HomeMy WebLinkAboutDocumentation_Pension General_Tab 04_11/02/2009October 28, 2009
Betty Laur
Village of Tequesta
P O Box 3273
Tequesta, FL 33469
Dear Betty,
Enclosed is the Ordinance of the Village Council of the Village of Tequesta
along with the signed Investment Policy Statement. Once this document has
been signed by the Chairman and Bogdahn Consulting please return a copy
to me.
Should you have any questions please do not hesitate to contact me.
Sincerely,
J ~ ~' ~
Sue Rediske
Assistant Vice President
Enclosure
Drava I[vvEST~tFiv~~r t~l)V]SORS, I;vc
Susnr~ M. ReDIStcE
Assisim:t Vice President
h: 262.782.3631 :262.782.0581
r: sue(?~danainvestmenccom .;- www.danainvesmtent.com
15800 W. Bluemound Rd., Snite 250, Brookfield, WI 53005-6003 (PO Box 1067, 53008-1067)
15800 West Bluemound Road, Suite 250, Brookfield, WI 53005-6003 ° P.O. BOX 1067, Brookfield, WI 53008-1067 • p: 262-782-3631 ~ ,/:~ 262-782-0581 e: dia@danainvestmentcon
VILLAGE OF TEQUESTA _ _ ~ /_
Post Office Box 3273 345 Tequesta Drive ~ _ ~~ ~/ C~
Tequesta, Florida 33469-0273 (5611 575-6200
Fax: (561)575-6203
~~-~~ i~ 19 ~u~9
October 16, 2009
DANA
Mr. Mark Mirsberger
Dana Investment Advisors
15800 W. Bluemound Road, Suite 250
Brookfield, WI 53005-6003
Dear Mr. Mirsberger:
Enclosed is an Ordinance of the Village Council of the Village of Tequesta expanding the investment
provisions for the General Employees' Pension Plan. This Ordinance was approved by the Village
Council at their August 13, 2009 meeting, and the approved expanded investment policy is attached,
which requires signatures of the Board of Trustees Chairman, a representative of Dana Investment
Advisors, and a representative of Bogdahn Consulting.
We would appreciate it if you or another representative from Dana Investment Advisors could sign and
return to me as soon as possible so that we can then get the other signatures and have everything
signed by our November 2, 2009 quarterly meeting.
Thank you.
Sincerely,
~~ --
~c.-,.mot,
Betty Laur
Recording Secretary
Village of Tequesta
561-575-6249
Recycled Paper
ORDINANCE N0.14-09
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 EXPAND THE
INVESTMENT PROVISIONS; PROVIDING FOR REPEAL OF
ORDINANCES IN CONFLICT; PROVIDING FOR CODIFICATION;
PROVIDING FOR AN EFFECTIVE DATE.
BE IT ORDAINED BY THE VILLAGE COUNCIL OF THE VILLAGE OF
TEQUESTA, PALM BEACH COUNTY, FLORIDA, AS FOLLOWS:
Section i . 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 on Exhib~s °A° attached hereto and made a part
hereof, are passed and adopted as amendments to such Exhibits and section.
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 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 upon passage.
Upon First Reading this 9th day of July 2009, the foregoing Ordinance was offered by
Council Member Turnquest who moved its adoption. The motion was seconded by
Vice-Mayor Paterno and upon being put to a vote, the vote was as follows:
For Adoption Against Adoption
Mayor Pat Watkins X
Vice-Mayor Tom Paterno X
Council Member Vince Arena X
Council Member Jim Humpage X
Council Member Calvin Turnquest X
Upon Second Reading this 13th day of August 2009, the foregoing Ordinance was
offered by Council Member Humpage who moved its adoption. The motion was
seconded by Vice-Mayor Paterno and upon being put to a vote, the vote was as follows:
Mayor Pat Watkins
Vice-Mayor Tom Paterno
Council Member Vince Arena
Council Member Jim Humpage
Council Member Calvin Turnquest
For Adoption Against Adoption
X
X
X
X
X
The Mayor thereupon declared the Ordinance duly passed and adopted this 13th day of
August, 2009.
