HomeMy WebLinkAboutDocumentation_Pension General_Tab 16_11/02/2009EXHIBIT "A"
VILLAGE OF TEQUESTA
GENERAL EMPLOYEES' PENSION TRUST FUND
TABLE OF CONTENTS
Section 1. Creation of Pension Trust Fund ................................ -1-
Section 2. Definitions .. .............................................. -1-
Section 3. Membership ............................................... -4-
Section 4. Board of Trustees ........................................... -4-
Section 5. Finance And Fund Management ............................... -6-
Section 6. Contributions ............................................. -11-
Section 7. Benefit Amounts and Eligibility ................................ -11-
Section 8. Pre-retirement Death ....................................... -13-
Section 9. Disability ................................................. -13-
Section 10. Vesting .................................................. -16-
Section 11. Optional Forms of Benefits ................................... -16-
Section 12. Beneficiaries .............................................. -18-
Section 13. Claims Procedures Before the Board Decision ................... -19-
Section 14. Roster of Retirees .. ....................................... -21-
Section 15. Board Attorney and Professionals ............................. -21-
Section 16. Maximum Pension ......................................... -22-
Section 17. Commencement of Benefits .................................. -22-
Section 18. Distribution of Benefits ...................................... -23-
Section 19. Miscellaneous Provision ..................................... -24-
Section 20. Repeal or Termination of System .............................. -25-
Section 21. Exemption from Execution, Non-assignability .................... -27-
Section 22. Pension Validity ........................................... -27-
Section 23. Forfeiture of Pension ....................................... -28-
Section 24. Military Service Prior to Employment ........................... -29-
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
mortality tables utilized by the Board's actuary or actuaries during most recent actuarial
valuation, and an 8% rate of interest.
Average Final Compensation shall mean one-twelfth (1/12) of the average salary
of the five (5) best years of the last ten (10) years of credited service prior to retirement,
termination, 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.
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
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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 without
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. Effective January 1. 2007, members who die or become
disabled while serving on active duty military service which intervenes
the member's employment shall be entitled to the rights of this section
even though such member was not re-employed by the Village.
Members who die or become disabled while on active duty military
service shall be treated as though re-employed the day before the
Member became disabled or died. was credited with the service then
would have been entitled to under this section, and then either died a
non-duty death while employed or became disabled from anon-duty
disability.
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.
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.
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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.
One hundred and twenty monthly payments 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.
Salary means base compensation to include regular earnings, vacation pay, sick
pay, plus all tax deferred items of income, excluding lump sum payments, overtime,
bonuses and longevity bonus. Effective for payments made after 12/31 /08, as provided
for by Internal Revenue Code $414(u)(7) this definition of salary shall include any
differential wage payment from the employer to a member as a result of the
member's absence from emalovment while servina in qualified military service.
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.
System 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.
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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.
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 lelgal 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. The fiftlh (5th) Trustee shall be selected
by a majority vote of the other four (4) Trustees.
Each person seeking to fill a designated employed representative Board member
seat shall be elected by their full-time co-workers. Upon receipt of the fifth (5th) person's
name the Tequesta Village 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 sei`ve as Trustee for a period of two
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(2) years unless sooner replaced by the Tequesta Village 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 leaves 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 ofthe 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.
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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.
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.
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
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shall be made by the Village on the Board's agreement, but only upon written authorization
from the Board or other Board authorized fiduciary.
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.
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
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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 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 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.
(4) Bonds, stocks, commingled or other pooled funds, which may
include mutual funds or exchange-traded funds or trusts,
except as provided in paragraph M below, or evidences of
indebtedness issued orguaranteed bya 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
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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.
(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 25% at market value 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 market exceed seventy
percent (70%) 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.
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 inform 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
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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.
I. 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.
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 real estate
investment in a limited partnership or trust.
N. The Village shall maintain Fiduciary Liability insurance to cover the
members of the Board of Trustees.
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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 after the withholding of such 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.
2. Villaoe 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.
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 may be used only for additional benefits for Members,
as determined by the Board, 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.
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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
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
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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.
