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Home My WebLink AboutDocumentation_Pension General_Tab_07_02/01/2010INTERNAL REVENUE SERVICE P. O. BOX 2508 CINCINNATI, OH 45201 Date : tJ P c.-~Hn ~i e,.r ~ Chi 2 C7 CO `~ VILLAGE OF TEQUESTA C/O $ONNI S JENSEN ESQ HANSON PERRY & JENSEN PA 400 EXECUTIVE CENTER STE 207 WEST PALM BEACH, FL 33401 15~ l~J ~ ~ V l~ Eg~~~.=~r-, - L+S~.iW 1 ~s THE LAW OF PERRY & JEP~ r3_ ee .c ~.Eit~ FICES OF SEN, LLC Dear Applicant: DEPARTMENT OF THE TREASURY Employer Identification Number: 59-6044081 DEN: 209063014 Person to Contact: MARGARET M. SAITO ID# 95038 Contact Telephone Number: (626) 312-3628 Plan Name: VILLAGE OF TEQUESTA GENERAL EMPLOYEES PENSION TRIIST Plan Number: 001 Refer Reply to: SS:T:EP:RA:VC:7554 Response Date: December 28, 2009 Thank you for the information you recently furnished about the plan identified above. Unfortunately, we need additional information before we can complete the processing of your request for a determination letter. Please furnish the information or amendments indicated on the enclosed list. Please submit the requested information or amendments by the response date. If we do not hear from you by that date we may either (1) close your case as incomplete, or (2) process your application on the basis of the infor- mation available, which could result in a determination that your plan is not qualified for favorable tax treatment. If you have any questions concerning this matter, or cannot meet the response date, please contact the person whose name and telephone number are shown above. When you send any information we requested or if you write to us with questions about this letter, please provide your telephone number and the most convenient time for us to call if we need to contact you. Please mail the information requested in this letter to the following address: Internal Revenue Service TE/GE Division 9350 Flair Drive, 2nd Floor E1 Monte, CA 91731-2885 Letter 1955 (DC/PL) -2- VILLAGE OF TEQgESTA Thank you for your cooperation. Sincerely yours, Employee Plans Specialist Enclosure. List of Data Needed Letter 1955 (DC/PL) LIST OF DATA NEEDED GENERAL EMPLOYEES PENSION PLAN A. Please submit the following amendments for the GUST proposed document: 1. For section #16: Ifthe employer's intent is to incorporate the provisions of 415 and the 415 regulations by reference, the plan must state that it is incorporating the limitations of 415 and its regulation by reference. It should furthermore state that this provision supersedes anything to the contrary. If the employer does not wish to incorporate by reference, the plan must state the limitations of 415 2. Section 16(1)(B) of the proposed GUST plan document should be deleted. It indicates that this section is effective for distributions after December 31, 2001. 3. Section 16(3) of the proposed GUST plan document should be amended to provide that the cost of living adjustments are made in accordance with section 415(d) of the Code. Increases for cost of living adjustments are made at the same time and same manner as 415(d), except that the base period is the calendar quarter beginning October 1, 1993, and any increase which is not a multiple of $10,000 shall be rounded to the next lowest multiple of $10,000. 4. For treatment of excess annual addition of pick-up contributions, I ~ waiting for guidance. 5. Section 20(2) of GUST plan document should be amended to provide for 100% vesting far plan termination. It is not a requirement under 401(a) of the Code for government plans to vest 100% if the actuarially required contributions aze discontinued. Whether or not the actuarial required contributions are made is a function of 412 of the Code. If the plan is subject to 412, there are penalties placed on the employer far failure to timely fund the plan. The plan would be required to vest 100°/n upon complete discontinuance of contributions. The plan should be amended accordingly. 6. Section 19(3)(B)(3) of the GUST plan document should be amended to provide that the domestic relations order comply with the provisions of 414(p)(1)(A)(i) of the Code. The plan may not determine whether or not the domestic relations order is qualified. It is up the employer to determine whether or not the domestic relations order complies with the provisions of 414(p)(1)(A)(i). Page 1 of 3 distributable event. 