HomeMy WebLinkAboutDocumentation_Special Meeting_Tab 4_7/30/1996 •
ORDINMNCE NO. 518
AN ORDINANCE OF THE VILLAGE COUNCIL OF THE
VILLAGE OF TEQUESTA, PALM BEACH COUNTY,
FLORIDA, RESCINDING ORDINANCE 460, AS AMENDED,
WHICH ORDINANCE PROVIDED FOR THE ESTABLISHMENT
OF A LOCAL LAW RETIREMENT PLAN AND TRUST FOR
THE FIREFIGHTERS OF THE VILLAGE OF TEQUESTA,
AND HEREBY ADOPTING THE "EMPLOYEES'. PENSION
TRUST FUND" AND THE PLAN DOCUMENT RELATING
THERETO; PROVIDING FOR SEVERABILITY; PROVIDING
FOR REPEAL OF ORDINANCES IN CONFLICT;
PROVIDING FOR CODIFICATION; PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the Village Council on September 7, 1993, adopted
Ordinance No. 460, an ordinance of the Village Council of the
Village of Tequesta providing for the establishment of a Local Law
Retirement Plan and Trust for the firefighters of the Village of
Tequesta; and
WHEREAS, Ordinance 460 was amended by Ordinance 478; and
WHEREAS, Florida Statute 121.0511 provides a procedure whereby
a municipality that has elected to participate in the Florida
Retirement System may revoke its election in accordance with
certain procedures; and
WHEREAS, the Village of Tequesta has elected to revoke its
election to participate in the Florida Retirement System and has
complied with all requirements and conditions precedent to revoke
said election; and
WHEREAS, the Village of Tequesta wishes to adopt the "defined
benefit plan" described herein.
NOW, THEREFORE, BE IT ORDAINED BY THE VILLAGE COUNCIL OF THE
VILLAGE OF TEQUESTA, PALM BEACH COUNTY, FLORIDA, AS FOLLOWS :
Section 1 . Ordinance No. 460 of the Village of Tequesta,
as amended, which ordinance provided for the establishment of a
Local Law Retirement Plan and Trust for the firefighters of the
Village of Tequesta, Florida, and authorized the participation of
said plan and trust in the Florida Municipal Pension Trust Fund is
hereby rescinded in its entirety.
Section 2 . The Village of Tequesta hereby adopts an
alternative, "defined benefit plan" known as the "Employees'
Pension Trust Fund" for the purpose of providing retirement
benefits for firefighters, police officers and general employees
of the Village of Tequesta. The instruments which represent the
terms of said Plan and Trust are attached hereto as Exhibit "A" and
are incorporated as part of this Ordinance, and are remanded to the
custody of Village Clerk who will maintain same for public
inspection.
Section 3 . The Village Council of the Village of Tequesta,
Florida, shall have the power to amend said Plan and Trust at such
time or times as considered in the best interest of the Village,
its employees and its citizens.
Section 4 . The Village Council of the Village of Tequesta,
Florida, hereby expressly authorizes said Plan and hereby
authorizes the administration of said Plan and Trust and the
investment of the funds of said Plan and Trust within the
procedures, policies and methods outlined in Exhibit "A" .
Section 5 . The Village Council of the Village of Tequesta,
Florida, hereby empowers the Mayor of the Village of Tequesta,
Florida, with the authority to execute such documents and
agreements necessary to effectuate this Plan.
Section 7 . This ordinance shall remain in force and effect
until supplemented, amended, repealed or otherwise altered.
Section 8 . Severability. If any provision of this
ordinance or the application thereof is held invalid, such
invalidity shall not affect the other provisions or applications of
this ordinance which can be given effect without the invalid
provisions or applications, and to this end, the provisions of this
ordinance are hereby declared severable.
Section 9 . Repeal of Ordinances in Conflict. All other
ordinances of the Village of Tequesta, Florida, or parts thereof
which conflict with this or any part of this ordinance are hereby
repealed.
Section 10 . Codification. This ordinance shall be codified
and made a part of the official Code of Ordinances of the Village
of Tequesta.
Section 11 . Effective Date. This ordinance shall take
effect immediately upon its passage and approval, as provided by
law.
THE FOREGOING ORDINANCE was offered by Councilmember
, who moved its adoption. The ordinance
was seconded by Councilmember and upon
being put to a vote, the vote was as follows:
FOR ADOPTION AGAINST ADOPTIOIQ
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The Mayor thereupon declared the ordinance duly passed and
adopted this day of , 1996 .
MAYOR OF TEQUESTA
Ron T. Mackail
ATTEST:
Village Clerk _
JCR\131530RD\pen.517
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1 Ch. 121 FLORIDA RETIREMENT SYSTEM ....
4 1
+1!,
(' i 1994,the regular receivership employees of the Division and not local law plans having variant benefits permissi-
. of Rehabilitation and Liquidation who are assigned to tile under s. 175.351 or s. 185.35.
' ` established positions and are subject to established (5) Upon meeting the requirement set forth in sub-
. +° i rules and regulations regarding discipline,pay,classifi- sections(1)-(4),and subject to the conditions set forth
! cation,and time and attendance are hereby declared to in subsection(6),revocation of election to participate in
.1 be state employees within the meaning of this chapter the system and adoption of the new retirement plan
i i and shall be compulsory members in compliance with must be accomplished by resolution adopted by the
1 y this chapter,the provisions of s.216.011(1)(x)2.,notwith- municipality or independent special district.The munici-
standing.Employment performed before July 1,1994,as pality or independent special district must provide writ-
such a receivership employee may be claimed as credit- ten notice of such revocation to the Division of Retire-
able retirement service upon payment by the employee ment by mailing a copy of the resolution to the division,
j; or employer of contributions required in s.121.081(1),as postmarked no later than December 15,1995.The revo-
1 i. applicable for the period claimed. cation shall take effect January 1, 1996.
History.-s.5,ch.70-112;s.1,ch.72-182;s.1,ch.72-340;s.1,ch.72-344;s. (6) Following the adoption of a revocation resolution
• 1,ch.73-268;s.3,ch.74-302;s.1,ch.75-152;s.1,ch.7777;.21,ch.77-259;
s.2,ch.77-469; cn
s.3,ch.78-303;s.1,ch.79 375;s.1, .79-39-3n s.2,ch.80-242; under subsection (5), all employees and officers of the
•.i s.2,di.81-214;s.60,ch.81-259;s.4,d,83-7s;s.2,a,.6s z4s;S.7,m.6a�ez; municipality or special district who were participants in
s.34,ch.69-207;s.2,ch.69-260;s.16,ch.89-367;s.7,ch.90-274;s.68,ch.
i:
1 92-136;s.5,ch.94-259;s.1423,ch.95-147;s.1,di.95-277;s.16,ch.95-392. the Florida Retirement System before January 1, 1996,
remain as participants in the system for as long as they
121.0511 Revocation of election and alternative are employees or officers of the municipality or
plan.-The governing body of any municipality or independent special district, and all rights, duties, and
independent special district that has elected to partici- obligations of the municipality or special district,the sys-
I.r pate in the Florida Retirement System may revoke its tern,and the employees and officers remain in effect.An
l!ll election in accordance with the following procedure: employee or officer who is hired or takes office on or
,1 •
• . , 1.1 .(1) No more.than 30 days and at least 7 days before after January 1,1996,may not participate in the Florida
. ii! adopting a resolution to revoke the election, in order to Retirement System, and the revoking municipality or
• ll, establish an alternative retirement plan,a public•hearing independent special district has no obligation to the sys-
, ' must be held on the proposed revocation and proposed tem with respect to such employees and officers.
' i!; • alternative plan.Notice of this hearing must be given in History.-s.3,ch.95-338.
accordance with the procedures specified in s.166.041.
! (2) At least 7 days, but not more than 15 days, 121.0515 Special risk membership;criteria;desig-
l.''. before the hearing,notice of intent to revoke,specifying nation and removal of classification; credits for past
k the time and place of the hearing,must be published in service and prior service;retention of special risk nor-
1 .` a newspaper of general circulation in the area affected, mal retirement date.-
1
.� as provided by ss. 50.011-50.031. Proof of publication (1) LEGISLATIVE INTENT.-In creating the Special
1 !1 of the notice must be submitted to the Division of Retire- Risk Class of membership within the Florida Retirement
ment. System, it is the intent and purpose of the Legislature
1:.:
• f'� (3) The governing body of a municipality or to recognize that persons employed in certain catego-
1,',; independent special district seeking to revoke its elec- ries of law enforcement,firefighting,and criminal deten-
�';! tion positions are required as one of the essential func-
, tion to participate in the system must,before such revo-
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cation, have an actuarial report prepared and certified tions of their positions to perform work that is physically
by an enrolled actuary,as defined in s.112.625,illustrat- demanding or arduous, or work that requires extraor i-
I, ` ing the cost to the municipality or independent special nary agility and mental acuity, and that such persons,
7 district and to its future employees of providing a new because of diminishing physical and mental faculties,
may �
find that they plan for employees hired after January 1, are not able,without risk to the health
1996 and safety of themselves,the public,or their coworkers,
Li ! ! (4) A copy of the proposed alternative plan and to continue performing such duties and thus enjoy the
P report must be given to each representative of each cer- full career and retirement benefits enjoyed by persons
1 i tified bargaining unit before adoption of a revocation res- employed in other positions and that,if they find it nec-
r j ; olution under subsection(5).A municipality or independ- essary, due to the physical and mental limitations of •
ent special district that has a collective bargaining their age,to retire at an earlier age and usually with less
1 agreement with a certified bargaining agent may not service, they will suffer an economic deprivation there-
exercise the right of revocation for future members of from.Therefore,as a means of recognizing the peculiar
any covered class within the unit without negotiating and special problems of this class of employees,it is the
! such revocation and proposed alternative plan,as pro- intent and purpose of the Legislature to establish a class
vided in chapter 447,with each bargaining unit covering of retirement membership that awards more retirement
' such classes of employees.If more than one bargaining credit per year of service than that awarded to other
unit exists,each unit must negotiate independently.The employees; however, nothing contained herein shall
new retirement plan for special risk employees must pro- require ineligibility for special risk membership upon
vide benefits which meet or exceed the minimum bene- reaching age 55.
fits contained in chapter plans under chapter 175 or (2) CRITERIA.-A member, to be designated as a
chapter 185, as appropriate. For purposes of this sub- special risk member, must meet the following criteria:
section,°chapter plans"means those plans having mini- (a) The member must be employed as a law enforce-
mum benefits required generally under these chapters, ment officer and be certified,or required to be certified,
. 954
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TABLE OF CONTENTS
PAGE
Section 1 DEFINITIONS
Section 1 .01 - Statement of Defintions 1
Section 1.02 - Gender 5
Section 2 MEMBERSHIP
Section 2.01 - Condition of Eligibility 5
Section 2 .02 - Membership 6
Section 2 .03 - Change in Designation of
Beneficiary 6
Section 3 BOARD OF TRUSTEES
Section 3 . 01 - Board of Trustees 6
Section 4 FINANCES AND FUND MANAGEMENT
Section 4. 01 - Establishment and Operation
of Fund 10
Section 5 CONTRIBUTIONS
Section 5 .01 - Member Contributions 16
Section 5 . 02 - State Contribution 17
Section 5 . 03 - Village Contributions 17
Section 5.04 - Other 17
Section 6 BENEFIT AMOUNTS AND ELIGIBILITY
Section 6 .01 - Normal Retirement Date 18
Section 6. 02 - Normal Retirement Benefit 18
Section 6. 03 - Early Retirement Date 19
Section 6 .04 - Early Retirement Benefit 19
Section 7 PRE-RETIREMENT DEATH
Section 7 .O1A - Line-of-Duty Benefit 21
Section 7 .01B - Non-Line-of Duty Benefit 21
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PAGE
Section 8 DISABILITY
Section 8 . 01 - Disability Benefits On-Duty 22
Section 8 .02 - Disability Benefits Off-Duty 23
Section 8 .03 - Conditions Disqualifying
Disability Benefits 24
Section 8. 04 - Physical Examination
Requirement 25
Section 8 .05 - Disability Payments 26
Section 9 VESTING 27
Section 10 OPTIONAL FORMS OF BENEFITS 28
Section 11 BENEFICIARIES 32
Section 12 CLAIMS PROCEDURES BEFORE THE BOARD
DECISION 33
Section 13 REPORTS TO DIVISION OF RETIREMENT 37
Section 14 ROSTER OF RETIREES 40
Section 15 BOARD ATTORNEY AND PROFESSIONAL 40
Section 16 MAXIMUM PENSION 40
Section 16 . 01 - Basic Limitation 41
Section 16 . 02 - Participation in Other
Defined Benefit Plans 42
Section 16 .03 - Adjustments in Limitations 42
Section 16 . 04 - Less Than Ten Years of Service 43
Section 16 . 05 - $10,000 Limit 43
Section 16 . 06 - Accrued Benefit as of Effective
Date 43
Section 16 . 07 - Member in Defined Contribution
Plan 44
Section 16 . 08 - Reduction of Benefits 44
Section 16 .09 - Cost-of-Living Adjustments 45
Section 16 . 10 - Additional Limitation on
Pension Benefits 45
Section 17 COMMENCEMENT OF BENEFITS 46
Section 18 DISTRIBUTION OF BENEFITS 46
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PAGE
Section 19 MISCELLANEOUS PROVISIONS
Section 19 .01 - Interest of Members in
Pension Plan 48
Section 19 . 02 - Liquidation of Pension
Fund Assets 49
Section 20 REPEAL OR TERMINATION OF SYSTEM 52
Section 21 EXEMPTION FROM EXECUTION,
NON-ASSIGNABILITY 58
Section 22 PENSION VALIDITY 58
Section 23 FORFEITURE OF PENSION 58
Section 24 MILITARY SERVICE PRIOR TO
EMPLOYMENT 60
I
VILLAGE OF TEQUESTA
EMPLOYEE"S PENSION TRUST FUND
Section 1 . Definitions
1 . 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.