MAYOR OF TEQUESTA
~~
Pat Watkins
ATTEST:
~, ~: m~~
Lori McWilliams, CMC
Village Clerk
„~
T.
~:-~
~ SE A` ED
1NCORPORA /`.~ Q
May 10, 2005
June 23, 2009
July 1, 2009
TABLE OF CONTENTS
Section 1. Creation of Pension Trust Fund . .... . . . ..................... 3
Section 2. Definitions ................
. 3
...
...........................
Section 3. Membership ................
.... 5
..
........................
Section 4. Board of Trustees ....................................... . .. 6
Section 5. Finance And Fund Management ............................. 9
Section 6. Contributions ............................. . .............. 14
Section 7. Benefit Amounts and Eligibility ............................. 15
Section 8. Pre-retirement Death ................................... . .. 16
Section 9. Disability ............................................... 17
Section 10. Vesting ................................................. 20
Section 11. Optional Forms of Benefits ................................ 20
Section 12. Beneficiaries ............................................. 23
Section 13. Claims Procedures Before the Board Decision ................ 23
Section 14. Roster of Retirees ...................... ................ 26
Section 15. Board Attorney and Professionals .......................... 26
Section 16. Maximum Pension ........................................ 26
Section 17. Commencement of Benefits ................................ 27
Section 18. Distribution of Benefits .................................... 27
Section 19. Miscellaneous Provision .............. . ................... 28
Section 20. Repeal or Termination of System ........................... 30
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June 23, 2009
July 1, 2009
Section 21. Exemption from Execution, Non-assignability ................. 32
Section 22. Pension Validity ......................................... 32
Section 23. Forteiture of Pension ..................................... 33
Section 24. Military Service Prior to Employment ........................ 34
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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 genera! 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 administerand 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.
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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
sha11 be returned to him/her with 3% interest.
The years orfractional 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.
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.
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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_
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 alt 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. Membelrship.
1. 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.
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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 by law, shall be legal
residents of the municipality, who sha11 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 month or more, then the position can be tilled 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 #or 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 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)
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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
soonervacated 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 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 of the Board of Trustees shall include, but not
necessarily be limited to, the following:
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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.
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.
I. 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.
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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 thereofl 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
forthe safekeeping of funds forthe municipality. However, anyfunds 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 deposi# 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 asset
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.
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4. Accurate records shall be maintained at all times reflecting the market
valuations of funds and assets ofthe 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 Gear
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 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
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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 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_ at~€-saeFt
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(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 ~-925% 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 east market exceed
seven percent (6t3 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 far 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,
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consolidations and similar transactions with respect to 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.
I. Where any action which a Board is required to #ake 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 en-ors 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
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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.
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 afterthe 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. Village Contributions
So long as this System is in_ effect, the Village shall make contributions at
feast 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.
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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 shalt 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
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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 hundr=ed 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/hernormal retirementdate 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.
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Section 9. Disability.
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 General
Employee which disability is notdirectlycaused by the performance of his/herduties
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.
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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.
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 prdinance
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
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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 to his/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 home 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 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 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. !f the plan member dies without recovering from the disability prior to
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his/her normal retirement date while still disabled, the payment due
next preceding his/herdeath orthe 120`" 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 tine amount of such retirement income
otherwise payable to him/her commencing at the Member's otherwise normal or
early retirement date, provided he/she does not elect to withdraw his/her
accumulated contributions plus three percent (3%) interest and provided the
Member survives to his/her normal or eariy 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 athis/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 retir®ment 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
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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 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
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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 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 Memberoontinues 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
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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 wffe 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.
1. 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
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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 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
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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
to draw his/her entitlement to a pension, disability
pension, or increased pension benefits.
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3. In all proceedings under subsections 1 or2 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 R®tirees.
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
for the purposes contained herein, together with such other professional, technical,
or other advisors as the Board deems necessary.
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
hislher 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.
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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 60"' 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"' 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 Members 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 suc~l
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,
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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 ordependent.
W here 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
C. Such distribution begins within one year of the Members 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 ordependent dies before the distribution to the spouse,
issue or dependent begins, this Section shall be applied as if the
spouse, issue ordependent were the Plan Member.
