HomeMy WebLinkAboutOrdinance_04-10_03/23/2010ORDINANCE NO 4-10
AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF
TEQUESTA PALM BEACH COUNTY FLORIDA AMENDING EXHIBIT
"B" OF SECTION 2-30 OF THE CODE OF ORDINANCES VILLAGE OF
TEQUESTA FLORIDA RELATING TO THE EMPLOYEES PENSION
TRUST FUNDS AMENDING EXHIBIT B PROVIDING FOR A CHANGE
IN THE DEFINITION OF CREDITED SERVICE; PROVIDING FOR A
CHANGE IN THE DEFINITION OF FIREFIGHTER; PROVIDING FOR A
CHANGE IN THE DEFINITION OF SALARY; PROVIDING THAT A
RETIREE MAY CHANGE A DESIGNATED BENEFICIARY UP TO
TWICE; PROVIDING FOR ADDITIONAL SIGNATORIES FOR THE
FUND; PROVIDING FOR INCREASED INVESTMENTS IN FOREIGN
SECURITIES; PROVIDING FOR DIVESTITURE FROM SCRUTINIZED
COMPANIES; PROVIDING FOR EXCLUSION FROM DISQUALIFYING
DISABILITY AS A RESULT OF INTERVENING MILITARY SERVICE;
PROVIDING FOR A CHANGE IN THE TERMINATION OF THE
SYSTEM; PROVIDING FOR THIRD PARTY PAYMENTS FOR
RETIREES; PROVIDING FOR ADDITIONAL OFFENSES FOR
FORFEITURE OF PENSIONS; 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 1. Those portions of Exhibit "B" 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 Exhibit "B" attached hereto and made a part
hereof, are passed and adopted as amendments to such Exhibit 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Ordinance are hereby repealed.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 make 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 Second Reading this 23~d day of March 2010, 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:
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 23~d day of
March, 2010.
MAYOR OF TEQUESTA
ATTEST:
~L.C ~ L~ (.l~L..Q~G2~a~~? .OAP OI
Pat Watkins
Lori McWilliams, cMC =~~~ SEAL :v
Village Clerk :INCORPORATED
AGREEMENT
The Intemational Association of Firefighters, Local 2928 hereby waives bargaining
over the attached amendments to the Village of Tequesta Public Safety Officers' Pension
Trust Fund Ordinance which will be presented to the Village Council. This is in no way to
be construed as a blanket waiver of any kind; the Union specifically reserves the right to
negotiate over any other pension changes in accordance with the law and the collective
bargaining agreement between the Intemational Association of Firefighters, Local 2928
and the Village.
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FOR VILLAGE OF TEQUESTA
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WITNESS
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WITNESS
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H:\Tequesta PS 1011\Union\CBA Waiver Barg.wpd
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EXHIBIT "B"
VILLAGE OF TEQUESTA
PUBLIC SAFETY OFFICERS' PENSION TRUST FUND
TABLE OF CONTENTS
Section 1. Creation of Pension Trust Fund ................................ -1-
Section 2. Definitions .. .............................................. -1-
Section 3. Membership ............................................... -4-
Section 4. Board of Trustees ........................................... -5-
Section 5. Finance And Fund Management ............................... -7-
Section 6. Contributions ............................................. -12-
Section 7. Benefit Amounts and Eligibility ................................ -14-
Section 8. Pre-retirement Death ....................................... -15-
Section 9. Disability ................................................. -16-
Section 10. Monthly Supplemental Benefits ............................... -19-
Section 11. Vesting .................................................. -19-
Section 12. Optional Forms of Benefits ................................... -19-
Section 13. Beneficiaries .............................................. -21-
Section 14. Deferred Retirement Option Plan .............................. -22-
Section 15. Claims Procedures Before the Board Decision ................... -24-
Section 16. Reports to Division of Retirement .............................. -26-
Section 17. Roster of Retirees .. ....................................... -27-
Section 18. Board Attorney and Professionals ............................. -27-
Section 19. Maximum Pension ......................................... -27-
Section 20. Commencement of Benefits .................................. -28-
Section 21. Distribution of Benefits ...................................... -28-
Section 22. Miscellaneous Provision ..................................... -29-
Section 23. Repeal or Termination of System .............................. -31-
Section 24. Exemption from Execution, Non-assignability .................... -34-
Section 25. Pension Validity.. ......................................... -34-
Section 26. Forfeiture of Pension ....................................... -35-
Section 27. Military Service Prior to Employment ........................... -37-
EXHIBIT "B"
VILLAGE OF TEQUESTA
PUBLIC SAFETY OFFICERS' PENSION TRUST FUND
Section 1. Creation of Pension Trust Fund.
The Village of Tequesta hereby creates and continues the Village of Tequesta
Public Safety Officers' Pension Trust Fund for the purpose of providing retirement, death
and disability benefits to Police Officers and Firefighters who are Members of this Fund,
certain former Village Police Officers and Firefighters 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, 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 Firefighter or Police Officer,
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 mean the Public Safety Board of Trustees, which shall
administer and manage the System herein provided and serve as Trustees of the Fund for
the benefit of Village Police Officers and Firefighters and their beneficiaries.
Chapters means Chapters 175 and 185 of the Florida Statutes as amended from
time to time.