Act means the Employee Retirement Income Act of 1974
(P.L. 93-406) as amended by the Retirement Equity Act of 1984
(P.L. 98-397 ) and any regulations issued thereunder by the
Department of Labor and the Internal Revenue Service, as that
Statute and these regulations shall be amended.
Actuarial Eauivalent means a benefit or amount of equal
value, based upon the 1981 UP Mortality table, , and an 8% rate of
interest.
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Average Final Compensation shall mean one-twelth ( 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,
jor death or the career average as a full time Firefighter,General
Employee 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 and 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 beneficiary shall
be the estate of the Member.
Board means the Board of Trustees, which shall administer
and manage the System herein provided and serve as Trustees of
the Fund.
Code means the Internal Revenue Code of 1986, as amended from
time to time.
Credited Service means the total number of years and fractional
parts of years of service as a Police Officer, Firefighter or
General Employee and member contributions to the Plan, omitting
intervening years or fractional parts of years when such Police
Officer, Firefighter or General Employee may not be 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
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Village of Tequesta without losing credit for the time of active
participation 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. -
The years or fractional parts of years that a firefighter or
general employee serves in the military service of the Armed
Forces of the United States or the 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, shall be added to his/her years of credited service
provided that:
A. The Firefighter must return to his/her full time employment
with the Fire Department and the General Employee to his/her full
time employment with the Village of Tequesta within one (1) year
from the date of his/her military discharge.
! B. The Firefighter or General Employee deposits into the Fund
the same sum that the Member would have contributed if he/she had
remained a Firefighter or General Employee,whichever is
applicable, plus an amount of interest that substantially
approximates the amount earned by the Fund from the date of
return to employment to the date of deposit.
C. The maximum credit for military service shall be five (5)
years .
The years or fractional parts of years that a Police Officer
serves in the military service of the Armed Forces of the United
States or the United States Merchant Marine, voluntarily or
involuntarily, after seperation from employment with the Village
for the purpose of going on active duty, shall be added to
his/her years of credited service, for all purposes, including
vesting,pursuant to conditions that are required or permitted
under state and federal law, as amended from time to time,
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provided that the police officer must return to his/her
employment as a police officer within one year from the date of
his military discharge or release from active service under
honorable conditions .
Effective Date means the date on which this Ordinance
becomes effective.
Police Department means the Tequesta Police Department.
Fire Department means the Tequesta Fire Department.
Police Officer means any person who is elected, appointed,
or employed full time by the Village, who is certified or
required 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 certified supervisory and
command personnel whose duties include, in whole or in part, the
supervision, training, guidance, and management responsibilities
of full-time law enforcement officers, part-time law enforcement
officers or auxiliary 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 .
Firefighter means an actively employed full-time person
employed by the Fire Department, including his initial
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probationary employment period, who is certified as a Firefighter
as a condition of employment in accordance with the provisions of
633 . 35 Florida Statutes and whose duty is to extinguish fires, to
protect life and to protect property.
General Employee means an actively employed full-time
person employed by the Village of Tequesta, including his initial
probationary employment period, excluding certified Firefighters
and certified Police Officers .
Fund means the Trust Fund established herein as part of the
System.
Member means an actively employed Police Officer,
Firefighter or General Employee that fulfills the applicable •
prescribed participation requirements.
Salary means :
Police Officer: the total cash remuneration paid to a police
officer for services rendered.
Firefighter: the total cash remuneration paid to a
firefighter for services rendered.
General Employee: base compensation to include regular
earnings, vacation pay, sick pay, plus all tax deferred
items of income, excluding lump sum payments.
Spouse means the lawful wife or husband of a plan member at
the time of pre-retirement, death or retirement.
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'System means the Village of Tequesta Employee' s Pension
Trust Fund as contained herein and all amendments thereto.
Village 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 .
Section 2. MEMBERSHIP
1 . Condition of Eligibility
All full time Firefighters as of the effective date,
and all future new full time Police Officers, Firefighters and
General Employees shall become Members of this System as a
condition of employment.
2 . Membership
Each full time Police Officer, Firefighter or General
1
Employee shall complete a form prescribed by the Board providing
the following information:
A. Acceptance of the terms and conditions of the Retirement System, and,
B. Designation of a beneficiary or beneficiaries, and,
C. A certified statement as to prior medical and psychological history.
3. Change in Designation of Beneficiary
A member may from time to time change his designated
beneficiary by written notice to the Board upon forms provided by
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the Board. Upon such change, the rights of all previously
designated beneficiaries to receive any benefits under the System
shall cease.
Section 3, BOARD OF TRUSTEES
1 . The sole and exclusive administration of a
responsibility for the proper operation of the retirement system
and for making effective the provisions of this ordinance are
hereby vested in a Board of Trustees consisting of seven (7)
Trustees, three of whom, unless otherwise prohibited by law,
shall be. legal residents of the municipality, who shall be
appointed by the Tequesta Village Council, and one of whom shall
be full-time Police Officer member of the system, one of whom
shall be full-time Firefighter member of the system, and one of
whom shall be a full-time General Employee member of the system.
Each person seeking to fill a designated employee representative
Boardmember seat shall be separately elected by their full time
co-workers who are members of the System in the applicable
employee representative group, e.g. Police Officer, Firefighter
or General Employee in which they are employed and shall be
elected by a majority of the full time employees who are Members
of the System within the applicable employee representative
group. The seventh Trustee shall be chosen for a two (2) year
term by a majority of the previous six Trustees as provided for
herein, and such person' s name shall be submitted to the Tequesta
Village Council. Upon receipt of the seventh person' s name, the
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Tequesta Village Council shall, as a ministerial duty, appoint
such person to the Board of Trustees as its seventh Trustee. The
seventh Trustee shall have the same rights as each of the other
six Trustees appointed or elected as herein provided and shall
serve a two (2) year term unless the office is sooner vacated and
may succeed himself in office. Each resident Trustee shall serve
as Trustee for a period of two (2) years unless sooner replaced
by the Tequesta Village Council at whose pleasure the Trustee
shall serve, and may succeed himself as a Trustee. Each Police
Officer Firefighter and General Employee Trustee shall serve as
Trustee for a period of two (2) years, unless he/she sooner
leaves the employment of the employee representative group he/she
was elected to represent or otherwise vacates his/her office as
Trustee, whereupon a successor shall be chosen in the same manner
as the departing Trustee. Each employee representative Trustee
may succeed himself in office. The Board of Trustees shall meet
at least quarterly each q y year. Board of Trustees shall be a legal
entity with, in addition to other powers responsibilities
contained herein, the power to bring and defend lawsuits of every
kind, nature, and description.
2 . The. Trustees shall, by a majority vote, elect a
chairman and a secretary. The secretary of the Board shall keep,
or cause to be kept, a complete minute book of the actions,
proceedings, or hearings of the Board and shall preside over
Board meetings in the absence of the Chairman.
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The Trustees shall not receive any compensation as such, but may
receive expenses and per diem as provided by law.
3 . Each Trustee shall be entitled to one vote on the
Board. Four (4) affirmative votes shall be necessary for any
decision by the. Trustees at any meeting of the Board. A Trustee
shall have the right to abstain from voting as the result of a
conflict of interest provided that Trustee states in writing that
the nature of the conflict complies with the provisions of
Section 112 . 3143, Florida Statutes.
4 . The Board of Trustees shall engage such actuarial,
accounting, legal, and other services as shall be required to
transact. the business of the Retirement System and to meet the
requirements of applicable law. The compensation of all persons
engaged by the Board of Trustees and all other expenses of the
Board necessary for the operation of the Retirement System shall
be paid from the Fund at such rates and in such amounts as the
Board of Trustees shall approve.
5 . The duties and responsibilities of the Board of
Trustees shall include, but not necessarily be limited to, the
following:
A. To construe the provisions of the System and determine all questions
arising thereunder.
B. To determine all questions relating to eligibility and participation.
C. To determine and certify the amount of all retirement allowances or other
benefits hereunder.
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. D. To establish uniform rules and procedures to be followed for administrative
purposes, benefit applications and all matters required to administer the System.
E. To distribute to Members, at regular intervals, information concerning the
System.
F. To receive and process all applications for participation and benefits.
G. To authorize all payments whatsoever from the Fund, and to notify the
disbursing agent, in writing, of approved health payments and other expenditures arising through
operation of the System and Fund.
H.. To have performed actuarial studies in accordance with Florida Statute
112.63 providing a copy of the same to the Division of Retirement, and with at least biennial
valuations, and make recommendations regarding any and all changes in the provisions of the
System.
I. Ensure compliance with Article X, Section 19, of the Florida Constitution,
requiring that any increase in benefits be funded on an actuarially sound basis.
J. Ensure the completion of an actuarial impact statement prior to the adoption of
a change in the plan's retirement benefits, a copy of which must be provided to the Division of
Retirement.
K. To perform such other duties as are specified in this Ordinance.
Section 4 . FINANCES AND FUND MANAGEMENT.
Establishment and Operation of Fund.
1 . As part of the System, there is hereby established the
Fund, into which shall be deposited all of the contributions and
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assets whatsoever attributable to the System, including the
assets of the prior Municipal Firefighters' Trust Fund.
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 disbursing agent, but only upon written authorization from
the Board.
3. All funds and securities of the Employee' s Pension
Trust 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 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 a
separate fund by the Treasurer or clearly identified as such
funds and securities of the Employee ' s Trust Fund. In lieu
thereof, the Board of Trustees shall deposit the funds and
'securities of the Employee ' s Trust Fund in a qualified public
depository as defined in Section 280 . 02, Florida Statutes, which
depository 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, an investment advisor registered under Investment
Advisors Act of 1940 or otherwise exempt from such required
registration, an insurance company, or a combination of these,
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for the purposes of investment decisions and management. Such
investment manager shall have discretion, subject to any
guidelines as prescribed by the Board, in the investment of all
fund assets .
4 . All funds and securities of the System shall be
accounted for separately based upon the three (3) applicable
employee classes within the Fund namely, the Police Officers,
Firefighters and the General Employees, in the Fund. Accurate
records shall be maintained at all times reflecting the financial
composition of the Fund and of the accounts in place to segregate
the assets of the employee classes covered by the System,
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 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
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the Village showing a detailed listing of assets and a statement
of all income and disbursements during the year. Such income and
disbursements must be reconciled with the assets at the beginning
and end of the year. Such report shall reflect a complete
evaluation 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 said 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 this 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 and administered by the Board or
its Agent in the Fund and shall be segregated for accounting
purposes based upon the employee classes covered by the System . However, the Board shall
not be required to invest separately any portion of the Fund.
B. All moneys paid into or to be held in the Pension Fund shall be invested
and reinvested by the Board and the investment of all or any part of such funds shall be limited to:
( 1) Annuity and life insurance contracts of life
insurance companies in amounts sufficient to provide, in whole or
in part, the benefits to which all of the participants in the
Fund shall be entitled under the provisions of this Plan and pay
the initial and subsequent premium thereon.
13
(2) Time or savings accounts of a national bank,
a state bank or a savings/building and loan association insured
by the Federal Deposit Insurance Corporation or the Federal
Savings and Loan Insurance Corporation. .
(3) Obligations of the United States or
obligations guaranteed as to principal and interest by the
government of the United States.
(4) Bonds issued by the State of Israel.
(5) Bonds, stocks, commingled funds administered
by National or State Banks or evidences of indebtedness issued or
guaranteed by a corporation organized under the laws of the
United States, any state or organized territory of the United
States, or the District of Columbia, provided that the
corporation is traded on a nationally recognized Exchange and
holds a rating in one of the three highest classifications by a
major rating service, and if such investments are made in a
pooled fund administered by a state or national bank, then the
rating of each issue in the pooled fund shall hold a rating
within the top three (3) rating classifications of a major rating
service.
(6) Real estate.
14
(7) All monies paid into or held in the Pension
Fund shall be invested and reinvested by the Board of Trustees
and the the investment of all or any part of such funds shall be
invested in accordance with an established investment policy
adopted by the Board of Trustees.
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 fifty percent(50%) 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
it 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 to his or its own negligence, willful misconduct or lack of good faith.
F. The Board may cause any investment in securities held by it to be
registered in or transferred into its name as Trustee or into the name of such nominee as it may
direct, or it 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, but is not required, to vote upon any stocks,
bonds, or securities of any corporation, association, or trust and to give general or specific
15
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 designate 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 to the best interest of the Fund to
exercise.
H. The Board shall not be required to make any inventory or appraisal or
report to any court, nor to secure any order of court for the exercise of any power contained
herein.
I. Where any action which the Board is required to take or 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 the 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 payments next succeeding the
correction. Underpayments shall be made up from the Trust Fund.
16
K. The Board shall sustain no liability whatsoever for the sufficiency of the
Fund to meet the payments and benefits herein provided for.
L. In any application to or proceeding or action in the courts, only, the Board
shall be a necessary party, and no Member or other person having an interest in the Fund shall be
entitled to any notice or service of process. Any judgment entered in such a proceeding or action
shall be conclusive upon all persons.
M. Any of the foregoing powers and functions reposed in the Board 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 said Fund shall always remain in the Board of Trustees.
N. The 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.
Section S. CONTRIBUTIONS
1. Member Contributions
A. Amount. Members of the Retirement System shall be required to make
regular contributions to the Fund in the amount of five percent (5%) of his/her salary. Member
contributions withheld by the Village on behalf of the Member shall be deposited with the Board
of Trustees at least monthly. The contributions made by each Member to the Fund shall be
designed as employer contributions pursuant to 414(h) of the Internal Revenue Code of 1986.
Such designation is contingent upon the contributions being excluded from the Members'gross
income for Federal Income Tax purposes. For all other purposes of the Plan, such contributions
shall be considered to be Member contributions.