Section 19. Miscellaneous Provision.
1. Interest of Members in Pension Fund. At no time prior to the satisfaction of
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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 afl 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
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.
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(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. Reseal or Termination of Svstem.
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 ff 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
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July 1, 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 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
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31
May 10, 2005
June 23, 2009
July 1, 2009
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.
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 can-ied 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. Exemation 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 orobtained erroneously, fraudulently or illegally for any
reasons. Said Board is empowered to purge the pension rolls of any person
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32
May 10, 2005
June 23, 2009
July 1, 2009
heretofore granted a pension underpriororexisting laworheretoforegranted 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 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 specifred 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 ofhce yr employment
position.
A. Conviction shall be defined as follows:
An adjudication of guilt by a court of competent jurisdiction; a plea of
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33
May 10, 2005
June 23, 2009
July 1, 2009
guilty or polo 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.
Any Member who has received benefits from the System inexcess ofhis/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 Emalovntent.
The years or fractional parts of years that a Member serves or has served in the
military service of the Armed Farces 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 cast 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.
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May 10, 2005
June 23, 2009
July 1, 2009
3. Payment by the Member of the required amount shall be made within six (6}
months of his/her request far credit and shall be made in one lump sum payment
upon receipt of which credited service shall be given. Credited services 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/ke
July 1, 2009
li:\T~quasla GE 1012\Plan Oocs b Rules12009-Restate GE -Investment Amentl Sec 5B 8 C.wptl
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35
VILLAGE OF TEQUESTA
(Plan Sponsor)
GENERAL EMPLOYEES' RETIREMENT PLAN
Investment Policy Statement
I. PURPOSE OF INVESTMENT POLICY STATEMENT
The Pension Board of Trustees, as named fiduciaries, maintains that an important determinant of
future investment returns is the expression and periodic review of the Plan's investment
objectives. To that end, the Board has adopted this statement of Investment Policy and directs
that it apply to all assets under their control.
In fulfilling their fiduciary responsibility, the Board recognizes that the retirement system is an
essential vehicle for providing income benefits to retired participants or their beneficiaries. The
Board also recognizes that the obligations of the Plan are long-term and that investment policy
should be made with a view toward performance and return over a number of years. The
general investment objective, then, is to obtain a reasonable total rate of return -defined as
interest and dividend income plus realized and unrealized capital gains or losses -commensurate
with the Prudent Investor Rule and any other applicable statute.
Reasonable consistency of return and protection of assets against the inroads of inflation are
paramount. However, the volatility of interest rates and securities markets make it necessary to
judge results within the context of several years rather than over short periods of two years or
less.
The Board will employ professional Investment Management firms to invest the assets of the
Plan. Within the parameters allowed in this document, the Investment Managers shall have full
discretion, including security selection, sector weightings and investment style.
Additionally the Board will retain the services of an independent outside Investment Consultant
and Monitor Firm to assist it in the initial development of an Investment Policy Statement,
selection of qualified Investment Managers and to perform ongoing and periodic performance
evaluation and policy adherence reviews of all Investment Managers.
The Board, in performing their investment duties, shall comply with the fiduciary standards set
forth in Employee Retirement Income Security Act of 1974 (ERISA) at 29 U.S.C. s. 1104(a) (1)
(A) - (C). In case of conflict with other provisions of law authorizing investments, the
investment and fiduciary standards set forth in this section shall prevail.
Page 1
II. TARGET ALLOCATIONS
In order to provide for a diversified portfolio, the Board has engaged Investment Managers. The
managers are responsible for the assets and allocation of their mandate only and will be provided
an addendum to this policy with their specific performance objectives and investment criterea.
Asset Class Tar et Ran a Benchmark Index
Domestic E ui 50% 35% - 65% S & P 500
Foreign E utiy 10% 0% - 25% MSCI EAFE
Broad Market Fixed Income 40% 30% - 50% Barclays Intermediate
U.S. Govt/Credit
TIPS 0% 0%-5% Barclays U.S. TIPS
*Benchmark will default to "broad market fixed income" if these portfolios are not funded. Targets and
ranges above are based on market value of total Plan assets.
