HomeMy WebLinkAboutOrdinance_13-08_10/09/2008ORDINANCE NO. 13-08
AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF
TEQUESTA, PALM BEACH COUNTY, FLORIDA, AMENDING EXHIBIT
EXHIBIT "B" OF SECTION 2-30 OF THE CODE OF ORDINANCES,
VILLAGE OF TEQUESTA, FLORIDA, RELATING TO THE
EMPLOYEES' PENSION TRUST FUNDS; TO PROVIDE FOR
DECREASE IN THE EMPLOYEE CONTRIBUTION OF FIREFIGHTERS
UNDER CERTAIN CIRCUMSTANCES; AND TO CORRECT A
SCRIVENER'S ERROR IN THE NUMBERING FOR THE SECTION ON
FORFEITURES; PROVIDING FOR REPEAL OF ORDINANCES IN
CONFLICT; PROVIDING FOR CODIFICATION; PROVIDING- AN
EFFECTIVE DATE; AND FOR OTHER PURPOSES.
BE IT ORDAINED BY THE VILLAGE COUNCIL OF THE VILLAGE OF
TEQUESTA, PALM BEACH COUNTY, FLORIDA, AS FOLLOWS:
Section 1. Those portions of Exhibit "B" to Section 2-30, Code of Ordinances,
Village of Tequesta, Palm Beach County, Florida, as deleted and shown by strike-outs
and additions shown by underlining on Exhibits "B" attached hereto and made a part
hereof, are passed and adopted as amendments to such Exhibits and section.
Section 2. Severability. If any provision of this Ordinance or the application
thereof is held invalid, such invalidity shall not affect the other provisions or applications
of this Ordinance which can be given effect without the invalid provisions or
applications, and to this end, the provisions of the Ordinance are hereby declared
severable.
Section 3. Repeal of Ordinances in Conflict. All other Ordinances of the Village of
Tequesta, Florida, or parts thereof which conflict with this or any part of this Ordinance
are hereby repealed.
Section 4. Codification. This Ordinance shall be codified and made a part of the
official Code of Ordinances of the Village of Tequesta.
Section 5. Effective Date. This Ordinance shall take effect upon passage.
Upon First Reading this 11th day of September 2008, the foregoing Ordinance was
offered by Council Member Paterno who moved its adoption. The motion was
seconded by Council Member Arena and upon being put to a vote, the vote was as
follows:
Mayor Pat Watkins
Vice-Mayor Calvin Turnquest
Council Member Vince Arena
Council Member Tom Paterno
Council Member Jim Humpage
For Adoption Against Adoption
X
X
X
X
X
Upon Second Reading this 9th day of October 2008, the foregoing Ordinance was
offered by Council Member Paterno who moved its adoption. The motion was
seconded by Council Member Humpage and upon being put to a vote, the vote was as
follows:
Mayor Pat Watkins
Vice-Mayor Calvin Turnquest
Council Member Vince Arena
Council Member Tom Paterno
Council Member Jim Humpage
For Adoption Against Adoption
X
X
X
X
X
The Mayor thereupon declared the Ordinance duly passed and adopted this 9T" day of
October, 2008.
MAYOR OF TEQUESTA
ATTEST:
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Lori McWilliams, CMC
Village Clerk
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~~~~~~~~,,, Pat Watkins
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EXHIBIT "B"
VILLAGE OF TEQUESTA
PUBLIC SAFETY OFFICERS' PENSION TRUST FUND
Section 1. Creation of Pension Trust Fund.
The Village of Tequesta hereby creates and continues the Village of Tequesta
Public Safety Officers' Pension Trust Fund for the purpose of providing retirement,
death and disability benefits to Police Officers and Firefighters who are Members of this
Fund, certain former Village Police Officers and Firefighters and survivor benefits to
beneficiaries.
Section 2. Definitions.
1. Statement of Definitions. As used herein, unless otherwise defined or
required by the context, the following words and phrases shall have the meaning
indicated:
Accumulated Contributions means a Member's own contributions without
interest.
Actuarial Equivalent means a benefit or amount of equal value, based upon the
mortality tables utilized by the Board's actuary or actuaries, and an 8% rate of interest.
Average Final Compensation shall mean one-twelfth (1/12) of the average salary
of the five (5) best years of the last ten (10) years of credited service prior to retirement,
termination, or death or the career average as a full time Firefighter or Police Officer,
whichever is greater. A year shall be twelve (12) consecutive months.
Beneficiary means the person or persons entitled to receive benefits hereunder
at the death of a Member who has or have been designated in writing by the Member
and filed with the Board. If no designation is in effect, or if no person so designated is
living, at the time of death of the Member, the beneficiary shall be the estate of the
Member.
Board or Board of Trustees mean the Public Safety Board of Trustees, which
shall administer and manage the System herein provided and serve as Trustees of the
Fund for the benefit of Village Police Officers and Firefighters and their beneficiaries.
Chapters means Chapters 175 and 185 of the Florida Statutes as amended from
time to time.
August 5, 2008
Code means the Internal Revenue Code of 1986, as amended from time to time.
Credited Service means the total number of years and fractional parts of years of
service as a Police Officer, or Firefighter who makes member contributions to the Plan,
omitting intervening years or fractional parts of years when such Police Officer or
Firefighter may not have been employed by the Village of Tequesta. A plan member
may voluntarily leave his/her contribution in the Fund for a period of five (5) years after
leaving the employ of the Village of Tequesta pending the possibility of being rehired in
a full time position by the Village of Tequesta without losing credit for the time of active
participation as a plan member. Should the employee not be re-employed with the
Village of Tequesta in a full time capacity within five (5) years, his/her contributions shall
be returned to him/her without interest. Should a Police Officer or Firefighter be
subsequently re-employed as such, he or she may re-purchase his or her years of credit
or fractional parts of years of credit by reimbursing such returned contribution to the
Fund, with interest.
The years or fractional parts of years that a Firefighter, or Police Officer serves in
the military service of the Armed Forces of the United States or the United States
Merchant Marine, voluntarily, upon being granted leave by the Village of Tequesta and
separation from employment as a Village of Tequesta plan member, shall be added to
his/her years of credited service for all purposes including vesting, provided that:
A. The Firefighter or Police Officer must return to his/her full time
employment with the Fire Department or Police Department within one (1)
year from the date of his/her military discharge.
B. The maximum credit for military service shall be five (5) years.
Effective Date means the date on which this Ordinance becomes effective.
Fire Department means the Tequesta Fire Department.
Firefighter means an actively employed full-time person employed by the Fire
Department, including his/her initial probationary employment period, who is certified or
required to be certified as a Firefighter as a condition of employment in accordance with
the provisions of 633.35 Florida Statutes, including paramedic, and whose duty is to
extinguish fires, to protect life and to protect property .
Fund means the Trust Fund established herein as part of the System.
Member means an actively employed Police Officer or Firefighter that fulfills the
applicable prescribed membership requirements.
Police Department means the Tequesta Police Department.
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August 5, 2008
Police Officer means any person who is elected, appointed, or employed full time
by the Village, who is certified or required to be certified as a law enforcement officer in
compliance with Florida Statute 943.1395, who is vested with authority to bear arms and
make arrests, and whose primary responsibility is the prevention and detection of crime
or the enforcement of the penal, criminal, traffic or highway laws of the state. This
definition includes all certified supervisory and command personnel whose duties
include, in whole or in part, the supervision, training, guidance, and management
responsibilities of full-time law enforcement officers, part-time law enforcement officers
or auxiliary law enforcement officers as the same are defined in F.S. 943.10(6) and (8)
respectively. Police Officer also shall include a public safety officer who is responsible
for performing both police and fire services.
Public Safety Board means the Public Safety Board of Trustees provided
hereunder to administer and manage Funds for the benefit of Public Safety Officers.
Public Safety Officers means Firefighters and/or Police Officers.
Salary means the total cash remuneration paid to a police officer or firefighter for
services rendered.
Spouse means the lawful wife or husband of a plan member at the time of pre-
retirement, death or retirement.
