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HomeMy WebLinkAboutDocumentation_Pension General_Tab 15_08/03/2009Laur, Betty Prom: McWilliams, Lori Sent: Monday, July 20, 2009 9:41 AM To: Laur, Betty Cc: Angela Twomey; Bonni Jensen; Karen Armenita Subject: FW: TEQUESTA GE Pension Plan -Response to IRS Letter dated June 15, 2009 Attachments: RSPNS to IRS Itr of 06-15-09.pdf; TEQ GE IRS Exhibit Packet.pdf Betty, Please place on the General Employee Pension Agenda as an update from Bonni. Lori From: Karen Amenity [maiRo:karen@perryjensenlaw.com] Sent: Friday, July 17, 2009 3:56 PM To: McWilliams, Lori Cc: Laur, Betty; Bonni S. Jensen; Angela Twomey; Karl Seifel Subject: "TEQUESTA GE Pension Plan -Response to IRS Letter dated June 15, 2009 Hi Lori, Attached is the cover letter and documents Bonni sent in response to the IRS inquiry dated June 15, 2009. Please let us know if you have any questions. Have a great weekend. Respectfully, ~>L~le/Z ~~fih~>~ karen(a~per_ryjensenlaw.com Legal Assistant -Pension Team of Bonni Jensen The Law Offices of Perry & Jensen, LLC 400 Executive Center Drive, Suite 207 West Palm Beach, Florida 33401-2922 561.686.6550 (Phone) 561.686.2802 (Fax) CONFIDENTIALITY NOTICE: This communication is confidential, may be privileged and is meant only for the intended recipient. If you are not the intended recipient, please notify the sender ASAP and delete this message from your system. IRS CIRCULAR 230 NOTICE: To the extent that this message (or any portion thereof) concerns tax matters, it is not intended to be used and cannot be used by a taxpayer for the purpose of avoiding penalties that may be imposed by law. ~** eSafe scanned this email for malicious content *** *** IMPORTANT: llo not open attachments from unrecognized senders *** THE LAW OFFICES OF PERRY ~ JENSEN, LLC ANN H. PERRY aperry@penyjensenlaw. com July 17, 2009 VIA UPS Overnight Delivery Margaret Saito, ID #95-02557 Voluntary Compliance Specialist Internal Revenue Service TE/GE Division 9350 Flair Drive T:EP:RA:VC:7554 EI Monte, CA 91731-2885 BONNI SPATARA JENSEN bsjensen@perryjensenlaw.com Re: VCP Request for Village of Tequesta General Employees Pension Trust Fund Control Number: 911682213 Employer Identification Number: 59-6044081 Our File No.: 1011.0053 Dear Ms. Saito: This firm is the legal counsel for the Village of Tequesta Public Safety Officers Pension Trust Fund. This letter is in response to your request dated June 15, 2009 (enclosed) and the list of requested information included with that letter. Thank you for the extension of time for our reply until July 21, 2009. In response to the List of Requested Information: The Village Manager of the Village of Tequesta has signed Form 2848 from the Village of Tequesta. Enclosed is the original of that Form. A faxed copy of Form 2848 was provided on Wednesday, July 1, 2009. (Exhibit A). Enclosed is a revised Appendix F with the identifying information removed from the upper right hand corner. (Exhibit B). The Village of Tequesta is a political subdivision of the State of Florida. The Pension Plan is a creation of the Village of Tequesta. Article VIII § 2 of the Florida Constitution vests municipalities with governmental corporate and proprietary powers. These powers are set out in the Florida Statutes §166.021. 400 EXECUTIVE CENTER DRIVE, SUITE 207•:• WEST PALM BEACH, FLORIDA 33401-2922 Ph: 561.686.6550 •:• Fx: 561.686.2802 13 ~RSIGwxlabl Margaret Saito, ID #95-02557 Voluntary Compliance Specialist, VC Group 7554 Internal Revenue Service VCP Request for Village of Tequesta Public Safety Officers Pension Trust Fund Control Number: 911682093 Employer Identification Number: 59-6044081 July 17, 2009 Page 2 of 2 The Village Manager of the Village of Tequesta has signed the penalty of perjury statement on Appendix F. (See Exhibit B). The Plan document included with the original submission was intended to provide the amendments for both the GUST and the EGTRRA amendments. Enclosed in this package are two separate working restatements -one containing the GUST amendments (Exhibit C) and one containing the EGTRRA amendments (Exhibit D). Additionally, each are submitted with a cover Ordinance drafted to amend only those portions of the document affected by each amendment with a retroactive effective date for each amendment [January 1, 1997 for the GUST (Exhibit E) and January 1, 2002 for the EGTRRA (Exhibit F)]. The failure related to the 2007 Cumulative List under Notice 2007-94 has been removed as anon-amender failure in Schedule 2 of Appendix F (Exhibit G). The documents submitted under Exhibits C, D, E and F are submitted as proposed amendments to be passed upon approval. Part III and Part IV of Schedule 2 of Appendix F are enclosed (Exhibit G). Simultaneously with this letter, I am also submitting a response to your June 15, 2009 letter regarding the Determination Letter Request forthe Village of Tequesta General Employees Pension Trust Fund. Should you have any further questions, please do not hesitate to contact me. Sincerely yours, Bonni S. Jensen BSJ/ka Enclosures as noted H:\Tequesta GE 1012\IRS Determination LetterlPost Submission\IR5 Cvr Ltr -VCP req 061509.wpd ,~yywauQr •U S '~''t ~4a ~CVLMV~ TA% E%EMPT AND GOVERNMENT ENTITIES DIVISION Date: June 15, 2009 Village Of Tequesta 345 Tequesta Drive Tequesta, FL 33469 DEPARTMENT OF THE TREASURY INTERNAL REVENUE SERVICE WASHINGTON, D.C. 20224 Re VCP Request for: Village of Tequesta General Employees' Pension Plan Control Number: 911682213 Employer Identification Number. 59-6044081 Dear Sir or Madam: I am considering your request submitted under the Voluntary Correction Program ("VCP") request for the plan identified above, but 1 need the information on the enclosed list before I can complete the processing of your request. Please submit this information to me at the address listed below by July 6, 2009. Internal Revenue Service - TE/GE Division 9350 Flair Drive T:EP:RA:VC:7554 El Monte, CA 91731-2885 A copy of this letter was not sent to the individual designated on Form 2848 because the individual did not sign it. If you are unable to submit all of the requested items at one time, please contact me. When responding to (or inquiring about) this request, please refer to the Control Number listed above and include a copy of this letter, if you have any questions concerning this matter, please contact me by phone at (626) 312-3628 or by fax at (626) 312-5061. Sincerely, I MARGARET SAIT'O, ID#95-02557 Voluntary Compliance Specialist, VC Group 7554 TE/GE Division, Employee Plans Enclosure: List of Requested Information cc: Letter VCP-3 (Rev. 04/2002) LIST OF REQUESTED INFORMATION GENERAL EMPLOYEES Please submit a revised Form 2848 signed by individual designated by it as the representative. The employer submitted Appendix F with "Teq GE-59-6044081 - # 001 Qualified Plan" in a box in the upper right hand comer of each page. The Appendix F forms the compliance statement. This is not a part of Appendix F and should be removed from all applicable pages. Please provide a brief description of how the employer meets the definition of a government plan under 414(d) of the Code. Please have an officer of the employer sign the penalty of perjury statement on Appendix F. The individual designated on the Form 2848 may not sign this statement because the Form 2848 is not valid. The employer may submit a replacement page. The replacement page must contain all the information and maintain the same format as it appears in Appendix F of Revenue Procedure 2008-50. Is the plan document under Exhibit A of your letter dated January 30, 2009, the plan document for GUST or EGTRRA? How would I be able to tell the difference? The employer identified the 2007 Cumulative List under Notice 2007-94 as a nonamender failure. However, the determination application was submitted prior to the end of the extended remedial amendment period. Please explain how this is a failure. The documents submitted under exhibit A are not signed. Please submit a copy of the Board of Directors of other authorized authority of the employer adopting the document. Or does the employer wish that the Service will treat the document as proposed? Please submit the Part III and Part IV of Schedule 2 of Appendix F which indicates the measures that the emp]oyer will take to prevent failures from recurring and enclosures required. The employer may submit replacement pages. The information on the replacement pages must contain all of the items contained on the corresponding page of Revenue Procedure 2008-50. THE LAW OFFICES OF PERRY ~ JENSEN, LLC ANN H. PERRY aperry@perryjensenlaw.com July 17, 2009 VIA UPS OVERNIGHT DELIVERY Margaret Saito, ID #95038 Employee Plans Specialist Internal Revenue Service TE/GE Division 9350 Flair Drive T:EP:RA:VC:7554 EI Monte, CA 91731-2885 BONNI SPATARA JENSEN bsjensen@perryj a nsenlaw. com Re: Determination Letter Request for Village of Tequesta General Employees Pension Trust Fund OMB Clearance Number: 1545-0197 Employer Identification Number: 59-6044081 Our File No.: 1012.0053 Dear Ms. Saito: This firm is the legal counsel for the Village of Tequesta General Employees Pension Trust Fund. This letter is in response to your request dated June 15, 2009 (enclosed) and the list of data needed contained with that letter. Thank you for the extension of time for our reply until July 21, 2009. In response to the List of Data Needed: The Village Manager of the Village of Tequesta has signed Form 2848 from the Village of Tequesta. Enclosed is the original of that Form (see Exhibit A). A faxed copy of Form 2848 was provided on Wednesday, July 1, 2009. 2. The Plan document included with the original submission was intended to provide the amendments for both the GUST and the EGTRRA amendments. Enclosed in this .package are two separate working restatements -one containing the GUST amendments (Exhibit C) and one containing the EGTRRA amendments (Exhibit D). Additionally, each are submitted with a cover Ordinance drafted to amend only those portions of the document affected by each amendment with a retroactive effective date for each amendment [January 1, 1997 for the GUST (Exhibit E) and January 1, 2002 for the EGTRRA (Exhibit F)]. 400 EXECUTIVE CENTER DRIVE, SUITE 207•:• WEST PALM BEACH, FLORIDA 33401-2922 PH: 561.686.6550 e• Fx: 561.686.2802 ~~~»„~.~ Margaret Saito, ID #95-02557 Voluntary Compliance Specialist, VC Group 7554 Internal Revenue Service Determination Letter Request for Village of Tequesta General Employees Pension Trust Fund OMB Clearance Number: 1545-0197 Employer Identification Number: 59-6044081 July 17, 2009 Page 2 of 4 3. GUST Plan document amendments: A. See GUST Ordinance (Exhibits C and E) B. See Working Restatement with GUST amendment at Section 2 definition of "Actuarial Equivalent." C. See Working Restatement with GUST amendment at Section 2 definition of "Actuarial Equivalent." D. See Working Restatement with GUST amendment at Section 2 definition of "Average Final Compensation." E. Employees contributions are treated as picked up pursuant to IRC §414(h)(2). I will present your suggestion to seek a private letter ruling to the Board. F. See Working Restatement with GUST amendment at Section 16. G. See Working Restatement with GUST amendment at Section 16. H. See Working Restatement with GUST amendment at Section 18 - theword issue was removed. I. See Working Restatement with GUST amendment at Section 6. J. See Working Restatement with GUST amendment at Section 18. K. See Working Restatement with GUST amendment at Section 2. L. See Working Restatement with GUST amendment at Section 16. M. See Working Restatement with GUST amendment at Section 24. N. See Working Restatement with GUST amendment at Section 16. 4. EGTRRA Plan document amendments A. See EGTRRA Ordinance (Exhibits D and F) B. See Working Restatement with GUST amendment which has been incorporated into the Working Restatement with EGTRRA Amendment at Section 2. C. See Working Restatement with GUST amendment which has been incorporated into the Working Restatement with EGTRRA Amendment at Section 2. D. See Working Restatement with GUST amendment which has been incorporated into the Working Restatement with EGTRRA Amendment at Section 2. Margaret Saito, ID #95-02557 Voluntary Compliance Specialist, VC Group 7554 Internal Revenue Service Determination Letter Request for Village of Tequesta General Employees Pension Trust Fund OMB Clearance Number: 1545-0197 Employer Identification Number: 59-6044081 July 17, 2009 Page 3 of 4 E. Employees contributions are treated as picked up pursuant to IRC §414(h)(2). I will present your suggestion to seek a private letter ruling to the Board. F. See Working Restatement with GUST amendment which has been incorporated into the Working Restatement with EGTRRA Amendment at Section 16. G. See Working Restatement with GUST amendment which has been incorporated into the Working Restatement with EGTRRA Amendment at Section 16. H. See Working Restatement with GUST amendment which has been incorporated into the Working Restatement with EGTRRA Amendment at Section 18 -the word issue was removed. I. See Working Restatement with GUST amendment which has been incorporated into the Working Restatement with EGTRRA Amendment at Section 6. J. See Working Restatement with GUST amendment which has been incorporated into the Working Restatement with EGTRRA Amendment at Section 18. K. See Working Restatement with EGTRRA Amendment at Section 19. L. See Working Restatement with EGTRRA Amendment at Section 1. M. See Working Restatement with EGTRRA Amendment at Section 24. N. See Working Restatement with GUST amendment which has been incorporated into the Working Restatement with EGTRRA Amendment at Section 2. 5. Prior to 1999, the Pan document for the Public Safety (Police Officers and Firefighters) and the General Employees was the same plan document. The assets were combined for investment purposes but the assets and liabilities were accounted for separately for the Police Officers, Firefighters and General Employees. In 1999, the State statutes changed requiring the assets to be separated. The General Employees Pension Trust Fund covers the general employees of the Village, while the Pubic Safety Pension Trust Fund covers the Police Officers and Firefighters. Margaret Saito, ID #95-02557 Voluntary Compliance Specialist, VC Group 7554 Internal Revenue Service Determination Letter Request for Village of Tequesta General Employees Pension Trust Fund OMB Clearance Number: 1545-0197 Employer Identification Number: 59-6044081 July 17, 2009 Page 4 of 4 6. Please add the failure to timely amend for the interim amendments to EGTRRA to the VCP request. Enclosed is Schedule 1 to the Appendix F. (See Exhibit H). 7. Please add the failure to timely amend for the interim amendments to section 401(a) (9) final and temporary regulations to the VCP request. (Exhibit H). 8. Please add the failure to timely amend for the mortality table under Revenue Ruling 2001-62 to the VCP request. (Exhibit H). Simultaneously with this letter, I am also submitting a response to your June 15, 2009 letter regarding the VCP Request for the Village of Tequesta General Employees Pension Trust Fund. Should you have any further questions, please do not hesitate to contact me. Sin rely yours, 1 :~-% Bonni S. Jensen BSJ/ka Enclosures as noted H:\Tequesta GE 1012\IRS Determination Letter\Post Submission\IRS cvrltr -Determination req 2009-06-15 rspns.wpd INTERNAL REVENUE SERVICE P. O. BOX 2508 CINCINNATI, OH 45201 Date: ~" ~ VILLAGE OF TEQUESTA 345 TEQUESTA DR TEQUESTA, FL 33469 Dear Applicant: DEPARTMENT OF THE TREASURY RECEIVED OMB Clearance Number: J~1~ z 4 ZOOS 1545-0197 Employer Identification N~~L'LAGE CLERKS OFFICE 59-6044081 DLN: 209063014 Person to Contact: MARGARET M. SAITO ID# 95038 Contact Telephone Number: (626) 312-3628 Plan Name: VILLAGE OF TEQUESTA GENERAL EMPLOYE ES PENSION TRUST Plan Number: 001 Refer Reply to: SE;T:EP:RA:VC:7554 Response Date: July 6, 2009 We have received your request for a determination letter for the plan identified above. However, we need the information or amendments specified on the enclosed list before we can continue processing your request. Please submit the requested information or amendments by the response date. If we do not hear from you by that date we may either (1) close your case as incomplete, or (2) process your application on the basis of the infor- mation available, which could result in a determination that your plan is not qualified for favorable tax treatment. If you have any questions concerning this matter or cannot meet the response date, please contact the person whose name and telephone number are shown above. when you send any information we requested or if you write to us with questions about this letter, please provide your telephone number and the most convenient time for us to call if we need more information. Please mail the information requested in this letter to the following address: Internal Revenue Service TE/GE Division 9350 Flair Drive, 2nd Floor E1 Monte, CA 91731-2885 I I '~I ~ii ~ ~ ~f~~l ~.; ,_,,,.. _.`_';,.,.,11i1. Letter 1196 (DC/PL) VZ~~~ ; .. ~'•i C Margaret Saito, ID #95-02557 Re: Village of Tequesta General Employees C Employee Plans Specialist Pension Trust Fund Internal Revenue Service OMB Clearance Number: 1545-0197 ,.