With the assistance of the Investment Consultant and Monitor Firm, the Trustees will monitor
the aggregate asset allocation of the portfolio, and will rebalance to the target asset allocation
based on market conditions. If at the end of any calendar quarter, the allocation of an asset class
falls outside of its allowable range, barring extenuating circumstances such as pending cash
flows or allocation levels viewed as temporary, the asset allocation will be rebalanced into the
allowable range. To the extent possible, cash contributions into and withdrawals from the
portfolio will be executed proportionally based on the most current market values available. The
Trustees do not intend to exercise short-term changes to the target allocation.
III. INVESTMENT PERFORMANCE OBJECTIVES
The following performance measures will be used as objective criteria for evaluating the
effectiveness of the Investment Managers.
A. Total Portfolio Performance
The performance of the Total Portfolio will be measured for rolling three and five year
periods. These periods are considered sufficient to accommodate the market cycles
experienced with investments. The performance of this portfolio will be compared to
the return of a portfolio comprised of 50% S&P 500, 10% MSCI-EAFE, and 40%
Barclays Capital U.S. Intermediate U.S. Government/Credit Bond Index.
2. On a relative basis, it is expected that the total portfolio performance will rank in the top
40~' percentile of the appropriate peer universe over three and five-year time periods.
3. On an absolute basis, it is expected that total return of the combined portfolio will equal
or exceed the applicable actuarial earnings assumption in effect (currently 7.5%), and
equal or exceed the Consumer Price Index plus 3% over three to five year periods.
B. Equity Performance
The combined equity portion of the portfolio, defined as common stocks and convertible
bonds, is expected to perform at a rate at least equal to the S&P 500 Stock Index. All
portfolios are expected to rank in the top 40'~ percentile of the appropriate peer universe over
three and five-year time periods.
Page 2
C. Fixed Income Performance
The overall objective of the fixed income portion of the portfolio is to add stability,
consistency and safety to the total portfolio. The fixed income portion of the portfolio is
expected to perform at a rate at least equal to the Barclays Capital U.S. Intermediate U.S.
Government/Credit Bond Index. All portfolios are expected to rank in the top 40th
percentile of the appropriate peer universe over three and five-year time periods.
D. Treasury Inflation Protection Securities (TIPS
The overall objective of the TIPS portfolio, if utilized, is to provide inflation protection
while adding stability to the total portfolio. If TIPS are utilized the strategy will be
measured as a component of the overall Broad Fixed Income portfolio.
IV. INVESTMENT GUIDELINES
A. Authorized Investments
Invest and reinvest the assets of the General Employees Pension Plan in 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 General Employees Pension Plan
shall be entitled under the provisions of this chapter and pay the initial and subsequent
premiums thereon.
Invest and reinvest the assets of the General Employees Pension Plan in:
(Time or savings accounts of a national bank, a state bank insured by the Bank Insurance
Fund, or a savings, building, 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.
Obligations of the United States or obligations guaranteed as to principal and interest by the
government of the United States.
Bonds, stocks, commingled funds administered by National or State Banks, or other
evidences of indebtedness issued or guaranteed by a corporation organized under the laws of
the United States, any state or organized territory of the United States, or the District of
Columbia, provided:
The corporation is listed on any one or more of the recognized national stock exchanges or
on the National Market System of the NASDAQ Stock Market and, in the case of bonds
only, holds a rating in one of the four highest classifications by a major rating service; and
Specifically:
1. Equities:
a. Traded on a national exchange.
Page 3
b. Not more than 5% of the Plan's assets, at the time of purchase, shall be invested in
the common stock, capital stock or convertible bonds of any one issuing company,
nor shall the aggregate investment in any one issuing company exceed 5% of the
outstanding capital stock of the company.
2. Fixed Income:
a. All fixed income investments shall have a minimum rating in one of the four
highest classifications by a major rating service
b. The value of bonds issued by any single corporation shall not exceed 10% of the
total fund.
3. Money Market:
a. The money market fund or STIF provided by the Plan's custodian.
b. Government paper backed by full faith & credit of the United States Government.