Statement of Investment Policy means the written investment policy adopted by
the Board pursuant to this Ordinance and F.S. 112.661, et seq., which shall apply to
funds under the control of each board.
System means the Village of Tequesta Public Safety Officers' Pension Trust
Fund as contained herein and all amendments thereto.
Vested deferred retirement means a Member who leaves the employ of the
Village with 6 or more years of credited service and who is not eligible for any
retirement benefit. This benefit is payable at early or normal retirement.
Village means the Village of Tequesta, Florida.
2. Masculine Gender. The masculine gender, where used herein, unless the
context specifically requires otherwise, shall include both the feminine and masculine
genders.
Section 3. Membershiu.
Condition of Eligibility
August 5, 2008
All full time Police Officers and Firefighters as of the effective date,
and all future new full time Police Officers and Firefighters shall become
Members of this System as a condition of employment, except that
participation in this system is optional for the Police Chief and the Fire
Chief.
2. Membership
Each full time Police Officer or Firefighter shall complete a form
prescribed by the Board which may include the following information:
A. Acceptance of the terms and conditions of the Retirement
System, and,
B. Designation of a beneficiary or beneficiaries, and,
C. A certified statement as to prior medical and/or psychological
history.
3. Change in Designation of Beneficiary
A member may from time to time change his/her designated
beneficiary by written notice to the Board upon forms provided by the
Board. Upon such change, the rights of all previously designated
beneficiaries to receive any benefits under the System shall cease.
Section 4. Board of Trustees.
1. The sole and exclusive administration of and responsibility for the proper
operation of the retirement system and for making effective the provisions of this
ordinance is hereby vested in a Board of Trustees.
The Public Safety Board shall consist of five (5) Trustees, two (2) of whom,
unless otherwise prohibited by law, shall be legal residents of the Village, who shall be
appointed by the Tequesta Village Council, and one (1) of whom shall be a full-time
Police Officer member of the System and one (1) of whom shall be a full-time Firefighter
member of the System. The fifth (5th) Trustee shall be selected by a majority vote of the
other four (4) Trustees. Each person seeking to fill a designated employee
representative Board member seat shall be separately elected by their full-time co-
workers who are members of the System in the applicable employee representative
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August 5, 2008
group, e.g. Police Officer or Firefighter in which they are employed and shall be elected
by a majority of the full-time employees who are Members of the System within the
applicable employee representative group. Upon receipt of the fifth (5th) person's name
the Tequesta Village Council shall, as a ministerial dut~r, appoint such person to the
Public Safety Board as its fifth (5th) Trustee. The fifth (5t) Trustee shall have the same
rights as each of the other Trustees appointed or elected as herein provided and shall
serve a two (2) year term unless the office is sooner vacated and may succeed himself
or herself in office. Each resident Trustee shall serve as Trustee for a period of two (2)
years unless sooner replaced by the Tequesta Village Council at whose pleasure the
Trustee shall serve, and may succeed himself or herself as a Trustee. Each Police
Officer or Firefighter Trustee shall serve as Trustee for a period of two (2) years, unless
he/she sooner leaves the employment of the employee representative group he/she
was elected to represent or otherwise vacates his/her office as Trustee, whereupon a
successor shall be chosen in the manner as the departing Trustee. Each employee
representative Trustee may succeed himself or herself in office. The Public Safety
Board shall meet at least quarterly each year. Such Boards shall be a legal entity with,
in addition to other powers and responsibilities contained herein, the power to bring and
defend lawsuits of every kind, nature, and description.
2. The Board shall, by majority vote, elect a chairman and secretary. The
secretary of the Board shall keep, or cause to be kept, a complete minute book of the
actions, proceedings, or hearings of the Board and shall preside over Board meetings in
the absence of the Chairman. The Trustees shall not receive any compensation as
such, but may receive expenses and per diem as provided by law.
3. Each Trustee shall be entitled to one vote. Three (3) affirmative votes shall
be necessary for any decision by the Trustees at any meeting of the Board. A Trustee
shall have the right to abstain from voting as the result of a conflict of interest provided
that Trustee states in writing the nature of the conflict complies with the provisions of
Section 112.3143, Florida Statutes.
4. The Board of Trustees shall engage such actuarial, accounting, legal, and
other services as shall be required to transact the business of the Retirement System to
administer and manage their funds and to meet the requirements of applicable law. The
compensation of all persons engaged by the Board of Trustees and all other expenses
of the Board necessary for the operation of the Retirement System shall be paid from
the Fund they administer and manage at such rates and in such amounts as the Board
of Trustees shall approve.
5. The duties and responsibilities of the Board of Trustees shall include, but
not necessarily be limited to, the following:
A. To construe the provisions of the System and determine all
questions arising thereunder.
B. To determine all questions relating to eligibility and participation.
August 5, 2008
C. To determine and certify the amount of all retirement allowances or
other benefits hereunder.
D. To establish uniform rules and procedures to be followed for
administrative purposes, benefit applications and all matters
required to administer the System.
E. To distribute to Members, at regular intervals, information
concerning the System.
F. To receive and process all applications for participation and
benefits.
G. To authorize all payments whatsoever from the Fund and to
notify the disbursing agent, in writing, of approved pension
payments and other expenditures arising through operation of the
System and the Fund.
H. To have performed actuarial studies in accordance with
Florida Statute 112.63 providing a copy of the same to the Division
of Retirement, and with at least biennial valuations, and make
recommendations regarding and all changes in the provisions of
the System.
I. Ensure compliance with Article X, Section 14, of the Florida
Constitution, requiring that any increase in benefits be funded on an
actuarially sound basis.
J. Ensure the completion of an actuarial impact statement prior
to the adoption of a change in the plan's retirement benefits, a copy
of which must be provided to the Division of Retirement.
K. To comply with the Chapters.
L. To ensure the funds and assets for the benefit of the
employee groups they serve are segregated and separated from
the funds and assets under the control of the Board.
M. To perform such other duties as are specified in this
Ordinance and generally do all acts which the Trustees may deem
necessary or desirable for the protection of the Trust Fund.
N. To adopt and be guided by Statements of Investment Policy
applicable to all funds under the control the Public Safety Board of
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August 5, 2008
Trustees as required from time to time by F.S. 112.661, et seq.,
and/or its successor statutes.
O. To sue or be sued.
P. To settle, compromise or submit to arbitration (at the sole discretion
of the Trustees) any claims, debts or damages due or owing to or
from the Fund.
Section 5. Finance And Fund Management.
Establishment and Operation of Fund
1. As part of the System, there is hereby established a Fund, into which shall be
deposited all of the contributions and assets whatsoever attributable to the System, for
the benefit of Public Safety Officers to be administered and managed by the Public
Safety Board.
2. The actual custody and supervision of the Fund (and assets thereof) shall be
vested in the Board of Trustees. Payment of benefits and disbursements from the Fund
shall be made by the Village as the Board's agent, but only upon written authorization
from the Board. Such written authorization shall require the signature of two of the
Trustees.
3. All funds and securities of the Fund may be deposited by the Board of
Trustees with the Treasurer of the Village, acting in a ministerial capacity only, who shall
be liable in the same manner and to the same extent that as he is liable for the
safekeeping of funds for the Village. However, any funds and securities so deposited
with the Treasurer of the Village shall be kept in separate funds by the Treasurer or
clearly identified as such funds and securities of the Public Safety Officer Trust Fund. In
lieu thereof, the Board of Trustees shall deposit the funds and securities of the Fund in
a qualified public depository or depositories as defined in Section 280.02, Florida
Statutes, which depository or depositories with regard to such funds and securities shall
conform to and be bound by all of the provisions of Chapter 280, Florida Statutes.
4. In order to fulfill its investment responsibilities as set forth herein, the Boards
may retain the services of a custodian bank or banks, an investment advisor or advisors
registered under Investment Advisors Act of 1940 or otherwise exempt from such
required registration, an insurance company, or a combination of these, for the
purposes of investment decisions and management. Such investment manager or
managers shall have discretion, subject to any guidelines as prescribed by the Board, in
the investment of all fund assets.