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 Police Officer, or Firefighter who makes member contributions to the Plan,
omitting intervening years or fractional parts of years when such Police Officer or
Firefighter may not have been employed by the Village of Tequesta. A plan member may
voluntarily leave his/her contribution in the Fund for a period of five (5) years after leaving
the employ of the Village of Tequesta pending the possibility of being rehired in a full time
position by the Village of Tequesta without losing credit for the time of active participation
as a plan member. Should the employee not be re-employed with the Village of Tequesta
in a full time capacity within five (5) years, his/her contributions shall be returned to him/her
without interest. Should a Police Officer or Firefighter be subsequently re-employed as
such, he or she may re-purchase his or her years of credit or fractional parts of years of
credit by reimbursing such returned contribution to the Fund, with interest.
The years or fractional parts of years that a Firefighter, or Police Officer serves in
the military service of the Armed Forces of the United States or the United States Merchant
Marine, voluntarily, 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 for all purposes including vesting, provided that:
A. The Firefighter or Police Officer must return to his/her full time employment
with the Fire Department or Police Department within one (1) year from the
date of his/her military discharge. Effective January 1. 2007. members
who die or become disabled while serving on active duty military
service which intervenes the member's em~lovment shall be entitled to
the rights of this section even though such member was not re-
employed by the Village. Members who die or become disabled while
on active duty military service shall be treated as though re-employed
the day before the Member became disabled or died. was credited with
the service they would have been entitled to under this section and
then either died anon-duty death while emaloved or became disabled
from anon-duty disability.
B. The maximum credit for military service shall be five (5) years.
Effective Date means the date on which this Ordinance becomes effective.
Fire Department means the Tequesta Fire Department.
Firefighter means an actively employed full-time person employed by the Fire
Department, including his/her initial probationary employment period, who is certified or
required to be certified as a Firefighter as a condition of employment in accordance with
the provisions of 633.35 Florida Statutes, including paramedic, and whose duty is to
extinguish fires, to protect life and to protect property. The term Firefighter includes all
certified, supervisory, and command aersonnel whose duties include. in whole or
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in part, the supervision, training, guidance, and management responsibilities of full-
time firefighters, part-time firefighters, or auxiliary firefighters but does not include
part-time firefighters or auxiliary firefighters.
Fund means the Trust Fund established herein as part of the System.
Member means an actively employed Police Officer or Firefighter that fulfills the
applicable prescribed membership requirements.
Police Department means the Tequesta Police Department.
Police Officer means any person who is elected, appointed, or employed full time
by the Village, who is certified or required to be certified as a law enforcement officer in
compliance with Florida Statute 943.1395, who is vested with authority to bear arms and
make arrests, and whose primary responsibility is the prevention and detection of crime or
the enforcement of the penal, criminal, traffic or highway laws of the state. This definition
includes all certified supervisory and command personnel whose duties include, in whole
or in part, the supervision, training, guidance, and management responsibilities offull-time
law enforcement officers, part-time law enforcement officers or auxiliary law enforcement
officers as the same are defined in F.S. 943.10(6) and (8) respectively. Police Officer also
shall include a public safety officer who is responsible for performing both police and fire
services.
Public Safety Board means the Public Safety Board of Trustees provided hereunder
to administer and manage Funds for the benefit of Public Safety Officers.
Public Safety Officers means Firefighters and/or Police Officers.
Salary means the total cash remuneration paid to a police officer or firefighter for
services rendered including Base Pay, Bonuses, Career Service Annual Award, Holiday
Pay, Incentives, Overtime, Sick Leave Payout on Termination, Sick-Leave Buy Back, and
Straight Time, and effective for payments made after 12/31/08, as provided for by
Internal Revenue Code ~414(ul(7), this definition of salary shall include any
differential wage payment from the employer to a member as a result of the
member's absence from emplovmentwhile serving in qualified military service. This
definition excludes pay received as a Car Allowance, Clothing Allowance and Shoe/Boot
Allowance.
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
Board pursuant to this Ordinance and F.S. 112.661, et seq., which shall apply to funds
under the control of each board.
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System means the Village of Tequesta Public Safety Officers' Pension Trust Fund
as contained herein and all amendments thereto.
Vested deferred retirement means a Member who leaves the employ of the Village
with 6 or more years of credited service and who is not eligible for any retirement benefit.
This benefit is payable at early or normal retirement.
Village means the Village of Tequesta, Florida.
2. Masculine Gender. The masculine gender, where used herein, unless the
context specifically requires otherwise, shall include both the feminine and masculine
genders.
Section 3. Membership.
Condition of Eligibility
All full time Police Officers and Firefighters as of the effective date, and all future
new full time Police Officers and Firefighters shall become Members of this System
as a condition of employment, except that participation in this system is optional for
the Police Chief and the Fire Chief.
2. Membership
Each full time Police Officer or Firefighter shall complete a form prescribed by the
Board which may include 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/or psychological history.
3. Change in Designation of Beneficiary
A. 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.
B. Anv retired member who desires to chance his or her joint annuitant or
beneficiary shall file with the board of trustees a notarized notice of
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such change. Upon receipt of a completed change of joint annuitant
form or such other notice, the board of trustees shall adjust the
member's monthly benefit by the application of actuarial tables and
calculations developed to ensure that the benefit paid is the actuarial
calculations shall be borne by the member.
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 Public Safety Board shall consist of five (5) Trustees, two (2) of whom, unless
otherwise prohibited by law, shall be legal residents of the Village, who shall be appointed
by the Tequesta Village Council, and one (1) of whom shall be a full-time Police Officer
member of the System and one (1) of whom shall be a full-time Firefighter member of the
System. The fifth (5th) Trustee shall be selected by a majority vote of the other four (4)
Trustees. Each person seeking to fill a designated employee representative Board
member seat shall be separately elected by their full-time co-workers who are members
of the System in the applicable employee representative group, e.g. Police Officer or
Firefighter in which they are employed and shall be elected by a majority of the full-time
employees who are Members of the System within the applicable employee representative
group. Upon receipt of the fifth (5th) person's name the Tequesta Village Council shall, as
a ministerial duty, appoint such person to the Public Safety Board as its fifth (5th) Trustee.
