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ORDINANCE NO.
AN ORDINANCE OF THE VILLAGE COUNCIL OF THE
VILLAGE OF TEQUESTA, PALM BEACH COUNTY,
FLORIDA, AMENDING EXHIBIT "A" OF SECTION 2-30
OF THE CODE OF ORDINANCES, VILLAGE OF
TEQUESTA, FLORIDA, RELATING TO THE EMPLOYEES'
PENSION TRUST FUNDS BY AMENDING DEFINITIONS,
PROVIDING THAT THE BOARDS OF TRUSTEES SHOULD
ADOPT STATEMENTS. OF INVESTMENT POLICY;
CORRECTING SCRIVENER'S ERRORS; PROVIDING FOR
EARLY RETIREMENT GUARANTEED PAYMENTS;
CLARIFYING DISABILITY RETIREMENT AS REQUIRED
BY STATE LAWS; PROVIDING FOR ELIGIBLE ROLLOVER
DISRIBUTIONS; PROVIDING FOR SEVERABILITY;
PROVIDING FOR REPEAL OF ORDINANCES IN
CONFLICT; PROVIDING FOR CODIFICATION; AND
PROVIDING AN EFFECTIVE DATE.
NOW THEREFORE, BE IT ORDAINED BY THE VILLAGE COUNCIL
OF THE VILLAGE OF TEQUESTA, PALM BEACH COUNTY,
FLORIDA, AS FOLLOWS:
Section 1. Those portions of Exhibit "A" to
Section 2-30, Code of Ordinances, Village of
Tequesta, Palm Beach County, Florida, as amended,
which are shown by line-through on Exhibit "A"
attached hereto are deleted and those portions
shown by double underlining on Exhibit "A"
attached hereto are added and made a part hereof
and are passed and adopted as amendments to such
Exhibit "A" to Section 2-30.
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 this 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or any part of this Ordinance are hereby repealed.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 and approval.
THE FOREGOING ORDINANCE was offered by
Councilmember Genco who moved its
adoption. The Ordinance was seconded by
Councilmember Schauer and upon being
put to a vote, the vote was as follows:
FOR ADOPTION
AGAINST ADOPTION
Joseph N. Capretta
Basil E. Dalack
Geraldine A. Genco
Elizabeth A. Schauer
Sharon D. Walker
The Mayor thereupon declared the Ordinance duly
passed and adopted this 11th day of January A. D,
2001.
MAYOR OF TEQUESTA
~1
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'Jo ph N. Cap etta
ATTEST:
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oann Mangan' llo
Village Clerk
Resolution\Amendment of Code of Ordinances
•
• EXHIBIT "A"
VILLAGE OF TEQUESTA
EMPLOYEES' PENSION TRUST FUNDS
Section 1. 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.
Act means the Employee Retirement Income Act of 1974 (P.L.93-406) as amended
by the Retirement Equity Act of 1984 (P.L. 98-397) and any regulations issued thereunder
by the Department of Labor and the Internal Revenue Service, as that Statute and these
regulations shall be amended.
Actuarial Equivalent means a benefit or amount of equal value, based upon the
• -P-R~mortality tah+etables utilized by the Boards' 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, General Employee 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, Boards, Board of Trustees, or Boards of Trustees mean either the General
Employee Board of Trustees and/or the Public Safety Board of Trustees, which shall
administer and manage the System herein provided and serve as Trustees of the Funds
for the benefit of beneficiaries of the appropriate classes of employees. Reference to a
Board may, as the context requires, be to Boards.
Chapters means Chapters 175 and 185 of the Florida Statutes as amended from
time to time.
• 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, Firefighter or General Employee and member contributions to
the Plan, omitting intervening years or fractional parts of years when such Police Officer,
Firefighter or General Employee may not be 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
creditorfractional parts ofyears of credit by reimbursing such returned contribution
to the Fund, with interest.
The years or fractional parts of years that a Firefighter, Police Officer or General
Employee 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 provided that:
A. The Firefighter or Police Officer must return to his/her full time
• employment with the Fire Department or Police Department and the General Employee
to his/her full time employment with the Village of Tequesta within one (1) year from the
date of his/her military discharge.
B. The F~efPolice Officer or General Employee deposits into the
Fund the same sum that the Member would have contributed if he/she had remained a
~~e~Police Officer or General Employee, whichever is applicable, plus an amount
of interest that substantially approximates the amount earned by the Fund from the date
of return to employment to the date of deposit. Firefighters shall not be required to
make such deposits.
C. The maximum credit for military service shall be five (5) years.
The years or fractional parts of years that a Police Officer serves in the military
service of the Armed Forces of the United States or the United States Merchant Marine,
voluntarily or involuntarily, after separation from employment with the Village for the
purpose of going on active duty, shall be added to his/her years of credited service, for all
purposes, including vesting, pursuant to conditions that are required or permitted under
state and federal law, as amended from time to time, provided that the police officer must
return to his/her employment as a police officerwithin one year from the date of his military
discharge or release from active service under honorable conditions.
