HomeMy WebLinkAboutHandouts_Pension General_Tab 07_11/03/2008October 29, 2008
EXHIBIT "A" (Version 1)
VILLAGE OF TEQUESTA
GENERAL EMPLOYEES' PENSION TRUST FUND
Section 5. Finance And Fund Management.
Establishment and Operation of Fund.
1. As part of the System, there is hereby established a Fund, into which shall be
deposited all of the contributions and assets whatsoever attributable to the System, for the
benefit of General Employees.
2. The actual custody and supervision of the Fund (and assets thereof) shall be
vested in the Board of Trustees. Payment of benefits and disbursements from the Fund
shall be made by the Village on the Board's agreement, but only upon written authorization
from the Board.
3. All funds and securities of the Fund may be deposited by the Board 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 that 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. In lieu
thereof, the Board of Trustees shall deposit the funds and securities of the Fund in a
qualified public depository or depositories as defined in Section 280.02, Florida Statutes,
which depository or depositories with regard to such funds and securities shall conform to
and be bound by all of the provisions of Chapter 280, Florida Statutes. In order to fulfill its
investment responsibilities as set forth herein, the Board may retain the services of a
custodian bank or banks, an investment advisor or advisors registered under Investment
Advisors-Act of 1940, registered broker dealer 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.
Underlining indicates language that has been added; S~triire-amts indicate language that is to be removed.
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ho~c~ d ~~
October 29, 2008
4. Accurate records shall be maintained at all times reflecting the market valuations
of funds and assets of the Fund, 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 Sta#e, and
E. All interest, dividends and gains (or losses) whatsoever, and
F. Such other entries as maybe properly required so as to reflect a clear
and complete financial report of the Fund.
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 Board of Trustees shall have the following investment powers and authority:
A. The Board of Trustees shall be vested with full legal title to the Fund,
subject, however, and in any event to the authority and power of the
Tequesta Village Council to amend or terminate this Trust, provided
that no amendment or Fund termination shall ever result in the use of
any assets of the Fund except for the payment of regular expenses
and benefits under this System. All contributions from time to time
paid into the Fund, and the income thereof, without distinction
between principal and income, shall be held in the Fund and
administered by the Board or its Agents.
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Page 2 of 6
October 29, 2008
All moneys paid into or to be held by the Fund shall be invested and
reinvested by the Board as the Board deems appropriate and limited
only by the investment policy guidelines adopted by the Board in
accordance with Florida law. The Board members must discharge
these investment duties with respect to the plan solely in the interest
of_the participants and beneficiaries and (1) for the exclusive purpose
of providing benefits to participants and their beneficiaries and
defraying reasonable expenses of administering the plan; (2) with the
care, skill, prudence, and diligence under the circumstances then
prevailing that a prudent person acting in a like capacity and familiar
with such matters would use inthe conduct of an enterprise of a like
character and with Pike aims; and (3) by diversifying to investments of
the plan so as to minimize the risk of large losses, unless under the
circumstances it is clearly not prudent to do so. ~-~' "- ~-• •~-`-~-`
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October 29, 2008
C. The Board of Trustees shall not invest more than five percent (5%) of
its assets in the common stock or capital stock of any one issuing
company, nor shall the aggregate investment in any one issuing
company exceed five percent (5%) of the outstanding capital stock of
that company; nor shall the aggregate of its investments in common
stock, capital stock and convertible bonds at cost exceed sixty percent
(60%) of the assets of the Fund.
D. The Board of Trustees may retain in cash and keep unproductive of
income such amount of the Fund as 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 tohis/her or its own
negligence, willful misconduct or lack of good faith.
F. The Board may cause any investment in securities held to be
registered in or transferred into their name as Trustee or into the
name of such nominee as they may direct, or they may retain them
unregistered and inform permitting transferability, but the books and
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Page 4 of 6
October 29, 2008
records shall at all times show that all investments are part of the
Trust Fund.
G. The Board is empowered to vote upon any stocks, bonds or securities
of any corporation, association, or trust and to give general or specific
proxies or powers of attorney with or without power of substitution; to
participate in mergers, reorganizations, recapitalization,
consolidations and similar transactions with respect to such securities;
to deposit such stock or other securities in any voting trust or any
protective or like committee with the Trustees or with depositories
designated thereby; to amortize or fail to amortize any part of all of the
premium or discount resulting from the acquisition or disposition of
assets; and generally to exercise any of the powers of an owner with
respect to stocks, bonds, or other investments comprising the Fund
which it may deem to be the best interest of the Fund to exercise.
This power may be delegated to an agent by the Board of Trustees.