The fifth (5th) Trustee shall have the same rights as each of the other Trustees appointed
or elected as herein provided and shall serve a two (2) year term unless the office is
sooner vacated and may succeed himself or herself in office. Each resident Trustee shall
serve as Trustee for a period of two (2) years unless sooner replaced by the Tequesta
Village Council at whose pleasure the Trustee shall serve, and may succeed himself or
herself as a Trustee. Each Police Officer or Firefighter Trustee shall serve as Trustee for
a period of two (2) years, unless he/she sooner leaves the employment of the employee
representative group he/she was elected to represent 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 Public Safety Board shall meet at least quarterly each year. Such Boards 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
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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. 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 their funds 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 they administer and manage at such rates and in such amounts as the Board of
Trustees shall approve.
5. The duties and responsibilities of the Board of Trustees shall include, but not
necessarily be limited to, the following:
A. To construe the provisions of the System and determine all questions
arising thereunder.
B. To determine all questions relating to eligibility and participation.
C. To determine and certify the amount of all retirement allowances or
.other benefits hereunder.
D. To establish uniform rules and procedures to be followed for
administrative purposes, benefit applications and all matters required
to administer the System.
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
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recommendations regarding and all changes in the provisions of the
System.
Ensure compliance with Article X, Section 14, of the Florida
Constitution, requiring that any increase in benefits be funded on an
actuarially sound basis.
J. Ensure the completion of an actuarial impact statement prior to the
adoption of a change in the plan's retirement benefits, a copy of which
must be provided to the Division of Retirement.
K. To comply with the Chapters.
L. 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.
M. To perform such other duties as are specified in this Ordinance and
generally do all acts which the Trustees may deem necessary or
desirable for the protection of the Trust Fund.
N. To adopt and be guided by Statements of Investment Policy
applicable to all funds under the control the Public Safety Board of
Trustees as required from time to time by F.S. 112.661, et seq.,
and/or its successor statutes.
O. To sue or be sued.
P. To settle, compromise or submit to arbitration (at the sole discretion
of the Trustees) any claims, debts or damages due or owing to or
from the Fund.
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 Public Safety Officers to be administered and managed by the Public Safety
Board.
2. The actual custody and supervision of the Fund (and assets thereof) shall be
vested in the Board of Trustees. Payment of benefits and disbursements from the Fund
shall be made by the Village as the Board's agent, but only upon written authorization from
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the Board. Such written authorization shall require the signature of two of the Trustees or
other Board authorized fiduciary.
3. All funds and securities of the Fund may be deposited by the Board of
Trustees with the Treasurer of the Village, acting in a ministerial capacity only, who shall
be liable in the same manner and to the same extent that as he is liable for the
safekeeping of funds for the Village. However, any funds and securities so deposited with
the Treasurer of the Village shall be kept in separate funds by the Treasurer or clearly
identified as such funds and securities of the Public Safety Officer Trust Fund. In lieu
thereof, the Board of Trustees shall deposit the funds and securities of the Fund in a
qualified public depository or depositories as defined in Section 280.02, Florida Statutes,
which depository or depositories with regard to such funds and securities shall conform to
and be bound by all of the provisions of Chapter 280, Florida Statutes.
4. In order to fulfill its investment responsibilities asset forth herein, the Boards
may retain the services of a custodian bank or banks, an investment advisor or advisors
registered under Investment Advisors Act of 1940 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.
5. All funds and securities of the System shall be accounted for separately
based upon the two (2) applicable employee classes within the Fund namely, the Police
Officers and Firefighters in the Public Safety Officers Trust Fund. Accurate records shall
be maintained at all times reflecting the financial composition of the Fund and of the
accounts in place to segregate the assets of the employee classes covered by the System,
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
whatsoeverattributable to contributions and deposits from the Village,
County or State, and
E. All interest, dividends and gains (or losses) whatsoever, and
F. Such other entries as may be properly required so as to reflect a clear
and complete financial report of the Fund.
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G. Such other entries as required by the Chapters.
6. 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.
7. The Board of Trustees shall have the following investment powers and
authority:
A. The Board of Trustees shall be vested with full legal title to the Fund,
subject, however, and in any event to the authority and power of the
Tequesta Village Council to amend or terminate this Trust, provided
that no amendment or Fund termination shall ever result in the use of
any assets of the Fund except for the payment of regular expenses
and benefits under this System. All contributions from time to time
paid into the Fund, and the income thereof, without distinction
between principal and income, shall be held in the Fund and
administered by the Board or its Agents.
B. All moneys paid into or to beheld 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 funds administered by National or
State Banks or evidences of indebtedness issued or guaranteed by
a corporation organized underthe laws of the United States, anystate
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or organized territory of the United States, or the District of Columbia,
provided that the corporation is traded on a nationally recognized
Exchange and in the case of bonds only holds a rating in one of the
four highest classifications by a major rating service, and if such
investments are made in a pooled fund administered by a state or
national bank, then the rating of each issue in the pooled fund shall
hold a rating within the top four (4) rating classifications of a major
rating service.
(5) Real estate.
(6) Up to 15° ~ of Plan assets may be invested in foreign
securities.
(7) 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.