5. All funds and securities of the System shall be accounted for separately
based upon the two (2) applicable employee classes within the Fund namely, the Police
August 5, 2008
Officers and Firefighters in the Public Safety Officers Trust Fund. Accurate records
shall be maintained at all times reflecting the financial composition of the Fund and of
the accounts in place to segregate the assets of the employee classes covered by the
System, including accurate current accounts and entries as regards the following:
A. Current amounts of Accumulated Contributions of Members
on both an individual and aggregate account basis, and
B. Receipts and disbursements, and
C. Benefit payments, and
D. Current amounts clearly reflecting all moneys, funds and
assets whatsoever attributable to contributions and deposits from
the Village, County or State, and
E. All interest, dividends and gains (or losses) whatsoever, and
F. Such other entries as may be properly required so as to
reflect a clear and complete financial report of the Fund.
G. Such other entries as required by the Chapters.
6. An independent audit shall be performed annually by a certified public
accountant for the most recent fiscal year of the Village showing a detailed listing of
assets and a statement of all income and disbursements during the year for each Fund.
Such income and disbursements must be reconciled with the assets at the beginning
and end of the year. Such report shall reflect complete evaluations of assets on both a
cost and market basis, as well as other items normally included in a certified audit.
7. The Board of Trustees shall have the following investment powers and
authority:
A. The Board of Trustees shall be vested with full legal title to
the Fund, subject, however, and in any event to the authority and
power of the Tequesta Village Council to amend or terminate this
Trust, provided that no amendment or Fund termination shall ever
result in the use of any assets of the Fund except for the payment
of regular expenses and benefits under this System. All
contributions from time to time paid into the Fund, and the income
thereof, without distinction between principal and income, shall be
held in the Fund and administered by the Board or its Agents.
B. All moneys paid into or to be held shall be invested and
reinvested by the Board and the investment of all or any part of
such funds shall be limited to:
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August 5, 2008
(1) Annuity and life insurance contracts of life
insurance companies in amounts sufficient to provide, in whole or in
part, the benefits to which all of the participants in the Fund shall be
entitled under the provisions of the Plan and pay the initial and
subsequent premium thereon.
(2) Time or savings accounts of a national bank, a state
bank insured by the Bank Insurance Fund, or a savings and loan
association insured by the Savings Association Insurance Fund
which is administered by the Federal Deposit Insurance
Corporation or a state or federal chartered credit union whose
share accounts are insured by the National Credit Union Share
Insurance Fund.
(3) Obligations of the United States or obligations
guaranteed as to principal and interest by the government of the
United States.
(4) Bonds, stocks, commingled funds administered by
National or State Banks or evidences of indebtedness issued or
guaranteed by a corporation organized under the laws of the United
States, any state or organized territory of the United States, or the
District of Columbia, provided that the corporation is traded on a
nationally recognized Exchange and in the case of bonds only
holds a rating in one of the four highest classifications by a major
rating service, and if such investments are made in a pooled fund
administered by a state or national bank, then the rating of each
issue in the pooled fund shall hold a rating within the top four (4)
rating classifications of a major rating service.
(5) Real estate.
(6) Up to 10% of Plan assets may be invested in foreign
securities.
(7) All monies paid into or held in the Pension Fund shall
be invested and reinvested by the Board of Trustees and the
investment of all or any part of such funds shall be invested in
accordance with an established investment policy adopted by the
Board of Trustees.
C. The Board of Trustees shall not invest more than five
percent (5%) of its assets in the common stock or capital stock of
any one issuing company, nor shall the aggregate investment in
August 5, 2008
any one issuing company exceed five percent (5%) of the
outstanding capital stock of that company; nor shall the aggregate
of its investments in common stock, capital stock and convertible
bonds at cost exceed sixty percent (60%) of the assets of the Fund.
D. The Board of Trustees may retain in cash and keep
unproductive of income such amount of the Fund as it may deem
advisable, having regard for the cash requirements of the System.
E. No person or entity shall be liable for the making, retention
or sale of any investment or reinvestment made as herein provided,
nor for any loss or diminishment of the Fund, except that due to
his/her or its own negligence, willful misconduct or lack of good
faith.
F. The Board may cause any investment in securities held to
be registered in or transferred into their name as Trustee or into the
name of such nominee as they may direct, or they may retain them
unregistered and in form permitting transferability, but the books
and records shall at all times show that all investments are part of
the Trust Fund.
G. The Board is empowered, to vote upon any stocks, bonds or
securities of any corporation, association, or trust and to give
general or specific proxies or powers of attorney with or without
power of substitution; to participate in mergers, reorganizations,
recapitalization, consolidations and similar transactions with respect
to such securities; to deposit such stock or other securities in any
voting trust or any protective or like committee with the Trustees or
with depositories designated thereby; to amortize or fail to amortize
any part of all of the premium or discount resulting from the
acquisition or disposition of assets; and generally to exercise any of
the powers of an owner with respect to stocks, bonds, or other
investments comprising the Fund which it may deem to be the best
interest of the Fund to exercise. This responsibility may be
delegated to an Agent for the Board.
H. The Board shall not be required to make any inventory or
appraisal or report to any court, nor secure any order of court for
the exercise of any power contained herein.
I. Where any action which the Board is required to take on any
duty or function which it is required to perform either under the
terms herein or under the general law applicable to it as Trustee
under this Ordinance, can reasonably be taken or performed only
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August 5, 2008
after receipt by it from a Member, the Village, the Department or
any other entity, of specific information, certification, direction or
instructions, the Board shall be free of liability in failing to take such
action or perform such duty or function until such information,
certification, direction or instruction has been received by it.
J. Any overpayments or underpayments from a Fund to a
Member or beneficiary caused by errors of computation shall be
adjusted with interest at a rate per annum approved by the Board.
Overpayment shall be charged against member's payments next
succeeding the correction. Underpayments shall be made up from
the Trust Fund.
K. The Board shall sustain no liability whatsoever for the
sufficiency of a Fund to meet the payments and benefits herein
provided.
L. Any of the foregoing powers and functions reposed in the
Board may be pertormed or carried out by the Board through duly
authorized Agents, provided that the Board at all times maintains
continuous supervision over the acts of any such Agent; provided
further, that legal title to the Fund shall always remain in the Board
of Trustees.
M. The Board shall not invest more than ten percent (10%) at
cost of its assets in real property or real estate and there shall be
no investment in a limited partnership or trust.
N. The Village shall maintain Fiduciary Liability insurance to
cover the members of the Board of Trustees.
O. With respect to any investment, the Trustees may consent or
object to any action or non-action of any corporation or of the
directors, officers or stockholders of any corporation.
Section 6. Contributions.
1. Member Contributions
A. Amount. Effective the first full payroll period after the
effective date of this Ordinance, Police Officer Members of the
Retirement System shall be required to make regular contributions
to the Fund in the amount of five percent (5%) of his/her salary-
€ffective the first full payroll period after the effective date of this
Ordinance, Firefighter Members of the Retirement System shall be
August 5, 2008
required to make regular contribution to the Fund in the amount of
s;^ Mnd ono +o.,+~ r..o.,+ r~IIi five percent (5%) of his/her salary.
The funding for the difference between the previously required
contribution of 6.1 % and the now required 5% shall be made up
from the monies received from the State pursuant to Chapter 175,
F.S. Should the Chapter 175 money ever become insufficient to
make up the difference, the contribution rate for Firefighter
Members shall automatically revert to 6.1 %. Member contributions
withheld by the Village on behalf of the Member shall be deposited
with the Board of Trustees immediately after the withholding of
such contributions. The contributions made by each Member to
the Fund shall be designed as employer contributions pursuant to
Section 414(h) of the Code. Such designation is contingent upon
the contributions being excluded from the Members' gross income
for Federal Income Tax purposes. For all other purposes of the
Plan, such contributions shall be considered to be Member
contributions.
B. Method. Such contributions shall be made by payroll
deduction.
2. State Contributions
Any monies received or receivable by reason of laws of the State of Florida, for
the express purpose of funding and paying for retirement benefits for Police Officers or
Firefighters shall be deposited with the applicable segregated account in the Trust Fund
comprising part of this System immediately and under no circumstances more than five
(5) days after receipt by the Village.