17
B. Method. Such contributions shall be made by payroll deduction.
2. ,State Contributions
Any monies received or receivable by reason of laws of
the State of Florida, for the express purpose of funding and
paying for retirement benefits for Police Officers or
Firefighters shall be deposited within the applicable segregated
account in the Trust Fund comprising part of this System
immediately and under no circumstances more than five (5) days
after receipt by the Village.
3 . Village Contributions
So long as this System is in effect, the Village shall
make quarterly contributions to the Trust Fund in an amount equal
to the difference in each year, between the total aggregate
Member contributions for the year, plus state contributions, if
applicable, for such year, and the total cost for any year shall
be defined as the total normal cost plus the additional amount
sufficient to amortize the unfunded past service liability over
the appropriate periods, commencing with the fiscal year in which
the effective date of this system occurs.
4 . Other
Private donations, gifts and contributions may be
deposited to the Fund, but such deposits must be kept separately
and kept on a segregated bookkeeping basis. Funds arising from
these sources may be used , only for additional benefits for
Members, as determined by the Board, and may not be used to
18
reduce what would have otherwise been required Village
contributions.
Section 6. BENEFITS AMOUNTS AND ELIGIBILITY
1 . Normal Retirement Date
A Member' s normal retirement date shall be the first
day of the month coincident with, ' or the next following the
earlier of:
For Police Officers and Firefighters :
a) attainment of age fifty-five (55) and the
completion of (10) years of credited service, or
b) attainment of age fifty-two (52) and the
completion of twenty-five (25) years of credited
service.
For General Employees :
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 may retire on his normal retirement date or on the first
day of any month thereafter, and each Member shall become 100%
vested in his accrued benefit on the Member' s normal retirement
date. Normal retirement under the Plan is retirement from
employment with the Village. of Tequesta as a Police Officer,
Firefighter or General Employee, whichever is applicable, on or
after the normal retirement date.
19
2 . Normal Retirement Benefit
A Member retiring hereunder on or after his normal
retirement date shall receive a monthly benefit which shall
commence on his Retirement Date and be continued thereafter
during Member' s lifetime, ceasing upon death, but with one
hundred twenty (120) monthly payments guaranteed in any event.
The monthly retirement benefit shall equal:
For Police Officers and Firefighters - three percent (3%) of
average final compensation, for each year of credited service (3%
x average final compensation x years of credited service) .
For General Employees- two percent (2%) of average final
compensation, for each year of credited service (2% x average
final compensation x years of credited service) .
3 . Early Retirement Date
A Member may retire on his/her 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 ten (10) years of credited service. Early
retirement under the Plan is retirement from employment with the
Village of Tequesta on or after the early retirement date and
prior to the normal retirement date.
4 . Early Retirement Benefit
A Member retiring hereunder on his/her early retirement
date may receive either a deferred or an immediate monthly
20
retirement benefit payable for life as follows:
A. A deferred monthly retirement benefit which shall
commence on what would have been his/her normal retirement date
had he/she remained a Police Officer, Firefighter or 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
as his/her normal retirement date except that credited service
and average final compensation shall be determined as of his
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 on his normal retirement date with the same number of
years of credited service as at the time his/her benefits commence and based on his average final
compensation at that date. In no event shall the early retirement reduction exceed:
For Police Officers- three percent(3%)
For Firefighters - five percent(5%). Effective October 1, 1997, four and one-half percent(4.5%);
effective October 1, 1998, four percent (4%); effective October 1, 1999, three
and one-half percent(3.5%); effective October 1, 2000, three percent (3%).
For General Employees -five percent(5%)
each year by which the commencement of benefits precedes the Member's normal retirement date.
21
Section 7. PRE-RETIREMENT DEATH
1. Death Before Retirement
If a plan member dies prior to retirement from , the
Village of Tequesta his/her beneficiary shall receive a benefit
based, upon the applicable employee classification as follows:
Police Officer:
A. Line-of-Duty-Benefit is a pension to the spouse
(or children) of 50% of Average Compensation for. life.
B. Non-Line-of-Duty-Death the spouse of a member with
10 years of credited, service will receive the actuarial
equivalent of the accrued early or normal retirement benefit.
C. In lieu of the benefits provided in A or B above,
the beneficiary of a police officer, with 10 or more years of
service who dies prior to retirement, may receive the benefits
otherwise payable to the police officer at would have been his
early or normal retirement date.
Firefighter:
A. Line-of-Duty Benefit is a pension to the spouse (or children) of 50%of
Average Compensation for life. (Ord 478)
B. Non-Line-of-Duty-Death the spouse of a member with 10 years of credited
service will receive the actuarial equivalent of the accrued early or normal retirement benefit.
C. In lieu of the benefits provided in A or B above,
the beneficiary of a firefighter, with 10 or more years of
service who dies prior to retirement, may receive the benefits
22
•
otherwise payable to the firefighter at would have been his early
or normal retirement date.
General Employee:
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
retirement age. The benefit is equal to the vested pension benefit.
Section 8. DISABILITY
1 . Disability Benefits On-Duty
Each full time employee who is a participant in the
Pension Fund System and who shall have become totally and
permanently disabled while an active employee of the Village of
Tequesta to the extent that he/she is unable, by reason of a
medically determinable physical or mental impairment, to render
useful and efficient service as a Police Officer, Firefighter, or
General Employee, as was provided by the employee in their
classification (Police Officer, Firefighter, or General Employee)
prior to the alleged impairment, which disability was directly
caused by the performance of his/her duty as a Police Officer,
Firefighter,or General Employee shall upon establishing the same
to the satisfaction of the Board, be entitled to:
A. If the injury or disease is service connected, the
employee shall be entitled to the greater of (a) or (b) :
a.For General Employees: a monthly pension equal
to 42% of his/her average monthly compensation based upon his/her
final 5 years of service,or
23
For Police Officers and Firefighters: a monthly pension equal to
42% of his/her average monthly compensation as of his/her •
disability retirement date, or
b. an amount equal to the number of years of
his/her credited service multiplied by:
3% of his/her average monthly salary based upon his/her final 5
years of service for Police Officers
3% of his/her average monthly salary based upon his/her final 5
years of service for Firefighters
2% of his/her average monthly salary based upon his/her final 5
years of service for General Employees .
Any condition or impairment of health of Police
Officer or Firefighter caused by tuberculosis, hypertension or
heart disease shall be presumed to have been suffered in the line
of duty unless the contrary is shown by competent evidence,
provided that such Police Officer or Firefighter shall have
successfully passed a physical examination upon entering into
such service, including cardiogram, which examination failed to
reveal any evidence of such condition; and provided further, that
such presumption shall not apply to benefits payable or granted
in a policy of life insurance or disability insurance.
24
2 . Disability Benefits Off-Duty
Every Police Officer., Firefighter or General Employee
who is a participant in the Pension Fund System who shall have
become totally and permanently disabled to the extent that he/she
is unable, by reason of a medically determinable physical or
mental impairment, to render useful and efficient service as a
Police Officer, Firefighter or General Employee which disability
is not directly caused by the performance of his/her duties as a
Police Officer, Firefighter or General Employee shall be entitled
to:
A. If the injury or disease is not service connected, the Police Officer,
Firefighter or General Employee shall be entitled to the greater of(a) or(b):
a.For General Employees: a monthly pension equal to 25% of
his/her average monthly compensation based upon his/her final 5
years of service,or
For Police Officers and Firefighters : a monthly pension equal to
25% of his/her average monthly compensation as of his/her
disability retirement date, or
b. an amount equal to the number of years of his/her credited
service multiplied by:
3% of his/her average monthly salary based upon his/her final 5
years of service for Police Officers
25
•
3% of his/her average monthly salary based upon his/her final 5
years of service for Firefighters
2% of his/her average monthly salary based upon his/her final 5
years of service for General Employees.
3 . Conditions Disaualifvina Disability Benefits
Each Police Officer, Firefighter or General Employee
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/her employment shall have terminated
as a Police Officer with the Tequesta Police Department ;Firefighter with the Tequesta Fire
Department or General Employee with the Village of Tequesta.
F. Willful, wanton or gross negligence of the Member.
G. Injury or disease sustained by the Police Officer, Firefighter or General
Employee while working for anyone other than the Tequesta Police Department, Tequesta Fire
26
Department or , for General Employees, the Village of Tequesta and arising out of such
employment.
4 . Physical Examination Requirement
An employee eligible shall not become eligible for
disability benefits until and unless he/she undergoes a physical
examination by a qualified physician or physicians and/or
surgeons, who shall be selected by the Board for that purpose.
Any person receiving disability benefits under
provisions of this Ordinance may be periodically re-examined by a
qualified physician or physicians and/or surgeon or surgeons who
shall be selected by the Board, to determine if such disability
has ceased to exist. If the Board finds that the retiree is no
longer permanently and totally disabled to the extent that he/she
is unable to render useful and efficient service as a Police
Officer, Firefighter,or General Employee the Board shall
recommend to the Village that the retiree be returned to their
previous performance of duty as a Police Officer, Firefighter,or
General Employee, and the retiree so returned shall enjoy the
same rights that Member had at the time he/she was placed upon
pension. In the event the retiree is so ordered to return shall
refuse to comply with the order within thirty (30) days from the
issuance thereof, Member shall forfeit the right to his/her
pension.
27
The cost of the physical examination and/or re-examination of the
employee or retiree claiming and/or receiving disability benefits
shall be borne by the Board of this Pension Fund System. All
other reasonable costs as determined by the Board incident to the
physical examination, such as, but . not limited to,
transportation, meals and hotel accommodations, shall be borne by
the Board.
If the retiree recovers from disability and reenters
his/her former service with the Village of Tequesta held prior to
disability retirement, his/her service will be deemed to have
been continuous, but the period beginning with the first month
for which he/she received a disability retirement income payment
and ending with the date he/she reentered the service of the
village will not be considered as credited service for the
purposes of the Plan.
The Board shall have the power and authority to make
the final decision regarding all disability claims.
5 . Disability Payments
The monthly benefit to which a Member is entitled in
the event of the Member' s disability retirement shall be payable
on the first day of the first month after the Board of Trustees
determines such entitlement. However, the monthly retirement
income shall be payable as of the date the Board determined such
entitlement, and any portion due for a partial month shall be
paid together with the first payment. The last payment will be:
28
A. If the plan member recovers from the disability prior to his/her normal
retirement date, the payment due next preceding the date of such recovery, or
B. If the plan member dies without recovering from disability or attains his/her
normal retirement date while still disabled, the payment due next preceding his death or the 120th
monthly payment, whichever is later.
Section 9, VESTING
If a Member terminates his employment with the Village
of Tequesta, either voluntarily or by discharge, and is not
eligible for any other benefits under this System, the Member
shall be entitled to the following:
For Police and Firefighters :
1 . If the Member has less than ten (10) years
credited service upon termination, the Member shall be entitled
to a refund of his accumulated contribution or Member may leave
it deposited with the Fund.
2 . If the Member has ten ( 10) or more years' of
credited service upon termination, the Member shall be entitled
to a monthly retirement benefit that is the actuarial equivalent
of the amount of such retirement income otherwise payable to him
commencing at Member' s otherwise normal or early retirement date,
provided he does not elect to withdraw his accumulated
contributions and provided Member survives to his normal or early
retirement date.
For General Employees:
29
1. If the Member has less than ten (10) years
credited service and has not, attained the age of sixty-two (62 )
upon termination, the Member shall be entitled to a refund of his
accumulated contribution or' Member may leave it deposited with
the Fund.
2 . If the Member has ten (10) or more years of
credited service upon termination, or, alternatively, the Member
has attained the age of sixty-two (62) , regardless of credited
years of service, the Member shall be entitled to a monthly
retirement benefit that is. the actuarial equivalent of the amount
of such retirement income otherwise payable to him/her commencing
at Member' s otherwise normal or early retirement date, provided
he/she does not elect to withdraw his/her accumulated
contributions and provided Member survives to his/her normal or
early retirement date.
3 . Any plan member of the System whose position is
terminated, for whatever reason, but who is employed by the
Village in some capacity, shall have all retirement benefits
accrued up to the date of such termination under this System
preserved, provided he does not elect to withdraw his/her
accumulated contributions from this System. Such Accrued
retirement benefits shall be payable at his/her otherwise normal
retirement date hereunder, or later, in accordance with the
provisions of this System.
30
Section 10. OPTIONAL FORMS OF BENEFITS.
1 . In lieu of the amount and form of retirement income
payable in the event of normal or early retirement as specified
herein, a plan member, upon written request to the Board of
Trustees and submission of evidence of good health (except that
such evidence will not be required if such request is made at
least three (3) years prior to the date of commencement of
retirement income or if such request is made within •six ( 6)
months following the effective date of the Plan, if later) , and
subject to the approval of the Board of Trustees, may elect to
receive a retirement income or benefit of equivalent actuarial
value payable in accordance with one of the following options :
A. A retirement income of a larger monthly amount,
payable to the Member for his/her lifetime only.
B. A retirement income of a modified monthly amount,
payable to the Member during the joint lifetime of
the Member and a dependent joint pensioner
designated by the Member 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.
C. Such other amount and form of retirement payments
or benefits as, in the opinion of the Board of
Trustees, will best meet the circumstances of the
retiring Member.
31
2 . The Member,upon electing any option of this section,
will designate the joint pensioner or beneficiary (or
beneficiaries) to receive the benefit, if any, payable under the
Plan in the event of Member' s death, and will have the power to
change such designation from time to time, but any such change
shall be deemed a new election and will be subject to approval by
the Board of Trustees. Such designation will name a joint
pensioner or one or more primary beneficiaries where applicable.
If a Member has elected an option with a joint pensioner or
beneficiary and Member's retirement income benefits have
commenced, Member may thereafter change his designated joint
pensioner or beneficiary, but only if the Board of Trustees
consents to change and if the joint pensioner last previously
designated by Member is alive when he/she files with the Board of
Trustees the request for such change.