-- TE/GE Division Employer Identification # 59-6044081 ~ 9350 Flair Drive T:EP:RA:VC:7554 Our File# 1012.0053 '-' EI Monte, CA 91731-2885 Control #911682213 c C EXHIBIT PACKET SUBMITTED WITH VCP AND DETERMINATION LETTER REQUEST EXHIBIT DESCRIPTION A Original Form 2848 Signed by Village of Tequesta, Manager B Appendix F C GUST working restatement amendment D EGTRRA working restatement amendment E Portion of working restatement affected by GUST F Portion of working restatement affected by EGTRRA G Appendix F, Schedule 2 H Appendix F, Schedule 1 rr x c C ;~ ,., R r i f ~` ~L July 17, 2009 Margaret Saito, ID #95-02557 Re: Village of Tequesta General Employees Employee Plans Specialist Pension Trust Fund Internal Revenue Service OMB Clearance Number: 1545-0197 TE/GE Division Employer Identification # 59-6044081 9350 Flair Drive T:EP:RA:VC:7554 Our File# 1012.0053 EI Monte, CA 91731-2885 Control #911682213 (added and reprinted prior to shipping) EXHIBIT PACKET SUBMITTED WITH VCP AND DETERMINATION LETTER REtiUEST EXHIBIT DESCRIPTION A Original Form 2848 Signed by Village of Tequesta, Manager B Appendix F C GUST working restatement amendment D EGTRRA working restatement amendment E Portion of working restatement affected by GUST F Portion of working restatement affected by EGTRRA G Part III and IV of Schedule 2 of Appendix F H Appendix F, Schedule 1 (was added to packet prior to mailing - new Exhibit Packet Cover was prepared (Did not want to re-scan all 98 pages .) xh~h~~ Form 2848 (Rev. June 2008) pepaAment of the Treasury Internal Revenue Service Power of Attorney and Declaration of Representative - Type or print. - See the separate instructions. Power of Attorney Caution: Form 2848 will not be honored for 1 Taxpayer information. Taxpayer(s) must Taxpayer name(s) and address Village of Tequesta 345 Tequesta Drive Tequesta, FL 33469 other than representation before the 1RS. n and date this form on page 2, line 9. Social securely number(s) Daytime telephone number ( 561 ) 575-6200 hereby appoint(s) the following representative(s) as attorney(s)-in-fact: For IRS Use Ony Received by: Name Telephone Function Date / / Employer identification number 59 6044081 Plan number (rf applicable) 2 Representative(s) must sign and date this form on page 2, Part II. Name and address CAF No- ----------------------•------------------ Bonni S. Jensen, Esquire, Hanson, Perry 8r Jensen, PA Telephone No. 561-686-6550 ---------------------------------- 400 Executive Genter Dr, Ste 207, West Palm Beach, FL Fax No_ ____________561-686.2802________ _ Check if new: Address phone No. ^ Fax No. ^ ~adna ^ Tele Name and address CAF No- ----------------------------------------- Telephone No- ---------------------------------- Fax No- ---------------------------- --•--------- Check if new: Address ^ Telephone No. ^ Fax No. ^ Name and address CAF No- ------------•----_-------------=-----•--- Telephone No- ---------------------------------- Fax No- ----------------P ----------------------- Check 'rf new: Address ^ Tele hone No. ^ Fax No. ^ to represent the taxpayer(s) before the Internal Revenue Service for the following tax matters: Type of Tax (Income, Employment, Excise, etc.) or Civil Penalty (see the instructions for line 3) Tax Form Number (1040, 941, 720, etc.) Year(s) or Period(s) (see the instructions for line 3) Determination Letter 5300 Voluntary Correction Program (VCP) Appendices E, F & F Schedule 2 4 Specific use not recorded on Centralized Authorization File (CAF). If the power of attorney is for a specific use not recoroeo on CA: ^ check this box. See the instructions for Line 4. Specific Uses Not Recorded on CAF 5 wets auiinonzea. The representatVes are authorized to receive and inspect contideniial tax information and to perform any and ail acts That I (we) can perform with respect to the tax matters described on line 3, for example, the authority to sign any agreements, consents, or other documents. The authority does not include the power to receive refund checks (see line 6 below), the power to substitute another representative or add additional representatives, the power to sign certain returns, or the power to execute a request for disclosure of tax returns or return infonnatlon to a third party. See the line 5 Instructions for more information. exceptions. An unenroiled return preparer cannot sign any document for a taxpayer and may only represent taxpayers in limited situations. See Unenrolled Return Preparer on page 1 of the instructions. An enrolled actuary may only represent taxpayers to the extent provided in section 10.3(d) of Treasury Departrnent Circular No. 230 (Circular 230). An enrolled retirement plan administrator may only represent taxpayers to the extent provided in section 10.3(e) of Circular 230. See the line 5 instructions for restrictions on tax matters partners. In most cases, the student practitioner's (levels k and n authority is limited (for example, they may only practice under the supervision of another practitioner). List any specific additions or deletions to the acts otherwise authorized in this power of attorney: _...._____________________________________ 6 Receipt of refund checks. If you want to authorize a representative named on line 2 to receive, BUT NOT TO ENDORSE OR CASH, refund checks, initial here and list the name of that representative below. Name of representative to receive refund check(s) - For Privacy Act and Paperwork Reduction Act Notice, see page 4 of the instructions. Cat. No. 1 ~ 98DJ Form 2848 (Rev. 6-2ooe) Form 2848 (Rev. 6-2008) Page L 7 Notices and communications. Original notices and other written communications will be sent to you and a copy to the first representative listed on Ilne 2. a If you also want the second representative listed to receive a copy of notices and communications, check this box . - ^ b If you do not want any notices or communications sent to your representative(s), check this box - ^ 8 Retention/revocation of prior power(s) of attomey. The filing of this power of attomey automatically revokes all earlier power(s) of attomey on file with the Intemal Revenue Service for the same tax matters and years or periods covered by this document. If you do not want to revoke a prior power of attomey, check here. - _ - - - ^ YOU MUST ATTACH A COPY OF ANY POWER OF ATTORNEY YOU WANT TO REMAIN IN EFFECT. a signature or taxpayertsf. rt a tax matter concerns a Iomt return, ootn nusoano ana-wire must sign it fomrrepresentanon is requestea, otherwise, see the instructions. If signed by a corporate officer, partner, guan:lian, tax matters partner, executor, receiver, administrator, or trustee on behalf of the taxpayer, I certify that I have the authority to execute this form on behalf of the taxpayer. - IF NOT SIGNED AND DATED, THIS POWER OF ATTORNEY WILL BE RETURNED. - - - - - - - - - - - - - - - - ---------------~~-- 1 Sig at Date Title (rf applicable) Print ame PIN Number Print name of taxpayer from line 1 if other than individual ------------------------------------------------------------------------- -------------------• -----------------r---pP-------~------------- Signature Date Title if a licable Print Name PIN Number Declaration of Representative Caution: Students with a special order to represent taxpayers in qualified Low Income Taxpayer Clinics or fhe Student Tax Clinic Program (levels k and I), see the instructions for Part 11. " Under penalties of pery'ury, I declare that: • I am not currently under suspension or disbarment from practice before the Intemal Revenue Service; • I am aware of regulations contained in Circular 230 (31 CFR, Part 10), as amended, concerning the practice of attorneys, certified public accountants, enrolled agents, enrolled actuaries, and others; • 1 am authorized to represent the taxpayer(s) identified in Part I for the tax matter(s) specified there; and • I am one of the following: a Attorney-a member in good standing of the bar of the highest court of the jurisdiction shown below. b Certified Public Accountant-duly qualified to practice as a certified public accountant in the jurisdiction shown below. c Enrolled Agent-enrolled as an agent under the requirements of Circular 230. d Officer-a bona fide officer of the taxpayer's organization. e Full-Time Employee-a full-time employee of the taxpayer. f Family Member-a member of the taxpayer's immediate family (for example, spouse, parent, child, brother, or sister). g Enrolled Actuary~nrolled as an actuary by the Joint Board for the Enrollment of Actuaries under 29 U.S.C. 1242 (the authority to practice before the Intemal Revenue Service is limited by section 10.3(d) of Circular 230). h Unenrolled Return Preparer--the authority to practice before the Intemal Revenue Service is limited by Circular 230, section 10.7(c)(lxvii~. You must have prepared the return in question and the return must be under examination by the IRS. See Unenrolled Return Preparer on page 1 of the instructions. k Student Attorney-student who receives permission to practice before the IRS by virtue of their status as a law student under section 10.7(d) of Circular 230. I Student CPA student who receives permission to practice before the IRS by virtue of their status as a CPA student under section 10.7(d) of Circular 230. r Enrolled Retirement Plan Agent-enrolled as a retirement plan agent under the requirements of Circular 230 (the authority to practice before the Intemal Revenue Service Is limited by section 10.3(e)). - IF THIS DECLARATION OF REPRESENTATNE IS NOT SIGNED AND DATED, THE POWER OF ATTORNEY WILL. BE RETURNED. See the Part II instructions. Designation-Insert above letter (a-r) Jurisdiction (state) or identification Signature Date wlQ~a~ r 7/~~~~' Form 2~$ (Rev, 6-2008) i ~ ~" APPENDIX F STREAMLINED VCP SUBMISSION Village of Tequesta General Employees' Plan Name: Pension Trust E~j; 59-6044081 pilau #• 001 (Please include the plan name, EIN, and plan number information on each page of the submission.) PART I. PLAN INFORMATION 1. APPLICANT'S NAME Village of Tequesta 2. APPLICANT'S ADDRESS 345 Tequesta Drive Tequesta, Florida 33469 3. APPLICANT' S TELEPHONE NO. 561-575-6200 4. FAX NO. 561-575-6203 (optional) (optional) 5. APPLICANT' S EIN 59-6044081 6. PLAN NO. 001 7. PLAN NAME Village of Tequesta General Employees' Pension Trust 8. TYPE OF SUBMISSION Q REGULAR SUBMISSION REGULAR SUBMISSION -ANONYMOUS REGULAR SUBMISSION -MULTI-EMPLOYER PLAN ® REGULAR SUBMISSION -MULTIPLE EMPLOYER PLAN ® GROUP SUBMISSION 9. TYPE OF PLAN (CHECK ONE ONLY): ® Ol PROFIT SHARING ~ 09 CASH BALANCE ® 02 401(Ic) ~ 10 GOVERNMENTAL PLAN (§ 4l4(d)) © 03 MONEY PURCHASE J 11 SEP 04 DEFINED BENEFIT 0 12 SARSEP OS ESOP J 13 SIlVIPLE 06 TARGET BENEFIT [ 14 STOCK BONUS 07 403(b) © 15 KSOP 0 08 457 0 16 OTHER (specify): 10. DATE (month and day) ON WHICH PLAN YEAR ENDS 09/30 11. NUMBER OF PARTICIPANTS IN THE PLAN AS PROVIDED ON THE MOST RECENTLY FILED FORM 5500 SERIES (See Rev. Proc. 2008-50, section 12.07.): 37 Participants (Gov'tl plan-do not file Form 5500) ] 2. ASSETS IN TIC PLAN AS PROVIDED ON TfID MOST RECENTLY FILED FORM 5500 SERIES (ROUND TO NEAREST DOLLAR): $ 1 061,000 as of 9/30/08 (Gov't) plan-do not file Form 5500) (See Rev. Proc. 2008-50, section 12.07.) 1 If the Applicant is being represented by someone in connection with this matter or wishes to authorize someone to receive information from us in connection with this matter, submit a completed Form 2848 or r'orm 882f and complete items 13 through 18. 13. NAME OF APPLICANT'S REPRESENTATIVE Bonni S. Jensen 14. NAME OF REPRESENTATIVE'S FIItMNAME 15. REPRESENTATIVE'S ADDRESS: 400 Executive Center Drive, Suite 207 l6. REPRESENTATIVE'S PHONE NO. 561-686-6550 17. FAX NO. 561-686-2802 18. REPRESENTATIVE'S E-MAIL ADDRESS bsjensen@hpjlaw.com (optional) PART lI. APPLICANT'S ENCLOSURES The Applicant encloses the following documents with this submission: /^ VCP fee of $ 5DD.D0 made payable to the U.S. Treasury re uired . (If the fee is determined on the basis of treating Transferred Assets as a separate plan, pursuant to section 12.07 of Rev. Proc. 2008-50, please enclose a description of the related employer transaction, including the date of the employer transaction and the date the assets were transferred to the plan.) ^ A written request if the application is made for a terminating Orphan Plan and the Applicant is applying for a waiver of the VCP fee. ^/ Power of Attorney (Form 2848) or Tax Information Authorization (Form 8821), if applicable. ® If the plan is being considered for an unrelated determination letter application, a statement to that effect. /^ Appendix E (optional) ^/ Completed Appendix F schedule(s). (Check the schedules that apply) ^ Schedule 1 -Interim and Certain Discretionary Nonamender Failures ^/ Schedule 2 -Nonamender Failures (other than those to which Schedule 1 applies) ^ Schedule 3 - SEPs and SARSEPs ^ Schedule 4 - SIlVIPLE 1RAs ^ Schedule 5 -Plan Loan Failures ^ Schedule 6 -Employer Eligibility Failure ^ Schedule 7 -Failure to Distribute Elective Deferrals in Excess of the § 402(g) Limit ^ Schedule 8 -Failure to Pay Required Minimum Distributions Timely under § 401(a)(9) ^ Schedule 9 -Correction by Plan Amendment (in accordance with Appendix B) /^ Information required by each schedule, as set forth in each applicable Part entitled "Enclosures:'. 2 PART III. APPLICANT'S REPRESENTATIONS A. Under Examination To the best of my knowledge: 1) The subject plan is not currently under examination of either an Employee Plans Form 5500 series return or other Employee Plans examination, 2) The Plan Sponsor is not under an Exempt Organizations examination (that is, an examination of a Form 990 series return or other Exempt Organizations examination), 3) Neither the Plan Sponsor nor any of its representatives has received verbal or written notification from the Tax Exempt and Government Entities Division of the Internal Revenue Service ("Service") of an impending examination or of any impending referral for such examination nor is the plan in Appeals or litigation for any issues raised in such an examination, and 4) T'he subject plan is not currently under investigation by the Criminal Investigation Division of the Internal Revenue Service. B. Abusive tax avoidance transaction (check box that applies) /~~ Neither the plan nor the Plan Sponsor has been a party to an abusive tax avoidance transaction as defined in section 4.13(2) of Rev. Proc. 2008-50. ^ The plan or the Plan Sponsor has been a party to an abusive tax avoidance transaction. Details of the transaction(s) are provided in a separate statement which has been included with the submission. C. Compliance Fee The Applicant will neither attempt to amortize, deduct, or recover from the Internal Revenue Service any compliance fee paid in connection with this compliance statement nor receive any Federal tax benefit on account of payment of such compliance fee. D. Penalties of Perlurv Under penalties of perjury, I declare that I have examined this submission, including accompanying documents and representations. To the best of my knowledge and belief, the facts and information presented in support of this submission are true, correct, and complete. Signed: ~ Date: "7• ~•©~ ~, ~ Name (printed): ~eCk. ,~- ~ Title: l ~ L`~, PART IV: ENFORCEMENT RESOLUTION (to be completed by IIt5 only) The Internal Revenue Service will not pursue the sanction of revoking the tax-favored status of the plan under §§ 401(a), 403(6), 408(k), or 408(p) of the Internal Revenue Code on account of the failure(s) described in the schedules submitted pursuant to this Appendix. F. This compliance statement considers only the acceptability of the correction method(s) and the revision(s) of administrative procedures described in the schedules submitted pursuant to this Appendix F submission and does not express an opinion as to the accuracy or acceptability of any calculations or other material submitted with the application. In no event may this compliance statement be relied on for the purpose of concluding that the plan or Plan Sponsor (as defined in Rev. Proc. 2008-50) was not a party to 3 an abusive tax avoidance transaction. The compliance statement should not be construed as affecting the rights of any party under any other law, including Title I ofthe Employee Retirement Income Security Act of 1974. This compliance statement is conditioned on (1) there being no misstatement or omission of material facts in connection with the submission and (2) the completion of all corrections described in the applicable schedule(s) to this Appendix F submission within one hundred fifty (] 50) days of the date of the compliance statement. In addition: (paragraph applies only if checked by the Service) ^ For failure(s) described in Schedule 1 of Appendix F, the Service will treat the amendments as if they had been adopted timely for the purpose of making available the extended remedial amendment period set forth in Revenue Procedure 2007-44, 2007-28 I.R.B. 54, or its successors. However, this compliance statement does not constitute a determination as to whether any such plan amendment, as drafted, complies with the applicable change in qualification requirements. ^ For failure(s) described in Schedule 3 of Appendix F, the Service will not pursue the following: ® Excise tax under § 4972. ^ Excise tax under § 4979. ^ For failure(s) described in Schedule 4 of Appendix F, the Service wil] not pursue excise tax under § 4972. ^ For loan failure(s) described in section of Schedule 5 of Appendix F, the Service will not require the deemed distributions to be reported on Form 1099-R with respect to the participant(s) affected by the failure(s). The repayments made pursuant to the correction of such loan(s) will not result in an affected participant having additional basis in the plan for the purpose of determining the tax treatment of subsequent distributions from the plan to such participant(s). For loan failure(s) described in section of Schedule 5 of Appendix F, the Service will require the deemed distributions to be reported on Form 1099-R with respect to the participant(s) affected by the failure(s). However, the plan will be permitted to report deemed distributions on Form 1099-R in the year of correction instead of the year of the failure. ^ For minimum distribution failure(s) described in Schedule 8 of Appendix F, the Service will waive the excise tax under § 4974. Approved: Date: Joyce Kahn, Manager Emplo j~ee Plans Voluntary Compliance Tax Exempt and Government Entities Division 4 APPENDIX F, SCHEDULE 1 Interim and Certain Discretionary Nonamender Failures Village of Tequesta General Employees' EIN. 59-6044081 plan #• 001 Plan Name: Pension Trust (Please include the plan name, EIN, and plan number information on each page of the submission.) • PART I. IDENTIFICATION OF FAILURES A. Interim Amendments The plan identified above was not amended timely for (check all failures that apply) ,U/f Good faith amendments under the Economic Growth and Tax Relief Reconciliation Act of 200] ("EGTRRA") required under Notice 2001-42 (for details see Notice 2001-57). If the Plan Sponsor failed to timely adopt one or more good faith amendments required for the plan to comply with EGTRRA, then check the box on the left and check the applicable amendments below: ® The increased limit on annual additions under § 415(c) (applies to defined contribution plans that do not incorporate § 415(c) by reference) ^ Modification of top heavy rules under § 416 (applies to both defined benefit and defined contribution plans) ^ Vesting requirements for employer matching contributions under § 411 (applies to plans that provided for employer matching contributions that do not vest as rapidly as any of the schedules provided for under § 4] 1(a)(12)) Modification of rules relating to eligible rollover distributions under §§ 401(a)(31)(A), 401(a)(31)(C), 402(c)(4), and 402(c)(8) (applies to both defined benefit and defined contribution plans) ® Repeal of the multiple use test under Treasury Regulations § 1.401 (m)-2 (applies to § 401(k) plans that were formerly subject to the multiple use test} ® Suspension period following hardship distribution (required for plans subject to the safe harbor requirements of § 401(k)(12) or § 401(m)(11)) ^ Plan provisions prohibiting loans to any owner-employee or shareholder-employee (required for plans that provide loans to participants but prohibit the making of loans to owner-employees or Subchapter Sshareholder-employees) ^/ The automatic rollover provision under § 401(a)(3l)(B), as described in Notice 2005-5 (applies to both defined benefit and defined contribution plans) ^/ The final and temporary regulations under § 401(a)(9) (interim amendment required for defined contribution plans; defined benefit plans have until the end of the extended EGTRRA remedial amendment period to amend. See Rev. Procs. 