•
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• Effective Date means the date on which this Ordinance becomes effective.
Police Department means the Tequesta Police Department.
Fire Department means the Tequesta Fire Department.
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 offull-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.
Firefighter means an actively employed full-time person employed by the Fire
Department, including his initial probationary employment period, who is certified as a
Firefighter as a condition of employment in accordance with the provisions of 633.35
• Florida Statutes and whose duty is to extinguish fires, to protect life and to protect property.
General Employee means an actively employed full-time person employed by the
Village ofTequesta, including his initial probationaryemployment period, excluding certified
Firefighters and certified Police Officers.
General Employee Board means the board of trustees provided hereunder to
administer and manage funds for the benefit of General Employees.
Fund or Funds mean the Trust Funds established herein as part of the System,
either the Trust Fund for the benefit of Public Safety Officers and/or the Trust Fund for the
benefit of General Employees.
Member means an actively employed Police Officer, Firefighter or General
Employee that fulfills the applicable prescribed participation requirements.
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:
•
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• Police Officer: The total cash remuneration paid to a police
officer for services rendered.
Firefighter: The total cash remuneration paid to a firefighterfor
services rendered.
General Employee: Base compensation to include regular
earnings, vacation pay, sick pay, plus all tax deferred items of
income, excluding lump sum payments.
Souse 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 Boards pursuant to this Ordinance and F.S. 112.661, et seq., which shall apply
to funds under the control of each such board.
System means the Village of Tequesta Employees' Pension Trust Funds as
contained herein and all amendments thereto.
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 2. Membership
1. Condition of Eligibility
All full time Firefighters as of the effective date, and all future new full time
Police Officers, Firefighters and General Employees shall become Members ofthis System
as a condition of employment.
2. Membership
Each full time Police Officer, Firefighter or General Employee shall complete
a form prescribed by the Board providing the following information:
A. Acceptance of the terms and conditions of the Retirement System,
and,
B. Designation of a beneficiary or beneficiaries, and,
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• C. A certified statement as to prior medical and psychological history.
3. Change in Designation of Beneficiary
A member may from time to time change his 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 3. Boards 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 two (2) Boards of Trustees, the General Employee Board and the
Public Safety Board. The General Employee Board shall consist of five (5) Trustees, two
(2) of whom, unless otherwise prohibited bylaw, shall be legal residents of the municipality,
who shall be appointed by the Tequesta Village Council, and two (2) of whom shall be
full-time General Employee members of the system. The fifth (5`h) Trustee shall be
selected by a majority vote of the other four (4) 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 municipality, who shall be appointed by the Tequesta Village Council,
• 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 (5`h) 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 group, e.g. Police Officer, Firefighter or General Employee 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 (5`h) person's name for either board, the Tequesta Village Council shall, as a ministerial
duty, appoint such person to the General Employee Board and/or the Public Safety Board
as its fifth (5"') Trustee. The fifth (5`h) 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 Firefighter and General
Employee 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 same manner as the departing Trustee. Each employee representative
Trustee may succeed himself or herself in office. The General Employee Board and the
• Public Safety Board shall meet at least quarterly each year. Such Boards shall be legal
5
• entities with, in addition to other powers and responsibilities contained herein, the power
to bring and defend lawsuits of every kind, nature, and description.
2. Each Board shall, by a majority vote, elect a chairman and a 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 on his or her Board. Three
(~3) affirmative votes shall be necessary for any decision by the Trustees at any meeting
of a 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 that the nature of the conflict complies
with the provisions of Section 112.3143, Florida Statutes.
4. The Boards 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 Boards of Trustees and all other expenses
of the Boards necessary for the operation of the Retirement System shall be paid from the
Funds 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 Boards 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.
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.
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• G. To authorize all payments whatsoever from the Funds which they
administer and manage, and to notify the disbursing agent, in writing, of approved health
payments and other expenditures arising through operation of the System and the Funds
which they administer and manage.
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 any 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. In the case of the Public Safety Board, to comply with the Chapters.
L. To ensure the funds and assets forthe benefit of the employee groups
• they serve are segregated and separated from the funds and assets under the control of
the other Board.
M. To perform such other duties as are specified in this Ordinance.
N. To ado t and be Guided by Statements of Investment Policy
auplicable to all funds under the control of the Public Safety Board of Trustees and
of the General Employee Board of Trustees as reauired from time to time by F.S.
1.12.661, et seq., and/or its successor statutes.
Section 4. Finances And Fund Management.
Establishment and Operation of Fund.
1. As part of the System, there is hereby established two (2) Funds, into which
shall be deposited all of the contributions and assets whatsoever attributable to the
System, one (1) to consist of the funds and assets for the benefit of General Employees
to be administered and managed by the General Employee Board and one (1) to consist
of the funds and assets 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 Funds (and assets thereof) shall
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• be vested in the Boards of Trustees. Payment of benefits and disbursements from the
Funds shall be made by the disbursing agent, but only upon written authorization from the
Boards.
