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HomeMy WebLinkAboutDocumentation_Regular_Tab 16_3/14/2019Keith W. Davis, Esq. Gmpsjeb!Cbs!Cpbse!Dfsujgjfe!Buupsofz !!!!!!!!!!!!Djuz-!Dpvouz!boe!Mpdbm!Hpwfsonfou!Mbx Email: keith@davisashtonlaw.com April 11, 2019 MEMORANDUM To:Mayor Brennan; Council Members Arena,Brandon,Johnsonand Stone Cc:ActingManagerWeinand,Clerk McWilliams Fr:Attorney Davis Re:Amendments to the General Employees’ Pension Plan. The following describes in detail the above referenced agenda item: This ordinance proposes to amend the general employees’ pension plan by providing a re-hire after retirement provision, like the provision currently contained in the public safety pension plan. Sections 7, 8 and 25 of the plan are amended as attached, in order to effectuate this amendment. There is no actuarial impact to the plan as a result of these amendments according to the actuary. ______________________________________________________________________________ 812!Opsuiqpjou!Qbslxbz-!Tvjuf!316-!Xftu!Qbmn!Cfbdi-!GM44518q!672.697.8227!g!672.697.:722 xxx/ebwjtbtiupombx/dpn LEADING EXPERTS IN LOCAL GOVERNMENT LAW AND ETHICS ORDINANCE NO. 12-19 AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF TEQUESTA, FLORIDA, AMENDING THE VILLAGE CODE OF ORDINANCES ATCHAPTER 2. ADMINISTRATION.BY AMENDING SECTION 2-61.PENSION TRUST FUNDS, EXHIBIT A, THE GENERAL EMPLOYEES’ PENSION TRUST FUND,AT SECTION 7. “BENEFIT AMOUNTS AND ELIGIBILITY”; SECTION 8. “PRE-RETIREMENT DEATH”; AND SECTION 25. “RE-EMPLOYMENT, ELECTION OR APPOINTMENT TO THE VILLAGE COUNCIL AFTER RETIREMENT” IN ORDER TO ADD A NEW “RE-HIRE AFTER RETIREMENT” PROVISION; PROVIDING THAT EACH AND EVERY OTHER SECTION AND SUBSECTION OF CHAPTER 2.AND EXHIBIT A SHALL REMAIN IN FULL FORCE AND EFFECT AS PREVIOUSLY ENACTED; PROVIDING A CONFLICTS CLAUSE, A SEVERABILITY CLAUSE AND AUTHORITY TO CODIFY; PROVIDING AN EFFECTIVE DATE; AND FOR OTHER PURPOSES. the Village Council of the Village of Tequesta desires to amend the general WHEREAS, employees’ pension trust fund based on a recommendation from the pension board toadd a new “re-hire after retirement” provision similar to that which is part of the public safety plan; and WHEREAS,said amendments have been approved by the Board of Trustees; and WHEREAS,the pension trust fund actuary has reviewed the proposed amendments and has made a determination that said amendments have no actuarial impact on the cost of the pension fund; and WHEREAS,the Village Council believes that these revisions to the general employees’ pension trust fund arein the best interests of the Village of Tequesta and the general employees’ pension trust fund beneficiaries; and will promote the public health, safety and welfare. NOW, THEREFORE, BE IT ORDAINED BY THE VILLAGE COUNCIL OF THE VILLAGE OF TEQUESTA, PALM BEACH COUNTY, FLORIDA, AS FOLLOWS: Section 1:Chapter 2of the Code of Ordinances of the Village of Tequestais hereby amended at Sec. 2-61Pension Trust Funds, Exhibit A, the General Employees’ Pension Trust Fund, at section 7. “Benefit amounts and eligibility”; section 8. “Pre-retirement death”; and section 25. “Re-employment, election or appointment to the village council after retirement” in 1 order to add a new “re-hire after retirement” provision;providingthat Exhibit A, Sections 7, 8 and 25 attached hereto shall be amended and hereafter shall read as attached: Section 2:Each and every other section and subsection of Chapter 2. Administration. of the code of ordinances of the Village of Tequesta shall remainin full force and effect as previously enacted. Section 3:All ordinances or parts of ordinances in conflict herewith be and the same are hereby repealed. Section 4:Should any Section or provision of this Ordinance or any portion thereof, any paragraph, sentence or word be declared by a Court of competent jurisdiction to be invalid, such decision shall not affect the validity of the remainder of this Ordinance. Section 5:Specific authority is hereby granted to codify this Ordinance. Section 6:This Ordinance shall become effectiveimmediately upon adoption. 2 Retirement R Consulting P:954.527.1616 1 F:954.525.0083 1 www.grsconsulting.com April 10, 2019 Mr. A.C. Lovingood Plan Administrator The Resource Centers, LLC 4360 Northlake Blvd. Suite 206 Palm Beach Gardens, FL 33410 Re: Village of Tequesta General Employees' Pension Trust Fund Dear A.C.: As requested, we have reviewed the proposed ordinance which would amend Village of Tequesta General Employees' Pension Trust Fund as follows: ■ Amend Section 7, Benefit Amounts and Eligibility, to clarify the Normal Retirement Age under the normal retirement eligibility at attainment of 30 years of credited service regardless of age and to update references to Normal Retirement Date and Early Retirement Date. ■ Amend Section 8, Pre -retirement Death, to clarify that pre -retirement death benefits are payable starting when the member would have reached Early or Normal Retirement Age. Add Section 25, Re-employment, election or appointment to the Village Council after retirement, to add provisions for retirees and terminated vested members who are re-employed by the Village. In our opinion, these changes will not have an actuarial impact on the cost of the Plan for prefunding purposes. Therefore, it is our opinion that a formal Actuarial Impact Statement is not required. However, we recommend that you send a copy of this letter and the ordinance to the Bureau of Local Retirement Systems. Jeffrey Amrose is a member of the American Academy of Actuaries and meets the Qualification Standards of the American Academy of Actuaries to render the actuarial opinions contained herein. The undersigned actuary is independent of the plan sponsor. We welcome your questions and comments. Respectfully submitted, ffr Amrose, EA, MAAA Sen Consultant & Actuary The above communication shall not be construed to provide tax advice, legal advice or investment advice.