2002-29 and 2003-]0. /^ Guidance relating to the prescribed mortality table under § 415(b)(2}(E)(v) or the applicable mortality table under § 417(e)(3)(A)(ii)(I), as described in Rev. Rul. 2001-62 (applies to defined benefit plans.) ^ Interim amendments, as described in Rev. Proc. 2007-44 or its successors. If the plan failed to adopt one or more amendments required for the plan to comply with a law change, then check the box on the left and check the applicable amendments below: ® Final §§ 40l(k) and 401(m) regulations (plans with 401(k) and 401(m) provisions must comply with the regulations for plan years beginning on or after January 1, 2006) ^ Prohibited allocation of securities in an ESOP maintained by a S-Corp, pursuant to § 409(p) ^ Retroactive annuity starting date provisions pursuant to Treasury Regulations § 1.417(e)-1 (required for plans that provide for retroactive annuity starting dates) ® Final regulations regarding low normal retirement age (§ (1.401(a)-1(b)(2)) ^ Amendments to § 1.4] I (d)-3 of the final regulations ^ Final regulations under § 415 ^ Other (i.e., any other interim amendment that complies with the requirements in Rev. Proc. 2007-44 or its successors). Please list: B. Implementation of Applicable Optional Law Changes (defined in section 6.05(3) ofRev. Proc. 2008-50) The plan identified above was not amended timely for (check all failures that apply): /^ Optional good faith EGTRRA amendments under Notice 200 ] -42 (for details, see Notice 2001-57). If the Plan Sponsor implemented any of the optional law changes and failed to adopt good faith amendments timely to conform the plan to its operation, then check the box on the left and check the applicable amendments below: /^ Increasing the limit on compensation (under § 401(a)(17)) that is taken into account for the purpose of determining allocations in a defined contribution plan or benefits in a defined benefit plan. ^ Disregarding amounts attributable to rollovers in determining the value of an employee's vested accrued benefit subject to involuntary distribution pursuantto § 411(x)(] 1)(D) ^ Increasing the contribution limit for elective deferrals on account of the increased limitation under § 402(8) or, in the case of a S1IVIPLE 401(k) plan, § 408(p)(2) ^ Adding types of rollovers accepted by the plan pursuant to EGTRRA §§ 641, 642, and 643 (available for rollovers accepted after December 31, 2001) ^ Providing for catch-up contributions pursuantto § 414(v) ^ Adding "severance from employment" as a distributable event pursuant to §§ 401(k)(2) and 401(k)(10) /^ Increasing the limit on a participant's benefit pursuant to § 415(b) ^ Final §§ 401(k) and 401(m) regulations (optional for plan years beginning before January 1,2006, the earliest possible plan year in which regulations could be effective: plan year ending after December 29, 2004) ^ Permitting participants to designate elective deferrals as Roth contributions pursuantto § 402A 2 ^ Permitting deemed individual retirement accounts pursuant to § 408(q) ^ Final regulations under § 409(p) regarding ESOPs holding S-Corp stock ^ Other amendments relating to implementation of optional law changes, Please list: PART II. DESCRIPTION OF METHOD OF CORRECTION The Plan Sponsor has adopted amendments that satisfy the requirements of all of the items checked in Part I of this Appendix F, Schedule 1 retroactively to the effective dates of the specific provisions contained in the amendments. The executed amendments have been enclosed with this submission. PART HI. CHANGE IN ADMINISTRATNE PROCEDURES The Applicant has taken the following step(s) to ensure that the failure(s) will not recur: The Plan will be more aware of the IRS Amendments through attendance at annual public pension '.conferences and review of IRS materials. The Fund has hired legal counsel now who will take steps to ',ensure compliance with future IRC changes. PART IV. ENCLOSURES In addition to the applicable enclosures listed on Appendix F, the Plan Sponsor encloses copies of the signed and dated amendments used to correct the failure(s) identified in Part I of this Appendix F, Schedule I. 3 x ~~ • Working Restatement and GUST amendments-January 29, 2009 as amended July 6, 2009 EXHIBIT "A" VILLAGE OF TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND Section 1. Creation of Pension Trust Fund. The Village of Tequesta General Employees' Pension Trust Fund for the purpose of providing retirement, death and disability benefits to members of the Fund, certain former general employees and survivor benefits to beneficiaries. Section 2. Definitions. 1. Statement of Definitions. 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. Actuarial Equivalent means a benefit or amount of equal value, based upon the 1983 Group Annuity mortality table ' ,and an 8% rate of interest. For distributions after December 31, 1995 for purposes of Code Section 415+L), the mortality table is the table used under Code Section 417 as prescribed by the Secretary ofthe Treasury in Rev. Ruling 95-6. Average Final Compensation shall mean one-twelfth (1/12) of the average salary of the five (5) hi hest best years of the last ten (10) years of credited service prior to retirement, termination, or death, or the career average as a full time General Employee, 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 or Board of Trustees, means a member of the General Employee Board of Trustees, which shall administer and manage the System herein provided and serve as Trustees of the Fund for the,benefit of beneficiaries of the general employees. Code means the Internal Revenue Code of 1986, as amended from time to time. Working Restatement and GUST amendments-January 29, 2009 as amended July 6, 2009 Credited Service means the total number of years and fractional parts of years of service as a General Employee who makes member contributions to the Plan, omitting intervening years or fractional parts of years when such General Employee was not 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 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 with three percent (3%} interest. The years or fractional parts of years that a General Employee serves in the military service of the Armed Forces of the United States or the United States Merchant Marine, voluntarily or involuntarily, 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 General Employee returns 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 General Employee deposits into the Fund the same sum that the Member would have contributed if he/she had remained a General Employee, 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, in accordance with Code Section 414(u). C. The maximum credit for military service shall be five (5} years. Effective Date means the date on which this Ordinance becomes effective. Fund means the Trust Fund established herein as part of the System, forthe benefit of General Employees. General Employee means an actively employed full-time person employed by the Village of Tequesta, including his/her initial probationary employment period, excluding certified Firefighters and certified Police Officers. General Employee Board means the board of trustees provided hereunder to administer and manage the funds for the benefit of the General Employees. Member means an actively employed General Employee that fulfills the applicable prescribed participation requirements. 2 Working Restatement and GUST amendments-January 29, 2009 as amended July 6, 2009 One hundred and twenty monthly pa, ments guaranteed means benefits are payable for the life of a retiree with a guarantee of 120 monthly payments. Should a member die before 120 monthly payments (10 years) are made, then the remainder of the 120 monthly payments will be paid to a beneficiary. Should, a member receive more than 120 monthly payments, then no benefit is payable to a beneficiary. Plan Year means the 12 month period beginning October 1 of each year and ending the following September 30. Salary or Compensation means base wages to include regular earnings, vacation pay, sick pay, plus all tax deferred items of income, excluding lump sum payments, overtime, bonuses and longevity bonus. The amount of compensation taken into account under the System may not exceed $200,000. This amount is subject to adjustment as provided for in Code Section 401Lai(17) and Section 16 subsection 3 of this Plan. Souse means the lawful wife or husband of a plan member at the time of pre- retirement, death or retirement. Statement of Investment Policv means the written investment policy adopted by the Boards pursuant to this Ordinance and F.S. 112.661, et seq., which shall apply to funds under the control of the board. S stem means the Village of Tequesta General Employees' Pension Trust Fund as contained herein and all amendments thereto. Vested deferred retirement means a Member who leaves the employ of the Village with 6 or more years of credited service and who is not eligible for any retirement benefit. This benefit is payable at early or normal retirement. 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 3. Membership. Condition of Eligibility All full time General Employees as of the effective date, and all future new full time General Employees shall become Members of this System as a condition of employment. 3 Working Restatement and GUST amendments-January 29, 2009 as amended Jufy 6, 2009 2. Membership Each full time General 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/her designated beneficiary by written notice to the Board upon forms provided by the Board. Upon such change, the rights of all previously designated beneficiaries to receive any benefits under the System shall cease. Section 4. Board of Trustees. 1. The sole and exclusive administration of and responsibility for the proper operation of the retirement system and for making effective the provisions of this ordinance is hereby vested in a Board of Trustees. The Board shall consist of five {5) Trustees, two (2) of whom, unless otherwise prohibited bylaw, shall be legal residents of the municipality, who shall be appointed by the Tequesta Village Council, and two (2) of whom shall be full- time General Employee members of the System, however, in the event that either full time General Employee position remains vacant for three months or more, then the position can be filled by a legal resident of the Village of Tequesta elected by the General Employee Members of the System in accordance with the election rules established by the Board for one term. At the end of the term the position will be posted to again be filled by a full time General Employee. The fifth (5"') Trustee shall be selected by a majority vote of the other four (4) Trustees. Each person seeking to fill a designated employee representative Board member seat shall be elected by the full-time General Employee Members of the System. Upon receipt of the fifth (5th) person's name the Tequesta General Council shall, as a ministerial duty, appoint such person to the General Employee Board as its fifth (5th) Trustee. The fifth (5th) Trustee shall have the same rights as each of the other 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 or herself in office. Each resident Trustee shall serve as Trustee for a period of two (2) years unless sooner replaced by the Tequesta Village 4 Working Restatement and GUST amendments-January 29, 2009 as amended July 6, 2009 Council at whose pleasure the Trustee shall serve, and may succeed himself or herself as a Trustee. Each General Employee Trustee shall serve as Trustee for a period of two (2) years, unless he/she sooner leave the employment of the Village or otherwise vacates his/her office as Trustee, whereupon a successor shall be chosen in the manner as the departing Trustee. Each employee representative Trustee may succeed himself or herself in office. The General Employee Board shall meet at least quarterly each year. The Board shall be a legal entity with, in addition to other powers and responsibilities contained herein, the power to bring and defend lawsuits of every kind, nature, and description. 2. The Board shall, by majority vote, elect a chairman and 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. 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. Three (3) 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 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 to administer and manage the fund 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. D. To establish uniform rules and procedures to be followed for administrative purposes, benefit applications and all matters required to administer the System. 5 Working Restatement and GUST amendments-January 29, 2009 as amended July 6, 2009 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 whatsoeverfrom the Fund, and to notify the disbursing agent in writing of approved pension payments and other expenditures arising through operation of the System and the 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 and all changes in the provisions of the System. Ensure compliance with Article X, Section 14, 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 ensure the funds and assets for the benefit of the employee groups they serve are segregated and separated from the funds and assets under the control of the Board. L. To perform such other duties as are specified in this Ordinance. M. To adopt and be guided by Statements of Investment Policy applicable to all funds under the control of the General Employee Board of Trustees as required from time to time by F.S. 112.661, et seq., and/or its successor statutes. Section 5. Finance And Fund Management. Establishment and Operation of Fund. 1. As part of the System, there is hereby established a Fund, into which shall be deposited all of the contributions and assets whatsoever attributable to the System, for the benefit of General Employees. 6 Working Restatement and GUST amendments-January 29, 2009 as amended July 6, 2009 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 Village on the Board's agreement, but only upon written authorization from the Board. 3. All funds and securities of the 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 that 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 separate funds by the Treasurer or clearly identified as such funds and securities of the General Employee Trust Fund. In lieu thereof, the Board of Trustees shall deposit the funds and securities of the Fund in a qualified public depository or depositories as defined in Section 280.02, Florida Statutes, which depository or depositories 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 or banks, an investment advisor or advisors registered under Investment Advisors Act of 1940, registered broker dealer or otherwise exempt from such required registration, an insurance company, or a combination of these, for the purposes of investment decisions and management. Such investment manager or managers shall have discretion, subject to any guidelines as prescribed by the Board, in the investment of all fund assets. 4. Accurate records shall be maintained at all times reflecting the market valuations of funds and assets of the Fund, 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. 7 Working Restatement and GUST amendments-January 29, 2009 as amended July 6, 2009 5. An independent audit shall be performed annually by a certified public accountant for the most recent fiscal year of the Village showing a detailed listing of assets and a statement of all income and disbursements during the year for each Fund. Such income and disbursements must be reconciled with the assets at the beginning and end of the year. Such report shall reflect complete evaluations 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 fallowing investment powers and authority: A. The Board of Trustees shall be vested with full legal title to the 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 the 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 in the Fund and administered by the Board or its Agents. B. All moneys paid into or to be held by the 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 {ife 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 the Plan and pay the initial and subsequent premium thereon. (2) Time or savings accounts of a national bank, a state bank insured by the Bank Insurance Fund, or a savings and loan association insured by the Savings Association Insurance Fund which is administered by the Federal Deposit Insurance Corporation or a state or federal chartered credit union whose share accounts are insured by the National Credit Union Share Insurance Fund. (3) Obligations of the United States or obligations guaranteed as to principal and interest by the government of the United States. 8 Working Restatement and GUST amendments-January 29, 2009 as amended July 6, 2009 (4) 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, or registered investment company pursuant to the Investment Advisors-Act of 1940, 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 in the case of bonds only holds a rating in one of the four highest classifications by a major rating service, and if such investments are made in a n~^'^ ~' fund administered by a state or nat~~^^~ '~,,;;,c, then the rating of each issue in the ~- ~,;,~o rand shall hold a rating within the .