3. The consent of joint pensioner or beneficiary to any
such change shall not be required.
4. The Board of Trustees may request such evidence of
the good health of the joint pensioner that is being removed as
it may require and the amount of the retirement income payable to
the Firefighter upon designation of a new joint pensioner shall
be actuarially redetermined taking into account the age and sex
of the former joint pensioner, the new joint pensioner, and the
Firefighter. Each such designation will be made in writing on a
form prepared by the Board of Trustees and on completion will be
filed with the Board of Trustees.
32
In the event that no designated beneficiary survives the Member,
such benefits as are payable in the event of the death of the
Member subsequent to his/her retirement shall be paid as provided
in Section 11 .
5. Retirement income payments shall be made under the
option elected in accordance with the provisions of this section
and shall be subject to the following limitations:
A. If a Member dies prior to his/her normal
retirement date or early retirement date,
whichever first occurs, no retirement benefit will
be payable under the option to any person, but the
benefits, if any, will be determined under Section
7 .
B. If the designated beneficiary (or beneficiaries)
or joint pensioner dies before the Members
retirement under the Plan, the option elected will
be canceled automatically and a retirement income
of the normal form and amount will be payable to
the Member upon his/her retirement as if the
election had not been made, unless a new election
is made in accordance with the provisions of this
section or a new beneficiary is designated by the
Member prior to his/her retirement and within
ninety (90) days after the death of the
beneficiary.
33
C. If both the retired Member and the beneficiary (or
beneficiaries) designated by Member die before the
full payment has been effected under any option
providing for payments for a period certain and
life thereafter, made pursuant to the provisions
of subsection 1 , the Board of Trustees may in its
discretion, direct that the computed value of the
remaining payments be paid in a lump sum and in
accordance with Section 11 .
D. If a Member continues beyond his/her
normal retirement date pursuant to the provisions
of Section 6, subsection 1 , and dies prior to
his/her actual retirement and while an option made
pursuant to the provisions of this section is in
effect, monthly retirement income payments will be
made, or a retirement benefit will be paid, under
the option to a beneficiary (or beneficiaries)
designated by the Member in the amount or amounts
computed as if the Member had retired under the
option on the date on which his/her death
occurred.
6 . A Member may not change his/her retirement option after
the date of cashing or depositing his/her first retirement check.
34
Section 11 . BENEFICIARIES.
1 . Each Member may, on a form provided for that purpose,
signed and filed with the Board of Trustees, designate a
beneficiary (or beneficiaries) to receive the benefit, if any,
which may be payable in the event of his/her death; and each
designation may be revoked by such Member by signing and filing
with the Board of Trustees a new designation-of-beneficiary form.
2 . If a deceased Member fails to name a beneficiary in the
manner prescribed in subsection 1, or if the beneficiary (or
beneficiaries) named by a deceased Member predeceases the Member
the death benefit, if any, which may be payable under the Plan
with respect to such deceased Member may be paid, in the
discretion of the Board of Trustees, either to:
A. The wife or dependent children of the Member
B. The dependent living parents of the Member;or
C. Estate of the Member
Section 12. CLAIMS PROCEDURES BEFORE THE BOARD DECISION.
1 . If any Member of the system has been:
A. Placed on pension under the terms and provisions
of this ordinance for disability, or
B. Placed on pension because the Member has served
the required number of years to entitle him to a
pension, or
C. Refused benefits under this Plan, and
is dissatisfied with the amount of pension the Member is
35
receiving, or believes that he should be entitled to benefits
under the Plan, the Member may, in writing, request the Board to
review his case. The Board shall review the case and enter such
order thereon as it deems right and proper within sixty (60) days
from receipt of such written request and the receipt by the Board
of a written medical release authorization and a list of names
and addresses of all treating health care providers for such
review of disability claims; provided, that the Board may extend
the time for entering such order by an additional forty-five (45)
days if it determines such time is necessary for discovery in
full and adequate review.
2 . In the event that the order from the Board denies the
claim for a change in such benefits or denies the claim for
benefits, the order of the Board shall be put in writing. Such
written order shall include:
A. The specific reasons for the denial, including
specific references to pertinent provisions of the
retirement system on which such denial is based;
B. A description of any additional material or
information that the Board feels is necessary for
the Member to perfect his/her claim, together with
an explanation of why such material or information
is necessary; and
C. An explanation of the review procedure next open
to the Member.
36
Such review procedure shall provide that:
( 1) Prior to such review, the Member or his/her
duly authorized representative may review any
pertinent documents including Plan
provisions, minutes of the meeting of the
Board in which denial of the claim was
originally recommended, and any other
documents material to the case;
(2 ) After such review, the Member and/or his/her
duly authorized representative shall submit
their case in writing to the Board and
request a hearing. Such submission shall be
filed with the Board no later than ninety
(90) days after the receipt of the order of
the Board. Upon receipt of the written
submission by the Member, the Board shall
schedule an opportunity, for a full and fair
hearing of the issue within the next ninety
(90) days, and such scheduled hearing shall
be communicated in writing to the Member.
The. Member and/or his/her duly authorized
representative may then appear at such
scheduled hearing to present their case. The
Board shall consider the facts presented at
the scheduled hearing and shall, within
37
thirty (30) days after such hearing, make a
final ruling in writing on the request of the
Member. The written decision shall include
the reasons for such decision and, such
decision shall be final.
(a) The Chairman shall preside over the
hearing and shall rule on all
evidentiary and other legal questions
that arise during the hearing.
(b) Either party, the claimant or the Board,
may file pleadings within the time
limits set herein. Procedural motions
are to be determined by the Chairman of
the Board at any time. All parties are
to furnish copies of all pleadings to
the opposing parties and exchange lists
with names and addresses of witnesses
expected to be called to testify at the
hearing, as well as the list of exhibits
that are intended to be introduced, at
least forty-five (45) days prior to the
hearing. Testimony of witnesses shall
be under oath or affirmation.
Depositions or affidavits shall not be
admissible unless upon stipulation by
38
all parties. The Chairman, any Member
of the Board, the attorney for the
Board, the claimant and the claimant ' s
attorney, upon recognition by the
Chairman, may direct questions to any
witness during the proceedings . Each
party shall have the right to present
evidence relevant to the issues, to
cross-examine witnesses, to impeach
witnesses and to respond to the evidence
presented against the party. Each party
shall have the right to present any
opening and closing arguments . Any
party may secure the services of a court
reporter to record the proceedings with
the cost to be borne by the party
requesting the court reporter or
requesting the transcription of the
proceedings .
(c) In all cases, unless otherwise provided
in this section, the burden of proof
shall be on the claimant who seeks to
draw his/her entitlement to a pension,
disability pension, or increased pension
benefits .
39
3. In all proceedings under subsections 1 or 2 hereof, the
Board shall have the power to subpoena and require the attendance
of witnesses and the production of documents for discovery prior
to and at the proceedings provided for in each paragraph. A
reasonable fee may be charged for the issuance of any subpoenas
not to exceed the fees set forth in Florida Statutes .
Section 13 . REPORTS TO DIVISION OF RETIREMENT. Each year
and no later than March 15th, the Chairman of the Board shall
file a report with the Division of Retirement containing the
following relative to the Firefighters of the Plan:
1 . Whether. in fact the Municipality is in compliance with
the provisions of Chapter 175 Florida Statutes ,
2. A certified statement of accounting for the most recent
fiscal year of the Municipality (or an independent audit by a
certified public accountant if required by the Division of
Retirement showing a detailed listing of assets and methods used
to value them and a statement of all income and disbursements
during the year. Such income and disbursements shall be
reconciled with the assets at the beginning and end of the year.
3. A statistical exhibit showing the number of
Firefighters on the force of the Municipality, the number
included in the Pension Plan, the number of Firefighters
ineligible, classified according to the reasons for their being
ineligible, and the number of disabled and retired Firefighters
and their beneficiaries receiving pension payments and the
40
amounts of annual retirement income or pension payments being
received by them.
4 . A statement of the amount the Municipality has
contributed to the Pension Fund for the preceding plan year and
the amount the Municipality will contribute to the Pension Fund
for the current plan year.
5. If any benefits are insured with a commercial insurance
company, the report shall include a statement of the relationship
of the insured benefits to the benefits provided by this
Ordinance. This report shall also contain information about the
insurer, basis of premium rates, mortality table, interest rates
and method used in valuating retirement benefits. -
6. An actuarial valuation of the retirement Plan must be
made at least once every three (3) years commencing from the last
actuarial report of the Plan. Such valuation shall be prepared
by an enrolled actuary who is enrolled under Subtitle C of. Title
3 of the Employee Retirement Income Security Act of 1974 and who
is a Member of the Society of Actuaries or the American Academy
of Actuaries.
Each year and no later than March 15th, the Chairman of the Board
shall file a report with the Division of Retirement containing
the following relative to Police Officers:
1 . Whether in fact the Municipality is in compliance with
the provisions of Chapter 185, Florida Statutes .
41
2 . A certified statement of accounting for the most recent
fiscal year of the Municipality (or an independent audit by a
certified public accountant if required by the Department of
Insurance) showing a detailed listing of assets and methods used
to value them and a statement of all income and disbursements
during the year. Such income and disbursements shall be
reconciled with the assets at the beginning and end of the year.
3 . A statistical exhibit showing the number of Police
Officer on the force of the Municipality, the number included in
the Pension Plan, the number of Police Officers ineligible,
classified according to the reasons for their being ineligible,
and the number of disabled and retired Police Officers and their
beneficiaries receiving pension payments and the amounts of
annual retirement income or pension payments being received by
them.
4 . A statement of the amount the Municipality has
contributed to the Pension Fund for the preceding plan year and
the amount the Municipality will contribute to the Pension Fund
for the current plan year.
5 . If any benefits are insured with a commercial insurance
company, the report shall include a statement of the relationship
of the insured benefits to the benefits provided by this
Ordinance. This report shall also contain information about the
insurer, basis of premium rates, mortality table, interest rates
and method used in valuating retirement benefits.
42
6 . An actuarial valuation of the retirement Plan must be
made at least once every three (3) years commencing from the last
actuarial report of the Plan. Such valuation shall be prepared
by an enrolled actuary who is enrolled under Subtitle C of Title
3 of the Employee Retirement Income Security Act of 1974 and who
is a Member of the Society of Actuaries or the American Academy
of Actuaries .
Section 14. ROSTER OF RETIREES.
The Secretary of the Board shall keep a record of all
persons enjoying a pension under the provisions of this Ordinance
in which it shall be noted the time. when the pension is allowed
and when the same shall cease to be paid. Additionally, the
Secretary shall keep a record of all Police Officers,
Firefighters and General Employees employed by the Municipality
who are Members in such a manner as to show the name, address,
date of employment and date such employment is terminated.
Section 15. BOARD ATTORNEY AND PROFESSIONALS.
The Board may employ independent legal counsel at the
Pension Fund' s expense for the purposes contained herein,
together with such other professional, technical, or other
advisors as the Board deems necessary.
Section. 16. MAXIMUM PENSION.
1 . Basic Limitation.
43
Subject to the adjustments hereinafter set forth, the
maximum amount of annual retirement income payable with respect
to a Member under this Plan shall not exceed the lesser of:
A. $90,000 (or such lesser dollar amount as may be
allowable for any calendar year pursuant to
e415(b) of the Internal Revenue Code, as adjusted
in such calendar year for increases in the cost of
living in accordance with regulations issued' by
the Secretary of the Treasury under e415(d) of the
Code) , or
B. 100% of the Member' s average aggregate
Compensation for the three (3) consecutive
calendar years during which the Member was an
active Member and had his/her highest aggregate
compensation. "Compensation" shall mean the
Member' s total annual remuneration paid or accrued
for personal services rendered to the Village of
Tequesta during the Plan Year as reported on the
Member' s W-2.
For purposes of applying the above limitation, benefits
payable in any form other than a straight life annuity
with no ancillary benefits shall be adjusted, as
provided by Treasury Regulations, so that such
benefits are the Actuarial Equivalent of a
44
straight life annuity. For purposes of this
Section, the following benefits shall not be taken
into account:
(1) Any ancillary benefit which is not directly
related to retirement income benefits;
(2) Any other benefit not required under
e415(b) (2) of the Internal Revenue Code and
Regulations thereunder to be taken into
account for purposes of the limitation of
e415(b) (1) of the Internal Revenue Code.
2 . Participation in Other Defined Benefit Plans . The
limitation of this Section with respect to any Member who at any
time has been a Member in any other defined benefit Plan (as
defined in e414( j ) of the Internal Revenue Code) maintained by
the Department shall apply as if the total benefits payable under
all defined benefit plans in which the Member has been a Member
were payable from one Plan.
3. Adiustments in Limitations . In the event the Member' s
retirement benefits become payable before age 62, the $90,000
limitation prescribed by this Section shall be reduced in
accordance with Regulations issued by the Secretary of the
Treasury pursuant to the provisions of 415(b) of the Internal
Revenue Code, but not less than $75,000 .
In the event the Member' s retirement benefit becomes payable
before age fifty-five (55) , the $75,000 limitation shall be
45
reduced from age fifty-five (55) in accordance with Regulations
issued by the Secretary of the Treasury pursuant to the provision
of 415(b) of the Internal Revenue Code.
If the Member' s retirement benefit becomes payable after age
sixty-five (65) , for purpose of determining whether this benefit
meets the limitation set forth in subsection 1 herein, such
benefit shall be adjusted so that it is actuarially equivalent
to the benefit beginning at age 65. This adjustment shall be
made using an assumed interest rate of five percent (5%) and
shall be made in accordance with regulations promulgated by the
Secretary of the Treasury or his delegate.
4. Less than Ten Years of Service. The maximum retirement
benefits payable under this Section to any Member who has
completed less than ten (10) years of accredited service with the
Village shall be the amount determined under subsection 1 of this
Section multiplied by a fraction, the numerator of which is the
number of the Member' s years of credited service and the
denominator of which is ten (10) .