4. Foreign Equity:
a. Limited to securities traded on a national exchange and fully and easily negotiable
securities.
b. Not more than 5% of the Plan's assets, at the time of purchase, shall be invested in
the common stock, capital stock or convertible bonds of any one issuing company,
nor shall the aggregate investment in any one issuing company exceed 5% of the
outstanding capital stock of the company.
c. Foreign securities shall not exceed twenty percent (25%) of the value at market of
the fund.
5. Commingled Funds/Mutual Funds & Exchange Traded Funds:
Investments made by the Plan may include commingled funds. For purposes of this
policy such funds may include mutual funds, commingled funds, and exchange-traded
funds.
a. Such funds maybe governed by separate policy which may include investments not
expressly permitted in this Investment Policy Statement. In the event of investment
by the Plan into a fund the Board will adopt the prospectus or governing policy of
that fund as the stated addendum to this Investment Policy Statement.
b. The asset classification of the fund will be based upon its investment objective.
B. Tradin~~Parameters
When feasible and appropriate, all securities shall be competitively bid. Except as otherwise
required by law, the most economically advantageous bid shall be selected. Commissions
paid for purchase of securities must meet the prevailing best-execution rates.
C. Limitations
1. Investments in corporate common stock and convertible bonds shall not exceed seventy
percent (70%) of the Fund assets at market.
Page 4
2. Foreign securities shall not exceed twenty percent (25%) of the value at market of the
fund.
D. Absolute Restrictions
There will be no investment activity in the following:
1. Any investment prohibited by State or Federal Law.
2. Any investment not specifically allowed as part of this policy.
3. Illiquid investments, as described in Chapter 215.47, Florida Statutes.
4. Any investment in speculative derivative instruments such as short sales, margin
purchases, borrowings, commodities, puts, calls, straddles, warrants or other options
(except those as part of an equity investment), foreign exchange hedging, private
placements, venture capital, limited partnerships, other than those defined under Section
IV.A.S (a) of this Investment Policy Statement pertaining to investments held in
Commingled Funds/Mutual Funds & Exchange Traded Funds.
V. COMMUNICATIONS
A. On a monthly basis, the custodian shall supply an accounting statement that will include a
summary of all receipts and disbursements and the cost and the market value of all assets.
On a quarterly basis, the Investment Managers shall provide a written report affirming
compliance with the security restrictions of Section IV above and a summary of common
stock diversification and attendant schedules.
B. In addition, the Investment Managers shall deliver each quarter a report detailing the Plan's
performance, adherence to the investment policy, forecast of the market and economy,
portfolio analysis and current assets of the Plan. Written reports shall be delivered to the
Board within 30 days of the end of the quarter. A copy of the written report shall be
submitted to the person designated by the Village, and shall be available for public
inspection. The Investment Managers will provide immediate written and telephone notice
to the Board and Investment Consultant and Monitor Firm of any significant market related
or non-market related event, specifically including, but not limited to, any deviation from
the standards set forth in Section IV above.
C. The Investment Managers and Investment Consultant and Monitor Firm will disclose all
securities that do not comply with Section IV in each quarterly report.
D. If the Plan owns investments at the end of a calendar quarter that complied with Section IV
at the time of purchase, which do not satisfy the applicable investment standard, then such
investment shall be disposed of at the earliest economically feasible opportunity in
accordance with the prudent man standard of care and no additional investment may be
made. However an action plan outlining the disposition strategy shall be provided
immediately to the Board.
E. The Investment Consutlant and Monitor Firm shall evaluate and report on a quarterly basis
the rate of return and relative performance of the Plan.
Page 5
F. The Investment Consultant and Monitor Firm shall present a quarterly performance report to
the Board to quantify overall Fund performance as well as the individual performance
benchmarks of all Investment Managers. Additionally the Board and Investment Consultant
and Monitor will jointly meet with each Investment Manager to discuss performance results,
economic outlook, investment strategy and tactics and other pertinent matters affecting the
Plan on a periodic basis.
G. At least annually, the Board shall provide the Investment Managers with projected
disbursement needs of the Plan so that the investment portfolio can be structured in such a
manner as to provide sufficient liquidity to pay obligations as they come due. To this end
the Investment Managers should, to the extent possible, attempt to match investment
maturities with known cash needs and anticipated cash-flow requirements.