~N _. _. _ 'i) rating classifications of a major rating service. (5) Real estate. (6) All monies paid into or held in the Pension Fund shall be invested and reinvested by the Board of Trustees and 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. (7) Up to 10% of the Plan assets may be invested in foreign securities. 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 sixty percent (60%) 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 they 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 tohis/her or its own negligence, willful misconduct or lack of good faith. 9 Working Restatement and GUST amendments-January 29, 2009 as amended July 6, 2009 F. The Board may cause any investment in securities held to be registered in or transferred into their name as Trustee or into the name of such nominee as they may direct, or they 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 to vote upon any stocks, bonds or securities of any corporation, association, ortrust and to give general or specific proxies or powers of attorney with or without power of substitution; to participate in mergers, reorganizations, recapitalization, consolidations and similartransactions with respectto 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 designated 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 the best interest of the Fund to exercise. This power may be delegated to an agent by the Board of Trustees. H. The Board shall not be required to make any inventory or appraisal or report to any court, nor secure any order of court for the exercise of any power contained herein. Where any action which a Board is required to take on 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 a 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 member's payments next succeeding the correction. Underpayments shall be made up from the Trust Fund. K. A Board shall sustain no liability whatsoever for the sufficiency of a Fund to meet the payments and benefits herein provided. 10 Working Restatement and GUST amendments-January 29, 2009 as amended July 6, 2009 L. Any of the foregoing powers and functions 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 a Fund shall always remain in the Board of Trustees. M. A 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. N. The Village shall maintain Fiduciary Liability insurance to cover the members of the Board of Trustees. Section 6. Contributions. 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 immediately afterthewithholding of such contributions. The contributions made by each Member to the Fund shall be designed as employer contributions pursuant to Section 414(h)~ of the Code. 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. B. Method. Such contributions shall be made by payroll deduction. 2. Village Contributions So long as this System is in effect, the Village shall make contributions at least quarterly to the Trust Fund in an amount equal to the normal cost and the amount required to fund any actuarial deficiency shown by an actuarial valuation as provided in Part VII of Chapter 112, Florida Statutes. . 11 Working Restatement and GUST amendments-January 29, 2009 as amended July 6, 2009 3. 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 shall be reserved exclusively used--efl+q-for additional benefits for Members, and shall be reserved to be spent for the additional benefits as determined by the Board when specifically provided for by this plan document, and may not be used to reduce what would have otherwise been required by Village contri"~Uzio~ ~ . Section 7. Benefit Amounts and Eli ibili Normal Retirement Date. A Member's normal retirement date shall be the first day of the month coincident with, or next following the earlier of: 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/her normal retirement date or on the first day of any month thereafter, and each Member shall become 100% vested in his/her 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 General Employee, on or after the normal retirement date. 2. Normal Retirement Benefit. A Member retiring hereunder on or after his/her normal retirement date shall receive a monthly benefit which shall commence on his/her Retirement Date and be continued thereafter during the Member's lifetime, ceasing upon death, but with one hundred twenty (120) monthly payments guaranteed in any event. Benefits are payable for the life of a retiree with a guarantee of 120 monthly payments. Should a member die before 120 monthly payments (10 years) are made, then the remainder of the 120 monthly payments will be paid to a beneficiary. Should a member receive more than 120 monthly payments, then no benefit is payable to a beneficiary. The monthly retirement benefit shall equal 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 12 Working Restatement and GUST amendments-January 29, 2009 as amended July 6, 2009 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 six (6) 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 retirement benefit payable for life, but with one hundred twenty (120) monthly payments guaranteed in any event, 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 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/her 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 of credited service as at the time his/her benefit commence and based on his/her average final compensation at that date. In no event shall the early retirement reduction exceed five percent (5%) each year by which the commencement of benefits precedes the Member's normal retirement date. Section 8. Pre-retirement Death. 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 9. Disability. Disability Benefits On-Duty 13 Working Restatement and GUST amendments-January 29, 2009 as amended July 6, 2009 Each full time employee who is a participant in the Pension Fund System and who becomes 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 General Employee, which disability was directly caused by the performance of his/her duty as a General Employee shall upon establishing the same to the satisfaction of the Board, be entitled to the greater of A or B: A. If the injury or disease is service connected, the employee shall be entitled to the greater of (1) or (2): (1) a monthly pension equal to 42% of his/her average monthly compensation as of his/her disability retirement date, or (2) an amount equal to the number of years of his/her credited service multiplied by 2% of his/her average monthly salary based upon his/her final 5 years of service. 2. Disability Benefits Off-Duty Every General Employee who has six years of credited service, is a participant in the Pension Fund System and 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 General Employee which disability is not directly caused by the performance of his/her duties as a General Employee shall be entitled to the greater of A or B: A. a monthly pension equal to 25% of his/her average monthly compensation based upon his/her final 5 years of service, or B. An amount equal to the number of years of his/her credited service multiplied by 2% of his/her average monthly salary based upon his/her final 5 years of service. 3. Conditions Disqualifying Disability Benefits Each 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. 14 Working Restatement and GUST amendments-January 29, 2009 as amended July 6, 2009 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 General Employee with the Village of Tequesta. F. Willful, wanton or gross negligence of the Member. G. Injury or disease sustained by General Employee while working for anyone other than the Village of Tequesta and arising out of such employment. H. Injury or disease sustained by the member before employment with the Village begins. This subparagraph applies only in the event of a duty injury or disease. 4. Physical Examination Requirement An employee 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 benefit under provisions ofthis 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 General Employee the Board shall recommend to the Village that the retiree be returned to their previous performance of duty as a 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 tohis/her pension. 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 15 Working Restatement and GUST amendments-January 29, 2009 as amended July 6, 2009 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. DisabilitX 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: A. If the plan member recovers from the disability or attains 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 the disability prior to his/her normal retirement date while still disabled, the payment due next preceding his/her death orthe 120th monthly payment, whichever is later. Section 10. Vesting. If a Member terminates his/her employment with the Village of Tequesta, either voluntarily or by discharge, and is not eligible for any other benefits underthis System, the Member shall be entitled to the following: 1. If the Member has less than six (6) years credited service and has not attained the age of sixty-two (62) upon termination, the Member shall be entitled to a refund of accumulated contribution plus three percent (3%) interest or the Member may leave it deposited with the Fund, in accordance with the definition of credited service. 2. If the Member has six (6) 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 the Member's otherwise normal or early retirement date, provided he/she 16 Working Restatement and GUST amendments-January 29, 2009 as amended July 6, 2009 does not elect to withdraw his/her accumulated contributions plus three percent (3%) interest and provided the 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 plus three percent (3%) interest 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. 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%, 76%, 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. 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 the 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 joint pensioner or beneficiary and the Member's retirement income benefits have commenced, the Member may thereafter change his/her designated joint pensioner 17 Working Restatement and GUST amendments-January 29, 2009 as amended July 6, 2009 or beneficiary, but only if the Board of Trustees consents to change and if the joint pensioner or beneficiary, but only if the Board. of Trustees consents to change and if the joint pensioner last previously designated by the 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 joint pensioner that is being removed as it may require and the amount of the retirement income payable to the Retiree 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 Retiree. 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. 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 tohis/her retirement shall be paid as provided in Section 12. 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 occurs, no retirement benefit will be payable under the option to any person, but the benefits, if any, will be determined under Section 8. B. If the designated beneficiary (ar beneficiaries) or joint pensioner dies before the Member's retirement underthe 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 priortohis/her retirement and within ninety (90) days after the death of the beneficiary. C. If both the retired Member and the beneficiary (or beneficiaries) designated by the 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 18 Working Restatement and GUST amendments-January 29, 2009 as amended July 6, 2009 value of the remaining payments be paid in a lump sum and in accordance with Section 12. D. If a Member continues beyond his/her normal retirement date pursuant to the provisions of Section 7, 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. The Member may not change his/her retirement option after the date of cashing or depositing his/her first retirement check. Section 12. 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 shall 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 13. Claims Procedures Before the Board Decision. If any Member of the System has been: A. Placed on pension under the terms and provisions of this ordinance for disability, or 19 Working Restatement and GUST amendments-January 29, 2009 as amended July 6, 2009 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 receiving, or believes that he should be entitled to benefits under the Plan, the Member may, in writing, request the Board to review his/her 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. 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 fo the claim was originally recommended, and any otherdocuments 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. 20 Working Restatement and GUST amendments-January 29, 2009 as amended July 6, 2009 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 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 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 21 Working Restatement and GUST amendments-January 29, 2009 as amended July 6, 2009 to draw his/her entitlement to a pension, disability pension, or increased pension benefits. 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 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 General Employees employed by the Municipality who are Members of the plan 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 forthe purposes contained herein, togetherwith such other professional, technical, or other advisors as the Board deems necessary. Section 16. Maximum Pension. 1. 415(b) internal Revenue Code Limits A. Basic Limitations. Subject to the adjustments in paragraph C, the maximum amount of the actual annual retirement income paid in any year with respect to a Participant under this Plan attributable to employer provided benefits shall not exceed the dollar amount allowable for any calendar year pursuant to §415~b~ of the 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 §415(d) of the Code. For purposes of applying the basic 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 22 Working Restatement and GUST amendments-January 29, 2009 as amended July 6, 2009 of a straight life annuity. For purposes of this subsection Article, 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 §415(b)(2) of the Code and Treasury Regulations thereunder to be taken into account for purposes of the limitation of §415(b)(1) of the Code. B. Participation in Other Defined Benefit Plans. The limitation of this subsection with resQect to any Participant who at any time has been a Participant in any other defined benefit plan (as defined in §414(j,) of the Coded maintained by the Village shall apply as if the total benefits payable under all defined benefit plans in which the Participant has been a Participant where payable from one Plan. C. Adjustments in Limitations. (1) In the event the Participant's retirement benefits become payable before age sixty-iwo (62). the maximum amount of annual retirement income limitation prescribed by this Article shall be reduced in accordance with ReQUlations issued by the Secretary of the Treasury pursuant to the provisions of §415(b) of the Code, so that such limitation (as reduced) equals an annual benefit (beginning when such retirement income begins) which is equivalent to the Code §415(b) maximum amount of annual retirement income beginning atage 62. This limitation shall notapply to Qualified police or firefighters as that term is defined in Code Section 415(b)(2)(G). (2) In the event the Participant's retirement benefit becomes payable after age sixty-five (65), for purposes of determining whetherthis benefitmeets the basic limitation set forth in paragraph 1 herein, such benefit shall be adjusted so that it is actuarially equivalent to the benefit beginning_at age sixty-five X65). 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. L) The reductions provided for in subparagraph (a) above shall not be applicable to disability benefits or pre- retirementdeath benefits. 23 Working Restatement and GUST amendments-January 29, 2009 as amended July 6, 2009 (4) Less than Ten (10) Years of Service. The maxim_ _um retirement benefits payable under this Article to any Participant who has completed less than ten (10) years of Credited Service with the City shall be the amount determined under paragraph 1 multiplied by a fraction, the numerator of which is the number of the Participant's years of Credited Service and the denominator of which is ten (10). The reduction provided for in this subparagraph shall not be applicable to disability benefits or pre- retirement death benefits. ~5) Ten Thousand Dollar $10,000 Limit. Notwithstanding the foregoing, the retirement benefit payable with respect to a Participant shall be deemed not to exceed the limitations in this subsection if the benefits payable, with respect to such Participant under this Plan and under all other qualified defined benefit pension plans to which the City contributes, do not exceed ten thousand dollars ($10,000) for the applicable Plan year and for any prior Plan Year and the City has not at any time maintained a qualified defined contributions plan in which the Participant participated. L6) Reduction of benefits. Reduction of benefits and/or contributions to all plans, where required, shall be accomplished by first reducing the Participant's benefit under any defined benefit plans in which Participant participated, such reduction to be made first with respect to the plan in which Participant most recently accrued benefits and thereafter in such priority as shall be determined by the Board and the plan administratorr_ of such other plans, and next, by reducing or allocating excess forfeitures for defined contribution plans in which the Participant participated, such reduction to be made first with respect to the~lan in which Participant most recently accrued benefits and thereafter in such priority as shall be established by the Board and the plan administratorforsuchnther plans provided, however, that necessary reductions may be made in different manner and priority pursuant to the agreement of the Board and the plan administrator of all other plans coveringsuch Participant. (7) Cost-of-Living Adjustments. The limitations as stated herein shall be adjusted annually in accordance with any 24 Working Restatement and GUST amendments-January 29, 2009 as amended July 6, 2009 cost-of-living adjustments prescribed by the Secretary of the Treasury pursuant to §415(.d) of the Code. D. This section shall be effective for distributions after December 31, 2001. E. For purposes of applying the limitations of Code Section 415(bl, compensation includes base wages, regular earnings, vacation pay, sick pay plus all deferred items of income but excluding lump sum payments, overtime, bonuses, and longevity bonuses. This definition specifically includes the crediting of compensation while absent from service for military duty; such crediting shall to exceed the compensation thatwould have been credited under the System if System services had continued. F. Should the Code Section 414(hL2) Member contributions be in excess of the required contribution, then such contributions shall be disbursed as a corrective disbursement Qursuant to the requirements of Code Reg. §1.415-6(b)(6)(iv). 