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HomeMy WebLinkAboutDocumentation_Pension Public Safety_Tab 8A_6/7/1996 P/-[ --14- MEMORANDUM TO: Members, Board of Trustees, Tequesta Municipal Firefighters' Pension Trust Fund • FROM: Bill Kascavelis, Director of Finance Ae.a.4'00-aii:41, DATE: May 17, 1996 SUBJECT: Tequesta Municipal Firefighters' Pension Trust Fund, Summary Plan Description Attached is a review of the Summary Plan Description of the Firefighters' Pension Plan prepared by Board member Thomas Bradford. As Mr. Bradford previously noted: "the Summary Plan must be updated every two years and the Plan must be written in a clear and unambiguous style so it can be easily understood by all firefighters." (All deletions have been stricken and all additions are underlined). Please review the Summary Plan Description which will be on the next agenda for consideration and approval. Respectfully submitted. BCK/mk Attachs. a 4 Memorandum To: Bill C. Kascavelis, Director of Finance From: Thomas G. Bradford, Village Manager -7-- Date: March 18, 1996 Subject: Review and Update of Tequesta Municipal Firefighters' Pension Trust Fund Summary Plan Description As I stated at the Tequesta Municipal Firefighters ' Pension Trust Fund Board of Trustees Meeting on December 19, 1995, Chapter 112 . 66 of the Florida Statutes requires that the Summary Plan of a Retirement Plan be updated every two years and must be given to all new hires when employed. Additionally, the Summary Plan must be written in a fashion so that a typical firefighter can understand the language in the Summary. As promised, I have completed a review of the Summary Plan for firefighters and have made amendments thereto for consideration of the Board of Trustees . A copy of the same is provided herewith for your review and submittal to the Board of Trustees at the next available quarterly meeting. All deletions have been stricken and all additions are underlined. TGB/krb Attachment VILLAGE OF TEQUESTA MUNICIPAL FIREFIGHTERS ' PENSION TRUST FUND SUMMARY PLAN DESCRIPTION VILLAGE OF TEQUESTA MUNICIPAL FIREFIGHTERS' PENSION TRUST FUND SUMMARY PLAN DESCRIPTION INTRODUCTION The Board of Trustees of the Village of Tequesta Municipal Firefighters ' Pension Trust Fund is pleased to present this booklet which briefly explains the provisions of your Firefighters ' Pension Plan. As a participant in the Fund, you are included in a program of benefits to help you meet your financial needs at retirement, or in the event of disability or death. This booklet can assist you in preparing for your retirement and financial future. If you need further information on any of the topics presented in this booklet, please contact any member of the Board of Trustees . They will either answer questions you might have to help you understand your benefits or otherwise get you an answer to your questions . We urge you to read and understand this booklet in order to become familiar with the benefits of the plan and how they contribute to your financial security and how they will enrich your retirement years . The information prcocnt contained herein is only a summary of the pension plan ( "Plan" ) as provided in the Ordinances of the Village of Tequesta. If there are any conflicts between the information in this booklet and the Ordinances of the Village of Tequesta, the Ordinances shall govern. A copy of the Ordinance establishing the Plan can be obtained from the Village Clerk' s Office, which is located at 357 Tequesta Drive, Tequesta, Florida, 33469-6203 3094. Ron T. Mackail Chairman, Board of Trustees, Village of Tequesta Municipal Firefighters ' Pension Trust Fund Date 1 1. BOARD OF TRUSTEES AND PLAN ADMINISTRATION A. Administration. The Village of Tequesta Municipal Firefighter' s Pension Trust is a defined benefit pension plan administered by a Board of Trustees which acts as the administrator of the Plan. The Board consists of Five Trustees, two of who are appointed by the Village, two of whom are full-time Firefighters who are elected by a majority of the members of the Plan and a fifth Trustee who is chosen by a majority of the first four Trustees . Each Trustee serves a two year term. B. The names and addresses of the current Trustees are attached to this Summary Plan Description as Exhibit "A" . The Chairman of the Board of Trustees is designated as agent for the service of legal process . 2 . ELIGIBILITY FOR PLAN MEMBERSHIP Each person employed by the Fire Department as a full-time Firefighter becomes a member of the Plan as a condition of his employment. All full-time Firefighters are therefore eligible • for all plan benefits . 