5. $10. 000 Limit. Notwithstanding the foregoing, the
retirement benefit payable with respect to a Member shall be
deemed not to exceed the limitations set forth in this Section if
the Benefits payable, with respect to such member under this Plan
and under all other qualified defined benefit pension plans to
1 which the Village of Tequesta contributes, do not exceed $10,000
for the applicable Plan Year and for any prior Plan Year and the
46
Village of Tequesta has not at any time maintained a qualified
defined contribution plan in which the Member participated.
6. Accrued Benefit as of Effective Date . Notwithstanding
the above limitations, if any Member as of the effective date
hereof, has an accrued benefit as of that date that exceeds the
above limitations, then such limitations shall equal such accrued
benefit. However, no cost of living adjustments as provided in
subsection 9 below shall be applicable to the amount of
retirement benefit so determined.
7 . Member in Defined Contribution Plan. In any case where
a Member under this Plan is also a Member in a "Defined
Contribution Plan" as defined in e414(i) of the Internal Revenue
Code, maintained' by the Village of Tequesta, the sum of the
"Defined Benefit Plan Fraction" and the "Defined Contribution
Plan Fraction" (both as defined in e415(e) of the Internal
Revenue Code) shall not, subject to the restrictions and
exceptions contained in e2004 of the Act, exceed 1 . 0 .
8 . Reduction of Benefits. Reduction of benefits and/or
contributions to all plans, where required, shall be accomplished
by first reducing the Member' s benefit under any defined benefit
plans in which Member participated, such reduction to be made
first with respect to the plan in which Member most recently
accrued benefits and thereafter in such priority as shall be
determined by the Trustees and the Plan Administrator of such
other plans, and next, by reducing or allocating excess
47
forfeitures for defined contribution plans in which the Member
participated, such reduction to be made first with respect to the
plan in which Member most recently accrued benefits and
thereafter in• such priority as shall be established by the
Trustees and the Plan Administrator for such other provided,
however, that necessary reductions may be made in a different
manner and priority pursuant to the agreement of the Trustees and
the Plan Administrator of all other plans covering such Member.
9 . Cost-of-Livinci Adiustments. The limitations as stated
in subsections 1, 2, 3, and 7 herein shall be adjusted to the
time payment of a benefit begins in accordance with any
cost-of-living adjustments prescribed by the Secretary of the
Treasury pursuant to e415(d) of the Internal Revenue Code.
10 . Additional Limitation on Pension Benefits .
Notwithstanding anything herein to the contrary:
A. The normal retirement benefit or pension payable
to a retiree who becomes a member of the Plan and
who has not previously participated in such Plan,
on or after January 1, 1980, shall not exceed 100
percent of his average final compensation.
However, nothing contained in this section shall
apply to supplemental retirement benefits or to
pension increases attributable to cost-of-living
increases or adjustments.
B. No member of the Plan who is not now a member of
48
such Plan shall be allowed to receive a retirement
benefit or pension which is in part or in whole
based upon any service with respect to which the
member is already receiving, or will receive ' in
the future, a retirement benefit or pension from
another retirement system or plan. This
restriction does not apply to social security
benefits or federal benefits under Chapter 67,
Title 10, U. S. Code.
Section 17. COMMENCEMENT OF BENEFITS.
1. Unless the Member otherwise elects, with such
election being in writing and to the Trustees and specifying the
form of retirement income and date on which the retirement income
is to commence, the payment benefits under the Plan to the Member
shall commence not later than the 60th day after the close of
the Plan Year in which the latest of the following events occur:
A. The attainment by the Member of age 65;
B. The 10th anniversary of the date on which the
Member commenced participation in the Plan; or
C. The termination of the Member' s service with the
Village of Tequesta
2 . If the payment of a Member' s retirement income cannot
begin on the date required under subsection 1 of this Section
because the Trustees either cannot ascertain the amount of the
Member' s retirement income or cannot locate the Member after
49
r
making reasonable efforts to do so, the payment of the Member' s '
benefit shall begin not later than sixty (60) days after the date
on which the amount can be ascertained or the Member is located,
whichever is applicable. Any such payment shall be made
retroactive to a date which is not earlier than the date on which
the payment of the Member' s benefit was scheduled to begin but
which is not later than the date specified under subsection 1 of
this Section.
Section 18. DISTRIBUTION OF BENEFITS.
Notwithstanding any other provision of this Plan to the
contrary, a form of retirement income payable from this Plan
after the effective date of this ordinance, shall satisfy the
following conditions:
1 . If the retirement income is payable before the Member' s
death,
A. It shall either be distributed or commence to the
Member not later than April 1 of the calendar year
following the later of the calendar year in which
the Member attains age 70-1/2, or the calendar
year in which Member retires,
B. The distribution shall commence not later than the
calendar year defined above; and a) , shall be paid
over the life of the Member or over the lifetimes
of the Member and spouse, issue or dependent, or
b) , shall be paid over the period extending not
50
beyond the life expectancy of the Member and spouse, issue or
dependent.
Where a form of retirement income payment has
commenced in accordance with the preceding
paragraphs and the Member dies before his/her
entire interest in the Plan has been distributed,
the remaining portion of such interest in the Plan
shall be distributed no less rapidly than under
the form of distribution in effect at the time of
the Member's death.
2 . If the Member ' s death occurs before the distribution of
his/her interest in the Plan has commenced, Member' s entire
interest in the Plan shall be distributed within five (5) years
of Member' s death, unless it is to be distributed in accordance
with the following rules .
A. The Member' s remaining interest in the Plan is
payable to his spouse, issue or dependent;
B. The remaining interest is to be distributed over
the life of the spouse, issue or dependent or over
a period not extending beyond the life expectancy
of the spouse, issue or dependent; and
C. Such distribution begins within one year of the
Member' s death unless the Member' s spouse, issue
or dependent shall receive the remaining interest
in which case the distribution need not begin
51
before the date on which the Member would have
attained age 70-1/2 and if the spouse, issue or
dependent dies before the distribution to the
spouse, issue or dependent begins, this Section
shall be applied as if the spouse, issue or
dependent were the Plan Member.
Section 19. MISCELLANEOUS PROVISIONS.
1 . Interest of Members in Pension Fund. At no time prior
to the satisfaction of all liabilities under the Plan with
respect to Members and their spouses or beneficiaries, shall any
part of the corpus or income of the Pension Fund be used for or
diverted to any purpose other than for their elusive benefit.
2 . Liquidation of Pension Fund Assets.
A. In the event that contributions of the
Village are permanently discontinued or
in the event that it becomes necessary
for the Village to discontinue the Plan,
the Board of Trustees shall determine a
proposed date of termination and
liquidate the Pension Fund, in
accordance with the applicable
requirements of the Act governing
termination. The rights of affected
52
t '
Plan Members, joint annuitants,
beneficiaries and surviving spouses to
benefits accrued to the date of any such
termination or discontinuance to the
extent then funded, shall become fully
vested and nonforfeitable and upon
occurrence of such event, the Village ' s
aliquot share of the assets then
remaining in the Pension Fund shall be
allocated among the Members and their
beneficiaries and administered and
distributed at such time or times as is
determined by the Board of Trustees .
B. Any reserves which shall be released as
a result of the application of the
provisions of Section 20, subsection 3E,
shall be added to the portion of the
Pension Fund which is distributed as
provided above to Members whose benefits
are not restricted, provided that in the
event that all of the benefits accrued
to such Members are fully provided for,
such released reserves (or any remaining
portion thereof) shall be allocated to
provide to the extent possible up to one
53
hundred percent (100%) of the benefits
otherwise canceled pursuant to Section
20, subsection 3E, allocating such
remaining funds in proportion to the
value of the benefits so canceled.
C. The Board of Trustees may in its
discretion give effect to the provisions
of the foregoing paragraphs A and B by
the purchase of annuities, by continuing
the Trust Fund in existence and making
provisions thereunder for pension
benefits, or by immediate distribution
from the Trust Fund. If the assets of
the Pension Fund applicable to any asset
distribution priority category are
insufficient to provide full benefits
for all persons in such group, the
benefits otherwise payable to such
persons shall be reduced proportionately
except as may otherwise be specified by
regulations. If there is any balance
remaining in the Pension Fund after all
obligations to Plan Members, joint
annuitants, beneficiaries and surviving
spouses are met, such balance will
54
•
revert to the Village. The actuary
shall calculate the allocation of the
assets of the Pension Fund in accordance
with the asset distribution priority
category, and certify his calculations
to the Fiduciaries . No liquidation of
assets and payment of benefits (or
provisions therefore) shall actually be
made by the Board of Trustees until
after it is advised by the Village, in
writing, that applicable requirements,
if any, of the Act governing termination
of "Police Officer, Firefighter or
General Employee Pension Benefit Plans"
have been, or are being complied with or
that appropriate authorizations,
waivers, exceptions or variances have
been, or are being, obtained.
3 . No amendment or ordinance shall be adopted by the
Village Council of the Village of Tequesta which shall have the
effect of reducing the then vested accrued benefits of Members or
Members ' beneficiaries .
Section 20. REPEAL OR TERMINATION OF SYSTEM.
•
1 . This Ordinance establishing the System and Fund, and
subsequent Ordinances pertaining to said System and Fund, may be
55
modified, terminated, or amended, in whole or in part; provided
that if this or any subsequent Ordinance shall be amended or
repealed in its application to any person benefiting hereunder,
the amount of benefits which are the time.. of any such alteration,
amendment, or repeal shall have accrued to the Member or
beneficiary shall not be affected thereby, except to the extent
that the assets of the Fund may be determined to be inadequate.
2 . If this Ordinance shall be repealed, or if
contributions to the System are discontinued, the Board shall
continue to administer the System in accordance with the
provisions of this Ordinance, for the sole benefit of the then
Members, any beneficiaries then receiving retirement allowances,
and any future persons entitled to receive benefits under one of
the options provided for in this Ordinance who are designated by
any of said Members . In the event of repeal, or if contributions
to the System are discontinued, there shall be full vesting
( 100%) of benefits accrued to date of repeal and the assets of
the System shall be allocated in an equitable manner to provide
benefits on a proportionate basis to the persons so entitled in
accordance with the provisions thereof.
3 . The following shall be the order of priority for
purposes of allocating the assets of the System as of the date of
repeal of this Ordinance, or if contributions to the System are
discontinued with the date of such discontinuation being
determined by the Board.
56
•
A. Apportionment shall first be made in
respect of each retired Police Officer,
Firefighter, or General Employee
receiving a retirement or disability
benefit hereunder on such date, each
person receiving a benefit on such date
on account of a retired or disabled (but
since deceased) Police Officer,
Firefighter or General Employee who has,
by such date, become eligible for normal
retirement but has not yet retired, an
amount which is the actuarial equivalent
of such benefit, based upon the
actuarial assumptions in use for
purposes of the most recent actuarial
valuation, provided that, if such asset
value be less than the aggregate of such
amounts, such amounts shall be
proportionately reduced so that the
aggregate of such reduced amounts will
be equal to such asset value.
B. If there be any asset value remaining
after the apportionment under paragraph
A, apportionment shall next be made in
respect of each full time Police
57
e_
Officer, Firefighter or General Employee
in the service of the Police Department,
Fire Department or the Village of
Tequesta on such date who has completed
at least ten (10) years of credited
service and who is not entitled to an
apportionment under paragraph A, in the
amount required to provide the actuarial
equivalent, as described in A above, of
the accrued normal retirement benefit,
based on the credited service and
average monthly earnings as of such
date, and each vested former Member then
entitled to a deferred benefit who has
not by such date, begun receiving
benefit payments, in the amount required
to provide said actuarial equivalent of
the accrued normal retirement benefit;
provided that, if such remaining asset
value be less than the aggregate of the
amounts apportioned hereunder, such
latter amounts shall be proportionately
reduced so that the aggregate of such
reduced amounts will be equal to such
remaining asset value.
58
i
C. If there be any asset value after the
apportionment under paragraph A and •B,
apportionment shall be made in respect
of each full time Police Officer,
Firefighter or General Employee in the
service of the Police Department, Fire
Department or Village of Tequesta on
such date who is not entitled to an
apportionment under paragraphs A and B
in the amount equal to Member' s
Accumulated Contributions, provided
that, if such remaining asset value be
less than the aggregate of the amounts
apportioned hereunder such latter amount
shall be proportionately reduced so that
the aggregate of such reduced amounts
will be equal to such remaining asset
value.
D. If there be any asset value remaining
after the apportionment ' s under
paragraphs A, B, and C, apportionment
shall lastly be made in respect of each
Member included in paragraph C above to
the extent of the actuarial equivalent,
as described in paragraph A above, of
59
the accrued normal retirement benefit,
less the amount apportioned in paragraph
C, based on the credited service and
average monthly earnings as of such
date, provided that, if such remaining
asset value be less than the aggregate
of the amounts apportioned hereunder,
• such amounts shall be reduced so that
the aggregate of such amounts will be
equal to such remaining asset value.
E. In the event that there be asset value
remaining after the full apportionment ' s
specified in paragraphs A, B, C, and D,
such excess shall be returned to the
Village, less return of the State' s
contributions to the State, if any,
provided that, if the excess is less
than the total contributions made by the
Village and the State to the date of •
termination such excess shall be divided
proportionately to the total
contributions made by the Village and
the State.
The allocation of the Fund provided for in this subsection
may, as decided by the Board be carried out through the purchase
60
of insurance company contracts to provide the benefits determined
in accordance with this subsection. The Fund may be distributed
in one sum to the persons entitled to said benefits or the
distribution may be carried out in such other equitable manner as
the Board may direct. The Trust may be continued in existence
for purposes of subsequent distributions.
