§ 62-134. Contributions.

(a)

City contributions.

(1)

Each payroll period, the city will contribute to the trust a percentage of the earnings paid by the city during the payroll period to each employee who was an eligible participant on the first day of the payroll period for which the contribution is made as follows:

a.

General rule:

1.

For employees hired on or prior to December 31, 2012 whose positions are either not included in a collective bargaining unit or included in the professional managers and supervisors association ("PMSA") collective bargaining unit, the city will continue to contribute to the trust an amount equal to 9.5 percent of earnings.

2.

For employees hired on or after January 1, 2013 whose positions are either not included in a collective bargaining unit or included in the professional managers and supervisors association ("PMSA") collective bargaining unit, the city will contribute to the trust an amount equal to 6.5 percent of earnings. Starting the first full pay period of the sixth year of employment, the city shall increase its share of the employer contribution to 7.5 percent of gross pensionable wages.

b.

For current participants of the city's defined benefit retirement system, codified at section 62-176 et seq., whose benefits have not been frozen under said system:

1.

For an employee whose position is not included in a collective bargaining unit or whose position is included in the PMSA collective bargaining unit, the city will contribute to the trust an amount equal to two percent of earnings.

2.

For an employee whose position is included in a collective bargaining unit, other than the PMSA collective bargaining unit, the city will not make any contribution to the trust.

c.

Contributions for mayor. Notwithstanding the foregoing, each payroll period, the city will contribute to the trust an amount equal to 15.5 percent of earnings for the person then serving as mayor.

(2)

A participant shall not be eligible for a city contribution under section 62-134(a) until the first payroll period after which occurs the later of (a) the date on which the participant successfully completes his or her initial probationary period (or successfully completes the first six months of his or her probationary period if the participant's initial probationary period is in excess of six months) or (b) the date specified in any collective bargaining agreement covering the participant's employment with the city. City contributions shall be accounted for separately in the participant's city contribution account. If a participant for whom city contributions are made pursuant to section 62-134(a) fails to successfully complete his or her initial probationary period, then the participant shall forfeit his or her city contribution account upon termination of employment with the city.

(b)

Mandatory participant contributions. For employees hired on or prior to December 31, 2012, each employee who is not currently a participant in the defined benefit retirement system, codified at section 62-176 et seq., as a condition to his or her participation in the plan, shall contribute to the trust 7.5 percent of the earnings paid by the city to the participant, commencing on the first day of the first payroll period after which occurs the later of (a) the date on which the participant successfully completes his or her initial probationary period (or successfully completes the first six months of his or her probationary period if the participant's initial probationary period is in excess of six months), or (b) the date specified in any collective bargaining agreement covering the participant's employment with the city. Once an employee becomes a participant, he shall not thereafter have the right to discontinue or vary the rate or such mandatory participant contributions. Such contributions shall be accounted for separately in his participant contribution account. The mandatory participant contributions shall be collected by the city in accordance with code section 414(h)(2). Any contribution collected under this section shall be treated as city contribution in determining the tax treatment under the code, and shall not be included as gross income of the participant until it is distributed. Each employee who is a current participant in the city's defined benefit retirement system, codified at section 62-176 et seq., shall not have a mandatory contribution to the trust.

Each employee hired on or after January 1, 2013, as a condition to his or her participation in the plan, shall begin making contributions of 7.5 percent of their gross pensionable wages to the City of West Palm Beach defined contribution retirement plan beginning with their first payroll period.

(c)

Limitation on annual additions. Notwithstanding anything in this plan to the contrary, contributions to a participant's account for any plan year shall not exceed the limits for that plan year as established in section 415 of the Code, as adjusted for increase in the cost of living under section 415(d) of the Code.

(d)

Military service. Notwithstanding any provision of the plan to the contrary, contributions and benefits with respect to a participant's qualified service in the uniformed services of the United States will be provided in accordance with section 414(u) of the Code. With respect to section 62-141, participants who become disabled while on active duty military service shall be treated as though re-employed as an employee the day before the participant became disabled and then became disabled from a non-duty disability after employed. Additionally, participants who die while on active duty military service shall be treated as though re-employed as an employee the day before the participant died, and then died a non-duty death while employed.

(e)

Non-forfeitable interest. A participant shall, at all times, have a 100 percent non-forfeitable interest in all of his accounts under the plan, except as provided in section 62-134(a)(2).

(f)

Portability of benefits. Effective January 1, 2002, the plan will accept participant rollover contributions and direct rollovers of distributions made after December 31, 2001, that are eligible for rollover in accordance with sections 402(c), 403(a)(4), 403(b)(8), 408(d)(3)(A)(ii) or 457(e)(16) of the code from the following types of plans:

(1)

Qualified plans described in section 401(a) or 403(a) of the code;

(2)

Annuity contracts described in section 403(b) of the code;

(3)

Eligible plans under section 457(b) of the code which are maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state; and

(4)

Individual retirement accounts or annuities described in section 408(a) or 408(b) of the code (including SEPs, and SIMPLE IRAs after two years of participating in the SIMPLE IRA).

The amount distributed from such plan must be rolled over to this plan no later than the 60th day after distribution was made from the plan, unless otherwise waiver by the IRS pursuant to section 402(c)(3) of the code.

(g)

Rollovers to the plan.

(1)

Amounts that are considered eligible rollover distributions as defined in section 402(c)(4) of the code may be rolled over by an eligible employee, whether or not a participant at the time, from an eligible retirement plan, as defined in subsection (2) below. A participant who is a surviving spousal beneficiary or an alternate payee (who is a spouse or former spouse) of another eligible retirement plan may roll over eligible rollover distributions from such eligible retirement plan as further defined in subsection (2). Such amounts shall be allocated to the participant's rollover contributions account.

(2)

For purposes of this section, the term "eligible retirement plan" means any other plan under section 401(a) of the code, a plan under section 457(b) of the code maintained by an employer as defined in section 457(e)(1)(A) of the code, an annuity plan under section 403(a) of the code, a plan under section 403(b) of the code, an individual retirement account as described in section 408(a) of the code, and an individual retirement annuity as described in section 408(b) of the code, provided that after-tax amounts may only be rolled into the plan from another plan that is subject to section 401(a) of the code. For purposes of this section, the term "amounts rolled over from an eligible retirement plan" means:

A.

Amounts rolled to the plan directly from another eligible retirement plan on behalf of an eligible employee (or participant, surviving spouse or alternate payee, as applicable); and

B.

Eligible rollover distributions as defined in section 402(c)(4) of the code received by an eligible employee (or participant, surviving spouse or alternate payee, as applicable) from another eligible retirement plan that are rolled over by the him to the plan within 60 days, following his receipt thereof.

(h)

Return of city contributions. Any contribution made by the city because of a mistake of fact must be returned to the city within one year of the date of contribution.

(Ord. No. 4306-10, § 1, 2-22-2011; Ord. No. 4443-12, § 3, 1-7-2013)