HomeMy WebLinkAboutDocumentation_Regular_Tab 17_11/14/2024
Agenda Item #17.
Regular Council
STAFF MEMO
Meeting:Regular Council - Nov 14 2024
Staff Contact:Jeffery Snyder, Finance Director Department:Finance
TITLE
ORDINANCE NO. 10-24, SECOND READING: AN ORDINANCE OF THE VILLAGE OF TEQUESTA,
FLORIDA; AMENDING THE VILLAGE CODE OF ORDINANCES AT CHAPTER 2, DMINISTRATION,
BY AMENDING SECTION 2-61, PENSION TRUST FUND, EXHIBIT B, THE PUBLIC SAFETY
OFFICERS’ PENSION TRUST FUND, TO ADOPT AND IMPLEMENT A SERVICE PURCHASE
OPTION FOR POLICE OFFICERS TO PURCHASE PRIOR VILLAGE OF TEQUESTA POLICE
SERVICE IN SECTION 27 OF THE FUND PLAN; PROVIDING THAT EACH AND EVERY OTHER
SECTION AND SUBSECTION OF CHAPTER 2, ADMINISTRATION, OF THE CODE OF
ORDINANCES OF THE VILLAGE OF TEQUESTA SHALL REMAIN IN FULL FORCE AND EFFECT
AS PREVIOUSLY ADOPTED.PROVIDING FORA CONFLICTS CLAUSE, A SEVERABILITY
CLAUSE AND AUTHORITY TO CODIFY; PROVIDING AN EFFECTIVE DATE; AND FOR OTHER
PURPOSES.
SUMMARY:
The Village of Tequesta offers generous Single Employer Defined Benefit Pension Plans to 98% of
full-time employees. The Police Chief and the Assistant Police Chief are the only two full-time
employees who are not enrolled in their respective plan. Passing this Ordinance will allow them to
join the plan and purchase their past credits. If the ordinance is passed there will be an actuarial
study completed to determine the exact amount that each of these employees will pay to the pension
plan to keep the plan whole, in the neighborhood of $250,000 each. The Ordinance provides for this
amount to be paid over five-years. The Village's actuary, GRS, has already stated that this change to
the plan will not negatively impact the Public Safety Officers' Pension Trust Fund.
The benefit to the Village is that employees are more likely to remain employed at Tequesta when
enrolled and vested in a defined benefit plan, keeping great employees working for our citizens. This
alsoprovides a stable portion of each employee's retirement plan, including Social Security,
employee savings, and this defined benefit plan.
These plans help cement the futureretirement benefits instead of theuncertainty a defined
contribution plan which is at the whim of the stock market, requiring our officers to become financial
experts to invest their money. The defined benefit pension plans are invested using financial
professionals.
This document and any attachments may be reproduced upon request in an alternative format by
completing our Accessibility Feedback Form, sending an e-mail to the Village Clerk or calling 561-
768-0443.
BUDGET INFORMATION:
Page 315 of 831
Agenda Item #17.
BUDGET AMOUNT N/A AMOUNT AVAILABLE Cost EXPENDITURE AMOUNT: N/A
Neutral
FUNDING SOURCES: N/A IS THIS A PIGGYBACK:
Yes N/A
DID YOU OBTAIN 3 QUOTES?
Yes N/A
COMMENTS/EXPLANATION ON SELECTION N/A
POTENTIAL MOTION / DIRECTION REQUESTED:
Consider approving Ordinance No. 10-24 amending the Public Safety Officers' Pension Trust Fund to
allow the Police Chief and Assistant Police Chief the opportunity to obtain the benefits provided to all
other Tequesta Police Officers.
ATTACHMENTS:
Ord 10-24
Page 316 of 831
Agenda Item #17.
ORDINANCE NO. 10-24
AN ORDINANCE OF THE VILLAGE OF TEQUESTA, FLORIDA;
AMENDING THE VILLAGE CODE OF ORDINANCES AT CHAPTER 2,
ADMINISTRATION, BY AMENDING SECTION 2-61, PENSION TRUST
FUND, EXHIBIT B, THE PUBLIC SAFETY OFFICERSPENSION
’
TRUST FUND, TO ADOPT AND IMPLEMENT A SERVICE PURCHASE
OPTION FOR POLICE OFFICERS TO PURCHASE PRIOR VILLAGE OF
TEQUESTA POLICE SERVICE IN SECTION 27 OF THE FUND PLAN;
PROVIDING THAT EACH AND EVERY OTHER SECTION AND
SUBSECTION OF CHAPTER 2, ADMINISTRATION, OF THE CODE OF
ORDINANCES OF THE VILLAGE OF TEQUESTA SHALL REMAIN IN
FULL FORCE AND EFFECT AS PREVIOUSLY ADOPTED. PROVIDING
FOR A CONFLICTS CLAUSE, A SEVERABILITY CLAUSE AND
AUTHORITY TO CODIFY; PROVIDING AN EFFECTIVE DATE; AND
FOR OTHER PURPOSES.
WHEREAS, the Village Council of the Village of Tequesta desires to amend the
Village Public Safety Officers’ Trust Fund to permit the purchase of prior Village of
Tequesta Police Officer Service; and
WHEREAS, both the Chief of Police and the Assistant Chief have been provided
an opportunity to transfer into the defined benefit plan; and
WHEREAS, both the Chief and the Assistant Chief have prior service with the
Village of Tequesta as police officers; and
WHEREAS, the Village Council desires to permit these police officers to
purchase their service into, and thereby join the Tequesta Public Safety Officers’
Pension Trust Fund.