If, any time during the first ten (10) years after the
effective date of this Ordinance, the System shall be terminated
or the full current costs of the System shall not have been met,
anything in the System to the contrary notwithstanding, Village
contributions which may be used for the benefit of any one of the
twenty-five(25) highest paid Police Officers, Firefighters or
General Employees or Participants of the Police Department, Fire
Department or Village of Tequesta on the effective date, whose
anticipated annual retirement allowance provided by the
Village' s contributions at Member' s normal retirement date would
exceed $1,500, shall not exceed greater of either a) $20, 000, or
b) an amount computed by multiplying the smaller of $10,000 or
twenty percent (20%) of such Police Officer's, Firefighter's or
General Employee' s average annual earnings during his last five
(5) years of service by the number of years of service since the
effective date. In the event that it shall hereafter be
determined by statute, court decisions, ruling by the
Commissioner of Internal Revenue, or otherwise, that the
provisions of this paragraph are not then necessary to qualify
61
the system under the Internal Revenue Code, this paragraph shall
be ineffective without the necessity of further amendment of this
Ordinance.
4 . After all the vested and accrued benefits provided ..
hereunder have been paid and after all other liabilities have
been satisfied then and only then shall any remaining fund revert
to the General Fund of the Village.
Section 21 . EXEMPTION FROM EXECUTION, NON-ASSIGNABILITY.
The pensions, annuities, or any other benefits accrued or
accruing to any person under the provisions of this Ordinance and
the accumulated contributions and the cash securities in the Fund
created under this Ordinance are hereby exempted from any state,
county or municipal tax of the state and shall not be subject to
execution, attachment, garnishment or any legal process
whatsoever and shall be unassignable.
Section 22. PENSION VALIDITY.
The Board of Trustees shall have the power to examine
into the facts upon which any pension shall heretofore have been
granted under any prior or existing law, or shall hereafter be
granted or obtained erroneously, fraudulently or illegally for
any reasons . Said Board is empowered to purge the pension rolls
of any person heretofore granted a pension under prior or
existing law or heretofore granted under this Ordinance if the
same is found to be erroneous, fraudulent or illegal for any
reason; and to reclassify any person who has heretofore under any
62
prior or existing law been or who shall hereafter under this
Ordinance be erroneously, improperly or illegally classified.
Section 23 . FORFEITURE OF PENSION.
Any Member convicted of the following offenses committed
prior to retirement, or whose employment )is terminated by reason
of his admitted commission, aid or abatement of the following
specified offenses, shall forfeit all rights and benefits under
this Pension Fund, except for the return of this accumulated
contributions as of the date of termination.
1 . Specified offenses are as follows :
A. The committing, aiding or abetting of an
embezzlement of public funds;
B. The committing, aiding or abetting of any theft by
a public officer or employee from employer;
C. Bribery in connection with the employment of a
public officer or employee;
D. Any felony specified in Chapter 838, Florida
Statutes;
E. The committing of an impeachable offense.
2 . The committing of any felony by a public officer or
employee who willfully and with intent to defraud the public or
the public agency, for which he acts or in which he is employed,
of the right to receive the faithful performance of his duty as a
public officer or employee, realizes or obtains or attempts to
obtain a profit, gain, or advantage for himself or for some other
63
t y
person through the use or attempted use of the power, rights,
privileges, duties or position of his public office or employment
position.
A. Conviction shall be defined as follows:
An adjudication of guilt by a court of competent
jurisdiction; a plea of guilty or a nolo contendere; a
jury verdict of guilty when adjudication of guilt is
withheld and the accused is placed on probation; or a
conviction by the Senate of an impeachable offense.
B. Court shall be defined as follows :
Any state or federal court of competent jurisdiction
which is exercising its jurisdiction to consider a
proceeding involving the alleged commission of a
specified offense. Prior to forfeiture, the Board of
Trustees shall hold a hearing on which notice shall be
given to the Member whose benefits are being considered
for forfeiture. Said Member shall be afforded the
right to have an attorney present. No formal rules of
evidence shall apply, but the Member shall be afforded
a full opportunity to present his case against
forfeiture.
Any Member who has received benefits from the System in
excess of his accumulated contributions after Member' s rights
were forfeited shall be required to pay back to the Fund the
amount of the benefits received in excess of his accumulated
•
64
Y r
contributions. The Board of Trustees may implement all legal
action necessary to recover such funds .
Section 24. MILITARY SERVICE PRIOR TO EMPLOYMENT.
The years or fractional parts of years that a Member
serves or has served in the military service of the Armed Forces
of the United States or the United States Merchant Marine,
voluntarily or involuntarily, prior to first and initial
employment with the Police Department, Fire Department or Village
of Tequesta shall be added to his/her years of credited service
provided that:
1 . The Police Officer, Firefighter or General Employee
contributes to the Fund the sum that he/she would have
contributed had he/she been a member of the Plan for the years or_
fractionalparts of years for which he/she is. requesting credit
plus amounts actuarially determined such that the crediting of
service does not result in any cost to the Fund plus payment of
costs for all professional services rendered to the Board in
connection with the purchase of years of credited service.
2 . The request shall be made only once and made by the
Member on or before the later of twelve (12) months from the
effective date of this Ordinance or six (6) months from the date
of his/her employment, with the Police Department, Fire
Department or Village of Tequesta, whichever is later.
3 . Payment by the Member of the required amount shall be
made within six (6) months of his/her request for credit and
65
shall be made in one lump sum payment upon receipt of which
credited service shall be given. Credited service purchased
pursuant to this section shall be counted for all purposes except
toward vesting of benefits .
4. The maximum credit under this Section shall be five (5)
years.
66
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VILLAGE OF TEQUESTA EMPLOYEE PENSION TRUST FUND
SUMMARY PLAN DESCRIPTION
INTRODUCTION
In accordance with Florida Statute 112 . 66,the Board of Trustees
of the Village of Tequesta Employee ' s Pension Trust Fund, is
pleased to present this booklet which briefly explains the
provisions of your Employee 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 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, 33469-3094 .
Chairman, Board of Trustees,
Village of Tequesta Employee' s
Pension Trust Fund
Date
1
1. BOARD OF TRUSTEES AND PLAN ADMINTSTRATION
A. Administration. The Village of Tequesta Employee ' 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 Seven Trustees, three of who are appointed
by the Village, one of whom is a full-time Firefighter who is
elected ,by a majority of the Firefighter members of the
Plan,one of whom is a full-time Police Officer elected by a
majority of the Police Officer members of the Plan,one of whom is
a full-time General Employee elected by a majority of the General
Employee members of the Plan and a seventh Trustee who is chosen
by a majority of the first six 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/her employment. Each person employed by the Police Department
as a full-time Police Officer becomes a member of the Plan as a
condition of his/her employment. Each person employed by the
Village of Tequesta as a full-time General Employee becomes a
member of the Plan as a condition of his/her employment.General
Employee,Police Department All full-time Firefighters,Police
Officers and General Employees are therefore eligible for all
plan benefits specific to their classification as a Firefighter,
Police Officer or General Employee, whichever is applicable. A
General Employee is any full-time employee of the Village of
Tequesta other than a full-time or part-time Firefighter and a
full-time or part-time Police Officer.
3. PLAN BENEFITS
All claims for benefits under the Plan shall be made in
writing to the Board of Trustees .
2
A. Normal Retirement Eligibility. A full-time 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.
A full-time Police Officer 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.
A full-time General Employee is eligible for retirement upon the
earlier of:
1) the attainment of age 62 regardless of years of
credited service or
2) the completion of 30 years of credited service,
regardless of age.
B. Amount of Normal Retirement Benefits . The amount of
the normal retirement benefit is based on a Member ' s credited
service and average compensation:
"Credited Service" is generally a Member' s period of
employment as a full-time Firefighter, Police Officer or General
Employee with the Village of Tequesta measured in years and parts
of years . Credited Service will include a break in employment of
military service, provided that the Member is re-employed within
one ( 1) year of discharge, and the Member deposits the amount of
employee contributions that the Member would have contributed had
he remained employed with the Village of Tequesta. Police
Officers are not required , to deposit the amount of employee
contributions that the Police Officer would have contributed had
he remained employed with the Village of Tequesta per F.S .
185 . 02 ( 1) . 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 one-twelfth ( 1/12)of the
average salary of the 5 best years of the last 10 years
ofcredited service prior to termination, retirement or death of
the Member. A year is defined as 12 consecutive months .
3
"Salary" means :
Police Officer: the total cash remuneration paid to a police
officer for services rendered.
Fireficrhter: the total cash remuneration paid to a
firefighter for services rendered.
General Employee: base compensation to include regular
earnings, vacation pay, sick pay, plus all tax deferred
items of income, excluding lump sum payments .
The normal retirement benefit is calculated in the following
manner:
For Firefighter' s and Police Officers - The normal retirement
benefit is calculated by multiplying 3% times years of credited
service times the Member ' s average final compensation: (three
percent (3%)x CS x AFC = normal retirement benefit)
The benefit is paid to the Member for his/her life, but the , but
the Member or his/her beneficiary shall receive at least 120
monthly benefit payments in any event.
For General Employees - The normal retirement benefit is
calculated by multiplying 2 . 0% times years of credited service
times the General Employee' s average final compensation: (two
percent (2 . 0%)x CS x AFC = normal retirement benefit)
The benefit is paid to the General Employee for his/her life, but
the General Employee or his/her beneficiary shall receive at
least 120 monthly benefit payments in any event.
4
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 Member 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 3% for each year by which the commencement of benefits
precedes the normal retirement date for Police Officers and 5%
for each year by which the commencement of benefits precedes the
normal retirement for Firefighters and General Employees . For
Firefighters the early retirement penalty shall be reduced
effective October 1, 1997,to four and one-half percent (4 .5%) ;
effective October 1, 1998, to four percent (4%) ;effective
October 1, 1999,to three and one-half percent ( 3 . 5%) and
effective October 1, 2000, to three percent ( 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 Member is of
equal actuarial value as the normal retirement benefit. 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
Member 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 Member for his/her lifetime only.
(2) A retirement income of a modified monthly amount,
payable to the Member during the joint lifetime of the Member and
a dependent joint pensioner designated by the Member, 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.
5
F. Disability Retirement . A Member is considered disabled
when he or she becomes totally and permanently unable to perform
useful and efficient service as a Firefighter, Police Officer or
General Employee, whichever is applicable prior to the alleged
disability. 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
Member shall be entitled to the greater of (a) or (b) :
a. For General Employees: a monthly pension equal to
42% of his/her average . compensation based upon
his/her final 5 years of service, or
For Police Officers and Firefighters: a monthly
pension equal to 42% of his/her average
compensation as of his/her disability retirement
date, or
b. an amount equal to the number of years of his/her
credited service multiplied by:
3% of his/her average monthly salary based upon his/her final 5
years of service for Police Officers
3% of his/her average monthly salary based upon his/her final 5
years of service for Firefighters
2% of his/her average monthly salary based upon his/her final 5
years of service for General Employees .
(2) If the injury or disease is not service connected,
the Member shall be entitled to the greater of (a) or (b) :
6
a. For General Employees: a monthly pension equal to
25% of his/her average compensation based upon
his/her final 5 years of service, or
For Police Officers and Firefighters : a monthly
pension equal to 25% of his/her average
compensation as of his/her disability retirement
date, or
b. an amount equal to the number of years of his/her
credited service multiplied by:
3% of his/her average monthly salary based upon
his/her final 5 years of service for Police
Officers
3% of his/her average monthly salary based upon his/her final 5
years of service for Firefighters
2% of his/her average monthly salary based upon his/her final 5
years of service for General Employees .
Any condition or impairment of health of Police Officer or
Firefighter caused by tuberculosis, hypertension or heart disease
shall be presumed to have been suffered in the line of duty
unless the contrary is shown by competent evidence, provided that
such Police Officer or Firefighter shall have successfully passed
a physical examination upon entering into such service, including
cardiogram, which examination failed to reveal any evidence of
such condition; and provided further, that such presumption shall
not apply to benefits payable or granted in a policy of life
insurance or disability insurance.
7
Each Member 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/her
employment with the Village of Tequesta shall
have terminated.
f . Willfull, wanton or gross negligence of the
member.
g. Injury or disease sustained by the Member while
working for anyone other than the Village and
arising out of such employment.
A retired disabled Member is subject to periodic medical
examinations as directed by the Board of determine whether a
disability continues .
G. Death Before Retirement . If a plan member dies prior to
retirement from the Village of Tequesta his/her beneficiary shall
receive a benefit based upon the applicable employee
classification as follows :
Police Officer:
A. Line-of-Duty-Benefit is a pension to the spouse
(or children) of 50% of Average Compensation for life . In the
event the police officer that dies in the line of duty has at
least 10 years of service, his/her beneficiaries shall receive
the benefits otherwise payable to the member at what would have
been his/her early or normal retirement date in lieu of the 50%
Average Compensation for life, in the event such benefits are
8
greater than the 50% Average Compensation for life benefit.
B. Non-Line-of-Duty-Death the spouse of a
member with 10 years of credited service will
receive the actuarial equivalent of the accrued
early or normal retirement benefit.
C. In lieu of the benefits provided in A or
B above, the beneficiary of a police officer,
with 10 or more years of service who dies prior
• to retirement, may receive the benefits otherwise
payable to the police officer at would have been
his early or normal retirement date.
Firefighter:
A. Line-of-Duty-Benefit is a pension to the
spouse (or children) of 50% of Average
Compensation for life . (Ord. 478 )
B. Non-Line-of-Duty-Death the spouse of a
member with 10 years of credited service will
receive the actuarial equivalent of the accrued
early or normal retirement benefit.
C. In lieu of the benefits provided in A or
B above, the beneficiary of a firefighter, with
10 or more years of service who dies prior to
retirement, may receive the benefits otherwise
9
payable to the firefighter at would have been his
early or normal retirement date.
General Employee:
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 retirement age. The benefit is
equal to the vested pension benefit.