3. All funds and securities of the Funds may be deposited by the Boards of
Trustees with the Treasurer of the municipality, acting in a ministerial capacity only, who
shall be liable in the same manner and to the same extent as he is liable for the
safekeeping of funds for the municipality. However, any funds and securities so deposited
with the Treasurer of the municipality shall be kept in separate funds by the Treasurer or
clearly identified as such funds and securities of the General Employee Trust Fund or the
Public Safety Officer Trust Fund. In lieu thereof, the Boards of Trustees shall deposit the
funds and securities of the Funds in a qualified public depository ordepositories as defined
in Section 280.02, Florida Statutes, which depository ordepositories with regard to such
funds and securities shall conform to and be bound by all of the provisions of Chapter 280,
Florida Statutes . 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.
4. All funds and securities of the System shall be accounted for separately
based upon the three (3) applicable employee classes within the Fund namely, the Police
Officers, Firefighters in the Public Safety Officers Trust Fund and the General Employees
in the General Employee Trust Fund. Accurate records shall be maintained at all times
reflecting the financial composition of the Funds 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
• 8
• and complete financial report of the Fund.
G. Such other entries as required by the Chapters.
5. 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.
6. The Boards of Trustees shall have the following investment powers and
authority:
A. The Boards of Trustees shall be vested with full legal title to the Funds,
subject, however, and in any event to the authority and power of the Tequesta Village
Council to amend orterminate this Trust, provided that no amendment or Fund termination
shall ever result in the use of any assets of the Funds except for the payment of regular
expenses and benefits under this System. All contributions from time to time paid into the
Funds, and the income thereof, without distinction between principal and income, shall be
held and administered by the Boards or their Agents in the Funds.
• B. All moneys paid into or to be held shall be invested and reinvested
by the Boards and the investment of all or any part of such funds shall be limited to:
(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 this Plan and pay the initial
and subsequent premium thereon.
(2) Time or savings accounts of a national bank, a state bank or
a savings/building and loan association insured by the Federal Deposit Insurance
Corporation or the Federal Savings and Loan Insurance Corporation. .
(3) Obligations of the United States or obligations guaranteed as
to principal and interest by the government of the United States.
(4) Bonds issued by the State of Israel.
(5) 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
9
• recognized Exchange and holds a rating in one of the three 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 three (3) rating classifications of a major rating service.
(6) Real estate.
(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 Boards 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 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 f+#~tsi~ percent
(58Qi4r60%) of the assets of the Fund.
D. The Boards of Trustees may retain in cash and keep unproductive of
income such amount of the Fund as they 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 or its own negligence, willful misconduct or lack of good
faith.
F. The Boards 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 Funds.
G. The Boards are empowered, but is not required, 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 designate 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
• 10
. may deem to be to the best interest of the Funds to exercise.
H. The Boards shall not be required to make any inventory or appraisal
or report to any court, nor to secure any order of court for the exercise of any power
contained herein.
I. Where any action which a Board is required to take or 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 underthis Ordinance, can reasonably be taken or performed
only 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 relevant Board. Overpayment shall be charged against payments
next succeeding the correction. Underpayments shall be made up from the relevant Trust
Fund.
K. A Board shall sustain no liability whatsoever for the sufficiency of a
• Fund to meet the payments and benefits herein provided.
L. In any application to or proceeding or action in the courts, only, a
Board shall be a necessary party, and no Member or other person having an interest in a
Fund shall be entitled to any notice or service of process. Any judgment entered in such
a proceeding or action shall be conclusive upon all persons.
M. Any of the foregoing powers and functions reposed in a Board maybe
performed 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 a Fund shall always remain in the Board of Trustees.
N. A 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.
Section 5. Contributions
1. Member Contributions
A. Amount. 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.
• 11
• Member contributions withheld by the Village on behalf of the Member shall be deposited
with the Boards 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-e#
a-986. 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 within 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 tong as this System is in effect, the Village shall make quarterly
contributions to the Trust Funds in an amount equal to the difference in each year,
• between the total aggregate Member contributions for the year, plus state contributions,
if applicable, for such year, and the total cost for any year shall be defined as the total
normal cost plus the additional amount sufficient to amortize the unfunded past service
liability over the appropriate periods, commencing with the fiscal year in which the effective
date of this system occurs.
4. Other
Private donations, gifts and contributions may be deposited to the Funds, 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 relevant Board, and may not be used to reduce what would have
otherwise been required Village contributions.
Section 6. Benefit Amounts and Eligibilitx
1. 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:
C]
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• For Police Officers and Firefighters:
a) attainment of age fifty-five (55) and the completion of (10) years of
credited service, or
b) attainment of age fifty-two (52) and the completion of twenty-five (25)
years of credited service.
For General Employees:
a) attainment of age sixty-two (62) regardless of years of credited
service, or
b) attainment of thirty (30) years of credited service regardless of age.
