HomeMy WebLinkAboutDocumentation_Regular_Tab 13_3/13/2025 Agenda Item #13.
Regular Council
STAFF MEMO
Meeting: Regular Council - Mar 13 2025
Staff Contact: Jeffery Snyder, Finance Director Department: Finance
IMEW
ORDINANCE 04-25, SECOND READING, AN ORDINANCE OF THE VILLAGE COUNCIL OF THE
VILLAGE OF TEQUESTA, FLORIDA, AMENDING THE VILLAGE CODE OF ORDINANCES AT
CHAPTER 2. ADMINISTRATION; BY AMENDING SECTION 2-61. PENSION TRUST FUNDS,
EXHIBIT A, THE GENERAL EMPLOYEES' PENSION TRUST FUND, SECTION 11, OPTIONAL
FORMS OF BENEFITS; BY AMENDING SUBSECTION 1 TO PROVIDE FOR A 75% OPTIONAL
FORM OF BENEFIT; PROVIDING FOR A CONFLICTS CLAUSE, A SEVERABILITY CLAUSE AND
AUTHORITY TO CODIFY; PROVIDING AN EFFECTIVE DATE; AND FOR OTHER PURPOSES.
SUMMARY: A- M M
The Village of Tequesta partners with Resource Centers, LLC to administer our General Employees
Pension Trust Fund, along with those of many other municipal corporations. Resource Centers, LLC
identified that the Village was the only Pension Trust Fund utilizing a 76% survivor benefit option,
whereas all others use a 75% option. After discussions with Resource Centers and the the General
Employee Pension Board's Legal Counsel, Ms. Bonni S. Jensen, Esquire, Partner of Klausner,
Kaufman, Jensen & Levinson, the General Employees Pension Board of Trustees supports amending
the ordinance to align with this standard option.
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 • - •
BUDGET AMOUNT N/A AMOUNT AVAILABLE N/A EXPENDITURE AMOUNT: N/A
FUNDING SOURCES: N/A IS THIS A PIGGYBACK:
❑ Yes 0 N/A
DID YOU OBTAIN 3 QUOTES?
❑ Yes 0 N/A
COMMENTS/EXPLANATION ON SELECTIONCost neutral
POTENTIAL MOTION - • REQUESTE
Motion to approve Ordinance 04-25 Amending the General Employees' Pension Trust Fund.
Page 144 of 262
Agenda Item #13.
ORD 4-25 -change eq 76% joint annuitant choice to 75% - 4878-6098-7581.2 (002)
Tequesta General Employees - No Impact Letter 12-4-2024
BUSINESS IMPACT ESTIMATE Teauesta Ordinance 04-25 Pension Trust Fund Optional Form of
Benefit
Page 145 of 262
Agenda Item #13.
ORDINANCE 04-25
AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF
TEQUESTA, FLORIDA, AMENDING THE VILLAGE CODE OF
ORDINANCES AT CHAPTER 2. ADMINISTRATION; BY AMENDING
SECTION 2-61. PENSION TRUST FUNDS, EXHIBIT A AS ORIGINALLY
CREATED BY ORDINANCE NO. 585, THE GENERAL EMPLOYEES'
PENSION TRUST FUND, SECTION 11, OPTIONAL FORMS OF
BENEFITS; BY AMENDING SUBSECTION 1 TO PROVIDE FOR A 75%
OPTIONAL FORM OF BENEFIT; 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
general employees' pension trust fund (the "Plan") based on recommendations from the
Board of Trustees;
WHEREAS, the Plan actuary has reviewed the proposed amendments and has
made a determination that said amendments have no actuarial impact on the cost of the
pension fund; and
WHEREAS, the Village Council believes that these revisions to the Plan are in
the best interest of the Village of Tequesta and Plan beneficiaries; and will promote the
public health, safety, and welfare.