H. The Board shall not be required to make any inventory or appraisal or
report to any court, nor secure any order of court for the exercise of
any power contained herein.
Where any action which a Board is required to take on any duty or
function which it is required to perform either under the terms herein
or under the general law applicable to it as Trustee under this
Ordinance, can reasonably be taken or performed only after receipt
by it from a Member, the Village, the Department or any other entity,
of specific information, certification, direction or instructions, the Board
shall be free of liability in failing to take such action or perform such
duty or function until such information, certification, direction or
instruction has been received by it.
J. Any overpayments or underpayments from a Fund to a Member or
beneficiary caused by errors of computation shall be adjusted with
interest at a rate per annum approved by the Board. Overpayment
shall be charged against member's payments next succeeding the
correction. Underpayments shall be made up from the Trust Fund.
K. A Board shall sustain no liability whatsoever for the sufficiency of a
Fund to meet the payments and benefits herein provided.
Underlining indicates language that has been added; ~lrifre-outs indicate language that is to be removed.
Page 5 of 6
October 29, 2008
L. Any of the foregoing powers and functions may be 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.
M. 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.
N. The Village shall maintain Fiduciary Liability insurance to cover the
members of the Board of Trustees.
Underlining indicates language that has been added; Strilre-ovts indicate language that is to be removed.
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October 29, 2008
EXHIBIT "A" (Version 2)
VILLAGE OF TEQUESTA
GENERAL EMPLOYEES' PENSION TRUST FUND
Section 5. Finance And Fund Management.
Establishment and Operation of Fund.
1. As part of the System, there is hereby established a Fund, into which shall be
deposited all of the contributions and assets whatsoever attributable to the System, for the
benefit of General Employees.
2. The actual custody and supervision of the Fund (and assets thereof) shall be
vested in the Board of Trustees. Payment of benefits and disbursements from the Fund
shall be made by the Village on the Board's agreement, but only upon written authorization
from the Board.
3. All funds and securities of the Fund may be deposited by the Board 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 that 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. In lieu
thereof, the Board of Trustees shall deposit the funds and securities of the Fund in a
qualified public depository or depositories as defined in Section 280.02, Florida Statutes,
which depository or depositories with regard to such funds and securities shall conform to
and be bound by all of the provisions of Chapter 280, Florida Statutes. In order to fulfill its
investment responsibilities as set forth herein, the Board may retain the services of a
custodian bank or banks, an investment advisor or advisors registered under Investment
Advisors Act of 1940, registered broker dealer 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. Accurate records shall be maintained at all times reflecting the market valuations
of funds and assets of the Fund, including accurate current accounts and entries as
regards the following:
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Page 1 of 11
October 29, 2008
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 anal assets
whatsoever attributable to contributions and deposits from the Village,
County or State, and
E. All interest, dividends and gains (or losses) whatsoever, and
F. Such other entries as may be properly required so as to reflect a clear
and complete financial report of the Fund.
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 Board of Trustees shall have the following investment powers and authority:
A. The Board of Trustees shall be vested with full legal title to the Fund,
subject, however, and in any event to the authority and power of the
Tequesta Village Council to amend or terminate this Trust, provided
that no amendment or Fund termination shall ever result in the use of
any assets of the Fund except for the payment of regular expenses
and benefits under this System. All contributions from time to time
paid into the Fund, and the income thereof, without distinction
between principal and income, shall be held in the Fund and
administered by the Board or its Agents.
B. All moneys paid into or to be held by the Fund shall be invested and
reinvested by the Board and the investment of all or any part of such
funds shall be limited as follows ta:
Without limitation in:
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October 29, 2008
~ Bonds, notes, or other obligations of the United States
or_those guaranteed by the United States or for which
the credit of the United States is pledged for the
payment of the principal and interest or dividends
thereof.
State bonds pledging the full faith and credit of the state
and revenue bonds additionally secured by the full faith
and credit of the state..
~ Bonds of the several counties or districts in the state
containing a pledge of the full faith and credit of the
county or district involved.
Bonds issued or administered by the State Board of
Administration secured solely by a pledge of all or part
of the 2-cent constitutional fuel tax accruing under the
provisions of s. 16, Art. IX of the State Constitution of
1885, as amended, or of s. 9, Art. XII of the 1968
revised State Constitution.
~ Bonds issued by the State Board of Education pursuant
to ss. 18 and 19, Art. XII of the State Constitution of
1885, as amended, or to s. 9, Art. XII of the 1968
revised State Constitution, as amended.
f~ Bonds issued by the Florida Outdoor Recreational
Development Council pursuant to s. 17, Art. IX of the
State Constitution of 1885, as amended.