3. Village Contributions
So long as this System is in effect, the Village shall make contributions at
least quarterly to the Trust Fund in an amount equal to the normal cost and the amount
required to fund any actuarial deficiency shown by an actuarial valuation as provided in
Part VII of Chapter 112, Florida Statutes.
4. Other
Private donations, gifts and contributions may be deposited to the Fund,
but such deposits must be kept separately and kept on a segregated bookkeeping
basis. Funds arising from these sources may be used only for additional benefits for
Members, as determined by the Board of Trustees, and may not be used to reduce
what would have otherwise been required by Village contributions.
Section 7. Benefit Amounts and Eligibility.
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August 5, 2008
Normal Retirement Date
A Member's normal retirement date shall be the first day of the month
coincident with, or the next following the earlier of:
A. attainment of age fifty-five (55) and the completion of six (6)
years of credited service, or
B. attainment of age fifty-two (52) and the completion of twenty-
five (25) years of credited service.
A Member may retire on his/her normal retirement date or on the first day
of any month thereafter, and each Member shall become 100% vested in his/her
accrued benefit on the Member's normal retirement date. Normal retirement under the
Plan is retirement from employment with the Village of Tequesta as a Police Officer or
Firefighter on or after the normal retirement date.
2. Normal Retirement Benefit
A Member retiring hereunder on or after his/her normal retirement date
shall receive a monthly benefit which shall commence on his/her Retirement Date and
be continued thereafter during the Member's lifetime, ceasing upon death, but with one
hundred twenty (120) monthly payments guaranteed in any event. The monthly
retirement benefit shall equal:
3.0% for the first 6 years of service
3.5% for the next 4 years of service
4.0% for the next 5 years of service
3.0% for the next 6 years of service
2.0% for the next 4 years of service
3.0% for all years after 25 years
3. Early Retirement Date
A Member may retire on his/her early retirement date which shall be the
first day of any month coincident with or next following the later of the attainment of age
fifty (50) and the completion of six (6) years of credited service. Early retirement under
the Plan is retirement from employment with the Village of Tequesta on or after the early
retirement date and prior to the normal retirement date.
4. Early Retirement Benefit
A Member retiring hereunder on his/her early retirement date may receive
either a deferred or an immediate monthly retirement benefit payable for life, but with
one hundred twenty (120) monthly payments guaranteed in any event, as follows:
August 5, 2008
A. A deferred monthly retirement benefit which shall commence
on what would have been his/her normal retirement date had
he/she remained a Police Officer or Firefighter and shall be
continued on the first day of each month thereafter. The amount of
each such deferred monthly retirement benefit shall be determined
in the same manner as for retirement as his/her normal retirement
date except that credited service and average final compensation
shall be determined as of his/her early retirement date; or
B. An immediate monthly retirement benefit which shall
commence on his/her early retirement date and shall be continued
on the first day of each month thereafter. The benefit payable shall
be as determined in paragraph A above, which is actuarially
reduced from the amount to which he/she would have been entitled
had he/she retired on his/her normal retirement date and with the
same number of years of credited service as at the time his/her
benefit commence and based on his/her average final
compensation at that date. In no event shall the early retirement
reduction exceed three percent (3%) for each year by which the
commencement of benefits precedes the Member's normal
retirement date.
Section 8. Pre-retirement Death.
If a plan member dies prior to retirement from the Village of Tequesta
his/her beneficiary shall receive a benefit as follows:
A. Line-of-Duty-Death-Benefit is a pension to the spouse (or
children) for life in the amount of 50% of Average Final
Compensation.
B. Non-Line-of-Duty-Death-Benefit the spouse of a member
with 6 years of credited service will receive the actuarial equivalent
of the accrued normal retirement benefit.
C. In lieu of the benefits provided in A or B above, the
beneficiary of a police officer or firefighter, with 6 or more years of
service who dies prior to retirement, may receive the benefits
otherwise payable to the police officer at what would have been
his/her early or normal retirement date.
Section 9. Disability.
1. Disability Benefits On-Duty
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August 5, 2008
Each full time employee who is a participant in the Pension Fund System and
who becomes totally and permanently disabled while an active employee of the Village
of Tequesta to the extent that he/she is unable, by reason of a medically determinable
physical or mental impairment, to render useful and efficient service as a Police Officer
or Firefighter, as was provided by the employee in their classification (Police Officer or
Firefighter) prior to the alleged impairment, which disability was directly caused by the
performance of his/her duty as a Police Officer or Firefighter shall upon establishing the
same to the satisfaction of the Board, be entitled to:
A. If the injury or disease is service connected, the employee
shall be entitled to the greater of (1) or (2):
(1) a monthly pension equal to 42% of his/her average
monthly compensation as of his/her disability retirement
date, or
(2) the accrued Normal Retirement Benefit.
Any condition or impairment of health of Police Officer or Firefighter
caused by tuberculosis, hypertension hepatitis, meningococcal meningitis
or heart disease shall be presumed to have been suffered in the line of
duty unless the contrary is shown by competent evidence, provided that
such Police Officer or Firefighter shall have successfully passed a physical
examination upon entering into such service, including cardiogram, which
examination failed to reveal any evidence of such condition; and provided
further, that such presumption shall not apply to benefits payable or
granted in a policy of life insurance or disability insurance. In order to be
entitled to the presumption in the case of hepatitis, meningococcal
meningitis, or tuberculosis the member must meet the requirements of
Section 112.181, Florida Statutes.
2. Disability Benefits Off-Duty
Every Police Officer or Firefighter who is a participant in the Pension Fund
System who shall have become totally and permanently disabled to the extent that
he/she is unable, by reason of a medically determinable physical or mental impairment,
to render useful and efficient service as a Police Officer or Firefighter which disability is
not directly caused by the performance of his/her duties as a Police Officer or Firefighter
shall be entitled the greater of A. or B.:
A. A monthly pension equal to 25% of his/her average
monthly compensation as of his/her disability retirement
date, or
B. The accrued Normal Retirement Benefit.
August 5, 2008
Ig
August 5, 2008
3. Conditions Disaualifying Disability Benefits
Each Police Officer or Firefighter who is claiming disability benefits shall
establish, to the satisfaction of the Board, that such disability was not occasioned
primarily by:
A. Excessive or habitual use of any drugs, intoxicants or
alcohol.
B. Injury or disease sustained while willfully and illegally
participating in fights, riots or civil insurrections.
C. Injury or disease sustained while committing a crime.
D. Injury or disease sustained while serving in any branch of
the Armed Forces.
E. Injury or disease sustained after his/her employment shall
have terminated as a Police Officer with the Tequesta Police
Department or a Firefighter with the Tequesta Fire Department.
F. Injury or disease sustained by a Police Officer, while working
for anyone other than the Tequesta Police Department and arising
out of such employment.
G. Injury or disease sustained by the member before
employment with the Village begins. This subparagraph applies
only in the event of a duty injury or disease.
4. Physical Examination Requirement
An employee shall not become eligible for disability benefits until and
unless he/she undergoes a physical examination by a qualified physician or physicians
and/or surgeons, who shall be selected by the Board for that purpose.
Any person receiving disability benefit under provisions of this Ordinance
may be periodically re-examined by a qualified physician or physicians and/or surgeon
or surgeons who shall be selected by the Board, to determine if such disability has
ceased to exist. If the Board finds that the retiree is no longer permanently and totally
disabled to the extent that he/she is unable to render useful and efficient service as a
Police Officer- or a Firefighter, the Board shall recommend to the Village that the retiree
be returned to their previous performance of duty as a Police Officer or Firefighter, and
the retiree so returned shall enjoy the same rights that Member had at the time he/she
was placed upon pension. In the event the retiree is so ordered to return shall refuse to
comply with the order within thirty (30) days from the issuance thereof, Member shall
August 5, 200a
forfeit the right to his/her pension.
The cost of the physical examination and/or re-examination of the
employee or retiree claiming and/or receiving disability benefits shall be borne by the
Board. All other reasonable costs as determined by the Board incident to the physical
examination, such as, but not limited to, transportation, meals and hotel
accommodations, shall be borne by the Board.