A Member may retire on his normal retirement date or on the first day of any
month thereafter, and each Member shall become 100% vested in his accrued benefit on
the Member's normal retirement date. Normal retirement underthe Plan is retirement from
employment with the Village of Tequesta as a Police Officer, Firefighter or General
Employee, whichever is applicable, on or after the normal retirement date.
• 2. Normal Retirement Benefit.
A Member retiring hereunder on or after his normal retirement date shall
receive a monthly benefit which shall commence on his Retirement Date and be continued
thereafter during Member's lifetime, ceasing upon death, but with one hundred twenty
(120) monthly payments guaranteed in any event. The monthly retirement benefit shall
equal:
For Police Officers and Firefighters -three percent (3%) of
average final compensation, for each year of credited service
(3% x average final compensation x years of credited service).
For General Employees -two percent (2%) of average final
compensation, for each year of credited service (2% x average
final compensation x years of credited service).
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 ten (10) years of credited service. Early retirement under the
• Plan is retirement from employment with the Village of Tequesta on or after the early
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• 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:
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,
Firefighter or General Employee 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 ashis/her normal retirement date except
that credited service and average final compensation shall be determined as of his 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 onhis/her normal retirement date and with the same number of years on his normal
retirement date with the same number of years of credited service as at the time his/her
benefits commence and based on his average final compensation at that date. In no event
shall the early retirement reduction exceed:
For Police Officers -three percent (3%)
For Firefighters - ~ ,
. ,three percent
~3%)
For General Employees -five percent (5%)
each year by which the commencement of benefits precedes the Member's normal
retirement date.
Section 7. Pre-retirement Death
1. Death Before Retirement
• If a plan member dies prior to retirement from the Village of Tequesta his/her
14
• beneficiary shall receive a benefit based upon the applicable employee classification as
follows:
Police Officer:
A. Line-of-Duty-Benefit is a pension to the spouse (or children) of 50%
of Average Compensation for life.
B. Non-Line-of-Duty-Death the spouse of a member with 10 years of
credited service will receive the actuarial equivalent of the accrued early or normal
retirement benefit.
C. In lieu of the benefits provided in A or B above, the beneficiary of a
police officer, with 10 or more years of service who dies prior to retirement, may receive
the benefits otherwise payable to the police officer at would have been his early or normal
retirement date.
Firefighter:
A. Line-of-Duty-Benefit is a pension to the spouse (or children) of 50%
of Average Compensation for life . (Ord. 478)
• B. Non-Line-of-Duty-Death the spouse of a member with 10 years of
credited service will receive the actuarial equivalent of the accrued early or normal
retirement benefit.
C. In lieu of the benefits provided in A or B above, the beneficiary of a
firefighter, with 10 or more years of service who dies prior to retirement, may receive the
benefits otherwise payable to the firefighter at would have been his early or normal
retirement date.
General Employee
Upon the death of any vested member, whether or not still in active
employment , a survivor benefit is payable to the beneficiary starting when the member
would have reached retirement age. The benefit is equal to the vested pension benefit.
Section 8. DISABILITY.
1. Disability Benefits On-Duty
Each full time employee who is a participant in the Pension Fund System and
• who shall have become totally and permanently disabled while an active employee of the
15
• 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, Firefighter, or General Employee, as was provided by the employee in their
classification (Police Officer, Firefighter, or General Employee) prior to the alleged
impairment, which disability was directly caused by the performance of his/her duty as a
Police Officer, Firefighter, or General Employee 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 (a) or (b):
(a) For General Employees: a monthly pension equal to
42% of his/her average monthly compensation based
upon his/her final 5 years of service, or
For Police Officers and Firefighters: a monthly pension
equal to 42% of his/her average monthly compensation
as of his/her disability retirement date, or
(b) y4For Police Officers and Firefighters• an amount
calculated on the basis of the Normal Retirement
• Benefit. or
For General Employees: an amount equal to the
number of years of his/her credited service multiplied
by-
2% of his/her average monthly salary based upon
his/her final 5 years of service
Any condition or impairment of health of Police Officer or Firefighter caused
by tuberculosis, hypertension 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.
16
• 2. Disability Benefits Off-Dutx
Every Police Officer, Firefighter or General Employee 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, Firefighter or General
Employee which disability is not directly caused by the performance of his/her duties as a
Police Officer, Firefighter or General Employee shall be entitled to:
A. If the injury or disease is not service connected, the Police Officer,
Firefighter or General Employee shall be entitled to the greater of (a) or (b):
(a) For General Employees: a monthly pension equal to
25% of his/her average monthly compensation based
upon his/her final 5 years of service, or
For Police Officers and Firefighters: a monthly pension
equal to 25% of his/her average monthly compensation
as of his/her disability retirement date, or
(b) An amount equal to the number of years of his/her
• credited service multiplied by:
3% of his/her average monthly salary based upon
his/her final 5 years of service for Police Officers
3% of his/her average monthly salary based upon
his/her final 5 years of service for Firefighters
2% of his/her average monthly salary based upon
his/her final 5 years of service for General Employees.