C. The Board of Trustees shall not invest more than five percent (5%) of
its assets in the common stock or capital stock of any one issuing
company, nor shall the aggregate investment in any one issuing
company exceed five percent (5%) of the outstanding capital stock of
that company; nor shall the aggregate of its investments in common
stock, capital stock and convertible bonds at cost exceed sixty percent
(60%) of the assets of the Fund.
D. The Board of Trustees may retain in cash and keep unproductive of
income such amount of the Fund as it may deem advisable, having
regard for the cash requirements of the System.
E. No person or entity shall be liable for the making, retention or sale of
any investment or reinvestment made as herein provided, nor for any
loss or diminishment of the Fund, except that due tohis/her or its own
negligence, willful misconduct or lack of good faith.
F. The Board may cause any investment in securities held to be
registered in or transferred into their name as Trustee or into the
name of such nominee as they may direct, or they may retain them
unregistered and inform permitting transferability, but the books and
records shall at all times show that all investments are part of the
Trust Fund.
G. The Board is empowered, to vote upon any stocks, bonds or
securities of any corporation, association, or trust and to give general
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or specific proxies or powers of attorney with or without power of
substitution; to participate in mergers, reorganizations,
recapitalization, 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 responsibility may be delegated
to an Agent for the Board.
H. The Board shall not be required to make any inventory or appraisal or
report to any court, nor secure any order of court for the exercise of
any power contained herein.
Where any action which the Board is required to take on any duty or
function which it is required to perform either under the terms herein
or under the general law applicable to it as Trustee under this
Ordinance, can reasonably be taken or performed only after receipt
by it from a Member, the Village, the Department or any other entity,
of specific information, certification, direction or instructions, the Board
shall be free of liability in failing to take such action or perform such
duty or function until such information, certification, direction or
instruction has been received by it.
J. Any overpayments or underpayments from a Fund to a Member or
beneficiary caused by errors of computation shall be adjusted with
interest at a rate per annum approved by the Board. Overpayment
shall be charged against member's payments next succeeding the
correction. Underpayments shall be made up from the Trust Fund.
K. The 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 reposed in the Board 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 the Fund shalt always remain in the Board of Trustees.
M. The Board shall not invest more than ten percent (10%) at cost of its
assets in real property or real estate and there shall be no investment
in a limited partnership or trust.
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N. The Village shall maintain Fiduciary Liability insurance to cover the
members of the Board of Trustees.
O. With respect to any investment, the Trustees may consent or object
to any action or non-action of any corporation or of the directors,
officers or stockholders of any corporation.
P. Notwithstanding anythina else in this subsection and as
have in anv scrutinized company. as defined in that section.
Beginning January 1. 2010. the Board must proceed to sell.
redeem, divest. or withdraw all publicly traded securities it may
have directly in that comaanv. The divesture of anv such
security must be completed by September 10. 2010. The board
and its named officers or investment advisors may not be
deemed to have breached their fiduciary duty in anv action taken
to dispose of anv such security. and the board shall have
satisfactorily discharged the fiduciary duties of loyalty.
prudence. and sole and exclusive benefit to the participants of
the pension fund and their beneficiaries if the actions it takes are
manner of the disposition. if anv. is reasonable as to the means
chosen. For purposes of determining which companies are
scrutinized companies, the Board may utilize the list of
scrutinized companies as developed by the Florida State Board
of Administration. No person may bring anv civil. criminal, or
based upon the divesture of anv security pursuant to this
subsection.
Section 6. Contributions.
Member Contributions
A. Amount. Effective the first full payroll period after the effective date
of this Ordinance, Police Officer 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 ffective the first full
payroll period after the effective date of this Ordinance, Firefighter
Members of the Retirement System shall be required to make regular
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contribution to the Fund in the amount of five percent (5%) of his/her
salary. The funding forthe difference between the previously required
contribution of 6.1 % and the now required 5% shall be made up from
the monies received from the State pursuant to Chapter 175, F.S.
Should the Chapter 175 money ever become insufficient to make up
the difference, the contribution rate for Firefighter Members shall
automatically revert to 6.1 %. Member contributions withheld by the
Village on behalf of the Member shall be deposited with the Board of
Trusteesimmediatelyafterthewithholdingofsuchcontributions. The
contributions made by each Member to the Fund shall be designed as
employer contributions pursuant to Section 414(h) of the Code. Such
designation is contingent upon the contributions being excluded from
the Members' gross income for Federal Income Tax purposes. For
all other purposes of the Plan, such contributions shall be considered
to be Member contributions.
B. Method. Such contributions shall be made by payroll deduction.
2. State Contributions
Any monies received or receivable by reason of laws of the State of Florida,
for the express purpose of funding and paying for retirement benefits for Police Officers
or Firefighters shall be deposited with the applicable segregated account in the Trust Fund
comprising part of this System immediately and under no circumstances more than five (5)
days after receipt by the Village.
3. Village Contributions
So long as this System is in effect, the Village shall make contributions at
least quarterly to the Trust Fund in an amount equal to the normal cost and the amount
required to fund any actuarial deficiency shown by an actuarial valuation as provided in
Part VII of Chapter 112, Florida Statutes.
4. Other
Private donations, gifts and contributions maybe 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 of Trustees, 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 the next following the earlier of:
A. attainment of age fifty-five (55) and the completion of six (6) years of
credited service, or
B. attainment of age fifty-two (52) and the completion of twenty-five (25)
years of credited service.