If the retiree recovers from disability and reenters his/her former service
with the Village of Tequesta held prior to disability retirement, his/her service will be
deemed to have been continuous, but the period beginning with the first month for
which he/she received a disability retirement income payment and ending with the date
he/she reentered the service of the Village will not be considered as credited service for
the purposes of the Plan.
The Board shall have the power and authority to make the final decision
regarding all disability claims.
5. Disability Payments
The monthly benefit to which a Member is entitled in the event of
the
Member's disability retirement shall be payable on the first day of the first month after
the Board of Trustees determines such entitlement. However, the monthly retirement
income shall be payable as of the date the Board determined such entitlement, and any
portion due for a partial month shall be paid together with the-first payment. The last
payment will be:
A. If the plan member recovers from the disability or attains
his/her normal retirement date, the payment due next preceding the
date of such recovery, or
B. If the plan member dies without recovering from the disability
prior to his/her normal retirement date while still disabled, the
payment due next preceding his/her death or the 120th monthly
payment, whichever is later.
Section 10. Monthly Supplemental Benefits.
1. Effective upon passage of this Ordinance, any retiree or beneficiary
receiving pension benefits is entitled to a monthly supplemental pension
benefit of $20 per year of service, up to a maximum benefit of $600.00.
2. This benefit shall be payable monthly as a part of the regular monthly
pension benefit. The benefit shall be payable to the retiree and any
20
August 5, 2008
beneficiary. The benefit shall cease upon the death of the member or
beneficiary, if applicable.
Section 11. Vesting.
If a Member terminates his/her employment with the Village of Tequesta, either
voluntarily or by discharge, and is not eligible for any other benefits under this System,
the Member shall be entitled to the following:
1. If the Member has less than six (6) years of credited service upon termination,
the Member shall be entitled to a refund of his/her accumulated contribution or the
Member may leave it deposited with the Fund.
2. If the Member has six (6) or more years of credited service upon termination,
the Member shall be entitled to a monthly retirement benefit that is the actuarial
equivalent of the amount of such retirement income otherwise payable to him
commencing at the Member's otherwise normal or early retirement date, provided he
does not elect to withdraw his/her accumulated contributions and provided the Member
survives to his/her normal or early retirement date.
Section 12. Oational Forms of Benefits.
1. In lieu of the amount and form of retirement income payable in the event of
normal, early, or disability retirement as specified herein, a plan member, upon written
request to the Board of Trustees, and subject to the approval of the Board of Trustees,
may elect to receive a retirement income or benefit of equivalent actuarial valuation
payable in accordance with one of the following options:
A. A retirement income of a larger monthly amount, payable to
the Member for his/her lifetime only.
B. A retirement income of a modified monthly amount, payable
to the Member during the joint lifetime of the Member and a
dependent joint pensioner designated by the Member and following
the death of either of them, 100%, 76%, 66-2/3%, or 50% of such
monthly amounts payable to the survivor for the lifetime of the
survivor.
C. Such other amount and form of retirement payments or
benefits as, in the opinion of the Board of Trustees, will best meet
the circumstances of the retiring Member.
2. The Member, upon electing any option of this section, will designate the joint
pensioner or beneficiary (or beneficiaries) to receive the benefit, if any, payable under
the Plan in the event of the Member's death, and will have the power to change such
August 5, 2008
designation from time to time, but any such change shall be deemed a new election and
will be subject to approval by the Board of Trustees. Such designation will name a joint
pensioner or one or more primary beneficiaries where applicable. If a Member has
elected an option with joint pensioner or beneficiary and the Member's retirement
income benefits have commenced, the Member may thereafter change his/her
designated joint pensioner or beneficiary, but only if the Board of Trustees consents to
change and if the joint pensioner or beneficiary, but only if the Board of Trustees
consents to change and if the joint pensioner last previously designated by the Member
is alive when he/she files with the Board of Trustees the request for such change.
3. The consent of joint pensioner or beneficiary to any such change shall not be
required.
4. The Board of Trustees may request such evidence of the good health of joint
pensioner that is being removed as it may require and the amount of the retirement
income payable to the Police Officer or Firefighter upon designation of a new joint
pensioner shall be actuarially redetermined taking into account the age and sex of the
former joint pensioner, the new joint pensioner, and the Police Officer or Firefighter.
Each such designation will be made in writing on a form prepared by the Board of
Trustees and on completion will be filed with the Board of Trustees.
In the event that no designated beneficiary survives the Member, such benefits
as are payable in the event of the death of the Member subsequent to his/her retirement
shall be paid as provided in Section 12.
5. Retirement income payments shall be made under the option elected in
accordance with the provisions of this section and shall be subject to the following
limitations:
A. If a Member dies prior to his/her normal retirement date or early
retirement date, whichever occurs, no retirement
benefit will be payable under the option to any person, but the
benefits, if any, will be determined under Section 8.
B. If the designated beneficiary (or beneficiaries) or joint pensioner
dies before the Member's retirement under the
Plan, the option elected will be canceled automatically and a
retirement income of the normal form and amount will be payable to
the Member upon his/her retirement as if the election had not been
made, unless a new election is made in accordance with the
provisions of this section or a new beneficiary is designated by the
Member prior to his/her retirement and within ninety (90) days after
the death of the beneficiary.
C. If both the retired Member and the beneficiary (or beneficiaries)
22
August 5, 2008
designated by the Member die before the full payment
has been effected under any option providing for payments for a
period certain and life thereafter, made pursuant to the provisions
of subsection 1, the Board of Trustees may in its discretion, direct
that the computed value of the remaining payments be paid in a
lump sum and in accordance with Section 12.
D. If a Member continues beyond his/her normal retirement date
pursuant to the provisions of Section 7,
subsection 1, and dies prior to his/her actual retirement and while
an option made pursuant to the provisions of this section is in
effect, monthly retirement income payments will be made, or a
retirement benefit will be paid, under the option to a beneficiary (or
beneficiaries) designated by the Member in the amount or amounts
computed as if the Member had retired under the option on the date
on which his/her death occurred.
6. The Member may not change his/her retirement option after the date of
cashing or depositing his/her first retirement check.
Section 13. Beneficiaries.
1. Each Member may, on a form provided for that purpose, signed and filed with
the Board of Trustees, designate a beneficiary (or beneficiaries) to receive the benefit, if
any, which may be payable in the event of his/her death; and each designation may be
revoked by such Member by signing and filing with the Board of Trustees a new
designation-of-beneficiary form.
2. If a deceased Member fails to name a beneficiary in the manner prescribed in
subsection 1, or if the beneficiary (or beneficiaries) named by a deceased Member
predeceases the Member, the death benefit, if any, which may be payable under the
Plan with respect to such deceased Member may be paid, in the discretion of the Board
of Trustees, either to:
A. The wife or dependent children of the Member;
B. The dependent living parents of the Member; or
C. Estate of the Member.
Section 14. Deferred Retirement Option Plan
Eligibility to Participate in the Drog
A. Any member who is eligible to receive a normal retirement
August 5, 2008
pension may participate in the DROP. Members shall elect to
participate by applying to the Board of Trustees on a form provided
for that purpose.
B. Election to participate shall be forfeited if not exercised
within the first twenty-seven (27) years of combined credited
service. However, participation in the first years of enactment will
be extended to those members with twenty-eight (28) years of
service in 2003.
C. A member shall not participate in the DROP beyond the time of
attaining 30 years of service and the total years of participation in
the DROP shall not exceed five (5) years. For example:
(1) Members with twenty-five (25) years of credited
service at time of entry shall only participate for five (5)
years.
(2) Members with twenty-six (26) years of credited service at
time of entry shall only participate for four (4) years.
(3) Members with twenty-seven (27) years of credited
service at time of entry shall only participate for three (3)
years.
D. Upon a member's election to participate in the DROP, he or
she shall cease to be a member and is precluded from accruing
any additional benefit under the Pension Fund. For all Fund
purposes, the member becomes a retirant. The amount of credited
service and final average salary freeze as of the date of entry into
the DROP.