~ Bonds issued by the Florida State Improvement
Commission, Florida Development Commission,
Division of Bond Finance of the Department of General
Services, or Division of Bond Finance of the State
Board of Administration.
Savings accounts in, or certificates of deposit of, any
bank, savings bank, or savings and loan association
incorporated under the laws of this state or organized
under the laws of the United States doing business and
situated in this state, the accounts of which are insured
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October 29, 2008
by the Federal Government or an agency thereof and
having a prime auality of the highest letter and
numerical ratings as provided for by at least one
nationally recoanized statistical rating organization
provided such savings accounts and certificates of
deposit are secured- in the manner prescribed in
Chapter 280, Florida Statutes.
Notes, bonds, and other obligations of agencies of the
United States.
Commercial paper of prime quality of the highest letter
and numerical ratina as provided for by at least one
nationally recognized rating service.
(~ Time drafts or bills of exchange drawn on and accepted
by a commercial bank, otherwise known as banker's
acceptances, which are accepted by a member bank of
the Federal Reserve System and are of prime quality of
the highest letter and numerical ratings as provided for
by at least one nationally recognized statistical rating
organization.
Negotiable certificates of deposit issued by domestic or
foreign financial institutions in United States dollars of
prime quality of the highest letter and numerical ratings
as provided for by at least one nationally recognized
statistical ratina organization.
~ Short-term obligations not authorized elsewhere in this
section to be purchased individually or in pooled
accounts or other collective investment funds for the
purpose of providing liquidity to any fund or portfolio.
~ Securities of, or other interests in, any open-end or
closed-end management type investment company or
investment trust registered under the Investment
Company Act of 1940. 15 U.S.C. ss. 80a-1 et seq. as
amended from time to time provided that the portfolio
of such investment company or investment trust is
limited to obligations of the United States Government
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October 29, 2008
or any agency or instrumentality thereof and to
repurchase agreements fully collateralized by such
United States Government obligations and provided
that such investment company or investment trust takes
delivery of such collateral either directly or through an
authorized custodian.
With no more than 25 percent of any fund in:
~ Bonds, notes, or oblyations of any municipality or
political subdivision or any agency or authority of this
state, if the obligations-are rated investment grade by at
least one nationally recognized statistical rating
organization.
~b,~ Notes secured by first mortgages, insured or
auaranteed by the Federal Housing Administration or
the United States Department of Veterans Affairs.
~ Mortgage securities which represent participation in or
are collateralized by mortgage loans secured by real
property. Such securities must be issued by an agency
of or enterprise sponsored by the United States
Government, including, but not limited to, the
Government National Mortgage Association, the
Federal National Mortgage Association, and the Federal
Home Loan Mortgage Corporation.
Group annuitycontracts of the pension investment type
with insurers licensed to do business in this state which
are rated investment grade by at least one nationally
recognized rating service.
~ Certain interests in real property and related personal
property, including mortgages and related instruments
on commercial or industrial real property, with
provisions for equity or income participation or with
provisions for convertibility to equity ownership; and
interests in collective investment funds. Associated
expenditures for acquisition and operation of assets
purchased under this provision or of investments in
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October 29, 2008
private equity or other private investment partnerships
or limited liability companies shall be included as a part
of the cost of the investment.
The title to real property acquired under this
paragraph shall be vested in the name of the
respective fund.
2. For purposes of taxation of property owned by
any fund, the provisions of s. 196.199L)(b) do
not apply.
3. Real. property acquired under the provisions of
this paragraph shall not be considered state
lands or public lands and property as defined in
Chapter 253, Florida Statutes and the provisions
of that chapter do not apply to such real
property.
Fixed-income obligations not otherwise authorized bx
this section issued by foreign governments or political
subdivisions or aaencies thereof, supranational
agencies, foreign corporations. or foreign commercial
entities, if the obligations are rated investment grade by
at least one nationally recognized rating service.
~ A portion of the funds available for investment pursuant
to this subsection may be invested in rated or unrated
bonds, notes, or instruments backed by the full faith and
credit of the government of Israel.
~, Obligations of agencies of the government of the United
States. provided such obligations have been included
in and authorized by the Florida Retirement System
Defined Benefit Plan Investment Policy Statement
established in s. 215.475.
United States dollar-denominated obligations issued by
foreign governments, or political subdivisions or
agencies thereof supranational agencies foreign
corporations. or foreign commercial entities.
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October 29, 2008
Asset-backed securities not otherwise authorized by
this section.
With no more than 80 percent of any fund in common stock.
preferred stock, and interest-bearing obligations of a
corporation having an option to convert into common stock,
provided:
~ The corporation is organized under the laws- of the
United States, any state or organized territory of the
United States. or the District of Columbia; or
-The corporation is listed on any one or more of the
recognized national stock exchanges in the United
States and conforms with the periodic reporting
requirements under the Securities Exchange Act of
1934.