2. Additional Limitation on Pension Benefits. Notwithstanding anything herein to the contrary: A. The normal retirement benefit or pension 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/her 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. In all events, distributions shall be limited by the applicable provisions of Code Section 415~b) limits. B. No member of the Plan who is not now a member of 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 25 Working Restatement and GUST amendments-January 29, 2009 as amended July 6, 2009 does not apply to social security benefits or federal benefits under Chapter 67, Title 10, U.S. Code. 3. 401(a)117) Limitation on Compensation. For any person who first becomes a member in any plan year beginning on or after January 1, 1996, compensation for any plan year shall not include any amounts in excess of the Internal Revenue Code s. 4010(17) limitation (as amended by the Omnibus Budget Reconciliation Act of 1993), which limitation shall be adjusted as required by federal law for Qualified government plans and shall be further adjusted for changes in the cost of living in the manner provided by Internal Revenue Code s. 401(a)(17~B). For any person who first became a member prior to the first plan year beclinning_on or after January 1, 1996, the limitation on compensation shall be not less than the maximum compensation amount that was allowed to be taken into account under the plan as in effect on July 1, 1993, which limitation shall be adjusted for changes in the cost of living since 1989 in the manner provided by Internal Revenue Codes. 401(a)(17)(1991 ~. 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 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 the Section because the Trustees either cannot ascertain the amount of the Member's retirement income or cannot locate the Member after 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. 26 Working Restatement and GUST amendments-January 29, 2009 as amended July 6, 2009 Section 18. Distribution of Benefits. Notwithstanding any other provision of this Plan to the contrary, a form of retirPw vnt income payable from this Plan after the effective date of this ordinance shy" ;~e made in accordance with the requirements of Code Section 401(a1(9~..a lciuding the minimum distribution incidental benefit requirements of set#~o~~ 1.401(x1(91-2 Code Section 401(a)(9)(G) to 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'/z, or the calendar year in which the Member retires, B. the distribution shall commence to them not later than the calendar year defined above; and shall be paid over the life of the Member or over the lifetimes of the Member and spouse, fssae or dependent, or, shall be paid overthe period extending not beyond the. life expectancy. of the Member and spouse, issue or dependent. Where a form of retirement income paymerit 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, the Member's entire interest in the Plan shall be distributed within five (5) years of the 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/her 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~sstte-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 before the date on which the Member would have attained age 70% and if the 27 Working Restatement and GUST amendments-January 29, 2009 as amended July 6, 2009 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 Provision. 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. 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 to Members or Members beneficiaries. 3. Rollover Distributions. A. This subsection applies to distributions made on or after January 1, 1993. Notwithstanding any provision of the Plan to the contrary that would otherwise limit a distributee's election under this subsection, a distributee may elect, at the time and in the manner prescribed by the Board of Trustees, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover. B. Definitions. (1) "Eligible rollover distribution" is any distribution of all or any portion of the balance to the credit of the distributee, except that an eligible rollover does not include any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the distributee or distributee's designated beneficiary, or for a specified period of 10 years or more; any distribution to the extent such distribution is required under section 401(a)(9) of the Code; and the portion of any distribution that is not includible in gross income. (2) "Eligible retirement plan" is an individual retirement account described in section 408(a) of the Code, an individual retirement annuity described in section 408(b) of the Code, an annuity plan described in section 403(a) of the Code, or a qualified trust described in section 401(a) of the Code, that 28 Working Restatement and GUST amendments-January 29, 2009 as amended July 6, 2009 accepts the distributee's eligible rollover distribution. However, in the case of an eligible rollover distribution to the surviving spouse, an eligible retirement plan is an individual retirement account or individual retirement annuity. (3) "Distributee" includes an employee or former employee. In addition, the employee's or former employee's surviving spouse and the employee's or former employee's spouse who is entitled to payment for alimony and child support under a domestic relations order determined to be qualified by this Fund are distributees with regard to the interest of the spouse or former spouse. (4) "Direct rollover" is a payment by the Plan to the eligible retirement plan specified by the distributee. 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 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 benefitting 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 fo 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. to 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 contrbutions to the System are discontinued with the date of such discontinuation being determined by the Board. A. Apportionment shall first be made in respect of each retired General Employee receiving a retirement or disability benefit hereunder on 29 Working Restatement and GUST amendments-January 29, 2009 as amended July 6, 2009 such date, each person receiving a benefit on such date on account of a retired or disabled (but since deceased) 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 General Employee in service of the Village of Tequesta on such date who has completed at least six (6) 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 assetvalue 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. 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 General Employee in service of the 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 the accrued normal retirement benefit, less the amount apportioned in paragraph C, based on credited service and average monthly 30 Working Restatement and GUST amendments-January 29, 2009 as amended July 6, 2009 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 reduced 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. The allocation of the Fund provided for in this subsection may, as decided by the Board be carried out through the purchase 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. 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. However, pursuant to an income deduction order, the Trustees may direct that retirement benefits be paid for alimony or child support in accordance with rules and regulations adopted by the Board of Trustees. 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 and 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 prior or existing law been or who shall hereafter under this Ordinance be erroneously, improperly or illegally classified. 31 Working Restatement and GUST amendments-January 29, 2009 as amended July 6, 2009 Section 23. Forfeiture of Pension. Any Plan Member convicted of the following offenses committed prior to retirement, or whose employment is terminated by reason of his/her 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. 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 public agency, for which he acts or in which he is employed, of the right to receive the faithful performance of his/her 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 .person through use or attempted use of the power, rights, privileges, duties or position of his/her 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 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 jurisdiction to consider a proceeding involving the alleged commission 32 Working Restatement and GUST amendments-January 29, 2009 as amended July 6, 2009 of a specified offense. Prior 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/her case against forfeiture. Any Memberwho has received benefits from the System in excess of his/her 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/her accumulated 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 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: 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 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 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 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. H:\Tequesta GE 101211RS Determination Letter\Post SubmissionlGUST Amend.wpd 33 No Text Working Restatement and EGTRRAsmendments-January 29, 2009 as amended July 6, 2009 EXHIBIT "A" VILLAGE OF TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND Section 1. Creation of Pension Trust Fund. The Village of Tequesta General Employees' Pension Trust Fund for the purpose of providing retirement, death and disability benefits to members of the Fund, certain former general employees and survivor benefits to beneficiaries. This System is intended to be a tax qualified plan under Code Section 401 (a1 and meet the requirements__of a governmental plan as defined in Code Section 414(d). Section 2. Definitions. 1. Statement of Definitions. 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. Actuarial Equivalent means a benefit or amount of equal value, based upon 1983 Group Annuity Mortality table and an 8% rate of interest. For Plan Years beginning after December 31, 2002 for purposes of Code Section 415(b1, the mortality table is the table used under Code Section 417(e) as prescribed by the Secretary of the Treasury in Rev. Rul. 2001-62 95=6. Average Final Compensation shall mean one-twelfth (1/12) of the average salary of the five (5) highest years of the last ten (10) years of credited service prior to retirement, termination, or death, or the career average as a full time General Employee, 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 or Board of Trustees, means a member of the General Employee Board of Trustees, which shall administer and manage the System herein provided. and serve as Trustees of the Fund for the benefit of beneficiaries of the general employees. Code means the Internal Revenue Code of 1986, as amended from time to time. Working Restatement and EGTRRA amendments-January 29, 2009 as amended July 6, 2009 Credited Service means the total number of years and fractional parts of years of service as a General Employee who makes member contributions to the Plan, omitting intervening years or fractional parts of years when such General Employee was not 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 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 with three percent (3%) interest. The years or fractional parts of years that a General Employee serves in the military service of the Armed Forces of the United States or the United States Merchant Marine, voluntarily or involuntarily, 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 General Employee returns 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 General Employee deposits into the Fund the same sum that the Member would have contributed if he/she had remained a General Employee, 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 in accordance with Code Section 414(u). C. The maximum credit for military service shall be five (5) years. Effective Date means the date on which this Ordinance becomes effective. Fund means the Trust Fund established herein as part of the System, for the benefit of General Employees. General Employee means an actively employed full-time person employed by the Village of Tequesta, including his/her initial probationary employment period, excluding certified Firefighters and certified Police Officers. General Employee Board means the board of trustees provided hereunder to administer and manage the funds for the benefit of the General Employees. Member means an actively employed General Employee that fulfills the applicable prescribed participation requirements. 2 Working Restatement and EGTRRA amendments-January 29, 2009 as amended July 6, 2009 One hundred and twenty monthlypayments guaranteed means benefits are payable for the life of a retiree with a guarantee of 120 monthly payments. Should a member die before 120 monthly payments (10 years) are made, then the remainder of the 120 monthly payments will be paid to a beneficiary. Should a member receive more than 120 monthly payments; then no benefit is payable to a beneficiary. Plan Year means the 12 month period beginning October 1 of each year and ending the following September 30. Salary or Compensation me?. ~s base wages to include regular earnings, vacation pay, sick pay, plw~~ ua tax d~~~:~ec! items of income, excluding lump sum payments, overtime, bonuses and longevity bonus. The amount of compensation taken into account under the System may not exceed $200,000. This amount is subject to adjustment as provided for in Code Section 401(a)(17) and Section 16(3) of this Plan. Spouse means the lawful wife or husband of a plan member at the time of pre- retirement, death or retirement. Statement of Investment Policy means the written investment policy adopted by the Boards pursuant to this Ordinance and F.S. 112.661, et seq., which shall apply to funds under the control of the board. Svstem means the Village of Tequesta General Employees' Pension Trust Fund as contained herein and all amendments thereto. Vested deferred retirement means a Member who leaves the employ of the Village with 6 or more years of credited service and who is not eligible for any retirement benefit. This benefit is payable at early or normal retirement. 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 3. Membership. Condition of Eligibility All full time General Employees as of the effective date, and all future new full time General Employees shall become Members of this System as a condition of employment. 3 Working Restatement and EGTRRA amendments-January 29, 2009 as amended July 6, 2009 2. Membership Each full time General 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/her designated beneficiary by written notice to the Board upon forms provided by the Board. Upon such change, the rights of all previously designated beneficiaries to receive any benefits under the System shall cease. Section 4. Board of Trustees. 1. The sole and exclusive administration of and responsibility for the proper operation of the retirement system and for making effective the provisions of this ordinance is hereby vested in a Board of Trustees. The Board shall consist of five (5) Trustees, two (2) ofwhom, unless otherwise prohibited bylaw, shall be legal residents of the municipality, who shall be appointed by the Tequesta Village Council, and two (2) of whom shall be full- time General Employee members of the System, however, in the event that either full time General Employee position remains vacant forthree months or more, then the position can be filled by a legal resident of the Village of Tequesta elected by the General Employee Members of the System in accordance with the election rules established by the Board for one term. At the end of the term the position will be posted to again be filled by a full time General Employee. The fifth (5th) Trustee shall be selected by a majority vote of the other four (4) Trustees. Each person seeking to fill a designated employee representative Board member seat shall be elected by the full-time General Employee Members of the System. Upon receipt of the fifth (5th) person's name the Tequesta General Council shall, as a ministerial duty, appoint such person to the General Employee Board as its fifth (5th) Trustee. The fifth (5th) Trustee shall have the same rights as each of the other 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 or herself in office. Each resident Trustee shall serve as Trustee for a period of two (2) years unless sooner replaced by the Tequesta Village 4 Working Restatement and EGTRRA amendments-January 29, 2009 as amended Jufy 6, 2009 Council at whose pleasure the Trustee shall serve, and may succeed himself or herself as a Trustee. Each General Employee Trustee shall serve as Trustee for a period of two (2) years, unless he/she sooner leave the employment of the Village or otherwise vacates his/her office as Trustee, whereupon a successor shall be .chosen in the manner as the departing Trustee. Each employee representative Trustee may succeed himself or herself in office. The General Employee Board shall meet at least quarterly each year. The Board shall be a legal entity with, in addition to other powers and responsibilities contained herein, the power to bring and defend lawsuits of every kind, nature, and description. 2. The Board shall, by majority vote, elect a chairman and 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. 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. Three (3) 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 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 to administer and manage the fund 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. D. To establish uniform rules and procedures to be followed for administrative purposes, benefit applications and all matters required to administer the System. 