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HomeMy WebLinkAboutDocumentation_Regular_Tab 14_2/12/2026 Agenda Item #14. Regular Council STAFF MEMO Meeting: Regular Council - Feb 12 2026 Staff Contact: Jeffery Snyder, Finance Director Department: Finance IMEW ORDINANCE 01-26, FIRST 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 24, MILITARY SERVICE PRIOR TO EMPLOYMENT; BY EXPANDING THE ENROLLMENT OPPORTUNITY FOR PARTICIPATION IN THE PURCHASE OF THIS CREDIT; PROVIDING THAT EACH AND EVERY OTHER SECTION OF CHAPTER 2. ADMINISTRATION SHALL REMAIN IN FULL FORCE AND EFFECT; PROVIDING FOR A CONFLICTS CLAUSE, A SEVERABILITY CLAUSE AND AUTHORITY TO CODIFY; PROVIDING AN EFFECTIVE DATE; AND FOR OTHER PURPOSES. S U M M A Ry_;,__j Pursuant to a request from a former General Employees' Pension Fund Board Member, and with the concurrence of Senior Staff, an amendment to the General Employees' Pension Ordinance is proposed to allow eligible veterans to purchase up to five (5) years of prior military service as credited, pensionable service. The purchase of military service credit may be made one time only during the employee's tenure with the Village. Any employee electing to purchase military service credit shall be responsible for the full cost of an actuarial study, which will determine the total cost of the additional credited service. Upon receipt of the actuarial cost determination, the employee shall have twelve (12) months from the date of the request to remit full payment. Credited service shall be granted only after payment in full has been received. The actuarial study shall reflect the full actuarial cost of adding the purchased military service to the employee's years of service, ensuring no additional financial impact to the Pension Fund. 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: Employee covers costs. IS THIS A PIGGYBACK: ❑ Yes M N/A DID YOU OBTAIN 3 QUOTES? ❑ Yes ❑x N/A Page 287 of 325 Agenda Item #14. COMMENTS/EXPLANATION ON SELECTIONN/A YOTENTIAL MOTJO / DIRECTION REQUES-MD-�7 Consider adopting the change in the General Employee Pension Trust Fund Ordinance. General Employee Pension Plan Purchase of Military Service Credit Revisions Page 288 of 325 Agenda Item #14. ORDINANCE NO. 01-26 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 24, MILITARY SERVICE PRIOR TO EMPLOYMENT; BY EXPANDING THE ENROLLMENT OPPORTUNITY FOR PARTICIPATION IN THE PURCHASE OF THIS CREDIT; PROVIDING THAT EACH AND EVERY OTHER SECTION OF CHAPTER 2. ADMINISTRATION SHALL REMAIN IN FULL FORCE AND EFFECT; 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; and 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, Section 24 "Military Service Prior to Employment" which shall be amended and hereafter shall read as follows: Section 24. Military Service Prior to Employment. In accordance with Code Section 415(n), 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 United States Merchant Marine, voluntarily or involuntarily, prior to first and initial employment with the Village of Tequesta shall be added to his/her years of credited service provided that: Page 289 of 325 Agenda Item #14. 1. The 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 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 to purchase can Qh-a be made only once but can be made by the Member at any time during employment before retirement ^n or hofnro + • 3. Payment by the Member of the required amount shall be made within twelve (1Z SIX (6-) months of his/her request for credit and shall be made in one lump sum payment. Once full payment has been made, ^^R ror+oir�+ of �AIh�r`h 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. Section 2: Each and every other section and subsection of Chapter 2. Administration. shall remain in full force and effect as previously adopted. Section 3: All ordinances or parts of ordinances in conflict be and the same are hereby repealed. Section 4: Should any section or provision of this Ordinance or any portion thereof, any 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 take effect immediately upon adoption. Page 290 of 325