A Member may retire on his/her normal retirement date or on the first day
of any month thereafter, and each Member shall become 100% vested in his/her accrued
benefit on the Member's normal retirement date. Normal retirement under the Plan is
retirement from employment with the Village of Tequesta as a Police Officer or Firefighter
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. The monthly retirement
benefit shall equal:
3.0% for the first 6 years of service
3.5% for the next 4 years of service
4.0% for the next 5 years of service
3.0% for the next 6 years of service
2.0% for the next 4 years of service
3.0% for all years after 25 years
3. Early Retirement Date
A Member may retire on his/her early retirement date which shall be the first
day of any month coincident with or next following the later of the attainment of age fifty
(50) and the completion of six (6) years of credited service. Early retirement under the
Plan is retirement from employment with the Village of Tequesta on or after the early
retirement date and prior to the normal retirement date.
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4. Early Retirement Benefit
A Member retiring hereunder on his/her early retirement date may receive
either a deferred or an immediate monthly retirement benefit payable for life, but with one
hundred twenty (120) monthly payments guaranteed in any event, as follows:
A. deferred monthly retirement benefit which shall commence on what
would have been his/hernormal retirementdate had he/she remained
a Police Officer or Firefighter 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. 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 three percent (3%) for each
year by which the commencement of benefits precedes the Member's
normal retirement date.
Section 8. Pre-retirement Death.
If a plan member dies prior to retirement from the Village of Tequesta his/her
beneficiary shall receive a benefit as follows:
A. Line-of-Duty-Death-Benefit is a pension to the spouse (or children) for
life in the amount of 50% of Average Final Compensation.
B. Non-Line-of-Duty-Death-Benefit the spouse of a memberwith 6 years
of credited service will receive the actuarial equivalent of the accrued
normal retirement benefit.
C. In lieu of the benefits provided in A or B above, the beneficiary of a
police officer or firefighter, with 6 or more years of service who dies
prior to retirement, may receive the benefits otherwise payable to the
police officer at what would have been his/her early or normal
retirement date.
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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 Police Officer or
Firefighter, as was provided by the employee in their classification (Police Officer or
Firefighter) prior to the alleged impairment, which disability was directly caused by the
performance of his/her duty as a Police Officer or Firefighter shall upon establishing the
same to the satisfaction of the Board, be entitled to:
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) the accrued Normal Retirement Benefit.
Any condition or impairment of health of Police Officer or Firefighter caused
by tuberculosis, hypertension hepatitis, meningococcal meningitis or heart
disease shall be presumed to have been suffered in the line of duty unless
the contrary is shown by competent evidence, provided that such Police
Officer or Firefighter shall have successfully passed a physical examination
upon entering into such service, including cardiogram, which examination
failed to reveal any evidence of such condition; and provided further, that
such presumption shall not apply to benefits payable or granted in a policy
of life insurance or disability insurance. In order to be entitled to the
presumption in the case of hepatitis, meningococcal meningitis, or
tuberculosis the member must meet the requirements of Section 112.181,
Florida Statutes.
2. Disability Benefits Off-Duty
Every Police Officer or Firefighter who is a participant in the Pension Fund
System 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 Police Officer or Firefighter which disability is not directly
caused by the performance of his/her duties as a Police Officer or Firefighter shall be
entitled the greater of A. or B.:
A. A monthly pension equal to 25% of his/her average monthly
compensation as of his/her disability retirement date, or
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B. The accrued Normal Retirement Benefit.
3. Conditions Disgualifying Disability Benefits
Each Police Officer or Firefighter who is claiming disability benefits shall
establish, to the satisfaction of the Board, that such disability was not occasioned primarily
by:
A. Excessive or habitual use of any drugs, intoxicants or alcohol.
B. Injury or disease sustained while willfully and illegally participating in
fights, riots or civil insurrections.
C. Injury or disease sustained while committing a crime.
D. Injury or disease sustained while serving in any branch of the Armed
Forces. This exclusion does not affect members who have
become disabled as a resultof interveninct militarvservice under
the federal Heroes Earnings Assistance and Relief Tax Act of
2008 (H.R. 6081: P.L. 110-245).
E. Injury or disease sustained after his/her employment shall have
terminated as a Police Officer with the Tequesta Police Department
or a Firefighter with the Tequesta Fire Department.
F. Injury or disease sustained by a Police Officer, while working for
anyone other than the Tequesta Police Department and arising out of
such employment.
G. Injury or disease sustained by the member before employment with
the Village begins. This subparagraph applies only in the event of a
duty injury or disease.
4. Physical Examination Requirement
An employee shall not become eligible for disability benefits until and unless
he/she undergoes a physical examination by a qualified physician or physicians and/or
surgeons, who shall be selected by the Board for that purpose.
Any person receiving disability benefit under provisions of this Ordinance may
be periodically re-examined by a qualified physician or physicians and/or surgeon or
surgeons who shall be selected by the Board, to determine if such disability has ceased
to exist. If the Board finds that the retiree is no longer permanently and totally disabled to
the extent that he/she is unable to render useful and efficient service as a Police Officer
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or a Firefighter, the Board shall recommend to the Village that the retiree be returned to
their previous performance of duty as a Police Officer or Firefighter, 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 borne by the Board. 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. If the plan member dies without recovering from the disability prior to
his/her normal retirement date while still disabled, the payment due
next preceding his/her death or the 120th monthly payment,
whichever is later.
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Section 10. Monthly Supplemental Benefits.
Effective upon passage of this Ordinance, any retiree or beneficiary receiving
pension benefits is entitled to a monthly supplemental pension benefit of $20
per year of service, up to a maximum benefit of $600.00.
2. This benefit shall be payable monthly as a part of the regular monthly
pension benefit. The benefit shall be payable to the retiree and any
beneficiary. The benefit shall cease upon the death of the member or
beneficiary, if applicable.