5 Working Restatement and EGTRRA amendments-January 29, 2009 as amended July 6, 2009 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 whatsoeverfrom the Fund, and to notify the disbursing agent in writing of approved pension payments and other expenditures arising through operation of the System and the 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 and all changes in the provisions of the System. Ensure compliance with Article X, Section 14, 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 ensure the funds and assets for the benefit of the employee groups they serve are segregated and separated from the funds and assets under the control of the Board. L. To perform such other duties as are specified in this Ordinance. M. To adopt and be guided by Statements of Investment Policy applicable to all funds under the control of the General Employee Board of Trustees as required from time to time by F.S. 112.661, et seq., and/or its successor statutes. Section 5. Finance And Fund Management. Establishment and Operation of Fund. 1. As part of the System, there is hereby established a Fund, into which shall be deposited all of the contributions and assets whatsoever attributable to the System, for the benefit of General Employees. 6 Working Restatement and EGTRRAsmendments-January 29, 2009 as amended July 6, 2009 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 Village on the Board's agreement, but only upon written authorization from the Board. 3. All funds and securities of the 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 that 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 separate funds by the Treasurer or clearly identified as such funds and securities of the General Employee Trust Fund. In lieu thereof, the Board of Trustees shall deposit the funds and securities of the Fund in a qualified public depository or depositories as defined in Section 280.02, Florida Statutes, which depository or depositories with regard to such funds and securities shall conform to and be bound by all of the provisions of Chapter 280, Florida Statutes. In orderto fulfill its investment responsibilities as set forth herein, the Board may retain the services of a custodian bank or banks, an investment advisor or advisors registered under Investment Advisors Act of 1940, registered broker dealer or otherwise exempt from such required registration, an insurance company, or a combination of these, for the purposes of investment decisions and management. Such investment manager or managers shall have discretion, subject to any guidelines as prescribed by the Board, in the investment of all fund assets. 4. Accurate records shall be maintained at all times reflecting the market valuations of funds and assets of the Fund, 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. 7 Working Restatement and EGTRRA amendments-January 29, 2009 as amended July 6, 2009 5. An independent audit shall be performed annually by a certified public accountant for the most recent fiscal year of the Village showing a detailed listing of assets and a statement of all income and disbursements during the year for each Fund. Such income and disbursements must be reconciled with the assets at the beginning and end of the year. Such report shall reflect complete evaluations 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 fu11 legal title to the 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 the 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 in the Fund and administered by the Board or its Agents. B. All moneys paid into or to be held by the 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 the Plan and pay the initial and subsequent premium thereon. (2) Time or savings accounts of a national bank, a state bank insured by the Bank Insurance Fund, or a savings and loan association insured by the Savings Association Insurance Fund which is administered by the Federal Deposit Insurance Corporation or a state or federal chartered credit union whose share accounts are insured by the National Credit Union Share Insurance Fund. (3) Obligations of the United States or obligations guaranteed as to principal and interest by the government of the United States. 8 Working Restatement and EGTRRA amendments-January 29, 2009 as amended July 6, 2009 (4) 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, or registered investment company pursuant to the Investment Advisors Act of 1940, 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 in the case of bonds only holds a rating in one of the four 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. (5) Real estate. (6) All monies paid into or held in the Pension Fund shall be invested and reinvested by the Board of Trustees and 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. (7) Up to 10% of the Plan assets may be invested in foreign securities. 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 sixty percent (60%) 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 they 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 tohis/her or its own negligence, willful misconduct or lack of good faith. 9 Working Restatement and EGTRRA amendments-January 29, 2009 as amended July 6, 2009 F. The Board may cause any investment in securities held to be registered in or transferred into their name as Trustee or into the name of such nominee as they may direct, or they 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 to vote upon any stocks, bonds or securities of any corporation, association, or trust and to give general or specific proxies or powers of attorney with or without power of substitution; to participate in mergers, reorganizations, recapitalization, consolidations and similartransactions with respectto 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 designated 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 the best interest of the Fund to exercise. This power may be delegated to an agent by the Board of Trustees. H. The Board shall not be required to make any inven#ory or appraisal or report to any court, nor secure any order of court for the exercise of any power contained herein. Where any action which a Board is required to take on 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 a 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 member's payments next succeeding the correction. Underpayments shall be made up from the Trust Fund. K. A Board -shall sustain no liability whatsoever for the sufficiency of a Fund to meet the payments and benefits herein provided. 10 Working Restatement and EGTRRA amendments-January 29, 2009 as amended July 6, 2009 L. Any of the foregoing powers and functions 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 a Fund shall always remain in the Board of Trustees. M. A 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. N. The Village shall maintain Fiduciary Liability insurance to cover the members of the Board of Trustees. Section 6. 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 immediately afterthe withholding of such contributions. The contributions made by each Member to the Fund shall be designed as employer contributions pursuant to Section 414(h)(2) of the Code. 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. B. Method. Such contributions shall be made by payroll deduction. 2. Village Contributions So long as this System is in effect, the Village shall make contributions at least quarterly to the Trust Fund in an amount equal to the normal cost and the amount required to fund any actuarial deficiency shown by an actuarial valuation as provided in Part VII of Chapter 112, Florida Statutes. 11 Working Restatement and EGTRRAsmendments-January 29, 2009 as amended July 6, 2009 3. 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 shall be reserved exclusively for additional benefits for Members, and shall be reserved to be spent for the additional benefits as determined by the Board when specifically provided for by this plan document, and may not be used to reduce what would have otherwise been required by Village contributions. Section 7. Benefit Amounts and Eligibility. Normal Retirement Date. A Member's normal retirement date shall be the first day of the month coincident with, or next following the earlier of: 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/her normal retirement date or on the first day of any month thereafter, and each Member shall become 100% vested in his/her 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 General Employee, on or after the normal retirement date. 2. Normal Retirement Benefit. A Member retiring hereunder on or after his/her normal retirement date shall receive a monthly benefit which shall commence on his/her Retirement Date and be continued thereafter during the Member's lifetime, ceasing upon death, but with one hundred twenty (120) monthly payments guaranteed in any event. Benefits are payable for the life of a retiree with a guarantee of 120 monthly payments. Should a member die before 120 monthly payments (10 years) are made, then the remainder of the 120 monthly payments will be paid to a beneficiary. Should a member receive more than 120 monthly payments, then no benefit is payable to a beneficiary. The monthly retirement benefit shall equal 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 12 Working Restatement and EGTRRAsmendments-January 29, 2009 as amended July 6, 2009 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 six (6) 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 retirement benefit payable for fife, but with one hundred twenty (120) monthly payments guaranteed in any event, 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 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/her 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 of credited service as at the time his/her benefit commence and based on his/her average final compensation at that date. In no event shall the early retirement reduction exceed five percent (5%) each year by which the commencement of benefits precedes the Member's normal retirement date. Section 8. Pre-retirement Death. 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 9. Disability. Disability Benefits On-Duty 13 Working Restatement and EGTRRAsmendments-January 29, 2009 as amended July 6, 2009 Each full time employee who is a participant in the Pension Fund System and who becomes 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 General Employee, which disability was directly caused by the performance of his/her duty as a General Employee shall upon establishing the same to the satisfaction of the Board, be entitled to the greater of A or B: A. If the injury or disease is service connected, the employee shall be entitled to the greater of (1) or (2): (1) a monthly pension equal to 42% of his/her average monthly compensation as of his/her disability retirement date, or (2) an amount equal to the number of years of his/her credited service multiplied by 2% of his/her average monthly salary based upon his/her final 5 years of service. 2. Disabilit~Benefits Off-Duty Every General Employee who has six years of credited service, is a participant in the Pension Fund System and 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 General Employee which disability is not directly caused by the performance of his/her duties as a General Employee shall be entitled to the greater of A or B: A. a monthly pension equal to 25% of his/her average monthly compensation based upon his/her final 5 years of service, or B. An amount equal to the number of years of his/her credited service multiplied by 2% of his/her average monthly salary based upon his/her final 5 years of service. 3. Conditions Disqualifying Disability Benefits Each 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. 14 Working Restatement and EGTRRA amendments-January 29, 2009 as amended July 6, 2009 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 General Employee with the Village of Tequesta. F. Willful, wanton or gross negligence of the Member. G. Injury or disease sustained by General Employee while working for anyone other than the Village of Tequesta and arising out of such employment. H. Injury or disease sustained by the member before employment with the Village begins. This subparagraph applies only in the event of a duty injury or disease. 4. Physical Examination Requirement An employee 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 benefit 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 General Employee the Board shall recommend to the Village that the retiree be returned to their previous performance of duty as a 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 tohis/her pension. 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 15 Working Restatement and EGTRRA amendments-January 29, 2009 as amended July 6, 2009 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 togetherwith the first payment. The last payment will be: A. If the plan member recovers from the disability or attains 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 the disability prior to his/her normal retirement date while still disabled, the payment due next preceding his/her death orthe 120th monthly payment, whichever is later. Section 10. Vesting. If a Member terminates his/her 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: 1. If the Member has less than six (6) years credited service and has not attained the age of sixty-two (62) upon termination, the Member shall be entitled to a refund of accumulated contribution plus three percent (3%) interest or the Member may leave it deposited with the Fund, in accordance with the definition of credited service. 2. If the Member has six (6) 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 tohim/her commencing at the Member's otherwise normal or early retirement date, provided he/she 16 Working Restatement and EGTRRAsmendments-January 29, 2009 as amended July 6, 2009 does not elect to withdraw his/her accumulated contributions plus three percent (3%) interest and provided the 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 underthis System preserved, provided he does not elect to withdraw his/her accumulated contributions plus three percent (3%) interest 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. 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 wilt 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%, 76%, 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. 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 the 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 joint pensioner or beneficiary and the Member's retirement income benefits have commenced, the Member may thereafter change his/her designated joint pensioner 17 Working Restatement and EGTRRA amendments-January 29, 2009 as amended July 6, 2009 or beneficiary, but only if the Board of Trustees consents to change and if the joint pensioner or beneficiary, but only if the Board of Trustees consents to change and if the joint pensioner last previously designated by the 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 goo._ ; icaith of joint pensioner that is being removed as it may require and the am~~ ~^* ,_.r ~, is . cciremei it ;~ ,., - "- payable to the Retiree upon designat~~~ vF u ~-.~Y~ point pensioner shall be actuarially redetermined taking into ~,^^~~~' one age and sex of the former joint pensioner, the new joint pensioner, and the Retiree. 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. 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 12. 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 occurs, no retirement benefit will be payable under the option to any person, but the benefits, if any, will be determined under Section 8. B. If the designated beneficiary (or beneficiaries) or joint pensioner dies before the Member's retirement underthe 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 tohis/her retirement and within ninety (90) days after the death of the beneficiary. C. If both the retired Member and the beneficiary (or beneficiaries) designated by the 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 18 Working Restatement and EGTRRA amendments-January 29, 2009 as amended July 6, 2009 value of the remaining payments be paid in a lump sum and in accordance with Section 12. D. Ifa Membercontinues beyond his/her normal retirementdate pursuant to the provisions of Section 7, 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. The Member may not change his/her retirement option after the date of cashing or depositing his/her first retirement check. Section 12. 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 shall 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 13. Claims Procedures Before the Board Decision. If any Member of the System has been: A. Placed on pension under the terms and provisions of this ordinance for disability, or 19 Working Restatement and EG7RRA amendments-January 29, 2009 as amended July 6, 2009 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 receiving, or believes that he should be entitled to benefits under the Plan, the Member may, in writing, request the Board to review his/her 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. 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 fo the claim was originally recommended, and any otherdocuments 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. 20 Working Restatement and EGTRRAsmendments-January 29, 2009 as amended July 6, 2009 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 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 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 21 Working Restatement and EGTRRA amendments-January 29, 2009 as amended July 6, 2009 to draw his/her entitlement to a pension, disability pension, or increased pension benefits. 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 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 General Employees employed by the Municipality who are Members of the plan 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 forthe purposes contained herein, togetherwith such otherprofessional,technical, or other advisors as the Board deems necessary. Section 16. Maximum Pension. 