NOW, THEREFORE, BE IT ORDAINED BY THE VILLAGE COUNCIL OF THE
VILLAGE OF TEQUESTA, PALM BEACH COUNTY, FLORIDA, AS FOLLOWS:
SECTION 1: Chapter 2 of the Code of Ordinances of Village of Tequesta is
hereby amended at 2-61 Pension Trust Funds, Exhibit A, the General Employees'
Pension Trust Fund, at section 11 subsection 1. "Optional Forms of Benefits" shall be
amended and hereafter shall read as follows:
100 1 67990.DOC;I I 1
Page 146 of 262
Agenda Item #13.
Section 11. 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 valuation 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.
[THE REMAINDER OF SECTION 11 IS UNCHANGED]
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.
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Agenda Item #13.
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
100 1 67990.DOC;1}3
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Agenda Item #13. P,-954.5271616 F:954,525.0083 www-grsconsv I ting.com
R S
December 4, 2024
Mr. Albert Lovi ngood
Resource Centers, LLC
4360 Northlake Blvd., Suite 206
Palm Beach Gardens, FL 33410
Re: Village of Tequesta General Employees' Pension Trust Fund
Dear A.C.:
As requested,we have reviewed the proposed ordinance which would amend the Village of Tequesta
General Employees' Pension Trust Fund ("Plan") as follows:
Amend Section 11, Optional Forms of Benefits,to change the 76%Joint and Survivor Annuity
optional form of payment to a 75%Joint and Survivor Annuity.
In our opinion,this change will not have an actuarial impact on the cost of the Plan. It is our opinion
that a formal Actuarial Impact Statement is not required. However,we recommend that you send a
copy of this letter and the ordinance to the Bureau of Local Retirement Systems.
Jeffrey Amrose is a member of the American Academy of Actuaries and meets the Qualification Standards
of the American Academy of Actuaries to render the actuarial opinions contained herein. The undersigned
actuary is independent of the plan sponsor.
We welcome your questions and comments.
Respectfully submitted,
Gabriel, Roeder,Smith &Company
iffr Amrose, EA, MAAA
nior Consultant&Actuary
The above communication shall not be construed to provide tax advice, legal advice or investment advice.
One East d .o
Agenda Item #13.
BUSINESS IMPACT ESTIMATE
As required by Sec. 166.041(4), Florida Statutes (2024), this "Business Impact
Estimate" is provided for Ordinance No. 04-25:
ORDINANCE NO. 04-25
AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF
TEQUESTA, FLORIDA, AMENDING THE TEQUESTA CODE OF
ORDINANCES AT CHAPTER 2. ADMINISTRATION, BY AMENDING
SECTION 2-61 PENSION TRUST FUNDS, EXHIBIT A, THE GENERAL
EMPLOYEES PENSION TRUST FUND, SECTION 11, OPTIONAL
FORMS OF BENEFITS; BY AMENDING SUBSECTION 1 TO PROVIDE
FOR A 75% OPTIONAL FORM OF BENEFIT; PROVIDING A
CONFLICTS CLAUSE, A SEVERABILITY CLAUSE AND AUTHORITY TO
CODIFY; PROVIDING AN EFFECTIVE DATE; AND FOR OTHER
PURPOSES.
■
Part I. Summary of the proposed ordinance and statement of public purpose: Ordinance
04-25 revises certain optional forms of benefit for Village of Tequesta general employee pension
trust fund participants by changing a 76% optional benefit to a 75% optional benefit.
Part II. Estimate of the direct economic impact of the proposed ordinance on private, for-
profit businesses in the Village of Tequesta:
a. Estimate of direct compliance costs that businesses may reasonably incur if the
proposed ordinance is enacted: None.
b. Identification of any new charges or fee on businesses subject to the proposed
ordinance, or for which businesses will be financially responsible: None.
c. An estimate of the Village of Tequesta's regulatory costs, including an estimate of
revenues from any new charges or fees that will be imposed on businesses to cover
such costs. None.
Part III. Good faith estimate of the number of businesses likely to be impacted by the
ordinance: None.
Part IV. Additional Information (if any): None.
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