3. Conditions Disqualifying Disability Benefits
Each Police Officer, Firefighter or General Employee 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.
C]
17
• 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 ;Firefighter with the
Tequesta Fire Department or General Employee with the Village of Tequesta.
F. Willful, wanton or gross negligence of }"~ ""~-r-"..~a Police Officer or
General Emplovee.
G. Injury or disease sustained by tea Police Officer; ~Fife#tg-ifiter or
General Employee while working for anyone other than the Tequesta Police Department;
or-, for General Employees, the Village of Tequesta and arising
out of such employment.
4. Physical Examination Reauirement
• An employee eligible 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 benefits 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,
Firefighter, or General Employee the Board shall recommend to the Village that the retiree
be returned to their previous performance of duty as a Police Officer, Firefighter, or
General Employee, 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 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 of this
Pension Fund System. 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.
18
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 prior tohis/her normal
retirement date, the payment due next preceding the date of such recovery, or
• B. If the plan member dies without recovering from disability or attains
his/her normal retirement date while still disabled, the payment due next preceding his
death or the 120th monthly payment, whichever is later.
Section 9. Vestina
If a Member terminates his 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:
For Police and Firefighters:
1. If the Member has less than ten (10) years credited service upon
termination, the Member shall be entitled to a refund of his accumulated contribution or
Member may leave it deposited with the Fund.
2. If the Member has ten (10) 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 Member's otherwise normal or early retirement date, provided he does not
. elect to withdraw his accumulated contributions and provided Member survives to his
19
• normal or early retirement date.
For General Employees:
1. If the Member has less than ten (10) years credited service and has
not attained the age of sixty-two (62) upon termination, the Member shall be entitled to a
refund of his accumulated contribution or Member may leave it deposited with the Fund.
2. If the Member has ten (10) or more years of credited service upon
termination, or, alternatively, the Member has attained the age ofsixty-two (62) ,regardless
of credited years of service, 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/her commencing at Member's otherwise normal or early retirement date, provided
he/she does not electto withdraw his/heraccumulated contributions and provided Member
survives to his/her normal or early retirement date.
3. Any plan member of the System whose position is terminated, for
whatever reason, but who is employed by the Village in some capacity, shall have all
retirement benefits accrued up to the date of such termination under this System
preserved, provided he does not elect to withdraw his/her accumulated contributions from
this System. Such Accrued retirement benefits shall be payable at his/her otherwise
• normal retirement date hereunder, or later, in accordance with the provisions of this
System.
Section 10. Optional Forms of Benefits
1. In lieu of the amount and form of retirement income payable in the event of
normal or early retirement as specified herein, a plan member, upon written request to the
Board of Trustees and submission of evidence of good health (except that such evidence
will not be required if such request is made at least three (3) years prior to the date of
commencement of retirement income or if such request is made within six (6) months
following the effective date of the Plan, if later), and subject to the approval of the Board
of Trustees, may elect to receive a retirement income or benefit of equivalent actuarial
value 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%, 75%, 66-2/3%,
or 50% of such monthly amounts payable to the survivor for the lifetime of the survivor.
•
20
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 Member's death, and will have the power to change such 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
a joint pensioner or beneficiary and Member's retirement income benefits have
commenced, Member maythereafterchange his designated joint pensioneror beneficiary,
but only if the Board of Trustees consents to change and if the joint pensioner last
previously designated by Member is alive when he/she files with the Board of Trustees the
request for such change.
3. The consent of joint pensioneror beneficiary to any such change shall not
be required.
4. The Board of Trustees may request such evidence of the good health of the
joint pensioner that is being removed as it may require and the amount of the retirement
income payable to the 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 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 11.
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 first occurs, no retirement benefit will be payable under the
option to any person, but the benefits, if any, will be determined under Section 7.
B. If the designated beneficiary (or beneficiaries) or joint pensioner dies
before the Members 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
21
• 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)
designated by 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 11.
D. If a Member continues beyond his/her normal retirement date pursuant
to the provisions of Section 6, subsection 1, and dies prior tohis/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. Member may not change his/her retirement option after the date of cashing
or depositing his/her first retirement check.
• Section 11. Beneficiaries
1. Each Member may, on a form provided forthat 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 Members the death benefit, if any, which may be payable under the Plan
with respect to such deceased Member t~tshall be paid; -its to the ~~~..-,.a:,.....s a".. °,.,._.~
~.F T-. ...a...... .+:aL..... a...
r
v. c..a..a.. ,.i aL. ~ nCn1TJ"Cf
estate of the deceased Member.
22
Section 12. 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 case. The Board
shall review the case and enter such orderthereon as it deems right and properwithin 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 of the claim was originally recommended, and any
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
• 23
• 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 orthe Board, mayfile 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 relevantto the issues, tocross-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 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 13. Reports to Division of Retirement.