415(b) Internal Revenue Code Limits A. Basic Limitations. Subject to the adjustments in paragraph C, the maximum amount of the actual annual retirement income paid in any year with respect to a Participant under this Plan attributable to employer provided benefits shall not exceed the dollar amount allowable for any calendar year pursuant to §415(b) of the 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 §415(d) of the Code. For purposes of applying the basic 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 straight life annuity. For purposes of this subsection Article, the following benefits shall not be taken into account: 22 Working Restatement and EGTRRA amendments-January 29, 2009 as amended July 6, 2009 (1) Any ancillary benefit which is not directly related to retirement income benefits; (2) Any other benefit not required under §415(b)(2) of the Code and Treasury Regulations thereunderto betaken into account for purposes of the limitation of§415(b)(1) of the Code. B. Participation in Other Defined Benefit Plans. The limitation of this subsection with respect to any Participant who at any time has been a Participant in any other defined benefit plan (as defined in §414Q) of the Code) maintained by the Village shall apply as if the total benefits payable under all defined benefit plans in which the Participant has been a Participant where payable from one Plan. C. Adjustments in Limitations. (1) In the event the Participant's retirement benefits become payable before age sixty-two (62), the maximum amount of annual retirement income limitation prescribed by this Article shall be reduced in accordance with Regulations issued by the Secretary of the Treasury pursuant to the provisions of §415(b) of the Code, so that such limitation (as reduced) equals an annual benefit (beginning when such retirement income begins) which is equivalent to the Code §415(b) maximum amount of annual retirement income beginning at age 62. This limitation shall not apply to qualified police or firefighters as that term is defined in Code Section 415(b)(2)(G). (2) In the event the Participant's retirement benefit becomes payable after age sixty-five (65}, for purposes of determining whether this benefit meets the basic limitation set forth in paragraph 1 herein, such benefit shall be adjusted so that it is actuarially equivalent to the benefit beginning at age sixty-five (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. (3) The reductions provided for in subparagraph (a) above shall not be applicable to disability benefits orpre-retirement death benefits. (4) Less than Ten (10) Years of Service. The maximum retirement benefits payable underthis Article to any Participant who has completed less than ten (10) years of Credited Service with the City shall be the amount determined under paragraph 1 multiplied by a fraction, the numerator of which is the number of the Participant's years of Credited Service and the denominator of which is ten (10}. The reduction provided 23 Working Restatement and EGTRRA amendments-January 29, 2009 as amended July 6, 2009 for in this subparagraph shall not be applicable to disability benefits or pre-retirement death benefits. (5) Ten Thousand Dollar $10,000 Limit. Notwithstanding the foregoing, the retirement benefit payable with respect to a Participant shall be deemed notto exceed the limitations iri fh,is subsection if the benefits payable, with respect t;- such Participant underthis Plan and underall otherqualif~~~ aefinea benefit pension plans to which the City car;, ~uutes, do not exceed ten thousand dollars (~~ ~,''~.;, ,ui one applicable Plan year and for anv ~^~""'a~ ~ Year and the City has not at any +,,,,° m-;: ,:,~;~,Cp a qualified defined contributions plan in which the Participant participated. (6) Reduction of benefits. Reduction of benefits and/or contributions to all plans, where required, shall be accomplished by first reducing the Participant's benefit under any defined benefit plans in which Participant participated, such reduction to be made first with respect to the plan in which Participant most recently accrued benefits and thereafter in such priority as shall be determined by the Board and the plan administrator of such other plans, and next, by reducing or allocating excess forfeitures for defined contribution plans in which the Participant participated, such reduction to be made first with respect to the plan in which Participant most recently accrued benefits and thereafter in such priority as shall be established by the Board and the plan administrator for such other plans provided, however, that necessary reductions may be made in different manner and priority pursuant to the agreement of the Board and the plan administrator of all other plans covering such Participant. (7) Cost-of-Living Adjustments. The limitations as stated herein shall be adjusted annually in accordance with any cost-of-living adjustments prescribed by the Secretary of the Treasury pursuant to §415(d) of the Code. D. This section shall be effective for distributions after December 31, 2001. E. For purposes of applying the limitations of Code Section 415(b), compensation includes base wages, regular earnings, vacation pay, sick pay plus all deferred items of income but excluding lump sum payments, overtime, bonuses, and longevity bonuses. This definition specifically includes the crediting of compensation while absent from service for military duty; such crediting shall to exceed the 24 Working Restatement and EGTRRA amendments-January 29, 2009 as amended July 6, 2009 compensation that would have been credited under the System if System services had continued. F. Should the Code Section 414(h)(2) Member contributions be in excess of the required contribution, then such contributions shall be disbursed as a corrective disbursement pursuant to the requirements of Code Reg. §1.415-6(b)(6)(iv). 2. Additional Limitation on Pension Benefits. Notwithstanding anything herein to the contrary: A. The normal retirement benefit or pension 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/her 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. In all events, distributions shall be limited by the applicable provisions of Code section 415(b) limits. B. No member of the Plan who is not now a member of 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. 3. 401(a)(17) Limitation on Compensation. For any person who first becomes a member in any plan year beginning on or after January 1, 1996, compensation for any plan year shall not include any amounts in excess of the Internal Revenue Code s. 401(a)(17) limitation (as amended by the Omnibus Budget Reconciliation Act of 1993), which limitation shall be adjusted as required by federal lawfor qualified government plans and shall be further adjusted for changes in the cost of living in the manner provided by Internal Revenue Code s. 401(a)(17)(B). For any person who first became a member prior to the first plan year beginning on or after January 1, 1996, the limitation on compensation shall be not less than the maximum compensation amount that was allowed to be taken into account under the plan as in effect on July 1, 1993, which limitation shall be adjusted for changes in the cost of living since 1989 in the manner provided by Internal Revenue Code s. 401(a)(17)(1991). 25 Working Restatement and EGTRRAsmendments-January 29, 2009 as amended July 6, 2009 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 60`h day after the close of the Plan Year in which the latest following events occur: A. The attainment by the Member of age 65; B. The 10'h 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 the Section because the Trustees either cannot ascertain the amount of the Member's retirement income or cannot locate the Member after 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 be made in accordance with the requirements of Code Section 401(a)(9), including the minimum distribution incidental benefit requirements of section 1.401(a}(9)-2 Code Section 401(a)(9)(G) to satisfy the following conditions: 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'/2, or the calendar year in which the Member retires, B. the distribution shall commence to them not later than the calendar year defined above; and shall be paid over the life of the Member or over the lifetimes of the Member and spouse, or dependent, or, shall 26 Working Restatement and EGTRRA amendments-January 29, 2009 as amended July 6, 2009 be paid over the period extending not beyond the life expectancy of the Member and spouse, 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, the Member's entire interest in the Plan shall be distributed within five (5) years of the 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/her spouse 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 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 before the date on which the Member would have attained age 70'/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 Provision. 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. 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 to Members or Members beneficiaries. 3. Rollover Distributions. 27 Working Restatement and EGTRRA amendments-January 29, 2009 as amended July 6, 2009 A. This subsection applies to distributions made on or after January 1, 1993. Notwithstanding any provision of the Plan to the contrary that would otherwise limit a distributee's election under this subsection, a distributee may elect, at the time and in the manner prescribed by the Board of Trustees, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover. B. Definitions. (1) "Eligible rollover distribution" is any distribution of all or any portion of the balance to the credit of the distributee or an alternate eayee under an income deduction order under Florida law, except that an eligible rollover does not include any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the distributee or the point lives (or iioint life expectancies) of the distributee and the distributee's designated beneficiary, or for a specified period of 10 years or more; any distribution to the extent such distribution is required under section 401(a)(9) of the Code; 1-rrear~re- (2) "Eligible retirement plan" is an individual retirement account described in section 408(a) of the Code, an individual retirement annuity described in section 408(b) of the Code, a qualified trust, an annuity plan described in section 403(a) of the Code, an eligible deferred compensation plan described in ~457~b1 which is maintained by eligible employer described in §457(e)(1~(A) of the Code or an annuity contract described in 403(b) of the Code, that accepts the distributee's eligible rollover distribution. aF-a -a aL. .J' a '4, a ~ .1' 'L.1.. _.. 11 .... ~J:_a_:~--_'--- 1....... '-7V11 1 IVVVG VGI, ..r_~__, _... _..~.~._ _____---_-__ r-- - (3) "Distributee" includes an employee or former employee. In addition, the employee's or former employee's surviving spouse and the employee's or former employee's spouse or former spouse who is entitled to payment for alimony and 28 Working Restatement and EGTRRAsmendments-January 29, 2009 as amended July 6, 2009 child support under an income deduction order, a~e~estie are distributees with regard to the interest of the spouse or former spouse. (4) "Direct rollover" is a payment by the Plan to the eligible retirement plan specified by the distributee. 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 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 benefitting 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 fo 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. A. Apportionment shall first be made in respect of each retired 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) 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 29 Working Restatement and EGTRRAsmendments-January 29, 2009 as amended July 6, 2009 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 ~~~ ~~ ~,,, ~,unm~n~ under paragraph A, apportionment shall nP~` :,a made in respect of each full time General Employee in ~ .; ~,ce of the Village of Tequesta on such date h." ~ has ~~~~'.~~ed at least six (6) years of credited service and who is not entitled tc 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. 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 General Employee in service of the 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 the accrued normal retirement benefit, less the amount apportioned in paragraph C, based on 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 reduced amounts will be equal to such remaining asset value. 30 Working Restatement and EGTRRA amendments-January 29, 2009 as amended July 6, 2009 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. The allocation of the Fund provided for in this subsection may, as decided by +"~~ Board be carried outthroughthe purchase of insurance cc?rn~u,., ;;~;,";~;,~, ~o provide the benefits determined in ai,Ci31Uu^~'F'- w'+" ;".~ ~uosection. 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. 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. However, pursuant to an income deduction order, the Trustees may direct that retirement benefits be paid for alimony or child support in accordance with rules and regulations adopted by the Board of Trustees. 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 and 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 prior or existing law been or who shall hereafter under this Ordinance be erroneously, improperly or illegally classified. Section 23. Forfeiture of Pension. Any Plan Member convicted ofthe following offenses committed priorto retirement, or whose employment is terminated by reason of his/her admitted commission, aid or abatement of the following specified offenses, shall forfeit all rights and benefits under this 31 Working Restatement and EGTRRAsmendments-January 29, 2009 as amended July 6, 2009 Pension Fund, except for the return of this accumulated contributions as of the date of termination. 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 public agency, for which he acts or in which he is employed, of the right to receive the faithful performance of his/her 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 person through use or attempted use of the power, rights, privileges, duties or position of his/her 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 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 jurisdiction to consider a proceeding involving the alleged commission of a specified offense. Prior 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/her case against forfeiture. 32 Working Restatement and EGTRRA amendments-January 29, 2009 as amended July 6, 2009 Any Member who has received benefits from the System in excess of his/her 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/her accumulated contributions. The Board of Trustees may implement all legal action necessary to recover such funds. Section 24. Military Service Prior to Employment. In accordance with Code Section 415(n), the T-tre 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: 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 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 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 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. H:\Tequesta GE 1012\IRS Determination Letter\Post Submission\EGTRRA Amend.wpd 33 ORDINANCE NO. AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF TEQUESTA, PALM BEACH COUNTY, FLORIDA, AMENDING EXHIBIT "A" OF SECTION 2-30 OF THE CODE OF ORDINANCES, VILLAGE OF TEQUESTA, FLORIDA; RELATING TO THE EMPLOYEES' PENSION TRUST FUNDS; AMENDING EXHIBIT "A" TO PROVIDE FOR LANGUAGE CHANGES THROUGHOUT THE PLAN DOCUMENT TO COMPLY WITH THE GUST AMENDMENTS TO THE INTERNAL REVENUE CODE; PROVIDING FOR REPEAL OF ORDINANCES IN CONFLICT; PROVIDING FOR CODIFICATION; PROVIDING FOR A RETROACTIVE EFFECTIVE DATE. BE IT ORDAINED BY THE VILLAGE COUNCIL OF THE VILLAGE OF TEQUESTA, PALM BEACH COUNTY, FLORIDA, AS FOLLOWS: Section 1. Those portions of Exhibit "A" to Section 2-30, Code of Ordinances, Village of Tequesta, Palm Beach County, Florida, as deleted and shown by strike-outs and additions shown by underlining below in Sections 2, 6, 16, and 18 of such Exhibit A, are passed and adopted as amendments to such Exhibit and sections. Section 2. Definitions. 1. Statement of Definitions. As used herein, unless otherwise defined or required by the context, the following words and phrases shall have the meaning indicated: Actuarial Equivalent means a benefit or amount of equal value, based upon the 1983 Group Annuity mortality table ' ,and an 8% rate of interest. For distributions after December 31, 1995 for purposes of Code Section 415(b), the mortality table is the table used under Code Section 417(e) as prescribed by the Secretary of the Treasury in Rev. Ruling 95-6. Average Final Compensation shall mean one-twelfth (1/12) of the average salary of the five (5) highest nest years of the last ten (10) years of credited service prior to retirement, termination, or death, or the career average as a full time General Employee, whichever is greater. A year shall be twelve (12) consecutive months. Credited Service means the total number of years and fractional parts of years of Page 1 of 9 service as a General Employee who makes member contributions to the Plan, omitting intervening years or fractional parts of years when such General Employee was not 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 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 with three percent (3%) interest. The years or fractional parts of years that a General Employee serves in the military service of the Armed Forces of the United States or the United States Merchant Marine, voluntarily or involuntarily, 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 General Employee returns 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 General Employee deposits into the Fund the same sum that the Member would have contributed if he/she -had remained a General Employee, 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, in accordance with Code Section 414(u). C. The maximum credit for military service shall be five (5) years. Plan Year means the 12 month period beginning October 1 of each year and ending the following September 30. Salary or Compensation means base wa~c es eer~eRSa#~ to include regular earnings, vacation pay, sick pay, plus all tax deferred items of income, excluding lump sum payments, overtime, bonuses and longevity bonus. The amount of compensation taken into account under the System may not exceed $200,000. This amount is subject to adjustment as provided for in Code Section 401(a)(17) and Section 16 subsection 3 of this Plan. Section 6. Contributions. Member Contributions Page 2 of 9 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 immediatelyafterthewithholding ofsuch contributions. The contributions made by each Memberto the Fund shall be designed as employer contributions pursuant to Section 414(h)~ of the Code. 