H. Termination of Employment and Vesting. If a Member ' s
employment is terminated, either voluntarily or involuntarily,
the following benefits are payable:
(1) If the Member has less than 10 years of credited
service upon termination, the Member shall be entitled to a
refund of the money he/she has contributed or the Member may
leave it deposited with the Fund.
(2 ) If the Member has 10 or more years of credited
service upon termination, the Member shall be entitled to their
accrued monthly retirement benefit, starting at the Member' s
otherwise normal or early retirement date (reduced) , provided
he/she does not elect to withdraw his/her contributions and
provided the Member survives to his/her normal or early
retirement date.
I . Additional Credited Service. In addition to credited
service actually earned in the employment of the Village of
Tequesta, a Member may also receive credited service as follows :
A Member may purchase credited service for the time a
Member 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 Village of
Tequesta, 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 Member may request and must
pay the cost of determining this calculated amount.
10
J. Contributions and Fundincr. 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 . The Village is paying the portion of the
cost of the pension over and above the Police Officer' s
contributions and any amounts received from the state insurance
rebates. The Village is paying the portion of the cost of the
pension over and above the Employee' s contributions . A Member
contributes 5% of his/her salary to the Plan. The Member' s
contribution will be excluded from his or her gross income for
withholding purposes so he or she will realize income tax
benefits . A Member ' s contributions are guaranteed refundable in
any event.
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 Member 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 .
11
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
Member ' s exclusive benefit. In any event, a Member ' s
contributions to the Plan are non-forfeitable.
5. VESTING OF BENEFITS
A Member' 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"
12
C. Chapter 175, Florida Statutes, "Municipal Firefighters '
Retirement Trust Funds"
D. Chapter 185, Florida Statutes, "Municipal Police
Officers ' Retirement Trust Funds"
E. Part VII, Chapter 112, Florida Statutes, "Actuarial
Soundness of Retirement Systems"
F. Chapter 175. 351, Florida Statutes, "Municipalities
Having Their Own Pension Plans for Firefighters"
G. Chapter 185 .35, Florida Statutes, "Municipalities Having
Their Own Pension Plans for Police Officers"
H. Ordinances of the Village of Tequesta.
I . Administrative rules and regulations adopted by the
Board of Trustees .
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.
13
EXHIBIT "A"
BOARD OF TRUSTEES
The names and address of the members of the Board of Trustees
are:
Chairman:
Secretary:
Member:
Member:
Member:
Member:
Member:
* TO BE DETERMINED
14
•
GABRIEL,ROEDER,SMITH & COMPANY
Consultants&Actuaries
West Broward Professional Bldg. •7320 Griffin Rd. •Suite 200•Ft.Lauderdale,FL 33314•954-791-5888•FAX 954-791-8208
Village of Tequ es to
JUL 2 3 1996
July 22, 1996
Villa a Mana er's Office
Thomas G. Bradford
Village Manager
Village of Tequesta
P.O. Box 3273
357 Tequesta Drive
Tequesta, Florida 33469-0273 •
Dear Tom:
Enclosed are ten copies of our Actuarial Impact Statement for the Retirement System. Before second
reading of the Ordinance, a copy of this Statement, along with a copy of the Ordinance must be
submitted to two State Agencies:
Bureau of Program Services Office of Municipal Police Officers' .
Division of Requirement & Firefighters' Retirement Funds
Cedars Executive Center, Bldg. C Div. of Retirement, Bldg. B, Room 252
2639 North Monroe Street Post Office Box 3010
Tallahassee, Florida 43499-1560 Tallahassee, Florida 32315-3010
Please contact us if there are any questions.
•
Sincerely yours,
J. Stephen Palmquist Li
JSP/or
Enclosure
ACTUARIAL IMPACT STATEMENT
for the Village of Tequesta
Employees Pension Trust Fund
Gabriel, Roeder, Smith and Company
INTRODUCTION
The Village of Tequesta sponsors a retirement plan for its firefighters. The plan is being
amended:
1. To make certain changes in benefits for firefighters, and
2. To add coverage for general employees and police officers who are hired after
December 31, 1995.
This Report includes an Actuarial Impact Statement which shows the effect of proposed
changes on currently employed firefighters. Also included are separate sets of figures for general
employees and police officers to be hired. Since these latter two groups do not include any present
employees, cost figures are shown for different ages at hire.
In our opinion, the proposed changes are in compliance with Part VII, Chapter 112, Florida
Statutes and Section 14, Article X of the State Constitution.
Respectfully submitted,
.,
J.1.tephen 'almquist, ASA, M , MCA
E rolled Actuary No. 96-1560
July 22, 1996
ACTUARIAL IMPACT STATEMENT FOR FIREFIGHTERS
Proposed Changes
1. Definition of salary to include overtime, lump sum merit bonuses, and lump sum
payment for unused leave. Even though overtime has not previously been included in
the definition,overtime has been included for purposes of employee contributions and
actuarial valuations. Therefore,the effect of adding overtime to the definition is already
included in the Plan's costs and liabilities, so no further allowance needs to be made.
2. The Early Retirement penalty to be reduced from 5% to 3% for each year early. •
Actuarial Assumptions and Methods
With the following exceptions, we used the same actuarial assumptions and methods which
were used in the October 1, 1995 Actuarial Valuation Report prepared by the Florida League of Cities:
We assumed that on average, each retiree will accumulate one-half of the maximum allowable
payment for unused leave. The result is that unused leave will be 27% of the last year's
salary.
Actuarial Impact
As indicated by the following tables,the required employer contribution would rise by$7,564,
or 1.39% of covered payroll, due to these changes.
ri:{•:•:{::t:'J,v. v-n\a.\�-.\x\�•. vv}::l Yi' ::h:.. !/.. `')\:�-{'Ji}:./•. ..�
n•n:hv:}n .... +i� a::,:?C};{a}}:::::}::::::}........::{•.n\,...:n ..::.:....:n.......:+..u:4, ..i:aiiii::`:�;v}.v.
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:f•g.:;ti'ax a;;;r}�•.,\. t;::{;;::;;{: _ : :a ::......_ ,: .n\,{,;;;:};:};:{{�•v}},:,\•\L�a,�'..•`.:^�`�$i�!
a��;{a::{::{.:,\, , v�MI..�R�:�F: 'QBER 3,�995 YAt�AAT10N•RESI�LTS ..... ,..,� � ;::>�: ��<_>:.
...x r:;./F..::C::}}::i:;•i;{{{a;{;.::ti}:: is ::::.::,:•::•.v...:.:::.:::::::::.:::::::::::::•:::v:::::,v•:::i:ii.::j?�n4.n,:4.v:.{•}:
........................ ...{•i:.:�:.i}••.i:.}.. f.f.:. .:.: .: F.,'::I.:�.r M �. -.l�.f�P.::..,v::::.:::::::::::.::.ii:.i:.::.}i:.:}{.i:.}i:.}}::):::!:}:.}:.}}:a
Before Change After Change
COVERED GROUP ..:.
A. Number Included in the Valuation
1. Active Members 17 17
2. Inactive Members 0 0
B. Covered Annual Payroll $ 544,583 $ 544,583
.RAAi.
C. Actuarial Present Value of Projected Benefits 1,558,396 1,651,833
D. Actuarial Value of Assets 189,922 189,922
E. Actuarial Present Value of Future Contributions
1. Total: C - D 1,368,474 1,461,911
2. Portion Assigned to Unfunded Frozen
Actuarial Accrued Liability (UFAAL) 0 0
3. Portion Assigned to Future Normal Costs 1,368,474 1,461,911
•
F. Annual Payment Needed to Amortize UFAAL 0 0
As % ofB — —
G. Annual Employer Normal Cost 85,503 92,717 .
• As % of B 15.70% 17.03%
H. Interest on F and G from Valuation Date to
Contribution Date(s) _ 4,151 4,501
As % of B 0.76% 0.83%
I. Required Employer/State Contribution: F + G + H 89,654 97,218
As % of B 16.46% 17.85%
J. Estimated State Premium Tax Refund 17,015 17,015
As % of B 3.12% 3.12%
K. Balance Required from Employer: I - J 72,639 80,203
As % of B 13.34% 14.73%
L. Year to Which Contributions Apply
1. Plan Year Ending 09/30/96 09/30/96
2. Employer Fiscal Year Ending 09/30/96 09/30/96
3. Assumed Date(s) of Employer Contributions Quarterly Quarterly
t-\
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.::::::::.....................fpROMMINURBROMai
......
r•F?::•::::::?t:.>:.�}t.: ..:\.}..-}t:..;.:..:.:.t:.}..t t :.{. .\.tt..:.. Rt. ...1 �:.Sr.- \. .�v:
.:....:.::::... .... r......, r.::::. '••:;.t. ?•..,:. ..xY}:•:•{,.:..:.4:.../,.: ..ter..\.\tt-ao}.ii
?:}:T I .R.)■V �.\w .
`.:...:::::%iii'%%:::^'i{n ii:ii::+:�:%:i:%%:ii:tit::•%%%%::t':;%i:vtii% :<%%%:vv:::::::::i::::,::::::':
,.:.:... : .....v.t...•.:.....v::xn:.:v::::::•}}i:{•}'.:•iii:?:•:?
..::{::.:::::i:.i::'::i}iii::.:'!.ii}:i:'•:'.i:?}}: :•:}::::::.:::.:.:...:.:�::::::.:.......:...IFG v::.:.,.........:.}::.}:.:::::x:::.�v:::'w::.:::.... ;
eglaName
A. Actuarial Present Value of Projected
Benefits for
1. Active Members $ 1,558,396 • $ 1,651,833
2. Inactive Members 0 0
3. Total of All Members 1,558,396 1,651,833
B. Actuarial Value of Assets 189,922 189,922
C. Unfunded Frozen Actuarial Accrued
Liability (UFAAL) 0 0
D. Actuarial Present Value of Projected Member
Contributions 352,422 352,422
E. Actuarial Present Value of Projected
Employer Normal Costs: A3 - B - C - D 1,016,052 1,109,489
F. Actuarial Present Value of Projected
Covered Payroll 7,048,436 7,048,436
G. Employer Normal Cost Rate:
100 x E/F 14.42% 15.74%
H. Annual Payroll of Active Members
Below the Assumed Retirement Age 544,583 544,583
I. Assumed Amount of Administrative Expenses 7,000 7,000
J. Employer Normal Cost: (G x H) + I 85,503 92,717
ACTUARIAL IMPACT STATEMENT FOR
GENERAL EMPLOYEES AND POLICE OFFICERS
We have determined the percent of salary the Village will be required to contribute to the plan
for general employees and police officers hired after December 31, 1995. A summary of the benefits
is presented later in this Report.
For the period from January 1, 1996 through September 30, 1996, no Village contribution will
be required for general employees and police officers. For the fiscal year beginning October 1, 1996,
the Village contribution will be based on those employees who are participating in the plan on October
1, 1996. Contribution rates by age at hire are as follows:
R uired Contribution
:< . ::96: ;Cove t . :::>:;:»> ;:<:;::::;:: <:_:«>�
> : <.:As:.::.::.:::o#.:.:::.:,..::.<red::Sai::acY.:::<.::.:::.::.:.::.;::.::;:.:::�.:.:::.:.
eat Hire General ,; : . Pollee ::::`:
20 2.2% 9.8%
25 3.2 12.4
30 '4.5 13.9
35 6.3 16.4
40 8.5 18.8
45 10.6 21.6
These figures do not include administrative expenses associated with the plan, such as,
actuarial fees, investment manager fees,etc. Such expenses must be added to the figures in the table.
Any revenue received under Chapter 185, Florida Statutes would reduce the amounts shown above
for police officers.
The way to estimate the annual contribution can be illustrated by the following example:
• Village Contribution
Employee Age at Hire Annual Salary Rate Amount
A (gen. ee) 25 $ 15,000 3.2% $ 480
B (gen. ee) . 30 20,000 4.5 900
C (gen. ee) 35 15,000 6.3 945
D (police) 35 30,000 16.4 4,920
E. (police) 40 30.000 18.8 5,640
110,000 12,885
In this example, the total dollar amount of$12,885 is 11.7%of the total annual payroll of the
five employees. Administrative expenses would be added and Chapter 185 revenue would be
subtracted to determine the total Village contribution.
Pursuant to Chapter 112, Florida Statutes, the Village contributions must be made on at least
a quarterly basis, although more frequent payments are permitted.
ACTUARIAL VALUATION RESULTS BASED ON ASSUMED ANNUAL
STARTING SALARY OF$25,000 AND VARIOUS AGES AT HIRE •
GENERAL EMPLOYEES
Hiring Hiring Hiring Hiring Hiring Hiring Hiring Hiring Hiring
Age 20 Age 25 Age 30 Age 35 Age 40 Age 45 Age 50 Age 55 Age 60
A. Actuarial Present Value of Projected
Benefits .
Service Retirement Benefits $5,717 $ 9,591 $14,359 $21,732 $28,802 $31,212 $28,537 $20,873 $ 8,252
Vesting Benefits 3,716 2,556 1,413 680 0 0 0 0 0
Disability Benefits 1,397 2,295 4,389 6,068 7,777 9,003 8,777 6,098 0
Preretirement Death Benefits 277 572 1,239 2,140 2,813 3,002 2,454 1,676 656
Refunds of Contributions 2.233 2,085 1.809 1.414 932 464 216 92 6
Total 13,340 17,099 23,209 32,034 40,324 43,681 39,984 28,739 8,914
B. Actuarial Accrued Liability 0 0 0 0 0 0 0 0 0
C. Assets 0 0 0 0 0 0 0 0 0
D. Unfunded Actuarial Accrued Liability:B-C 0 0 0 0 0 0 0 0 0
E. Normal Cost
Service Retirement Benefits 755 1,132 1,435 1,864 2,333 2,698 3,045 3,429 4,194
Vesting Benefits 491 302 141 58 0 0 0 0 0
Disability Benefits _ 185 271 439 521 630 779 936 1,002 0
Preretirement Death Benefits 37 68 124 184 228 259 262 275 333
Refunds of Contributions 295 246 181 121 76 40 23 15 3,
Total 1,763 2,019 2,320 2,748 3,267 3,776 4,266 4,721 4,530
F. Employee Contribution 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250
G. Net Employer Normal Cost: E - F 513 769 1,070 1,498 2,017 2,526 3,016 3,471 3,280
H. Interest on G to Quarterly Contribution
Dates 25 37 52 73 98 123 146 168 159
I. Required Employer Contribution*
Amount: G+H 538 806 1,122 1,571 2,115 2,649 3,162 3,639 3,439
As % of Salary 2.2% 3.2% 4.5% 6.3% 8.5% 10.6% 12.6% 14.6% 13.8%
* Administrative expenses must be added to this amount.
