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HomeMy WebLinkAboutOrdinance 12-19_5/9/2019ORDINANCE NO. 12-19 AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF TEQUESTA, FLORIDA, AMENDING THE VILLAGE CODE OF ORDINANCES AT CHAPTER 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 DEATH99; 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. WHEREAS, the Village Council of the Village of Tequesta desires to amend the general employees' pension trust fund based on a recommendation ftom the pension board to add 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 are in 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 2 of the Code of Ordinances of the Village of Tequesta is hereby amended at Sec. 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 retiremenf' in 1 order to add a new "re -hire after retirement" provision; providing that 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 remain in 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 effective immediately upon adoption. 2 ORDINANCE 12-19 Date 05/09/2019 Upon Second Reading Motion Vice -Mayor Kristi Johnson Second Council Member Vince Arena VOTE FOR ADOPTION AGAINST ADOPTION ABSENT Mayor Abigail Brennan ❑✓ ❑ Vice -Mayor Kristi Johnson ❑� ❑ ❑ Council Member Vince Arena ❑✓ ❑ ❑ Council Member Laurie Brandon ❑✓ ❑ Council Member Kyle Stone ❑✓ ❑ ❑ The Mayor thereupon declared the Ordinance duly passed and adopted. MAYOR OF TEQUESTA ATTEST: Lori McWilliams, MM Village Clerk SEAL INCORPORATED cewt EXHIBIT A VILLAGE OF TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND Section 7. Benefit Amounts and Eligibility. Normal Retirement Date. A Member's Normal Retirement Date normal retirement date shall be the first day of the month coincident with, or next following the earlier of: 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's Normal Retirement Age when retiring with thirty (30) years of credited service is the age that the Member has attained when they have thirty (30) years of credited service. A Member may retire on his/her Normal Retirement Date normal retirernent dateoron the first day of any month thereafter, and each Member shall become 100% vested in his/her accrued benefit on the Member's Normal Retirement Date normal retirement date. Normal retirement under the Plan is retirement from employment with the Village of Tequesta as a General Employee, on orafter the Normal Retirement Date mormal retirement date. 2. Normal Retirement Benefit. A Member retiring hereunder on or after his/her Normal Retirement Date aFrnal retirement date shall receive a monthly benefit which shall commence on his/her Normal Retirement Date and be continued thereafter during the Member's lifetime, ceasing upon death, but with one hundred twenty (120) monthly payments guaranteed in any event. Benefits are payable for the life of a retiree with a guarantee of 120 monthly payments. Should a Member member die before 120 monthly payments (10 years) are made, then the remainder of the 120 monthly payments will be paid to a beneficiary. Should a Member member receive more than 120 monthly payments, then no benefit is payable to a beneficiary. The monthly retirement benefit shall equal two percent (2%) of average final compensation, for each year of credited service (2% x average final compensation x years of credited service). 00125029.WPD;1 Page 1 of 4 3. Early Retirement Date A Member may retire on his/her Early Retirement Date early retirement date -which shall be the first day of any month coincident with or next following the later of the attainment of age fifty (50) and the completion of six (6) years of credited service. Early Retirement retimment-under the Plan is retirement from employment with the Village of Tequesta on or after the Early Retirement Date early retirement date and prior to the Normal Retirement Date normal retirement date. 4. Early Retirement Benefit A Member retiring hereunder on his/her Early Retirement Date 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 normal retirement date had he/she remained a 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 at as his/her Normal Retirement Date normal � al retirement date except that credited service and average final compensation shall be determined as of his/her Early Retirement Date early retirement date; or B. An immediate monthly retirement benefit which shall commence on his/her Early Retirement Date and shall be continued on the first day of each month thereafter. The benefit payable shall be as determined in paragraph A above, which is actuarially reduced from the amount to which he/she would have been entitled had he/she retired on his/her Normal Retirement Date and with the same number of years of credited service as at the time his/her benefit commence and based on his/her average final compensation at that date. In no event shall the early retirement reduction exceed five percent (5%) each year by which the commencement of benefits precedes the Member's Normal Retirement Date . Section 8. Pre -retirement Death. 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 Early or Normal Retirement Age . The benefit is equal to the 00125029.WPD;1 Page 2 of 4 vested pension benefit. Section 25. Re-employment, election or appointment to the Village Council after retirement. 