HomeMy WebLinkAboutDocumentation_Pension Public Safety_Tab 20_11/03/2008~~z~~ifa~`-~~~~~.
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TRELA 1. WHITE TELECOP[ER (56I 1586-9611
BRADLEY W. BIGGS*^
KEITH W. DAVIS*^ *StateCertifiedCountyand
R. MAX LOHMAN** Circuit Court Mediator
MICHAEL B. STEINBAUM ** Certified County Court Mediator
^ Board Certified in Ciry, County and Local Government Law
MEMORANDUM
TO: Michael Couzzo, Village Manager
FROM: Trela J. White, Esq.
DATE: September 29, 2008
RE: Police Chiefs request to withdraw from Public Safety Officers' Pension Trust
Fund ("the "Plan")
Apparently a question has arisen regarding the ability of the Police Chief to withdraw
from the above-referenced pension plan. Accordingly, I offer the following:
1. Section 3 of the Plan clearly states that participation is optional for the Police Chief and
the Fire Chief.
2. There is nothing in the Plan document that indicates any deadlines for election to
participate by either the Police Chief or the Fire Chief.
3. The Plan is also silent as to any time limits which must be adhered to by either the Police
Chief or the Fire Chief should they choose to withdraw from the Plan.
4. Thus, since participation in the Plan by the Police Chief or the Fire Chief is optional, and
since there are no deadlines or time limits set forth in the Plan document for participation or
withdrawal, it is my opinion that the Police Chief may withdraw from participation in the Plan at
any time. If the Police Chief has less than six (6) years of credited service, he is entitled to a
refund of his accumulated contribution (i.e., his own contribution without interest) or may leave
it deposited with the fund pursuant to Section 1 I of the Plan.
Should you have any questions regarding this matter, please do not hesitate to contact me.
Y.~docsTequata Letters & MemosMmw•Wahdrau PrnionPlan-O8.doc
Laur, Betty
From: McWilliams, Lori
Sent: Thursday, September 25, 2008 4:14 PM
To: Laur, Betty; 'Trela White'
Cc: Reid, Merlene
Subject: FW: Pension System Condition of Eligibility
Attachments: ATT4205740.jpg
Betty,
I have discuss this with Michael. Please place it on the next Pension agenda for the Pension Board to approve. Michael
says he does not need to provide documentation regarding what Bonni has mentioned below. He stated the Chief has
the right to opt out of the pension plan. He asked me to have Trela write a memo that affect.
Trela,
Please write a letter to the Public Safety Pension Board explaining the Chief is taking advantage of his ability to opt out
of the pension plan and that Council has approved this according to the plan document.
Thanks.
Lori
From: Reid, Merlene
Sent: Wednesday, September 24, 2008 4:10 PM
To: McWilliams, Lori
Subject: FW: Pension System Condition of Eligibility
Lori,
Here's what Bonni had sent back in July when Mike had asked me to look into it. Mike would need to provide this
documentation to the Pension Board, which was not included in the information to the Council.
Merlene
From: Bonni S. Jensen [mailto:bsjensen@hpjlaw.com]
Sent: Friday, July 25, 2008 12:13 PM
To: Reid, Merlene
Cc: McWilliams, Lori; Karen Amenita; Angela Twomey
Subject: Re: Pension System Condition of Eligibility
Merlene,
If the Village Manager wants to provide the Pension Board with documentation that he improperly advised the
Chief about his options under the pension plan, then the Chief can request to be withdrawn from the Plan from
the Board. He would be entitled to a refund of his contributions without interest. If the Trustees approve the
withdrawal the Chief should sign a release, acknowledging both that he is leaving the defined benefit program
and that he cannot re-enter into the defined benefit plan.
Future Police and Fire Chiefs should be required to sign a document opting into or out of the plan, based on the
below plan language:
Section 3. Membership.
1. Condition of Eligibility
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.
If you have any questions, please contact me.
Bonni S. Jensen <bs~ensen@hpjlaw.com>
Hanson, Perry & Jensen, P.A.
400 Executive Center Drive, Suite 207
West Palm Beach, Florida 33401
Telephone: (561)686-6550
Facsimile: (561)686-2802
CONFIDENTIALITY NOTICE: This communication is confidential, may be
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the intended recipient, please notify the sender ASAP and delete this
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by law.
Reid, Merlene wrote:
Bonni,
Chief McCollom and the Village Manager have asked me to look into this again. Apparently, the Village Manager
misinformed the Police Chief when he was hired in July 2007, telling him that it was compulsory for him to join the
Public Safety pension plan, and the Chief has indicated that this is the only reason he joined. They have asked me to
check if he can withdraw at this stage, if the Village Manager is willing to sign that he misinformed the Chief.