ACTUARIAL VALUATION RESULTS BASED ON ASSUMED ANNUAL
STARTING SALARY OF$25,000 AND VARIOUS AGES AT HIRE
POLICE OFFICERS
Hiring Hiring Hiring Hiring Hiring Hiring
Age 20 Age 25 Age 30 Age 35 Age 40 Age 45
A. Actuarial Present Value of Projected Benefits
Service Retirement Benefits $32,620 $41,539 $48,936 , $54,885 $54,284 $44,496
Vesting Benefits 6,168 5,338 2,916 1,384 0 0
Disability Benefits 4,440 4,858 6,942 7,099 6,984 6,723
Preretirement Death Benefits 1,038 1,297 2,165 2,473 2,485 2,004
Refunds;of Contributions 1.582 1.385 1,097 800 495 255
Total 45,848 54,417 62,056 66,641 64,248 53,478
B. Actuarial Accrued Liability 0 0 0 0 0 0
C. Assets 0 .0 0 0 0, 0
D. Unfunded Actuarial Accrued Liability: B-C 0 0 0 0 0 0
E. Normal Cost .
Service Retirement Benefits 2,545 3,220 3,602 4,241 4,849 5,317
Vesting Benefits 481 414 215 107 0 0
Disability Benefits 346 376 511 549 624 803
Preretirement Death Benefits 81 101 159 191 222 239
Refunds of Contributions 123 107 81 62 44 30
Total 3,576 4,218 4,568 5,150 5,739 6,389
F. Employee Contribution 1,250 1,250 1,250 1,250 1,250 1,250
G. Net Employer Normal Cost: E - F 2,326 2,968 3,318 3,900 - 4,489 5,139
•
H. Interest on G to Quarterly Contribution
Dates 113 144 161 189 218 249
I. Required Employer Contribution*
Amount: G+H 2,439 3,112 3,479 4,089 4,707 5,388
As % of Salary 9.8% 12.4% 13.9% 16.4% 18.8% 21.6%
* Administrative expenses must be added to this amount.
' . ACTUARIAL ASSUMPTIONS AND COST METHOD
•
A. Cost Method Entry Age Actuarial Cost Method for General and Police;
Aggregate Actuarial Cost Method for Fire.
B. Investment Earnings 8% per year, compounded annually.
C. Salary Increases 6% each year up to the assumed retirement age.
D. Retirement Age Normal retirement date, or immediately if such date has already been attained.
Early retirement rates for Fire are:
&A Rate
50 10%
51 15
52 20
53 20
54 20
55 100
E. Turnover Rates See Table below.
F. Mortality Rates 1983 Group Annuity Mortality Table for males and females;for Fire female rates
equal male rates set back five years.
G. Disability
1. Rates See table below.
2. Percent Service Connected 75%for Police and Fire, 50%for General Employees.
H. Asset Value None on the valuation date for General and Police;9/30/95 market value for Fire.
I. Administrative Expenses Actual expenses incurred.
J. Increase in Covered Payroll NA
K. Post Retirement Benefit Increase NA
L. Valuation Date: October 1, 1995 for Fire.
Em ent .:Disabili'
AgeeiniliTetin.i040044.**ER
Fire & Police General Fire Police &General
20 6.0% 12.4% 0.07% 0.14%
25 5.7 11.7 0.09 0.15
30 5.0 10.5 0.11 0.15
35 3.8 8.3 0.14 0.23
40 2.6 5.7 0.19 0.30
45 1.6 3.5 0.30 0.51
50 0.8 1.5 0.51 1.00
55 - 0.6 0.96 1.50
60 - 0.5 - -
SUMMARY OF PLAN PROVISIONS
General Employees
Effective Date
January 1, 1996.
Eligibility
Full-time general employees hired after December 31, 1995 are eligible for membership on
date of employment.
Compensation
Base pay excluding overtime and any lump sum payments.
Average Final Compensation (AFC)
Average of Compensation over the five highest years within the last ten years of service.
Credited Service
Number of years and completed months of continuous full-time employment.
Normal Retirement
Eligibility - The earlier of age 62, or 30 years of Credited Service, regardless of age.
Benefit - 2% of AFC multiplied by Credited Service; maximum benefit is 100% of AFC.
Form of Benefit - Ten year certain and life annuity, with other options available.
Early Retirement
Eligibility - Age 50 with ten years of Credited Service.
Benefit - Accrued pension benefit reduced by 5% for each year early.
Delayed Retirement
Eligibility - Any time after the Normal Retirement Date.
Benefit - Calculated in the same manner as the Normal Retirement Benefit but based
on Credited Service and AFC as of the actual retirement date.
Death Benefits (Pre-retirement)
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 retirement
age. The benefit payable is equal to the vested pension benefit.
General Employees
Service Incurred Disability
Eligibility - Continuous and permanent incapacity for rendering useful and efficient service.
Benefit - Greater of the accrued pension benefit or 42% of AFC.
Non-Service Incurred Disability
Eligibility - Continuous and permanent incapacity for rendering useful and efficient service.
Benefit - Greater of the accrued pension benefit or 25% of AFC.
Termination Benefits
For a member who is vested when he terminates, his vested accrued benefit is payable at his
Normal Retirement Date. The vesting schedule is as follows:
Yes�e
Under 10 0%
10 or more 100
Contributions
From Members - 5% of Compensation.
From the State - None.
From the City - The remaining amount necessary to fund the Plan properly according
to the Plan's actuary.
SUMMARY OF PLAN PROVISIONS
Police Officers
Effective Date
January 1, 1996.
Eligibility
Full-time police officers hired after December 31, 1995 are eligible for membership on date
of employment.
• Compensation
Total cash remuneration for services rendered; does.not include lump sum payments.
Average Final Compensation (AFC)
Average of Compensation over the five highest years within the last ten years of service.
Credited Service
Number of years and completed months of continuous full-time employment.
Normal Retirement
Eligibility - The earlier of age 55 with ten years of Credited Service, or age 52 with 25
years of Credited Service.
Benefit - 3% of AFC multiplied by Credited Service; maximum benefit is 100% of AFC.
Form of Benefit - Ten year certain and life annuity, with other options available.
Early Retirement
Eligibility - Age 50 with ten years of Credited Service.
Benefit - Accrued pension benefit reduced by 3% for each year early.
Delayed Retirement
Eligibility - Any time after the Normal Retirement Date.
Benefit - Calculated in the same manner as the Normal Retirement Benefit but based
on Credited Service and AFC as of the actual retirement date.
01/25/98 THLT 11:22 FAX 954 791 8208 GABRIEL,ROEDER,SNITH&CO. a 002
.
Police(Nikon
service incurred Death
Eligibility - Death in the line of duty.
Benefit - 509E of AFC payable to spouse for life.
Non-Service incurred Death
Eligibility - Ten years of Credited Service.
Benefit - Spouse receives actuarial equivalent of the accrued pension.
Service Incurred Disability
EligibiTdy . - Continuous and permanent incapacity for rendering useful and efficient service
as a police officer.
Benefit - Greater of the accrued pension benefit or 42% of average monthly
compensation.
•
Non-Service incurred Disability •
Eligibility - Continuous and permanent incapacity for rendering useful and efficient service
as a police officer.
Benefit - Greater of the accrued pension benefit or 25% of average monthly
compensation.
Termination Benefits
For a member who is not vested when he terminates, a refund of his accumulated .
contributions is payable. For a member who is vested when he terminates, his vested accrued
benefit is payable at his Normal Retirement Date, or with the appropriate early retirement
reduction, at his Early Retirement Date. The vesting schedule is as follows;
9477%
•
• Under 10 0%
10 or more 100
Contributions
•
From Members - 5% of Compensation.
•
From the State - Premium tax refunds received pursuant to Chapter 185, Florida
Statutes.
From the Employer - The remaining amount necessary to fund the Plan property according
to the Plan's actuary.
SUMMARY OF PLAN PROVISIONS
Firefighters
(Present Plan Without Changes)
Effective Date
October 1, 1993.
Eligibility
Full-time firefighters are eligible for membership on date of employment.
Compensation
Base pay excluding overtime and any lump sum payments.
Average Final Compensation (AFC)
Average of Compensation over the five highest years within the last ten years of service.
Credited Service
Number of years and completed months of continuous full-time employment.
Normal Retirement
Eligibility - The earlier of age 55 with ten years of Credited Service, or age 52 with 25
years of Credited Service.
Benefit - 3% of AFC multiplied by Credited Service; maximum benefit is 100% of AFC.
Form of Benefit - Ten year certain and life annuity, with other options available.
Early Retirement
Eligibility - Age 50 with ten years of Credited Service.
Benefit - Accrued pension benefit reduced by 5% for each year early.
Delayed Retirement
Eligibility - Any time after the Normal Retirement Date.
Benefit - Calculated in the same manner as the Normal Retirement Benefit but based
on Credited Service and AFC as of the actual retirement date.
u ficoiao inu mi:LL FAL 854 701 8208 GABRIEL.ROEDER,SYIZE&CO. 003
J . •
Firefighters
Service Incurred Death
Eligibility - Death in the line of duty.
Benefit - 50% of AFC payable to spouse for life.
Non-Service Incurred Death
SigibWity - Ten years of Credited Service. •
Benefit - Spouse receives actuarial equivalent of the accrued
pension.
Service Incurred Disability
i
Eligibility - Continuous and permanent incapacity for rendering useful and efficient service
as a firefighter.
Benefit - Greater of the accrued pension benefit or 42% of average monthly
compensation,
Non-Service Incerfd Disability
Eligibility - Continuous and permanent incapacity for rendering useful and efficient service
as a firefighter.
Benefit - Greater of the accrued pension benefit or 25% of average monthly
compensation.
Termination Benefit
For a member who is not vested when he terminates, a refund of his accumulated
contributions is payable. For a member who is vested when he terminates, his vested accrued
benefit is payable at his Normal Retirement Date. The vesting schedule is as follows:
. '�' -f" 't -.:f� ' •'�£t
- - f
Under 10 0%
10 or more 100
Contributions
From Members - 5% of Compensation.
From the State - Premium tax refunds received pursuant to Chapter 175, Florida
Statutes.
From the Employer - The remaining amount necessary to fund the Plan ro
to the Plan's actuary. property according
GABRIEL,ROEDER,SMITH & COMPANY
Consultants&Actuaries
West Broward Professional Bldg. •7320 Griffin Rd. •Suite 200•Ft. Lauderdale,FL 33314•954-791-5888•FAX 954-791-8208
July 22, 1996
Thomas G. Bradford
Village Manager
Village of Tequesta
P.O. Box 3273
357 Tequesta Drive
Tequesta, Florida 33469-0273
Dear Tom:
Enclosed are ten copies of our Actuarial Impact Statement for the Retirement System. Before second
reading of the Ordinance, a copy of this Statement, along with a copy of the Ordinance must be
• submitted to two State Agencies:
Bureau of Program Services Office of Municipal Police Officers'
Division of Requirement & Firefighters' Retirement Funds
Cedars Executive Center, Bldg. C Div. of Retirement, Bldg. B, Room 252
2639 North Monroe Street Post Office Box 3010
Tallahassee, Florida 43499-1560 Tallahassee, Florida 32315-3010
Please contact us if there are any questions.
Sincerely yours,
J. Stephen Palmquist
JSP/or
Enclosure
Memorandum
To: Village Council
From: Thomas G. Bradford Village Manager 7
Date: 07/25/1996
Subject: Employee's Pension Trust Fund
Attached hereto, please find a copy of the revised Employees'Pension Trust Fund for your
review on second and final reading of the same. On July 22, 1996, the Village received
correspondence from the Division of Retirement relative to the proposed Employees Pension
Trust Fund in response to my request that it be reviewed to determine compliance with the
minimum provisions of Chapter 185. The Division has asked the Village to please note/amend the
following:
• •Page 3, Section 1, "credited service" must be amended to comply with the provisions of
s.185.02(1), F.S. Police officers are not required to contribute in order to receive credit
for military service, nor are they limited to five years of service.
• Page 14, Section 4, Paragraph 6B(7), provides for "foreign investments as permitted by
law." Foreign investments are prohibited under Chapters 175 and 185; therefore, no
foreign investments are allowed.
• Page 21, Section 7, "pre-retirement'death," add a paragraph "C" for police officers which
states that for any member who at his death was vested, the beneficiary may receive the
benefits otherwise payable to the member at what would have been his early or normal
retirement date as provided in s.185.21,F.S. Please clarify.
• Pages 22 and 24, the monthly disability benefit payable for line of duty or non-line of duty
is the accrued retirement benefit, but not less than 42%/25% of his average monthly salary
at the time of disability, as provided in s.185.18, F.S. Please clarify.
These changes have been included in the revised Plan. The Village Attorney has reviewed the
same and finds the changes to be minor in scope, not requiring another reading. The Village
actuarial consultant has reviewed the same and found them to be of no financial impact. I took
the liberty of providing the last two items above to the firefighters in keeping with our discussions
in this regard.
Everything is in order and at long last Tequesta is able to take the last step to break away from
the FRS. It is recommended that the Village Council adopt the Employees'Pension Trust Fund
ordinance.