NOW, THEREFORE, BE IT ORDAINED BY THE VILLAGE COUNCIL OF THE
VILLAGE OF TEQUESTA, PALM BEACH COUNTY, FLORIDA, AS FOLLOWS:
SECTION 1:Chapter 2 of the Code of Ordinances of the Village of Tequesta is hereby
amended at 2-61, Pension Trust Funds, Exhibit B, the Public Safety Officers’ Pension
Trust Fund of the Village of Tequesta, at Section 27 by renumbering the existing
subsections and by adding a new section 27. 1. B. to read as follows:
1
Page 317 of 831
Agenda Item #17.
Section 27. Service Purchase Prior to Employment.
1.In all cases of service purchase, members must at least contribute the amount of
employee contributions in effect at the time of purchase for all service which is
being purchased.
2.Police Officers:
A.In accordance with Code Section 414(n), the years or fractional parts of
years that a Police Officer serves or has served in the military service of
the Armed Forces of the United States or United States Merchant Marine,
voluntarily or involuntarily, prior to first and initial employment with the
Police Department shall be added to his/her years of credited service
provided that:
(1)A. The Police Officer 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 fractional parts 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 years of credited service.
(2)B. The request shall be made only once and made by the Police
Officer 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, whichever is
later.
2
Page 318 of 831
Agenda Item #17.
(3)C. Payment by the Police Officer of the required amount shall be
made within six (6) months of his/her request for credit and 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)D. The maximum credit under this subsection shall be five (5)
years.
B.Prior Village of Tequesta Police Officer Service. Unless otherwise
prohibited by law, the years or fractional parts of years that a Police
Officer served as a Police Officer for the Village of Tequesta and was not
a member of this Fund may be added to his/her years of credited service
provided that:
(1)The Police Officer 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 fractional parts 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 years of credited service.
(2)The request shall be made only once and made by the Police
Officer on or before the later of twelve (12) months from the
effective date of this Ordinance or six (6) months from the date of
3
Page 319 of 831
Agenda Item #17.
his/her re-employment with the Police Department, whichever is
later.
(3)Payment by the Police Officer of the required amount shall be
made in one lump sum within six (6) months of the receipt of the
information regarding the amount to contribute or can be paid in
installment payments not to exceed five (5) years. Credited service
shall be provided when the amount due has been paid in full.
Credited service purchased pursuant to this section shall be
counted for all purposes, including vesting.
(4)A Police Officer may purchase all years of service that they worked
as a Police Officer in the Police Department.
(5)This provision does not modify, amend, or supersede the separate
right of Police Officers who leave employment, take a refund of
contributions, and then return to employment in the Village as a
Police Officer to restore and repurchase service by reimbursing the
Fund with the returned contributions, with interest, as provided for
in Section 2, Definition of Credited Service.
3.. Firefighters:
A.Military Service. In accordance with Code Section 414(n), the years or
fractional parts of years that a Firefighter serves or has served in the
military service of the Armed Forces of the United States or United States
Merchant Marine, voluntarily or involuntarily, prior to first and initial
employment with the Fire Department shall be added to his/her years of
4
Page 320 of 831
Agenda Item #17.
credited service provided that:
(1)The Firefighter 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 fractional parts 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 years of credited service.
(2)The Firefighter’s request to purchase can be made at any time
during employment and before retirement and may be made in
multiple requests.
(3)Payment by the Firefighter of the required amount shall be made
within six (6) months of his/her request for credit and shall be made
in one lump sum payment upon receipt of which credited service
shall be given. Payment in full must be made before retirement.
Credited service purchased pursuant to this section shall be
counted for all purposes except toward vesting of benefits.
B.Prior Firefighter Service. Unless otherwise prohibited by law, the years or
fractional parts of years that a Firefighter served as a firefighter for any
other municipal, county, state, or federal firefighting agency as a firefighter
shall be added to his/her years of credited service provided that:
(1)The Firefighter contributes to the Fund the sum that he/she would
have contributed had he/she been a member of the Plan for the
5
Page 321 of 831
Agenda Item #17.
years or fractional parts 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 years of credited service.
(2)The Firefighter’s request to purchase can be made at any time
during employment and before retirement and may be made in
multiple requests.
(3)Payment by the Firefighter of the required amount shall be made
within six (6) months of his/her request for credit and 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.
C.The maximum credit under this subsection shall be five (5) years.
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 or
Fire Department, 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 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.
6
Page 322 of 831
Agenda Item #17.
SECTION 2: Each and every other section and subsection of Chapter 2, Administration,
of the Code of Ordinances of the Village of Tequesta shall remain in full force and effect
as previously enacted.
SECTION 3:All ordinances or parts of ordinances in conflict herewith be and the same
are hereby repealed.
SECTION 4:Should any section or provisions of this Ordinance or any portion thereof,
and paragraph, sentence or word be declared by a Court of competent jurisdiction to be
invalid, such decision shall not affect the validity of the remainder of this Ordinance.
SECTION 5: Specific authority is hereby granted to codify this Ordinance.
SECTION 6:This Ordinance shall become effective immediately upon adoption.
7
Page 323 of 831