Merlene
Merlene Reid, SPHR
Human Resources Manager
Village of Tequesta
345 Tequesta Drive
Tequesta, FL 33469-0273
Tel: (561J 575-6200 x256
Fax: (561 J 575-6203
2
From: Bonni S. Jensen [mailto:bsjensenCa~hpjlaw cam]
Sent: Tuesday, December 04, 2007 1:44 PM
To: Reid, Merlene
Cc: McCollom, William; McWilliams, Lori; Laur, Betty; Archive
Subject: Re: Pension System Condition of Eligibility
Merlene,
Your impression is correct. The option for the Chief not to participate was to be a decision that the Chief made
before he entered into the Plan.
Reid, Merlene wrote:
Will,
I'll have to get guidance from the Pension Attorney on this as I read the plan and confirmed that participation in
this system is optional for the Police Chief and the Fire Chief. However, I'll need to confirm whether or not you
have the option to terminate once you are in. This is not addressed in the plan, which leaves me with the
impression that once you are in, you can only leave via the options available to the other plan members.
Merlene
Merlene Reid, SPHR
Human Resources Manager
Village of Tequesta
345 Tequesta Drive
Tequesta, FL 33469-0273
Tel: (561) 575-6200 x256
Fax: (561J 575-6203
From: McCollom, William
Sent: Tuesday, December 04, 2007 11:29 AM
To: Reid, Merlene
Cc: Archive
Subject: FW: Pension System Condition of Eligibility
I would like to take my money out of the pension plan and place it in the ICMA 457 plan.
Thanks
Chief William E. McCollom
Tequesta Police Department
357 Tequesta Drive
Tequesta, Fl 33469
(561) 744-4019
(561) 745-7877 FAX
wmccollom@te uesta.or
Florida has a very broad public records law. Most written communications to or from state or local officials
regarding state or local business are considered to be public records and will be made available to the public and
the media upon request. Therefore, your email message is subject to disclosure.
From: Weinand, James
Sent: Monday, December 03, 2007 4:00 PM
To: McCollom, William; Reid, Merlene
Cc: Archive
Subject: Pension System Condition of Eligibility
Section 3. Membershia.
1.
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.
Bonni S. Jensen <bsjensen@hpjlaw.com>
Hanson, Perry & Jensen, P.A.
400 Executive Center Drive, Suite 207
West Palm Beach, Florida 33401
Telephone: (561)686-6550
Facsimile: (561)686-2802
CONFIDENTIALITY NOTICE: This communication is confidential, may be
privileged and is meant only for the intended recipient. If you are not
the intended recipient, please notify the sender ASAP and delete this
message from your system.
IRS CIRCULAR 230 NOTICE: To the extent that this message or any
attachment concerns tax matters, it is not intended to be used and cannot
be used by a taxpayer for the purpose of avoiding penalties that may be imposed
by law.
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4
Laur, Betty
From: McWilliams, Lori
Sent: Wednesday, September 24, 2008 3:58 PM
To: Laur, Betty
Subject: Chief of Police and Pension Fund
Attachments: 2008.pdf
Betty,
I believe you and I previously discussed this. Please use this backup on the November Public Safety Agenda. The Chief
requested Council approval to be removed from the Pension Fund and Council agreed.
Lori
' ~ '~ VILLAGE OF TEQUESTA
A,~r.
~~ ~ AGENDA ITEM TRANSMITTAL FORM
1. VILLAGE COUNCIL MEETING:
Meeting Date:
09/ 11 /08 Meeting Type: Regular Ordinance #: ': c~k here to enter tex.'.
Consent Agenda: ~~~~ose an item. Resolution #: ' '; k here ~:-:.~nte~ t~ ,Yt
Originating Department: Village Manager
2. AGENDA ITEM TITLE: (Wording form the SUBJECT line of your staff report)
Authorizing to approve a 5% matched contribution to Chief McCollom's ICMA account in lieu of the
Village of Tequesta Pension Plan
3. BUDGET /FINANCIAL IMPACT:
Account #: Eck here to enter text
Current Budgeted Amount Available
Amount of this item: pick here to enter text
Amount Remaining after item:
Budget Transfer Required: hcne .~" ~ Appropriate Fund Balance: ';hoose an item
4. EXECUTIVE SUMMARY OF MAJOR ISSUES: (This is a snap shot description of the agenda item)
Authorizing to approve a 5% matched contribution to Chief McCollom's ICMA account in lieu of the
Village of Tequesta Pension Plan. In addition all current funds in the Villages Pension Plan are
requested to be placed in his ICMA account.