3 . PLAN BENEFITS All claims for benefits under the Plan shall be made in writing to the Board of Trustees . A. Normal Retirement Eligibility. A Firefighter is eligible for retirement upon the earlier of.: 1) the attainment of age 55 and the completion of 10 years of credited service or 2 ) attainment of age 52 and the completion of 25 years of credited service. B. Amount of Normal Retirement Benefits . The amount of the normal retirement benefit is based on a Firefighter ' s credited service and average compensation: 2 "Credited Service" is generally a member ' s period of employment as a Firefighter in the Fire Department measured in years and parts of years . Credited Service will include a break in employment of military service, provided that the Firefighter is re-employed within one (1) year of discharge, and the Firefighter deposits the amount of employee contributions that the Firefighter would have contributed had he remained a Firefighter. These contributions must be deposited upon return to employment or interest will be charged. Additional credited service time may also be available (See subsection & I below. ) "Average Final Compensation" is 1/2 one-twelfth (1/12) of the average salary of the 5 best years of the last 10 years of credited service prior to termination, retirement or death of the Firefighter. A year is defined as 12 consecutive months . "Salary" is the base compensation to include regular earnings, longevity pay and paramedic incentive pay, plus all tax deferred and tax exempt items of income, excluding lump sum payments . The normal retirement benefit is calculated by multiplying 3% times years of credited service times the Firefighter' s average final compensation: (three percent (3%)x CS x AFC = normal retirement benefit) The benefit is paid to the Firefighter for his life, but the Firefighter or his beneficiary shall receive at least 120 monthly benefit payments in any event. C. Early Retirement. Early retirement is retirement before normal retirement and is allowed at age 50 with ten years of service. D. Amount of Early Retirement Benefits . The amount of the early retirement benefit is calculated in the same manner as for normal retirement and is available as follows : (1) Beginning on the date on which the Firefighter would have qualified for normal retirement; or (2) Beginning immediately upon retirement, but if beginning immediately, the amount of the monthly benefit is reduced by 5% for each year by which the commencement of benefits precedes the normal retirement date. 3 E. Optional Forms of Retirement. In lieu of the amount and form of retirement income payable under normal and early retirement, a member may elect to receive a retirement benefit in a different form so long as the form elected by the Firefighter is of equal actuarial value as the normal retirement benefit. The optional forms of benefits which are available are: (1) A retirement income of a monthly amount, payable to the Firefighter for his lifetime only. (2 ) A retirement income of a modified monthly amount, payable to the Firefighter during the joint lifetime of the Firefighter and a dependent joint pensioner designated by the Firefighter, 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. F. Disability Retirement. A Firefighter is considered disabled when he or she becomes totally and permanently unable to perform useful and efficient service as a Firefighter. A written application is made to the Board of Trustees for a disability pension and the Board of Trustees receives evidence of the disability and decides whether or not the pension is to be granted. If the pension is granted, the benefit amount shall be: ( 1) If the injury or disease is service connected, the Firefighter shall be entitled to the greater of (a) or (b) : • a. a monthly premium equal to 42% of his average compensation based upon his final 5 years of service, or b. an amount equal to the number of years of his credited service multiplied by 3% of his average monthly salary based upon his final 5 years of service. (2 ) If the injury or disease is not service connected, the Firefighter shall be entitled to the greater of (a) or (b) : • a. a monthly pension equal to 25% of his average compensation based upon his final 5 years of service, or b. an amount equal to the number of years of his 4 credited service multiplied by 3% of his average monthly salary based upon his final 5 years of service. Any condition or impairment of health of a Firefighter caused by tuberculosis, hypertension or heart disease resulting in death or total disability is presumed to have been suffered in the line of duty unless the contrary is shown by competent evidence; provided that the Firefighter has successfully passed a physical examination on entering into service and there is no evidence of the condition at that time. Each Firefighter 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. 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 employment . as a Firefighter with the Village of Tequesta shall have terminated. f . Willfull, wanton or gross negligence of the member. g. Injury or disease sustained by the Firefighter while working for anyone other than the Village and arising out of such employment. A retired disabled Firefighter is subject to periodic medical examinations as directed by the Board of determine whether a disability continues . G. Death Before Retirement. If a Firefighter dies prior to retirement from the Fire Department, his beneficiary shall receive the following benefit: a. Line-of-Duty-Death-Benefit is a pension to the spouse (or children) of 50% of Average Compensation for live life. or rcmarriagc. 