2
Amounts Payable upon Election to Participate in DROP
A. Monthly retirement benefits that would have been payable
had the member terminated employment with the department and
elected to receive monthly pension payments will be paid into the
DROP and credited to the retirant. Payments into the DROP will be
made monthly over the period the retirant participates in the DROP,
up to a maximum of sixty (60) months.
B. Payments to the DROP earn interest using the rate of
investment return earned on Pension Fund assets during the twelve
(12) month period ending September 30th. The rate determined
shall be the rate reported to the Division of Retirement pursuant to
24
August 5, 2008
Part VII of Chapter 112, Florida Statutes. However, if a police
officer does not terminate employment at the end of participation in
the DROP, interest credits shall cease on the current balance and
on all future DROP deposits.
C. No payments will be made from DROP until the member
terminates employment with the department.
D. Upon termination of employment, participants in the DROP
will receive the balance of the DROP account in accordance with
the following rules:
(1) Members may elect to begin to receive payment upon
termination of employment or defer payment of DROP until
the latest day as provided under sub-subparagraph c.
(2) Payments shall be made in either:
a. Lump sum -the entire account balance
will be paid to the retirant upon approval of the Board
of Trustees.
b. Installments -the account balance will
be paid out to the retirant in three equal payments
paid over 3 years the first payment to be made upon
approval of the Board of Trustees.
c. Annuity -the account balance will be
used to purchase an annuity to be paid monthly, the
first payment to be made upon approval by the Board
of Trustees. The annuity must be purchased from an
insurer licensed to sell such annuities in Florida.
(3) Any form of payment selected by a police officer must
comply with the minimum distribution requirements of the
IRC 401(A)(9) e.g., payments must commence by age 70'/.
(4) The beneficiary of the DROP participant who dies before
payments from DROP begin shall have the same right as the
participant in accordance with Ordinance.
August 5, 2008
Section 15. Claims Procedures Before the Board Decision
1. If any Member of the System has been:
A. Placed on pension under the terms and provisions of this
ordinance for disability, or
B. Placed on pension because the Member has served the required
number of years to entitle him to a pension, or
C. Refused benefits under this Plan, and is dissatisfied with the
amount of pension the Member is receiving, or believes that he
should be entitled to benefits under the Plan, the Member may, in
writing, request the Board to review his/her case. The Board shall
review the case and enter such order thereon as it deems right and
proper within sixty (60) days from receipt of such written request
and the receipt by the Board of a written medical release
authorization, and a list of names and addresses of all treating
health care providers for such review of disability claims; provided,
that the Board may extend the time for entering such order by an
additional forty-five (45) days if it determines such time is
necessary for discovery in full and adequate review.
2. In the event that the order from the Board denies the claim for a change in
such benefits or denies the claim for benefits, the order of the Board shall
be put in writing. Such written order shall include:
A. The specific reasons for the denial, including specific
references to pertinent provisions of the retirement system on
which such denial is based;
B. A description of any additional material or information that
the Board feels is necessary for the Member to perfect his/her
claim, together with an explanation of why such material or
information is necessary; and
C. An explanation of the review procedure next open to the
Member.
Such review procedure shall provide that:
(1) Prior to such review, the Member or his/her duly
authorized representative may review any pertinent documents
including Plan provisions, minutes of the meeting of the Board in
which denial fo the claim was originally recommended, and any
26
August 5, 2008
other documents material to the case;
(2) After such review, the Member and/or his/her duly
authorized representative shall submit their case in writing to the
Board and request a hearing. Such submission shall be filed with
the Board no later than ninety (90) days after the receipt of the
order of the Board. Upon receipt of the written submission by the
Member, the Board shall schedule an opportunity for a full and fair
hearing of the issue within the next ninety (90) days, and such
scheduled hearing shall be communicated in writing to the Member.
The Member and/or his/her duly authorized representative may
then appear at such scheduled hearing to present their case. The
Board shall consider the facts presented at the scheduled hearing
and shall, within thirty (30) days after such hearing, make a final
ruling in writing on the request of the Member. The written decision
shall include the reasons for such decision and, such decision shall
be final.
(a) The Chairman shall preside over the hearing
and shall rule on all evidentiary and other legal
questions that arise during the hearing.
(b) Either party, the claimant or the Board, may file
pleadings within the time limits set herein. Procedural
motions are to be determined by the Chairman of the
Board at any time. All parties are to furnish copies of
all pleadings to the opposing parties and exchange
lists with names and addresses of witnesses
expected to be called to testify at the hearing, as well
as the list of exhibits that are intended to be
introduced, at least forty-five (45) days prior to the
hearing. Testimony of witnesses shall be under oath
or affirmation. Depositions or affidavits shall not be
admissible unless upon stipulation by all parties. The
Chairman, any Member of the Board, the attorney for
the Board, the claimant and the claimant's attorney,
upon recognition by the Chairman, may direct
questions to any witness during the proceedings.
Each party shall have the right to present evidence
relevant to the issues, to cross-examine witnesses, to
impeach witnesses and to respond to the evidence
presented against the party. Each party shall have
the right to present any opening and closing
arguments. Any party may secure the services of a
court reporter to record the proceedings with the cost
August 5, 2008
to be borne by the party requesting the court reporter
or requesting the transcription of the proceedings.
(c) In all cases, unless otherwise provided in this
section, the burden of proof shall be on the claimant
who seeks to draw his/her entitlement to a pension,
disability pension, or increased pension benefits.
3. In all proceedings under subsections 1 or 2 hereof, the Board shall have
the power to subpoena and require the attendance of witnesses and the
production of documents for discovery prior to and at the proceedings
provided for in each paragraph. A reasonable fee may be charged for the
issuance of any subpoenas not to exceed the fees set forth in Florida
Statutes.
Section 16. Reports to Division of Retirement.
Each year no later than March 15th, the Chairman of the Board shall file two (2)
separate reports with the Division of Retirement containing the following relative to the
Police Officers and Firefighters of the Plan. The Police Officer report shall be separate
from the Firefighter report.
1. Whether in fact the Village is in compliance with the provisions of Chapters
175 and 185, Florida Statutes.
2. A certified statement of accounting for the most recent fiscal year of the
Village (or an independent audit by a certified public accountant if required by the
Division of Retirement) showing a detailed listing of assets and methods used to value
them and a statement of all income and disbursements during the year by the Public
Safety Board. Such income and disbursements shall be reconciled with the assets at
the beginning and end of the year.
3. A statistical exhibit showing the number of Police Officers on the force of the
Village, the number included in the Pension Plan, the number of Police Officers
ineligible, classified according to the reasons for their being ineligible, and the number
of disabled and retired Police Officers and their beneficiaries receiving pension
payments and the amounts of annual retirement income or pension payments being
received by them.
4. A statistical exhibit showing the number of Firefighters on the force of the
Village, the number included in the Pension Plan, the number of Firefighters ineligible,
classified according to the reasons for their being ineligible, and the number of disabled
and retired Firefighters and their beneficiaries receiving pension payments and the
amounts of annual retirement income or pension payments being received by them.
28
August 5, 2008
5. A statement of the amount the Village has contributed to the Public Safety
Pension Fund for the preceding plan year and the amount the Village will contribute to
the Public Safety Pension Fund for the current plan year.
6. If any benefits are insured with a commercial insurance company, the report
shall include a statement of the relationship of the insured benefits to the benefits
provided by this Ordinance. This report shall also contain information about the insurer,
basis of premium rates, mortality table, interest rates and method used in valuating
retirement benefits.
7. An actuarial valuation of the retirement Plan for Public Safety Officers must
be made at least once every three (3) years commencing from the last actuarial report
of the Plan. Such valuation shall be prepared by an enrolled actuary who is enrolled
under Subtitle C of the Title 3 Employee Retirement Income Security Act of 1974 and
who is a Member of the Society of Actuaries or the American Academy of Actuaries.
Section 17. Roster of Retirees.
The Secretary of the Boards shall keep a record of all persons enjoying a
pension under the provisions of this Ordinance in which it shall be noted the time when
the pension is allowed and when the same shall cease to be paid. Additionally, the
Secretary shall keep a record of all Police Officers and Firefighters employed by the
Village who are Members of the plan their board administers in such a manner as to
show the name, address, date of employment and date such employment is terminated.