~. Arrrcwf-~s:
_ _ __.
Dept. Head: _ - ~'" Finance Director: S'`"~0`"`' ~ ""
Attorney: (for legal sufficiency) Yes 0 No ^
--- -.
:._- _-
Village Manager: - ~ `"
• SUBMIT FOR COUNCIL DISCUSSION:
• APPROVE ITEM: C~"
• DENY ITEM: ^
MEMORANDUM
Village of Tequesta
Administration
TO: Village Council
FROM: Michael Couzzo, Village Mana
DATE: September 5, 2008
SUBJECT: Authorizing to approve a 5% matched contribution to Chief McCollom's
ICMA account in lieu of the Village of Tequesta Pension Plan
Attached for your review and approval is a memo from Chief McCollom requesting to
opt out of the Village of Tequesta's Pension Plan with consideration of an ICMA match.
He is requesting his current contributions be placed in his ICMA account and any future
contributions matched up to 5% of his salary. I have reviewed this memo and based
upon his request, I believe this will reduce our cost.
I respectfully request that Council approve this request.
~~ ,
~E~„rY~,q ~` TEQUESTA POLICE DEPARTMENT
~"~ ~~`
'0ouc .f~" MEMORANDUM
ni 'C'
~,
To: Michael R. Couao, Jr.
Village Manager
From: Chief William McCollo
Date: September 3, 2008
Subject: VOT PENSION PLAN
A'
~9.
Per our recent discussions, I understand that I can opt not to participate in the VOT
Pension Plan. Therefore, in lieu of the participation in the pension plan I would
respectfully request that you consider providing mean ICMA match.
I am currently in the ICMA program through the Village of Tequesta; however, my
contribution is not matched. If it is feasible, I would request that my contribution to
the pension plan to-date is placed in my ICMA account and any future
contributions are matched up to 5% of my salary.
Thank you for any consideration you can give to my request.
nP-d ~a, zoa~
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 fom~er Vii{age Police Officers and Firefighters and survivor benefits to beneficiaries.
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 arx!
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 beneficary 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.
h e means Chapters 175 and 185 of the Florida Statutes as amended from
time to time.
Cade means the Internal Revenue Code of 1986, as amended from time to time.
Page 1 of 35
April 14, 2005
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 txedit for the time of active partiapation
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 militaryservice of the Armed Forces of the United States orthe 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, shag 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.
i eF r fighter 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 provisans of 633.35 Florida Statutes, including paramedic, and whose duty is to
extinguish fires, to protect life and to protect properly .
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.
Police Officer means any person who is elected, appointed, or employed full time
Page 2 of 35
April 14, 2005
by the Village, who is certified or n~uired 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 certfied supervisory and command personnel whose duties include, in whole
or in part, the supervision, training, guidance, and management responsibilities of full~ime
law enforcement officers, part-time law enforcement officers or aubliary 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, oard means the Public Safety Board of Tn~stees provided hereunder
to administer and manage Funds for the benefit of Public Safety Officers.
Pu li fety 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 Polic_„y 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 oontrd of each board.
~y3s e~i means the Village of Tequesta Public Safety Officers' Pension Trust Fund
as contained herein and all amendments thereto.
Vested deferred refinement 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.
Villaoe 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.
Page 3 of 35
AprN 14, 2005
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 folbwing information:
A. Acceptance of the terms and conditions of the Retirement System,
and,
B. Designatan of a beneficiary or benefiaaries, and,
C. A certified statement as to prior medical andlor psychological history.
3. Chance in signation of Benue
A member may from time to time change hislher 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 responsib~ity 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 bylaw, shall be legal residents of the Village, who shall be appointed
by the Tequesta Vilage Counal, and one (1) of whom shalt be a full-time Police Officer
member of the System and one (1) of whom shall be afull-time Firefighter member of the
System. The fifth (5"') 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 fuN-time co-workers who are members
of the System in the applicable employee representative group, e.g. Police Officer or
Firefighter in which they are employed and shall be elected by a majority of the fuA-time
employees who are Members of the System within the applicable employee representative
group. Upon receipt of the fifth (5"') person's name the Tequesta V~lage Counal shall, as
a ministerial duty, appoint such person to the Public Safety Board as its fifth (5"') Trustee.
Page 4 of 35