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. B. Method. Such contributions shall be made by payroll deduction. 3. 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 shall be reserved exclusively used-errlq-for additional benefits for. Members, and shall be reserved to be spent for the additional benefits as determined by the Board when specifically provided for by this plan document, and may not be used to reduce what would have otherwise been required by Village contributions. Section 16. Maximum Pension. 1. 415(13 Internal Revenue Code Limits A. Basic Limitations. Subject to the adjustments in paragraph C, the maximum amount of the actual annual retirement income paid in any year with respect to a Participant under this Plan attributable to employer provided benefits shall not exceed the dollar amount allowable for any calendar near pursuant to 6415(b) of the Code, as adjusted in such calendar near for increases in the cost of living in accordance with Regulations issued by the Secretary of the Treasury under &415(d) of the Code. For purposes of applying the basic 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 straight life annuity. For purposes of this subsection Article, Page 3 of 9 the following benefits shall not be taken into account: Any ancillary benefit which is not directly related to retirement income benefits; Any other benefit not required under §415(b)(2) of the Code and Treasury Regulations thereunder to be taken into account for purposes of the limitation of §415(b)(1) of the Code. B. Participation in Other Defined Benefit Plans. The limitation of this subsection with respect to anv Participant who at anv time has been a Participant in anv other defined benefit plan (as defined in 6414(1) of the Code) maintained by the Village shall apply as if the total benefits pavable under all defined benefit plans in which the Participant has been a Participant where pavable from one Plan. C. Adjustments in Limitations. In the event the Participant's retirement benefits become pavable before age sixty-two (62), the maximum amount of annual retirement income limitation prescribed by this Article shall be reduced in accordance with Regulations issued by the Secretary of the Treasury pursuant to the provisions of 6415(b) of the Code, so that such limitation (as reduced) equals an annual benefit (beginning when such retirement income begins) which is equivalent to the Code 6415(b) maximum amount of annual retirement income beginnina stage 62. This limitation shall not apply to qualified police or firefighters as that term is defined in Code Section 415(b)(2)(G). In the event the Participant's retirement benefit becomes pavable after age sixty-five (65), for purposes of determining whetherthis benefit meets the basic limitation set forth in paragraph 1 herein, such benefit shall be adjusted so that it is actuarially equivalent to the benefit beginning at age sixty-five (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. The reductions provided for in subparagraph (a) above shall not be applicable to disability benefits or pre- retirement death benefits. Less than Ten (10) Years of Service. The maximum retirement benefits pavable under this Article to any Participant who has completed less than ten (10) years of Page 4 of 9 Credited Service with the City shall be the amount determined under paragraph 1 multiplied by a fraction. the numerator of which is the number of the Participant's years of Credited Service and the denominator of which is ten (10). The reduction provided for in this subparagraph shall not be applicable to disability benefits or pre- retirementdeath benefits. Ten Thousand Dollar $10,000 Limit. Notwithstanding the foregoing, the retirement benefit payable with respect to a Participant shall be deemed not to exceed the limitations in this subsection if the benefits payable, with respect to such Participant under this Plan and under all other qualified defined benefit pension plans to which the Citv contributes, do not exceed ten thousand dollars 1$10,000) for the applicable Plan year and for any prior Plan Year and the City has not at any time maintained a qualified defined contributions plan in which the Participant participated. u Reduction of benefits. Reduction of benefits and/or contributions to all plans, where required, shall be accomplished by first reducing the Participant's benefit under any defined benefit plans in which Participant participated, such reduction to be made first with respect to the plan in which Participant most recently accrued benefits and thereafter in such priority as shall be determined by the Board and the plan adminis#rator of such other plans, and next, by reducing or allocating excess forfeitures for defined contribution plans in which the Participant participated. such reduction to be made first with respect to the plan in which Participant most recently accrued benefits and thereafter in such priority as shall be established by the Board and the plan administratorforsuchnther plans provided, however, that necessary reductions may be made in different manner and priority pursuant to the agreement of the Board and the plan administrator of all other plans covering such Participant. Cost-of-Living Adjustments. The limitations as stated herein shalt be adjusted annually in accordance with any cost-of-living adjustments prescribed by the Secretary of the' Treasury pursuant to ~415(d) of the Code. D. This section shall be effective for distributions after December Page 5 of 9 31, 2001. E. For purposes of applying the limitations of Code Section 4'~'.:;,i, compensation includes base wages, regular earr*~~:~~, vacation pav. sick pav plus all deferred items of :,,;ome but excluding lump sum payments, overtime, ;,,,uses, and longevity bonuses. This uenntion specifically includes the crediting of compensation while absent from service for military duty; such crediting shall to exceed the compensation thatwould have been credited under the Svstem if Svstem services had continued. F. Should the Code Section 4140(2) Member contributions be in excess of the required contribution, then such contributions shall be disbursed as a corrective disbursement pursuant to the requirements of Code Req. 61.415-6(b)16)(iv). 2. Additional Limitation on Pension Benefits. Notwithstanding anything herein to the contrary: A. The normal retirement benefit or pension 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/her 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. In all events, distributions shall be limited by the applicable provisions of Code Section 415(b) limits. B. No member of the Plan who is not now a member of 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. 3. 401L~(17) Limitation on Compensation. For anv person who first becomes a member in anv plan year beginning on or after January 1, 1996, compensation for anv plan year shall not include anv amounts in excess of the Internal Revenue Codes 401(a)(17) limitation (as amended by the Omnibus Budget Page 6 of 9 Reconciliation Act of 1993). which limitation shall be adiusted as required by federal law for qualified government clans and shall be further adiusted for changes in the cost of living in the manner provided by Internal Revenue Code s. 401(a)(17)(B). For any person who first became a member prior to the first plan year beginning on or after January 1, 1996, the limitation on compensation shall be not less than the maximum compensation amount that was allowed to be taken into account under the plan as in effect on July 1, 1993, which limitation shall be adiusted for changes in the cost of living since 1989 in the manner provided by Internal Revenue Codes. 401(a)(17)(19911. 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 be made in accordance with the requirements of Code Section 401(a)(9), including the minimum distribution incidental benefit requirements of section 1.401(a)(9)-2 Code Section 401(a)(9)(G) to satisfy the following conditions: 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'/2, or the calendar year in which the Member retires, B. the distribution shall commence to them not later than the calendar year defined above; and shall be paid over the life of the Member or over the lifetimes of the Member and spouse, issue or dependent, or, shall be paid overthe period extending not 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, the Member's entire interest in the Plan shall be distributed within five (5) years of the 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/her spousels~s-a~or dependent; Page 7 of 9 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 yearofthe Member's death unless the Member's spouse, issue or dependent shall receive the remaining interest in which case the distribution need not begin before the date on which the Member would have attained age 70'/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 depend~~ ~~~ .~.~:..~:. ~"~ ~ :'..:~, ~nerr-~ar- Section 2. Severability. If any provision of this Ordinance or the applicatiot 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 the Ordinance are hereby declared severable. Section 3. 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 4. Codification. This Ordinance shall be codified and made a part of the official Code of Ordinances of the Village of Tequesta. Section 5. Effective Date. This Ordinance shall take effect retroactive to January 1, 1997. THE FOREGOING ORDINANCE was offered by Councilmember seconded by Councilmember the vote was as follows: FOR ADOPTION and upon being put to a vote, AGAINST ADOPTION Page 8 of 9 who moved its adoption. The Ordinance was The Mayor thereupon declared the Ordinance duly passed and adopted this day of , 20 MAYOR OF TEQUESTA ATTEST: Lori McWilliams, Village Clerk H:\Tequesta GE 1012\IRS Determination Letter\Post Submission\Ord Caption IRS GUST.wpd H:\TegZe 1~7~IRS~elermination Letter\Post Submission\Ord Caption IRS GUST.wpd ORDINANCE NO. AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF TEQUESTA, PALM BEACH COUNTY, FLORIDA, AMENDING EXHIBIT "A" OF SECTION 2-30 OF THE CODE OF ORDINANCES, VILLAGE OF TEQUESTA, FLORIDA, RELATING TO THE EMPLOYEES' PENSION TRUST FUNDS; AMENDING EXHIBIT "A" TO PROVIDE FOR LANGUAGE CHANGES THROUGHOUT THE PLAN DOCUMENT TO COMPLY WITH THE EGTRRA AMENDMENTS TO THE INTERNAL REVENUE CODE; PROVIDING FOR REPEAL OF ORDINANCES IN CONFLICT; PROVIDING FOR CODIFICATION; PROVIDING FOR A RETROACTIVE EFFECTIVE DATE. BE IT ORDAINED BYTHE VILLAGE COUNCIL OFTHE VILLAGE OF TEQUESTA, PALM BEACH COUNTY, FLORIDA, AS FOLLOWS: Section 1. Those portions of Exhibit "A" to Section 2-30, Code of Ordinances, Village of Tequesta, Palm Beach County, Florida, as deleted and shown by strike-outs and additions shown by underlining below in Sections 1, 2, 19, and 24 of such Exhibit "A", are passed and adopted as amendments to such Exhibit and sections. Section 1. Creation of Pension Trust Fund. The Village of Tequesta General Employees' Pension Trust Fund for the purpose of providing retirement, death and disability benefits to members of the Fund, certain former general employees and survivor benefits to beneficiaries. This System is intended to be a tax qualified clan under Code Section 401(a) and meet the requirements of a Governmental plan as defined in Code Section 414(d). Section 2. Definitions. 1. Statement of Definitions. As used herein, unless otherwise defined or required by the context, the following words and phrases shall have the meaning indicated: Actuarial Equivalent means a benefit or amount of equal value, based upon 1983 Group Annuity Mortality table and an 8% rate of interest. For Plan Years beginning after December 31, 2002 ~ for Qurposes of Code Section 415(b), the mortality table is the table used under Code Section 417(e) as prescribed by the Secretary of the Treasury in Rev. Rul. 2001-62 95=6. Page 1 of 5 Section 19. Miscellaneous Provision. 3. Rollover Distributions. A. This subsection applies to distributions made on or after January 1, 1993. Notwithstanding any provision of the Plan to the contrary that would otherwise limit a distributee's election under this subsection, a distributee may elect, at the time and in the manner prescribed by the Board of Trustees, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover. B. Definitions. (1) "Eligible rollover distribution" is any distribution of all or any portion of the balance to the credit of the distributee or an alternate payee under an income deduction order under Florida law, except that an eligible rollover does not include any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the distributee or the joint lives (or joint life expectancies) of the distributee and the distributee's designated beneficiary, or for a specified period of 10 years or more; any distribution to the extent such distribution is required under section 401(a)(9) of the Code; tee- (2) "Eligible retirement plan" is an individual retirement account described in section 408(a) of the Code, an individual retirement annuity described in section 408(b) of the Code, a qualified trust, an annuity plan described in section 403(a) of the Code, an el~ible deferred compensation plan described in 5457(b) which is maintained by eligible employer described in 6457(e)(1)(A) of the Code or an annuity contract described in 403(b) of the Code, that accepts the distributee's eligible rollover distribution. erg _ ~ , Page 2 of 5 (3) "Distributee" includes an employee or former employee. In addition, the employee's or former employee's surviving spouse and the employee's or former employee's spouse or former spouse who is entitled to payment for alimony and child support under an income deduction order, a~et~res~ie are distributees with regard to the interest of the spouse or former spouse. (4) "Direct rollover" is a payment by the Plan to the eligible retirement plan specified by the distributee. Section 24. Military Service Prior to Emaloyment. In accordance with Code Section 415(n), the 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: 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 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 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 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. Section 2. 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 the Ordinance are hereby declared severable: Section 3. Repeal of Ordinances in Conflict. All other Ordinances of the Village Page 3 of 5 of Tequesta, Florida, or parts thereof which conflict with this or any part of this Ordinance are hereby repealed. Section 4. Codification. This Ordinance shall be codified and made a part of the official Code of Ordinances of the Village of Tequesta. Section 5. Effective Date. This Ordinance shall take effect retroactive to January 1, 2002. THE FOREGOING ORDINANCE was offered by Councilmember seconded by Councilmember the vote was as follows: who moved its adoption. The Ordinance was and upon being put to a vote, FOR ADOPTION AGAINST ADOPTION The Mayor thereupon declared the Ordinance duly passed and adopted this day of , 20 MAYOR OF TEQUESTA ATTEST: Page 4 of 5 Lori McWilliams, Village Clerk H:\Tequesta GE 1012\IRS Determination Letter\Post Submission\Ord Caption IR5 EGTRRA.wpd H:\Tequesta ~g~1~1f48 D~rmination LetteslPost Submissionl0rd Caption IRS EGTRRA.wpd No Text APPENDIX F, SCHEDULE 2 Nonamender Failures (other than those to which Schedule 1 applies) Village of Tequesta General Employees' Plan Name• Pension Trust EIN: 59-6044081 plan #: 001 (Please include the plan name, EIN, and plan number information on each page of the submission.) PART I. IDENTIFICATION OF FAILURES The plan identified above was not amended to comply with the applicable provisions of the following legislative and regulatory requirements by the applicable deadlines in accordance with § 401(b) and the regulations thereunder: ^ The Employee Retirement Income Security Act of 1974 (ERISA) ^ The Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) ^ The Deficit Reduction Act of 1984 (DEFRA) ^ The Retirement Equity Act of 1984 (REA) ^ The Tax Refonn Act of 1986 (TRA ' 86) ^ The Unemployment Compensation Amendments of 1992 (UCA) ^ The Omnibus Budget Reconciliation Act of 1993 COBRA) /^ GUST (includes The Uruguay Round Agreements Act, the Uniformed Services Employment and Reemployment Rights Act of 1994, the Small Business Job Protection Act of 1996, the Taxpayer Relief Act of 1997, the Internal Revenue Service Restructuring and Reform Act of 1998, and the Community Renewal Tax Relief Act of 2000) ^ The changes required by the 2005 Cumulative List (Notice 2005-101, 2005-2 C.B. 1219) ^ The changes required by the 2006 Cumulative List (Notice 2007-3, 2007-1 C:B. 255) ^ The changes required by the 2007 Cumulative List (Notice 2007-94, 2007-2 C.B. 1179) ^ Other (specify the legal requirement and applicable Cumulative List): PART II. DESCRIPTION OF PROPOSED METHOD OF CORRECTION The Plan Sponsor has adopted (or will adopt) amendments that satisfy the requirements of all of the items checked in Part I of this Appendix F, Schedule 2 retroactively to the effective dates of the specific provisions contained in the amendments. The amendments and restated plan documents (where applicable) are enclosed with this submission. PART III. CHANGE IN ADMINISTRATIVE PROCEDURES The Plan Sponsor has taken the following step(s) to ensure that the failure(s) will not recur: The Plan will be more aware of the IRS Amendments through attendance at annual public pension conferences and review of IRS materials. The Plan has also hired legal counsel to provide notice of IRS and other legislative changes. PART IV. ENCLOSURES In addition to the applicable enclosures listed on Appendix F, the Plan Sponsor encloses the following with this submission: ^ Copies of all amendments used to correct the failure(s), either as adopted or in proposed form, ^ A copy of the plan document in effect prior to any of the amendments used to correct the failure(s), ^ A copy of the most recent determination letter issued with respect to the plan (if applicable), and ^ A determination letter application (Form 5300, 5307, or 5310 along with Form 8717 and the applicable user fee payment made payable to the U.S. Treasury). 2