1. Disability Benefits On-Duty
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
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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 Disgualifyin~g 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.
C. Injury or disease sustained while committing a crime.
D. Injury or disease sustained while serving in any branch of the Armed
Forces. This exclusion does not affect members who have
become disabled as a result of intervening military service under
the federal Heroes Earnings Assistance and Relief Tax Act of
2008 (H.R. 6081: P.L. 110-2451.;
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.
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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
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 wi11 not be considered as credited service for the purposes of the
Plan.
The Board shall have the power and authority to make the final decision
regarding all disability claims.
5. Disability Payments
The monthly benefit to which a Member is entitled in the event of the
Member's disability retirement shall be payable on the first day of the first month after the
Board of Trustees determines such entitlement. However, the monthly retirement income
shall be payable as of the date the Board determined such entitlement, and any portion
due for a partial month shall be paid together with the first payment. The last payment will
be:
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
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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 or the 120th monthly payment, whichever
is later.
Section 10. Vestina.
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 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
does not elect to withdraw his/her accumulated contributions 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 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:
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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
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:
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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 under the Plan, the option elected will
be canceled automatically and a retirement income of the normal form
and amount will be payable to the Member upon his/her retirement as
if the election had not been made, unless a new election is made in
accordance with the provisions of this section or a new beneficiary is
designated by the Member 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
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
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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 Dec
If any Member of the System has been:
A. Placed on pension under the terms and provisions of this ordinance
for disability, or
B. Placed on pension because the Member has served the required
number of years to entitle him to a pension, or
C. Refused benefits under this Plan, and is dissatisfied with the amount
of pension the Member is 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
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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 hislher 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 other documents material
to the case;
(2) After such review, the Member and/or his/her duly authorized
representative shall submit their case in writing to the Board and
request a hearing. Such submission shall be filed with the Board no
later than ninety (90) days after the receipt of the order of the Board.
Upon receipt of the written submission by the Member, the Board
shall schedule an opportunity for a full and fair hearing of the issue
within the next ninety (90) days, and such scheduled hearing shall be
communicated in writing to the Member. The Member and/or his/her
duly authorized representative may then appear at such scheduled
hearing to present their case. The Board shall consider the facts
presented at the scheduled hearing and shall, within 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
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claimant and the claimant's attorney, upon recognition
by the Chairman, may direct questions to any witness
during the proceedings. Each party shall have the right
to present evidence relevant to the issues, to cross-
examine witnesses, to impeach witnesses and to
respond to the evidence presented against the party.
Each party shall have the right to present any opening
and closing arguments. Any party may secure the
services of a court reporter to record the proceedings
with the cost to be borne by the party requesting the
court reporter or requesting the transcription of the
proceedings.
c) In all cases, unless otherwise provided in this section,
the burden of proof shall be on the claimant who seeks
to draw his/her entitlement to a pension, disability
pension, or increased pension benefits.
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, orother
advisors as the Board deems necessary.
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Section 16. Maximum Pension.
1. Basic Limitation. Subject to the adjustments herein set forth, the maximum
amount of annual retirement income payable with respect to a Member under this Plan
shall not exceed the limitations set forth in §415 of the Code.
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.
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.
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
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sixty (60) days after the date on which the amount can be ascertained or the Member is
located, whichever is applicable. Any such payment shall be made retroactive to a date
which is not earlier than the date on which the payment of the Member's benefit was
scheduled to begin but which is not later than the date specified under subsection 1 of this
Section.
Section 18. Distribution of Benefits.
Notwithstanding any other provision of this Plan to the contrary, a form of retirement
income payable from this Plan after the effective date of this ordinance, shall satisfy the
following conditions:
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 over the 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
spouse, issue or dependent;
B. The remaining interest is to be distributed over the life of the spouse,
issue or dependent or over a period not extending beyond the life
expectancy of the spouse, issue or dependent; and
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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'/z 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.
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
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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
accepts the distributee's eligible rolloverdistribution. 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.
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i . ;;:~
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0
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.
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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 noio 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 orfederal 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
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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.
BSJ/adt
October 19, 2009
October 20, 2009
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