1. Any retiree who is retired under this System, except for disability retirement as previously provided for, may be re-employed by any public or private employer, except the Village, and may receive compensation from that employment without limiting or restricting in any way the retirement benefits pavable under this System. 2. After Normal Retirement. Any retiree who is retired after the Normal Retirement Age pursuant to this System and who is re-employed by the Village including election or appointment to the Village Council after that retirement, shall upon being re-employed continue receipt of benefits. If, upon re-employment, the re-employed retiree is eligible to participate in this System, the retiree shall be deemed a new employee subject to any vesting and contribution requirements and the additional credited service accrued during the subsequent employment period shall be used in computing a second benefit amount attributable to the subsequent employment period, which benefit amount shall be added to the benefit determined upon the initial retirement to determine the total benefit payable upon final retirement. Calculations of benefits upon initial retirement shall be based upon the benefit accrual rate, average annual earnings, credited service and other System provisions in effect as of the date of original retirement and the retirement benefit amount for any subsequent employment period shall be based only on the subsequent employment period using the benefit accrual rate, average annual earnings, credited service and System provisions in effect as of the date of the subsequent retirement. The optional form of benefit and any joint pensioner selected upon initial retirement shall not be subject to change upon subsequent retirement except as otherwise provided herein, but the Member may select a different optional form and joint pensioner applicable to the subsequent retirement benefit. If a re-employed retiree does not re -vest during the re-employment period, he shall, upon termination of employment, receive a return of his contributions made during his re-employment period. 3. After Early Retirement. Any retiree who is retired under Early Retirement pursuant to this System and who subsequently becomes an employee of the Village in any capacity, including election or appointment to the Village Council, shall discontinue receipt of benefits from the System during the period of re-emplyment. No amount of a pension payment will be for the re-employment period. If by virtue of that re-employment, the retiree is eligible to participate in this 00125029.WPD;1 Page 3 of 4 System again, the retiree shall be deemed to be one hundred (100) percent vested and the additional credited service accrued during the subsequent employment period shall be used in computing a second benefit amount attributable to the subsequent employment period, which benefit amount shall be added to the benefit determined upon the initial retirement to determine the total benefit payable upon final retirement. Calculations of benefits upon retirement shall be based upon the benefit accrual rate, average annual earnings, credited service, early retirement reduction factor and other System provisions in effect as of the date of the original retirement date and the retirement benefit amount for any subsequent employment period shall be based only on the subsequent employment period using the benefit accrual rate, average annual earnings, credited service, early retirement reduction factor, if applicable, and other System provisions in effect as of the date of subsequent retirement. The optional form of benefit and any joint pensioner selected upon initial retirement shall not be subject to change upon subsequent retirement except as otherwise provided herein, but the Member may select a different optional form and joint pensioner applicable to the subsequent retirement benefit. Retirement pursuant to an early retirement incentive program shall be deemed early retirement for purposes of this section if the Member was permitted to retire prior to the customary retirement date provided for in the plan at the time of retirement. 4. Re-employment of terminated vested persons. Re-employed terminated vested persons, including those elected or appointed to the Village Council, shall not be subject to the provisions of this section until such time as they begin to actually receive benefits, but shall be subject to (section regarding payment of benefits to vested deferred employees). Upon receipt of benefits, terminated vested persons, including those elected or appointed to the Village Council, shall be treated as Normal or Early retirees for purposes of applying the provisions of this section and their status as an Early or Normal retiree shall be determined by the age they elect to begin to receive their benefit. 5. In addition to these provisions and in accordance with Code Section 401(a)(36), an in-service pension distributions may be made in the limited circumstance where a retiree is who retired on normal retirement who has attained age 62 or has- retired after attaining thirty (30) years of credited service is re -hired by the Village. W :\W docs\LLP\150097\GM\00125029. W PD 00125029.WPD;1 Page 4 of 4