Each year and no later than March 15th, the Chairman of the Public Safety Board
shall file a report with the Division of Retirement containing the following relative to the
Firefighters of the Plan:
• 24
• 1. Whether in fact the Municipality is in compliance with the provisions of
Chapter 175 Florida Statutes ,
2. A certified statement of accounting for the most recent fiscal year of the
Municipality (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 numberof Firefighters on the force of the
Municipality, the number included in the Pension Plan, the numberof Firefighters ineligible,
classified according to the reasons for their being ineligible, and the numberof disabled
and retired Firefighters and their beneficiaries receiving pension payments and the
amounts of annual retirement income or pension payments being received by them.
4. A statement of the amount the Municipality has contributed to the Public
Safety Pension Fund for the preceding plan year and the amount the Municipality will
contribute to the Public Safety Pension Fund for the current plan year.
5. 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.
6. 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 Title 3 of the Employee Retirement Income Security Act of 1974 and who is
a Member of the Society of Actuaries or the American Academy of Actuaries.
Each year and no later than March 15th, the Chairman of the Public Safety Board
shall file a report with the Division of Retirement containing the following relative to Police
Officers:
1. Whether in fact the Municipality is in compliance with the provisions of
Chapter 185, Florida Statutes.
2. A certified statement of accounting for the most recent fiscal year of the
Municipality (or an independent audit by a certified public accountant if required by the
Department of Insurance) 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
•
25
• 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 Officer on the force of the
Municipality, 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 statement of the amount the Municipality has contributed to the Public
Safety Pension Fund for the preceding plan year and the amount the Municipality will
contribute to the Public Safety Pension Fund for the current plan year.
5. 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.
6. 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 Title 3 of the Employee Retirement Income Security Act of 1974 and who is
a Member of the Society of Actuaries or the American Academy of Actuaries.
Section 14. Roster of Retirees.
The Secretary of the Boards shall keep a record of all persons enjoying a pension
underthe 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 Secretaries shall
keep a record of all Police Officers, Firefighters and General Employees employed by the
Municipality 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 15. Board Attorney and Professionals.
The Boards may employ independent legal counsel at the Pension Funds' expense
forthe purposes contained herein, togetherwith such other professional, technical, orother
advisors as the Boards deems necessary.
Section. 16. Maximum Pension.
1. Basic Limitation.
•
26
• Subject to the adjustments hereinafter set forth, the maximum amount of
annual retirement income payable with respect to a Member under this Plan shall not
exceed the lesser of:
A. $90,000 (or such ~essefadiusted dollar amount as may be allowable
for any calendar year pursuant to e~sSection 415(b) of the'~`~-~~' °~••~~••~ Code, as
adjusted in such calendar year for increases in the cost of living in accordance with
regulations issued by the Secretary of the Treasury under e~SSection 415(d) of the
Code), or
B. 100% of the Member's average aggregate Compensation forthe three
(3) consecutive calendar years during which the Member was an active Member and had
his/her highest aggregate compensation. "Compensation" shall mean the Member's total
annual remuneration paid or accrued for personal services rendered to the Village of
Tequesta during the Plan Year as reported on the Member's W-2.
For purposes of applying the above limitation, benefits payable in any form
other than a straight life annuity with no ancillary benefits shall be adjusted, as provided
by Treasury Regulations, so that such benefits are the Actuarial Equivalent of a straight
life annuity. For purposes of this Section, the following benefits shall not be taken into
account:
• (1) Any ancillary benefit which is not directly related to retirement
income benefits;
(2) Any other benefit not required undere~SSection 415(b)(2) of
the '~~~-~~' °~••~~~~~ Code and Regulations thereunder to be taken into account for
purposes of the limitation of e~SSection 415(b)(1) of the'`~-~~' °~••~~• •~ Code.
2. Participation in Other Defined Benefit Plans. The limitation of this Section
with respect to any Member who at any time has been a Member in any other defined
benefit Plan (as defined in eSection 414Q) of the'~`~-~~' °~• •-~• •~ Code) maintained
by the Department shall apply as if the total benefits payable under all defined benefit
plans in which the Member has been a Member were payable from one Plan.
3. Adjustments in Limitations. In the event the Member's retirement benefits
become payable before age 62, the $90,000 limitation prescribed by this Section shall be
reduced in accordance with Regulations issued by the Secretary of the Treasury pursuant
to the provisions of Section 415(b) of the'`~-~~' °~••~~•~~ Code, but not less than
$75,000.
In the event the Member's retirement benefit becomes payable before age fifty-five
(55), the $75,000 limitation shall be reduced from age fifty-five (55) in accordance with
• 27
Regulations issued by the Secretary of the Treasury pursuant to the provision of Section
415(b) of the'~`~-~~' °~••~~••~ Code.
If the Member's retirement benefit becomes payable after age sixty-five (65), for
purpose of determining whether this benefit meets the limitation set forth in subsection 1
herein, such benefit shall be adjusted so that it is actuarially equivalent to the benefit
beginning at age 65. This adjustment shall be made using an assumed interest rate of five
percent (5%) and shall be made in accordance with regulations promulgated by the
Secretary of the Treasury or his delegate.