VL COMPLIANCE
A. It is the direction of the Board that the plan assets are held by a third party custodian, and that
all securities purchased by, and all collateral obtained by the plan shall be properly
designated as Plan assets. No withdrawal of assets, in whole or in part, shall be made from
safekeeping except by an authorized member of the Board or their designee. Securities
transactions between abroker-dealer and the custodian involving purchase or sale of
securities by transfer of money or securities must be made on a "delivery vs. payment" basis
to insure that the custodian will have the security or money in hand at conclusion of the
transaction. Provided that all approved vendors transacting repurchase agreements perform
as stated in any Master Repurchase Agreement.
B. At the direction of the Board operations of the Plan shall be reviewed by independent
certified public accountants as part of any financial audit periodically required. Compliance
with the Board's internal controls shall be verified. These controls have been designed to
prevent losses of assets that might arise from fraud, error, or misrepresentation by third
parties or imprudent actions by the Board or employees of the plan sponsor, to the extent
possible.
C. Each member of the Board shall participate in a continuing education program relating to
investments and the Board's responsibilities to the Plan. It is highly suggested that this
education process begin during each Trustee's first term.
D. With each actuarial valuation, the Board shall determine the total expected annual rate of
return for the current year, for each of the next several years and for the long term thereafter.
This determination shall be filed promptly with the Department of Management Services, the
plan's sponsor and the consulting actuary.
E. The proxy votes must be exercised for the exclusive benefit of the participants of the Plan.
Each Investment Manager shall provide the Board with a copy of their proxy voting policy
for approval. On a regular basis, at least annually, each manager shall report a record of their
proxy vote.
F. Investments for which there is no generally recognized market or consistent accepted pricing
mechanism shall be valued at 50% cost. Assets without a fair market value shall be excluded
from determination of annual funding cost.
Page 6
VII. CRITERIA FOR INVESTMENT MANAGER REVIEW
The Board wishes to adopt standards by which judgments of the ongoing performance of a
portfolio manager may be made. If, at any time, any three of the following is breached, the
portfolio manager will be warned of the Investment Consultant's serious concern for the Fund's
continued safety and performance. If any five of these are violated the consultant will
recommend a manager search for that mandate.
^ Four (4) consecutive quarters of relative under-performance verses the benchmark.
^ Three (3) year trailing return below the top 40th percentile within the appropriate peer
group and under performance verses the benchmark.
^ Five (5) year trailing return below the top 40th percentile and under performance
verses the benchmark.
^ Three (3) year downside volatility greater than the index (greater than 100), as
measured by down market capture ratio.
^ Five (5) year downside volatility greater than the index (greater than 100), as
measured by down market capture ratio.
^ Style consistency or purity drift from the mandate.
^ Management turnover in portfolio team or senior management.
^ Investment process change, including varying the index or benchmark.
^ Failure to adhere to the IPS or other compliance issues.
^ Investigation of the firm by the Securities and Exchange Commission (SEC).
^ Significant asset flows into or out of the company.
^ Merger or sale of firm.
^ Fee increases outside of the competitive range.
^ Servicing issues -key personnel stop servicing the account without proper
notification.
^ Failure to attain a 60% vote of confidence by the Board.
Nothing in this section shall limit or diminish the Board's right to terminate the manager at any
time for any reason.
VIII. APPLICABLE VILLAGE ORDINANCES
If, at any time, this document is found to be in conflict with the Village Ordinances, the
Ordinances shall prevail.
Page 7
IX. REVIEW AND AMENDMENTS
It is the Board's intention to review this document at least annually subsequent to the actuarial
report and to amend this statement to reflect any changes in philosophy, objectives, or
guidelines. In this regard, the Investment Manager's interest in consistency in these matters is
recognized and will be taken into account when changes are being considered. If, at any time,
any Investment Manager feels that the specific objectives defined herein cannot be met, or the
guidelines constrict performance, the Board should be notified in writing. By initialing and
continuing acceptance of this Investment Policy Statement, the Investment Managers concur
with the provisions of this document.
Village of Tequesta General Employees' Retirement Plan
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Page 8