~ Not more than 75 percent of the fund may be in
internally managed common stock.
The board shall not invest more than 10 percent of the eauit
assets of any fund in the common stock, preferred stock, and
interest-bearing obligations having an option to convert into
common stock, of any one issuing corporation; and the board
shall not invest more than 3 percent of the equity assets of anx
fund in such securities of any one issuing corporation except
to the extent a higher percentage of the same issue is included
in_ a nationally recognized market index, based on market
values, at least as broad as the Standard and Poor's
Composite Index of 500 Companies, or except upon a specific
finding by the board that such higher oercentaae is in the best
interest of the fund.
With no more than 80 percent of any fund, in interest-bearing
obligations with a fixed maturity of any corporation or
commercial entity within the United States.
With no more than 25 percent of any fund in corporate
obligations and securities of any kind of a foreign corporation
or a foreign commercial entity having its principal-office located
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October 29, 2008
in any country other than the United States of America or its
possessions or territories, not including United States dollar-
denominated securities listed and traded on a United States
exchange which are a part of the ordinary investment strategy
of the board.
With no more than 5 percent of any fund to be invested as
deemed appropriate by the board notwithstandinQinyestment
limitations otherwise expressed in this section.
For the purpose of determining the above investment
limitations, the value of bonds shall be the par value thereof
and the value of evidences of ownership and- interest-bearing
obligations having an option to convert to ownership shall be
the cost thereof.
Investments in any securities authorized by this section max
be under repurchase agreements or reverse repurchase
agreements
The board is authorized to buy and sell futures and options
provided the instruments for such purpose are traded on a
securities exchange or board of trade regulated by the
Securities and Exchange Commission or the Commoditx
Futures Trading Commission, unless the board by rule
authorizes a different market.
10 Securities or investments purchased or held under the
provisions of this section may be loaned to securities dealers
or financial institutions, provided the loan is collateralized by
cash or securities having a market value of at least 100
percent of the market value of the securities loaned
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October 29, 2008
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C. The Board of Trustees shall not invest more than five percent (5%) of
its assets in the common stock or capital stock of any one issuing
company, nor shall the aggregate investment in any one issuing
company exceed five percent (5%) of the outstanding capital stock of
that company; nor shall the aggregate of its investments in common
stock, capital stock and convertible bonds at cost exceed sixty
percent (60%) of the assets of the Fund.
Underlining indicates new language to be added; Language to be deleted is indicated by °`-~IIt3
Page 9 of 11
October 29, 2008
D. The Board 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 tohis/her or its own
negligence, willful misconduct or lack of good faith.
F. The Board may cause any investment in securities held to be
registered in or transferred into their name as Trustee or into the
name of such nominee as they may direct, or they may retain them
unregistered and in form permitting transferability, but the books and
records shall at all times show that all investments are part of the
Trust Fund.
G. The Board is empowered to vote upon any stocks, bonds or securities
of any corporation, association, or trust and to give general or specific
proxies or powers of attorney with or without power of substitution; to
participate in mergers, reorganizations, recapitalization,
consolidationsand similartransactionswith respectto such securities;
to deposit such stock or other securities in any voting trust or any
protective or like committee with the Trustees or with depositories
designated thereby; to amortize or fail to amortize any part of all of the
premium or discount resulting from the acquisition or disposition of
assets; and generally to exercise any of the powers of an owner with
respect to stocks, bonds, or other investments comprising the Fund
which it may deem to be the best interest of the Fund to exercise.
This power may be delegated to an agent by the Board of Trustees.
H. The Board shall not be required to make any inventory or appraisal or
report to any court, nor secure any order of court for the exercise of
any power contained herein.
Where any action which a Board is required to take on any duty or
function which it is required to perform either under the terms herein
or under the general law applicable to it as Trustee under this
Ordinance, can reasonably be taken or performed only 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
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Page 10 of 11
October 29, 2008
duty or function until such information, certification, direction or
instruction has been received by it.
J. Any overpayments or underpayments from a Fund to a Member or
beneficiary caused by errors of computation shall be adjusted with
interest at a rate per annum approved by the Board. Overpayment
shall be charged against member's payments next succeeding the
correction. Underpayments shall be made up from th_e 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. Any of the foregoing. powers and functions may be 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.
M. 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..
N. The Village shall maintain Fiduciary Liability insurance to cover the
members of the Board of Trustees.
Underlining indicates new language to be added; Language to be deleted is indicated by "`-~~3
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