Section 18. Board Attorney and Professionals.
The Board may employ independent legal counsel at the Pension Fund's
expense for the purposes contained herein, together with such other professional,
technical, or other advisors as the Board deems necessary.
Section 19. Maximum Pension.
1. Basic Limitation.
Subject to the adjustments herein set forth, the maximum amount of
annual retirement income payable with respect to a Member under this Plan shall not
exceed the limits contained in §415 of the Code.
August 5, 2008
2. Additional Limitation on Pension Benefits. Notwithstanding anything herein
to the contrary:
A. The normal retirement benefit or pension to a retiree who
becomes a member of the Plan and who has not previously
participated in such Plan, on or after January 1, 1980, shall not
exceed 100 percent of his/her average final compensation.
However, nothing contained in this section shall apply to
supplemental retirement benefits or to pension increases
attributable to cost-of-living increases or adjustments.
B. No member of the Plan who is not now a member of such
Plan shall be allowed to receive a retirement benefit or pension
which is in part or in whole based upon any service with respect to
which the member is already receiving, or will receive in the future,
a retirement benefit or pension from another retirement system or
plan. This restriction does not apply to social security benefits or
federal benefits under Chapter 67, Title 10, U.S. Code.
Section 20. Commencement of Benefits.
1. Unless the Member otherwise elects, with such election being in writing and
to the Trustees and specifying the form of retirement income and date on which the
retirement income is to commence, the payment benefits under the Plan to the Member
shall commence not later than the 60th day after the close of the Plan Year in which the
latest following events occur:
A. The attainment by the Member of age 65;
B. The 10th anniversary of the date on which the Member
commenced participation in the Plan; or
C. The termination of the Member's service with the Village of
Tequesta
2. If the payment of a Member's retirement income cannot begin on the date
required under subsection 1 of the Section because the Trustees either cannot
ascertain the amount of the Member's retirement income or cannot locate the Member
after making reasonable efforts to do so, the payment of the Member's benefit shall
begin not later than sixty (60) days after the date on which the amount can be
ascertained or the Member is located, whichever is applicable. Any such payment shall
be made retroactive to a date which is not earlier than the date on which the payment of
the Member's benefit was scheduled to begin but which is not later than the date
specified under subsection 1 of this Section.
Section 21. Distribution of Benefits.
30
August 5, 2008
Notwithstanding any other provision of this Plan to the contrary, a form of
retirement income payable from this Plan after the effective date of this ordinance, shall
satisfy the following conditions:
1. If the retirement income is payable before the Member's death, the
distribution shall commence to them not later than the calendar year defined above; and
A. shall be paid over the life of the Member or over the lifetimes
of the Member and spouse, issue or dependent, or,
B. shall be paid over the period extending not beyond the life
expectancy of the Member and spouse, issue or dependent.
Where a form of retirement income payment has commenced in accordance with
the preceding paragraphs and the Member dies before his/her entire interest in the Plan
has been distributed, the remaining portion of such interest in the Plan shall be
distributed no less rapidly than under the form of distribution in effect at the time of the
Member's death.
2. If the Member's death occurs before the distribution of his/her interest in
the Plan has commenced, the Member's entire interest in the Plan shall be distributed
within five (5) years of the Member's death, unless it is to be distributed in accordance
with the following rules:
A. The Member's remaining interest in the Plan is payable to
his/her spouse, issue or dependent;
B. The remaining interest is to be distributed over the life of the
spouse, issue or dependent or over a period not extending beyond
the life expectancy of the spouse, issue or dependent; and
C. Such distribution begins within one year of the Member's
death unless the Member's spouse, issue or dependent shall
receive the remaining interest in which case the distribution need
not begin before the date on which the Member would have
attained age 70'/z and if the spouse, issue or dependent dies before
the distribution to the spouse, issue or dependent begins, this
Section shall be applied as if the spouse, issue or dependent were
the Plan Member.
Section 22. Miscellaneous Provision.
August 5, 2008
1. Interest of Members in Pension Fund. At no time prior to the satisfaction
of all liabilities under the Plan with respect to Members and their spouses or
beneficiaries, shall any part of the corpus or income of the Pension Fund be used for or
diverted to any purpose other than for their exclusive benefit.
2. No amendment or ordinance shall be adopted by the Village Council of
the Village of Tequesta which shall have the effect of reducing the then vested accrued
benefits to Members or Members beneficiaries.
3. Rollover Distributions
A. This subsection applies to distributions made on or after
January 1, 1993. Notwithstanding any provision of the Plan to the
contrary that would otherwise limit a distributee's election under this
subsection, a distributee may elect, at the time and in the manner
prescribed by the Board of Trustees, to have any portion of an
eligible rollover distribution paid directly to an eligible retirement
plan specified by the distributee in a direct rollover.
B. Definitions.
(1) "Eligible rollover distribution" is any distribution of all
or any portion of the balance to the credit of the distributee,
except that an eligible rollover does not include any
distribution that is one of a series of substantially equal
periodic payments (not less frequently than annually) made
for the life (or life expectancy) of the distributee or
distributee's designated beneficiary, or for a specified period
of 10 years or more; any distribution to the extent such
distribution is required under section 401(a)(9) of the Code;
and the portion of any distribution that is not includible in
gross income.
(2) "Eligible retirement plan" is an individual retirement
account described in section 408(a) of the Code, an
individual retirement annuity described in sectiion 408(b) of
the Code, an annuity plan described in section 403(a) of the
Code, or a qualified trust described in section 401(a) of the
Code, that accepts the distributee's eligible rollover
distribution. However, in the case of al eligible rollover
distribution to the surviving spouse, an eligible retirement
plan is an individual retirement account or individual
retirement annuity.
32
August 5, 2008
(3) "Distributee" includes an employee or former
employee. In addition, the employee's or former employee's
surviving spouse and the employee's or former employee's
spouse who is entitled to payment for alimony and child
support under a domestic relations order determined to be
qualified by this Fund are distributees with regard to the
interest of the spouse or former spouse.
(4) "Direct rollover" is a payment by the Plan to the
eligible retirement plan specified by the distributee.
Section 23. Repeal or Termination of System.
1. This Ordinance establishing the System and Fund, and subsequent
Ordinances pertaining to said System and Fund, may be modified, terminated, or
amended, in whole or in part; provided that if this or any subsequent Ordinance shall be
amended or repealed in its application to any person benefitting hereunder, the amount
of benefits which are the time of any such alteration, amendment, or repeal shall have
accrued to the Member or beneficiary shall not be affected thereby, except to the extent
that the assets of the Fund may be determined to be inadequate.
2. If this Ordinance shall be repealed, or if contributions to the System are
discontinued, the Board shall continue to administer the System in accordance with the
provisions of this Ordinance, for the sole benefit of the then Members, any beneficiaries
then receiving retirement allowances, and any future persons entitled to receive benefits
under one of the options provided for in this Ordinance who are designated by any of
said Members. In the event of repeal, or if contributions to the System are discontinued,
there shall be full vesting (100%) of benefits accrued to date of repeal and the assets of
the System shall be allocated in an equitable manner to provide benefits on a
proportionate basis to the persons so entitled in accordance with the provisions thereof.
3. The following shall be the order of priority for purposes of allocating the
assets of the System as of the date of repeal of this Ordinance, or if contributions to the
System are discontinued with the date of such discontinuation being determined by the
Board.
A. Apportionment shall first be made in respect of each retired
Police Officer or Firefighter receiving a retirement or disability
benefit hereunder on such date, each person receiving a benefit on
such date on account of a retired or disabled (but since deceased)
Police Officer or Firefighter who has, by such date, become eligible
for normal retirement but has not yet retired, an amount which is
the actuarial equivalent of such benefit, based upon the actuarial
assumptions in use for purposes of the most recent actuarial
valuation, provided that, if such asset value be less than the
August 5, 2008
aggregate of such amounts, such amounts shall be proportionately
reduced so that the aggregate of such reduced amounts will be
equal to such asset value.