Section 11. 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 of credited service upon
termination, the Member shall be entitled to a refund of his/her accumulated contribution
or the Member may leave it deposited with the Fund.
2. If the Member has six (6) or more years of credited service upon termination,
the Member shall be entitled to a monthly retirement benefit that is the actuarial equivalent
of the amount of such retirement income otherwise payable to him commencing at the
Member's otherwise normal or early retirement date, provided he does not elect to
withdraw his/her accumulated contributions and provided the Member survives to his/her
normal or early retirement date.
Section 12. Optional Forms of Benefits.
1. In lieu of the amount and form of retirement income payable in the event of
normal, early, or disability retirement as specified herein, a plan member, upon written
request to the Board of Trustees, 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.
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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
pensionerthat is being removed as it may require and the amount of the retirement income
payable to the Police Officer or Firefighter 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 Police Officer or Firefighter. Each such
designation will be made in writing on a form prepared by the Board of Trustees and on
completion will be filed with the Board of Trustees.
In the event that no designated beneficiary survives the Member, such benefits as
are payable in the event of the death of the Member subsequent tohis/her retirement shall
be paid as provided in Section 12.
5. Retirement income payments shall be made under the option elected in
accordance with the provisions of this section and shall be subject to the following
limitations:
A. If a Member dies prior to his/her normal retirement date or early
retirement date, whichever occurs, no retirement benefit will be
payable under the option to any person, but the benefits, if any, will
be determined under Section 8.
B. If the designated beneficiary (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
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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 Memberpriorto his/herretirementand within ninety
(90) days after the death of the beneficiary.
C. If both the retired Member and the beneficiary (or beneficiaries)
designated by the Member die before the full payment has been
effected under any option providing for payments for a period certain
and life thereafter, made pursuant to the provisions of subsection 1,
the Board of Trustees may in its discretion, direct that the computed
value of the remaining payments be paid in a lump sum and in
accordance with Section 12.
D. If a Member continues beyond his/her normal retirement date
pursuant to the provisions of Section 7, subsection 1, and dies prior
to his/her actual retirement and while an option made pursuant to the
provisions of this section is in effect, monthly retirement income
payments will be made, or a retirement benefit will be paid, under the
option to a beneficiary (or beneficiaries) designated by the Member
in the amount or amounts computed as if the Member had retired
under the option on the date on which his/her death occurred.
6. The Member may not change his/her retirement option after the date of
cashing or depositing his/her first retirement check.
Section 13. Beneficiaries.
1. Each Member may, on a form provided forthat 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 may be paid, in the discretion of the Board of
Trustees, either to:
A. The wife or dependent children of the Member;
B. The dependent living parents of the Member; or
C. Estate of the Member.
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Section 14. Deferred Retirement Option Plan.
Eligibility to Participate in the Drop
A. Any member who is eligible to receive a normal retirement pension
may participate in the DROP. Members shall elect to participate by
applying to the Board of Trustees on a form provided for that purpose.
B. Election to participate shall be forfeited if not exercised within the first
twenty-seven (27) years of combined credited service. However,
participation in the first years of enactment will be extended to those
members with twenty-eight (28) years of service in 2003.
C. A member shall not participate in the DROP beyond the time of
attaining 30 years of service and the total years of participation in the
DROP shall not exceed five (5) years. For example:
(1) Members with twenty-five (25) years of credited service at time
of entry shall only participate for five (5) years.
(2) Members with twenty-six (26) years of credited service at time
of entry shall only participate for four (4) years.
(3) Members with twenty-seven (27) years of credited service at
time of entry shall only participate for three (3) years.
D. Upon a member's election to participate in the DROP, he or she shall
cease to be a member and is precluded from accruing any additional
benefit under the Pension Fund. For all Fund purposes, the member
becomes a retirant. The amount of credited service and final average
salary freeze as of the date of entry into the DROP.
2. Amounts Payable upon Election to Participate in DROP
A. Monthly retirement benefits that would have been payable had the
member terminated employment with the department and elected to
receive monthly pension payments will be paid into the DROP and
credited to the retirant. Payments into the DROP will be made
monthly over the period the retirant participates in the DROP, up to a
maximum of sixty (60) months.
B. Payments to the DROP eam interest using the rate of investment
return earned on Pension Fund assets during the twelve (12) month
period ending September 30th. The rate determined shall be the rate
reported to the Division of Retirement pursuant to Part VII of Chapter
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112, Florida Statutes. However, if a police officer or firefighter does
not terminate employment at the end of participation in the DROP,
interest credits shall cease on the current balance and on all future
DROP deposits.
C. No payments will be made from DROP until the member terminates
employment with the department.
D. Upon termination of employment, participants in the DROP will
receive the balance of the DROP account in accordance with the
following rules:
(1) Members may elect to begin to receive payment upon
termination of employment or defer payment of DROP until the
latest day as provided under sub-subparagraph c.
(2) Payments shall be made in either:
a. Lump sum -the entire account balance will be paid to
the retirant upon approval of the Board of Trustees.
b. Installments -the account balance will be paid out to
the retirant in three equal payments paid over 3 years
the first payment to be made upon approval of the
Board of Trustees.
c. Annuity -the account balance will be used to purchase
an annuity to be paid monthly, the first payment to be
made upon approval by the Board of Trustees. The
annuity must be purchased from an insurer licensed to
sell such annuities in Florida.
(3) Any form of payment selected by a police officer must comply
with the minimum distribution requirements of the IRC
401(A)(9) e.g., payments must commence by age 70'/z.
(4) The beneficiary of the DROP participant who dies before
payments from DROP begin shall have the same right as the
participant in accordance with Ordinance.
