passed 2/20/96; Am. Ord. No. 30-99, passed 8/17/99; Ord. No. 56-02, § 1, passed 1/7/03; Ord. No. 57-02, § 1, passed 1/7/03; Ord. No. 19-05, § 1, passed 4/5/05; Ord. No. 30-05, § 1, passed 5/17/05; Ord. No. 33-10, § 1, passed 10/5/10; Ord. No. 31-11, § 1, passed 9/20/11; Ord. No. 28-12, § 1, passed 9/20/12; Ord. No. 45-17 , § 1, passed 12/5/17)