5 b. Non-Line-of-Duty-Death the spouse of a member with 10 years credited service will receive the actuarial equivalent of the accrued early or normal retirement benefit. H. Termination of Employment and Vesting. If a Firefighter' s employment is terminated, either voluntarily or involuntarily, the following benefits are payable: ( 1) If the Firefighter has less then 10 years of credited service upon termination, the Firefighter shall be entitled to a refund of the money he has contributed or the Firefighter may leave it deposited with the Fund. (2) If the Firefighter has 10 or more years of credited service upon termination, the Firefighter shall be entitled to their accrued monthly retirement benefit, starting at the Firefighter' s otherwise normal or early retirement date (reduced) , provided he does not elect to withdraw his contributions and provided the Firefighter survives to his normal or early retirement date. I . Additional Credited Service. In addition to credited service actually earned in the employment of the Fire Department, a Firefighter may also receive credited service as follows : A Firefighter may purchase credited service for the time a Firefighter services or has served in the military service of the Armed Forces of the United States or the United States Merchant Marine, prior to first and initial employment with the Fire Department, not to exceed 5 years, by paying into the Plan an amount to be determined by the Plan' s actuary, which will result in no additional cost to the Plan. A Firefighter may request and must pay the cost of determining this calculated amount. J. Contributions and Funding. The Village is paying the portion of the cost of the pension over and above the Firefighter' s contributions and any amounts received from the state insurance rebates . A Firefighter contributes 5% of his salary to the Plan. The Firefighter ' s contribution will be excluded from his or her gross income for withholding purposes so he or she will realize income tax benefits. A Firefighter' s contributions are guaranteed refundable in any event. 6 K. Minimum Benefits . In no event will the benefits paid from this Plan be any less than a member' s accumulated contributions . L. Maximum Benefits . In no event will the benefits paid from this Plan exceed the lessor of: ( 1) An amount as set forth in Section 415 of the Internal Revenue Code, or (2 ) 100% of the member' s W-2 earnings for the 3 highest years . M. Forfeiture of Pension. Any Firefighter who is convicted of certain crimes listed in the Plan committed prior to retirement, or whose employment is terminated by reason of his or her admitted commission, aid or abettment of these crimes shall forfeit all rights and benefits under the Plan, except for the return of his or her contributions as of the date of his or her termination. N. Claims Procedure Before the Board. Any member may request in writing that the Board review any denial of any claim for benefits under the Plan. The Board will review the case and enter a decision as it deems proper within 60 days from the date of the receipt of such written request. In the event of a disability claim, the Board will render a decision on the claim within 60 days from the receipt of written medical release authorization and a list of all treating health care providers . The Board may extend the time for rendering a decision by an additional 45 days if it determines that such time is necessary for discovery and full and adequate review. In the event that the Board denies the claim for benefits, the order of the Board will be in writing and will include: ( 1) The specific reasons for denial; (2 ) A description of any additional information that the Board feels is necessary for the member to perfect his or her claim; ( 3) An explanation of the review procedure next open to the member which includes a formal evidentiary hearing. 4. NON-FORFEITABILITY OF PENSION BENEFITS A. Liquidation of Pension Fund Assets . In the event of repeal, or if contributions to the Fund are discontinued by the Village, there will be a 'full vesting of benefits accrued to date of repeal . B. Interest of Members in Pension Fund. At no time prior to the satisfaction of all liabilities under the Plan shall any assets of the Plan be used for any purpose other than for the Firefighter' s exclusive benefit. In any event, a Firefighter' s contributions to the Plan are non-forfeitable. 5. VESTING OF BENEFITS A Firefighter' s retirement benefits are fully vested after 10 years of credited service. 6. APPLICABLE LAW The Plan is governed by the following federal, state and local laws : A. Internal Revenue Code and amendments thereto. • B. Chapter 166, Florida Statutes, "Municipalities, General Provisions" C. Chapter 175, Florida Statutes, "Municipal Firefighters ' Retirement Trust Funds" D. Chapter 175 . 351, Florida Statutes, "Municipalities Having Their Own Pension Plans for Firefighters" E. Part VIII, Chapter 112, Florida Statutes, "Actuarial Soundness of Retirement Systems" F. Ordinances of the Village of Tequesta. G. Administrative rules and regulations adopted by the Board of Trustees. 8 7. PLAN YEAR AND PLAN RECORDS The Plan year begins on October 1 of each year and ends on September 30 . All records of the Plan are maintained on the basis of the Plan year. 8. FINANCIAL AND ACTUARIAL INFORMATION A report of pertinent financial and actuarial information on the solvency and actuarial soundness of the Plan has been prepared by the Pension Plan' s actuary. • EXHIBIT "A" BOARD OF TRUSTEES The names and address of the members , of the Board of Trustees are: Chairman: Ron T. Mackail, 285 Golfview Dr. , Tequesta, FL 33469 Secretary:Thomas G. Bradford, 44 Chestnut Tr. Tequesta, FL 33469 Member:William M. Sharpless, 325 Fairway North,Tequesta, FL 33469 Member: Shawn Thurman, 203 7th Street, Jupiter, FL 33458 Member: l`- J * TO BE DETERMINED 10