4. Less than Ten Years of Service. The maximum retirement benefits payable
under this Section to any Member who has completed less than ten (10) years of
accredited service with the Village shall be the amount determined under subsection 1 of
this Section multiplied by a fraction, the numerator of which is the number of the Member's
years of credited service and the denominator of which is ten (10).
5. $10.000 Limit. Notwithstanding the foregoing, the retirement benefit payable
with respect to a Member shall be deemed not to exceed the limitations set forth in this
Section if the Benefits payable, with respect to such member under this Plan and under all
other qualified defined benefit pension plans to which the Village of Tequesta contributes,
do not exceed $10,000 for the applicable Plan Year and for any prior Plan Year and the
• Village of Tequesta has not at any time maintained a qualified defined contribution plan in
which the Member participated.
6. Accrued Benefit as of Effective Date. Notwithstanding the above limitations,
if any Member as of the effective date hereof, has an accrued benefit as of that date that
exceeds the above limitations, then such limitations shall equal such accrued benefit.
However, no cost of living adjustments as provided in subsection
9 below shall be applicable to the amount of retirement benefit so determined.
7. Member in Defined Contribution Plan. In any case where a Member under
this Plan is also a Member in a "Defined Contribution Plan" as defined in eSection
414(1) of the'~`~~~~' °~•~~~• •~ Code, maintained by the Village of Tequesta, the sum of the
"Defined Benefit Plan Fraction" and the "Defined Contribution Plan Fraction" (both as
defined in e4-1-5Section 415(e) of the'`~-~~' °~••~~••~ Code) shall not, subject to the
restrictions and exceptions contained in e~884Section 2004 of the Act, exceed 1.0.
8. Reduction of Benefits. Reduction of benefits and/orcontributions toall plans,
where required, shall be accomplished by first reducing the Member's benefit under any
defined benefit plans in which Member participated, such reduction to be made first with
respect to the plan in which Member most recently accrued benefits and thereafter in such
priority as shall be determined by the Trustees and the Plan Administrator of such other
• plans, and next, by reducing or allocating excess forfeitures for defined contribution plans
28
• in which the Member participated, such reduction to be made first with respect to the plan
in which Member most recently accrued benefits and thereafter in such priority as shall be
established by the Trustees and the Plan Administrator for such other provided, however,
that necessary reductions may be made in a different manner and priority pursuant to the
agreement of the Trustees and the Plan Administrator of all other plans covering such
Member.
9. Cost-of-Living Adjustments. The limitations as stated in subsections 1, 2, 3,
and 7 herein shall be adjusted to the time payment of a benefit begins in accordance with
any cost-of-living adjustments prescribed by the Secretary of the Treasury pursuant to
e~Section 415(d) of the '~`~~~~' "~• •~~• •~ Code.
10. Additional Limitation on Pension Benefits. Notwithstanding anything herein
to the contrary:
A. The normal retirement benefit or pension payable 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 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 17. 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 of the 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
•
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• 2. If the payment of a Member's retirement income cannot begin on the date
required under subsection 1 of this 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 18. Distribution of Benefits.
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:
A. It shall either be distributed or commence to the Member not later than
April 1 of the calendar year following the later of the calendar year in which the Member
attains age 70-1/2, or the calendar year in which Member retires,
• B. The distribution shall commence 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, Member's entire interest in the Plan shall be distributed within five
(5) years of 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 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
•
30
• 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 70-1/2 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 19. Miscellaneous Provisions.
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 elusive benefit.
2. Liquidation of Pension Fund Assets-.
A. In the event that contributions of the Village are permanently
discontinued or in the event that it becomes necessary for the Village to discontinue either
or both of the Plans, the Boards of Trustees shall determine proposed dates of termination
. and liquidate the Pension Funds, in accordance with the applicable requirements of the
Act governing termination. The rights of affected Plan Members, joint annuitants,
beneficiaries and surviving spouses to benefits accrued to the date of any such termination
or discontinuance to the extent then funded, shall become fully vested and nonforfeitable
and upon occurrence of such event, the Village's aliquot share of the assets then
remaining in the Pension Funds shall be allocated among the Members and their
beneficiaries and administered and distributed at such time or times as is determined by
the Boards of Trustees.
B. Any reserves which shall be released as a result of the application of
the provisions of Section 20, subsection 3E, shall be added to the portion of the Pension
Fund which is distributed as provided above to Members whose benefits are not restricted,
provided that in the event that all of the benefits accrued to such Members are fully
provided for, such released reserves (or any remaining portion thereof) shall be allocated
to provide to the extent possible up to one hundred percent (100%) of the benefits
otherwise canceled pursuant to Section 20, subsection 3E, allocating such remaining funds
in proportion to the value of the benefits so canceled.