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Section 15. Claims Procedures Before the Board Decision.
If any Member of the System has been:
A. Placed on pension under the terms and provisions of this ordinance
for disability, or
B. Placed on pension because the Member has served the required
number of years to entitle him to a pension, or
C. Refused benefits under this Plan, and is dissatisfied with the amount
of pension the Member is receiving, or believes that he should be
entitled to benefits under the Plan, the Member may, in writing,
request the Board to review his/her case. The Board shall review the
case and enter such order thereon as it deems right and proper within
sixty (60) days from receipt of such written request and the receipt by
the Board of a written medical release authorization and a list of
names and addresses of all treating health care providers for such
review of disability claims; provided, that the Board may extend the
time for entering such order by an additional forty-five (45) days if it
determines such time is necessary for discovery in full and adequate
review.
2. In the event that the order from the Board denies the claim for a change in
such benefits or denies the claim for benefits, the order of the Board shall be
put in writing. Such written order shall include:
A. The specific reasons for the denial, including specific references to
pertinent provisions of the retirement system on which such denial is
based;
B. A description of any additional material or information that the Board
feels is necessary for the Member to perfect his/her claim, together
with an explanation of why such material or information is necessary;
and
C. An explanation of the review procedure next open to the Member.
Such review procedure shall provide that:
(1) Prior to such review, the Member or his/her duly authorized
representative may review any pertinent documents including
Plan provisions, minutes of the meeting of the Board in which
denial fo the claim was originally recommended, and any other
documents material to the case;
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(2) After such review, the Member and/or his/her duly authorized
representative shall submit their casein writing to the Board
and request a hearing. Such submission shall be filed with the
Board no later than ninety (90) days after the receipt of the
order of the Board. Upon receipt of the written submission by
the Member, the Board shall schedule an opportunity for a full
and fair hearing of the issue within the next ninety (90) days,
and such scheduled hearing shall be communicated in writing
to the Member. The Member and/or his/her duly authorized
representative may then appear at such scheduled hearing to
present their case. The Board shall consider the facts
presented at the scheduled hearing and shall, within thirty (30)
days after such hearing, make a final ruling in writing on the
request of the Member. The written decision shall include the
reasons for such decision and, such decision shall be final.
(a) The Chairman shall preside over the hearing and shall
rule on all evidentiary and other legal questions that
arise during the hearing.
(b) Either party, the claimant or the Board, may file
pleadings within the time limits set herein. Procedural
motions are to be determined by the Chairman of the
Board at any time. All parties are to furnish copies of all
pleadings to the opposing parties and exchange lists
with names-and addresses of witnesses expected to be
called to testify at the hearing, as well as the list of
exhibits that are intended to be introduced, at least
forty-five (45) days prior to the hearing. Testimony of
witnesses shall be under oath or affirmation.
Depositions or affidavits shall not be admissible unless
upon stipulation by all parties. The Chairman, any
Member of the Board, the attorney for the Board, the
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.
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(c) In all cases, unless otherwise provided in this section,
the burden of proof shall be on the claimant who seeks
to draw his/her entitlement to a pension, disability
pension, or increased pension benefits.
3. In all proceedings under subsections 1 or 2 hereof, the Board shall have the
power to subpoena and require the attendance of witnesses and the
production of documents for discovery prior to and at the proceedings
provided for in each paragraph. A reasonable fee may be charged for the
issuance of any subpoenas not. to exceed the fees set forth in Florida
Statutes.
Section 16. Reports to Division of Retirement.
Each year no later than March 15th, the Chairman of the Board shall file two (2)
separate reports with the Division of Retirement containing the following relative to the
Police Officers and Firefighters of the Plan. The Police Officer report shall be separate
from the Firefighter report.
1. Whether in fact the Village is in compliance with the provisions of Chapters
175 and 185, Florida Statutes.
2. A certified statement of accounting for the most recent fiscal year of the
Village (or an independent audit by a certified public accountant if required by the Division
of Retirement) showing a detailed listing of assets and methods used to value them and
a statement of all income and disbursements during the year by the Public Safety Board.
Such income and disbursements shall be reconciled with the assets at the beginning and
end of the year.
3. A statistical exhibit showing the number of Police Officers on the force of the
Village,. the number included in the Pension Plan, the number of Police Officers ineligible,
classified according to the reasons for their being ineligible, and the number of disabled
and retired Police Officers and their beneficiaries receiving pension payments and the
amounts of annual retirement income or pension payments being received by them.
4. A statistical exhibit showing the number of Firefighters on the force of the
Village, the number included in the Pension Plan, the number of Firefighters ineligible,
classified according to the reasons for their being ineligible, and the number of disabled
and retired Firefighters and their beneficiaries receiving pension payments and the
amounts of annual retirement income or pension payments being received by them.
5. A statement of the amount the Village has contributed to the Public Safety
Pension Fund for the preceding plan year and the amount the Village will contribute to the
Public Safety Pension Fund for the current plan year.
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6. If any benefits are insured with a commercial insurance company, the report
shall include a statement of the relationship of the insured benefits to the benefits provided
by this Ordinance. This report shall also contain information about the insurer, basis of
premium rates, mortality table, interest rates and method used in valuating retirement
benefits.
7. An actuarial valuation of the retirement Plan for Public Safety Officers must
be made at least once every three (3) years commencing from the last actuarial report of
the Plan. Such valuation shall be prepared by an enrolled actuary who is enrolled under
Subtitle C of the Title 3 Employee Retirement Income Security Act of 1974 and who is a
Member of the Society of Actuaries or the American Academy of Actuaries.
Section 17. Roster of Retirees.