B. If there be any asset value remaining after the
apportionment under paragraph A, apportionment shall next be
made in respect of each full time Police Officer or Firefighter in
service of the Police Department or Fire Department on such date
who has completed at least six (6) years of credited service and
who is not entitled to an apportionment under paragraph A, in the
amount required to provide the actuarial equivalent, as described in
A above, of the accrued normal retirement benefit based on the
credited service and average monthly earnings as of such date,
and each vested former Member then entitled to a deferred benefit
who has not by such date, begun receiving benefit payments, in the
amount required to provide said actuarial equivalent of the accrued
normal retirement benefit; provided that, if such remaining asset
value be less than the aggregate of the amounts apportioned
hereunder, such latter amounts shall be proportionately reduced so
that the aggregate of such reduced amounts will be equal to such
remaining asset value.
C. If there be any asset value after the apportionment under
paragraph A and B, apportionment shall be made in respect of
each full time Police Officer or Firefighter in service of the Police
Department or Fire Department on such date who is not entitled to
an apportionment under paragraphs A and B in the amount equal to
Member's Accumulated Contributions, provided that, if such
remaining asset value be less than the aggregate of the amounts
apportioned hereunder such latter amount shall be proportionately
reduced so that the aggregate of such reduced amounts will be
equal to such remaining asset value.
D. If there be any asset value remaining after the
apportionment's under paragraphs A, B and C, apportionment shall
lastly be made in respect of each Member included in paragraph C
above to the extent of the actuarial equivalent, as described in
paragraph A above, of the accrued normal retirement benefit, less
the amount apportioned in paragraph C, based on credited service
and average monthly earnings as of such date provided that, if
such remaining asset value be less than the aggregate of the
amounts apportioned hereunder such amounts shall be reduced so
that the aggregate of such reduced amounts will be equal to such
remaining asset value.
E. In the event that there be asset value remaining after the full
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August 5, 2008
apportionment's specified in paragraphs A, B, C, and D, such
excess shall be returned to the Village, less return of the State's
contributions to the State, if any, provided that, if the excess is less
than the total contributions made by the Village and the State to the
date of termination, such excess shall be divided proportionately to
the total of contributions made by the Village and the State.
The allocation of the Fund provided for in this subsection may, as decided by the
Board be carried out through the purchase of insurance company contracts to provide
the benefits determined in accordance with this subsection. The Fund may be
distributed in one sum to the persons entitled to said benefits or the distribution may be
carried out in such other equitable manner as the Board may direct. The Trust may be
continued in existence for purposes of subsequent distributions.
4. After all the vested and accrued benefits provided hereunder have been
paid and after all other liabilities have been satisfied, then and only then shall any
remaining fund revert to the General Fund of the Village.
Section 24. Exemption from Execution, Non-assignability.
The pensions, annuities, or any other benefits accrued or accruing to any person
under the provisions of this Ordinance and the accumulated contributions and the cash
securities in the Fund created under this Ordinance are hereby exempted from any
state, county or municipal tax of the state and shall not be subject to execution,
attachment, garnishment or any legal process whatsoever and shall be unassignable.
However, pursuant to an income deduction order, the trustees may direct that
retirement benefits be paid for alimony or child support in accordance with rules and
regulations adopted by the Board of Trustees.
Section 25. Pension Validity.
The Board of Trustees shall have the power to examine into the facts upon which
any pension shall heretofore have been granted and under any prior or existing law, or
shall hereafter be granted or obtained erroneously, fraudulently or illegally for any
reasons. Said Board is empowered to purge the pension rolls of any person heretofore
granted a pension under prior or existing law or heretofore granted under this Ordinance
if the same is found to be erroneous, fraudulent or illegal for any reason, and to
reclassify any person who has heretofore under any prior or existing law been or who
shall hereafter under this Ordinance be erroneously, improperly or illegally classified.
August 5, 2008
Section 26. Forfeiture of Pension.
Any Member convicted of the following offenses committed prior to retirement, or
whose employment is terminated by reason of his/her admitted commission, aid or
abatement of the following specified offenses, shall forfeit all rights and benefits under
this Pension Fund, except for the return of this accumulated contributions as of the date
of termination.
1. Specified offenses are as follows:
A. The committing, aiding or abetting of an embezzlement of
public funds;
B. The committing, aiding or abetting of any theft by a public
officer or employee from employer;
C. Bribery in connection with the employment of a public officer
or employee.;
D. Any felony specified in Chapter 838, Florida Statutes;
E. The committing of an impeachable offense.
F.
-The committing of any felony by a public officer or employee who willfully
and with intent to defraud the public or public agency, for which he acts or in which he is
employed, of the right to receive the faithful performance of his/her duty as a public
officer or employee, realizes or obtains or attempts to obtain a profit, gain, or advantage
for himself or for some other person through use or attempted use of the power, rights,
privileges, duties or position of his/her public office or employment position.
2. Definitions
A. Conviction shall be defined as #altews=
An adjudication of guilt by a court of competent jurisdiction; a
plea of guilty or nolo contendere; a jury verdict of guilty when
adjudication of guilt is withheld and the accused is placed on
probation; or a conviction by the Senate of an impeachable offense.
B. Court shall be defined as #etievws:
Any state or federal court of competent jurisdiction which is
exercising jurisdiction to consider a proceeding involving the
36
August 5, 2008
alleged commission of a specified offense. Prior forfeiture, the
Board of Trustees shall hold a hearing on which notice shall be
given to the Member whose benefits are being considered for
forfeiture. Said Member shall be afforded the right to have an
attorney present. No formal rules of evidence shall apply, but the
Member shall be afforded a full opportunity to present his/her case
against forfeiture.
Any Member who has received benefits from the System in excess
of his/her accumulated contributions after Member's rights were forfeited
shall be required to pay back to the Fund the amount of the benefits
received in excess of his/her accumulated contributions. The Board of
Trustees may implement all legal action necessary to recover such funds.
3. False, misleading, or fraudulent statements made to obtain public retirement
benefits is prohibited; penalty
A. It is unlawful for a person to willfully and knowingly make, or
cause to be made, or to assist, conspire with, or urge another to
make, or cause to be made, any false, fraudulent, or misleading
oral or written statement or withhold or conceal material information
to obtain any benefit available under a retirement plan receiving
funding under Florida Statutes, Chapters 175 and 185.
B. A person who violates subsection (A) commits a
misdemeanor of the first degree, punishable as provided in s.
775.082 ors. 775.083, Florida Statutes.
In addition to any applicable criminal penalty, upon
conviction for violation described in subsection (A), a participant or
beneficiary of a pension plan receiving funding under Florida
Statutes, Chapters 175 and 185 may, in the discretion of the Board
of Trustees, be required to forfeit the right to receive any or all
benefits to which the person would otherwise be entitled under this
Ordinance. For purposes of this paragraph, "conviction" means a
determination of guilt that is the result of a pleas or trial, regardless
of whether adjudication is withheld.
Section 27. Military Service Prior to Employment.
The years or fractional parts of years that a Member serves or has served in the
military service of the Armed Forces of the United States or United States Merchant
Marine, voluntarily or involuntarily, prior to first and initial employment with the Police
Department or Fire Department shall be added to his/her years of credited service
provided that:
August 5, 2008
1. The Police Officer or Firefighter contributes to the Fund the sum that
he/she would have contributed had he/she been a member of the Plan for the years or
fractional parts of years for which he/she is requesting credit plus amounts actuarially
determined such that the crediting of service does not result in any cost to the Fund plus
payment of costs for all professional services rendered to the Board in connection with
the purchase years of credited service.
2. The request shall be made only once and made by the Member on or
before the later of twelve (12) months from the effective date of this Ordinance or six (6)
months from the date of his/her employment with the Police Department or Fire
Department,-whichever is later.
3. Payment by the Member of the required amount shall be made within six
(6) months of his/her request for credit and shall be made in one lump sum payment
upon receipt of which credited service shall be given. Credited service purchased
pursuant to this section shall be counted for all purposes except toward vesting of
benefits.
4. The maximum credit under this section shall be five (5) years.
BSJ/ka
August 5, 2008
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