6. Section 23 of the EGTRRA plan document provides for the forfeiture of benefits and rights under the plan if the participant's employment is terminated by reason of his or her admitted commission, aid or abatement of certain of certain offenses detailed in the plan. While a government plan may provide for the forfeiture of benefits upon conviction of certain offenses prior to attainment of normal retirement age, there is a question as to whether or not this provision applies to the forfeiture of benefits after the attainment of normal retirement age. If this provision applies to forfeiture prior to the attainment of normal retirement age only, the plan should be amended accordingly to clarify this provision. The prior plan document covered general employees and public safety employees. Please submit a copy of the interim amendment separating public safety employees from the plan. Page 3 of 3 THE LAW OFFICES OF PERRY &~ JENSEN, LLC ANN H. PERRY apeny(~penyjensenlaw.com January 13, 2010 VIA UPS OVERNIGFIT DELIVERY Margaret Saito, ID #95-02557 Voluntary Compliance Specialist Internal Revenue Service TE/GE Division 9350 Flair Drive, 2nd Floor EI Monte, CA 91731-2885 BONNI SPATARA JENSEN bsJensen(c~percyJensenfaw.com Re: VCP Request for Village of Tequesta General Employees Pension Trust Fund DLN; 209063014 Employer Identification Number; 59-6044081 Our File No.: 1011.0053 Dear Ms. Saito: This firm is the legal counsel for the Village of Tequesta General Employees Pension Trust Fund. This letter is in response to your request dated December 10, 2009 (enclosed) and the list of data needed included with that letter. Thank you for the extension of time for our reply until January 14, 2010. In response to the List of Data Needed: A. GUST Plan Document amendments 1. See Working Restatement with GUST amendment (attached as Exhibit A) at Section 16 (Maximum Pensions}. 2. See Working Restatement with GUST amendment (attached as Exhibit A) at Section 16(1)(6). 3. See Working Restatement with GUST amendment (attached as Exhibit A) at Section 16(3). 4. For treatment of excess annual additions for pick-up contributions, we will await your guidance. 400 EXECUTIVE CENTER DRIVE, SUITE 207 WEST PALM BEACH, FLORIDA 33401-2922 PH: 561.686.6550 .~ Fx: 561.fi86.2802 ~,. Margaret Saito, ID #95-02557 Voluntary Compliance Specialist, VC Group 7554 Internal Revenue Service VCP Request for Village of Tequesta General Employees Pensipn Trust f=und DLN:209063014 Employer Identification Number: 59-60440$1 January 13, 2010 Page 2 of 3 5. See Working Restatement with GUST amendment (attached as Exhibit A) at Section 20(2). Please note that Section 412 of the Internal Revenue Code ("Code")does not apply to governmental plans pursuant to the provisions of §412(e)(2)(B) (formerly Code Section 412(h)(3). 6. See Working Restatement with GUST amendment (attached as Exhibit A) at Section 19(3)(6)(3). 7. See Working Restatement with GUST amendment (attached as Exhibit A) at Section 26. This section refers to conviction for offenses occurring before retirement. Attached as Exhibit B is a copy of Florida Statutes §112.3173 and Exhibit C is the Florida Constitution Article II, Section 8. B. EGTRRA Plan Document amendments See Working Restatement with GUST amendment which has been incorporated into the Working Restatement w~h EGTRRA Amendment (attached as Exhibit D) at Section 16 (Maximum Pension). 2. See Working Restatement with GUST amendment which has been incorporated into the Working Restatement with EGTRRA Amendment (attached as Exhibit D) at Section 16(3). 3. For treatment of excess annual additions for pick-up contributions, we will await your guidance. 4. See Working Restatement with GUST amendment which has been incorporated into the Working Restatement with EGTRRA Amendment (attached as Exhibit D) at Section 20(2). Please note that Section 412 of the Internal Revenue Code ("Code") does not apply to governmental plans pursuantto the provisions of §412(e)(2)(B) (formerly Code Section 412(h)(3). 5. See Working Restatement with EGTRRA Amendment (attached as Exhibit D) at Section 19(3)(6)(3). 6. See Working Restatement with EGTRRA amendment (attached as Exhibit D) at Section 23. This section refers to conviction for offenses occurring Margaret Saito, ID #95-02557 Voluntary Compliance Specialist, VC Group 7554 In#ernal Revenue Service VCP Request for Village of Tequesta General Employees Pension Trust Fund DLN:209063014 Employer Identlflcation Number: 59-6044081 January 13, 2010 Page 3 of 3 before retirement. Attached as Exhibit B is a copy of Florida Statutes §112.3173 and Exhibit C is the Florida Constitution Article II, Section 8. Also enclosed as Exhibit E is a copy of the Plan Ordinance No. 549 adopted November 9, 1999 which provides for the creation of a separate Plan for Public Safety Officers. The Ordinance No. 585 adopted December 11, 2003, attached as Exhibit F, created two separate Plan documents for the Public Safety and the General Employees. Should you have any further questions, please do not hesitate to contact me. Sinc eiy yours, onni S. Jen n BSJ/adt Enclosures as noted Copy to: Chairman and Secretary Lori McWilliams Betty Laur H:\Tequesta GE 1012\IRS Determination Letter\Post Suhmission12010-01-13IRS Cvr htr -VCP req.wpd