C. The Boards of Trustees may in their discretion give effect to the
provisions of the foregoing paragraphs A and B by the purchase of annuities, by continuing
the Trust Funds in existence and making provisions thereunder for pension benefits, or by
immediate distribution from the Trust Funds. If the assets of the Pension Funds applicable
•
31
• to any asset distribution priority category are insufficient to provide full benefits for all
persons in such group, the benefits otherwise payable to such persons shall be reduced
proportionately except as may otherwise be specified by regulations. If there is any
balance remaining in the Pension Funds after all obligations to Plan Members, joint
annuitants, beneficiaries and surviving spouses are met, such balance will revert to the
Village. The actuary shall calculate the allocation of the assets of the Pension Funds in
accordance with the asset distribution priority category, and certify his calculations to the
Fiduciaries. No liquidation of assets and payment of benefits (or provisions therefore) shall
actually be made by the Boards of Trustees until after they are advised by the Village, in
writing, that applicable requirements, if any, of the Act governing termination of "Police
Officer, Firefighter or General Employee Pension Benefit Plans" have been, or are being
complied with or that appropriate authorizations, waivers, exceptions or variances have
been, or are being, obtained.
3. 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 of Members or Members' beneficiaries.
4. Eligible Rollover Distributions. If the distributee of an eligible rollover
distribution, as defined by Section 402(i)(2)(A) of the Code, elects to have such
distribution paid directly to an eligible retirement plan, as defined in Section
• 402(c)(8)(B) of the Code (except that a qualified trust shall be considered an eligible
retirement plan only if it is a defined contribution plan, the terms of which permit the
acceptance of rollover distributions) and specifies the eligible retirement plan to
which such distribution is to be paid, such distribution shall be made in the form of
a direct trustee-to-trustee transfer to the eligible retirement plan so specified.
Section 20. 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
•
32
• 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, Firefighter, or General Employee 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, Firefighter or General Employee
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 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,
Firefighter or General Employee in the service of the Police Department, Fire Department
or the Village of Tequesta on such date who has completed at least ten (10) 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, Firefighter
or General Employee in the service of the Police Department, Fire Department or Village
of Tequesta 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.
•
33
• 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 the 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 amounts will be equal to such remaining asset value.
E. In the event that there be asset value remaining after the full
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 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.
If, any time during the first ten (10) years after the effective date of this Ordinance,
the System shall be terminated or the full current costs of the System shall not have been
met, anything in the System to the contrary notwithstanding, Village contributions which
may be used for the benefit of any one of the twenty-five(25) highest paid Police Officers,
Firefighters or General Employees or Participants of the Police Department, Fire
Department or Village of Tequesta on the effective date, whose anticipated annual
retirement allowance provided by the Village's contributions at Member's normal retirement
date would exceed $1,500, shall not exceed greater of either a) $20,000, or b) an amount
computed by multiplying the smaller of $10,000 or twenty percent (20%) of such Police
Officer's, Firefighter's or General Employee's average annual earnings during his last five
(5) years of service by the number of years of service since the effective date. In the event
that it shall hereafter be determined by statute, court decisions, ruling by the Commissioner
of Internal Revenue, or otherwise, that the provisions of this paragraph are not then
necessaryto qualifythe system underthe'~`~-~-' °~••~~•• Code, this paragraph shall be
ineffective without the necessity of further amendment of this Ordinance.
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.
•
34
• Section 21. Exemption from Execution, Non-assignabilitx.
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 shalt be unassignable.
Section 22. Pension Validity.
The Board of Trustees shall have the power to examine into the facts upon which
any pension shall heretofore have been granted 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 orwho shall hereafter underthis Ordinance
be erroneously, improperly or illegally classified.
Section 23. Forfeiture of Pension.
• Any Member convicted of the following offenses committed prior to retirement, or
whose employment is terminated by reason of his 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.
2. The committing of any felony by a public officer or employee who willfully and
• with intent to defraud the public or the public agency, for which he acts or in which he is
35
• employed, of the right to receive the faithful performance of his 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 the use or attempted use of the power, rights, privileges,
duties or position of his public office or employment position.
A. Conviction shall be defined as follows:
An adjudication of guilt by a court of competent jurisdiction; a plea of guilty
or a 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 follows:
Any state or federal court of competent jurisdiction which is exercising its
jurisdiction to consider a proceeding involving the alleged commission of a specified
offense. Priorto 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 case against
forfeiture.
Any Member who has received benefits from the System in excess of his
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 accumulated
contributions. The Board of Trustees may implement all legal action necessary to recover
such funds.
Section 24. Military Service Priorto 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 the United States Merchant
Marine, voluntarily or involuntarily, prior to first and initial employment with the Police
Department, Fire Department or Village of Tequesta shall be added to his/her years of
credited service provided that:
1. The Police Officer, Firefighter or General Employee 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 of years of credited service.
2. The request shall be made only once and made by the Member on or before
•
36
• 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, Fire Department or
Village of Tequesta, 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.
N:\JBM\13153-46\Trust Fund\Trust Fund2 Red.wpd
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37