The Secretary of the Boards 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 Police Officers and Firefighters employed by the Village who are
Members of the plan their board administers in such a manner as to show the name,
address, date of employment and date such employment is terminated.
Section 18. Board Attorney and Professionals.
The Board may employ independent legal counsel at the Pension Fund's expense
forthe purposes contained herein, togetherwith such otherprofessional, technical, orother
advisors as the Board deems necessary.
Section 19. Maximum Pension.
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
limits contained in §415 of the Code.
2. Additional Limitation on Pension Benefits. Notwithstanding anything herein
to the contrary:
A. The normal retirement benefit or pension to a retiree who becomes a
member of the Plan and who has not previously participated in such
Plan, on or after January 1, 1980, shall not exceed 100 percent of
his/her average final compensation. However, nothing contained in
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this section shall apply to supplemental retirement benefits or to
pension increases attributable to cost-of-living increases or
adjustments.
B. No member of the Plan who is not now a member of such Plan shall
be allowed to receive a retirement benefit or pension which is in part
or in whole based upon any service with respect to which the member
is already receiving, or will receive in the future, a retirement benefit
or pension from another retirement system or plan. This restriction
does not apply to social security benefits or federal benefits under
Chapter 67, Title 10, U.S. Code.
Section 20. Commencement of Benefits.
1. Unless the Member otherwise elects, with such election being in writing and
to the Trustees and specifying the form of retirement income and date on which the
retirement income is to commence, the payment benefits under the Plan to the Member
shall commence not later than the 60th day after the close of the Plan Year in which the
latest following events occur:
A. The attainment by the Member of age 65;
B. The 10th anniversary of the date on which the Member commenced
participation in the Plan; or
C. The termination of the Member's service with the Village of Tequesta
2. If the payment of a Member's retirement income cannot begin on the date
required under subsection 1 of the Section because the Trustees either cannot ascertain
the amount of the Member's retirement income or cannot locate the Member after making
reasonable efforts to do so, the payment of the Member's benefit shall begin not later than
sixty (60) days after the date on which the amount can be ascertained or the Member is
located, whichever is applicable. Any such payment shall be made retroactive to a date
which is not earlier than the date on which the payment of the Member's benefit was
scheduled to begin but which is not later than the date specified under subsection 1 of this
Section.
Section 21. 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:
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1. If the retirement income is payable before the Member's death, the
distribution shall commence to them not later than the calendar year defined above; and
A. shall be paid over the life of the Member or over the lifetimes of the
Member and spouse, issue or dependent, or,
B. shall be paid over the period extending not beyond the life expectancy
of the Member and spouse, issue or dependent.
Where a form of retirement income payment has commenced in accordance with
the preceding paragraphs and the Member dies before his/her entire interest in the Plan
has been distributed, the remaining portion of such interest in the Plan shall be distributed
no less rapidly than under the form of distribution in effect at the time of the Member's
death.
2. If the Member's death occurs before the distribution of his/her interest in the
Plan has commenced, the Member's entire interest in the Plan shall be distributed within
five (5) years of the Member's death, unless it is to be distributed in accordance with the
following rules:
A. The Member's remaining interest in the Plan is payable to his/her
spouse, issue or dependent;
B. The remaining interest is to be distributed over the life of the spouse,
issue or dependent or over a period not extending beyond the life
expectancy of the spouse, issue or dependent; and
C. Such distribution begins within one yearof the Member's death unless
the Member's spouse, issue ordependent shall receive the remaining
interest in which case the distribution need not begin before the date
on which the Member would have attained age 70'/z and if the
spouse, issue or dependent dies before the distribution to the spouse,
issue or dependent begins, this Section shall be applied as if the
spouse, issue or dependent were the Plan Member.
Section 22. Miscellaneous Provision.
1. Interest of Members in Pension Fund. At no time prior to the satisfaction of
all liabilities under the Plan with respect to Members and their spouses or beneficiaries,
shall any part of the corpus or income of the Pension Fund be used for or diverted to any
purpose other than for their exclusive benefit.
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2. No amendment or ordinance shall be adopted by the Village Council of the
Village of Tequesta which shall have the. effect of reducing the then vested accrued
benefits to Members or Members beneficiaries.
3. Rollover Distributions
A. This subsection applies to distributions made on or after January 1,
1993. Notwithstanding any provision of the Plan to the contrary that
would otherwise limit a distributee's election under this subsection, a
distributee may elect, at the time and in the manner prescribed by the
Board of Trustees, to have any portion of an eligible rollover
distribution paid directly to an eligible retirement plan specified by the
distributee in a direct rollover.
B. Definitions.
(1) "Eligible rollover distribution" is any distribution of all or any
portion of the balance to the credit of the distributee, except
that an eligible rollover does not include any distribution that is
one of a series of substantially equal periodic payments (not
less frequently than annually) made for the life (or life
expectancy) of the distributee or distributee's designated
beneficiary, or for a specified period of 10 years or more; any
distribution to the extent such distribution is required under
section 401(a)(9) of the Code; and the portion of any
distribution that is not includible in gross income.
(2) "Eligible retirement plan" is an individual retirement account
described in section 408(a) of the Code, an individual
retirement annuity described in sectiion 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 rollover distribution. However,
in the case of al eligible rollover distribution to the surviving
spouse, an eligible retirement plan is an individual retirement
account or individual retirement annuity.
(3) "Distributee" includes an employee or former employee. In
addition, the employee's or former employee's surviving
spouse and the employee's or former employee's spouse who
is entitled to payment for alimony and child support under a
domestic relations order determined to be qualified by this
Fund are distributees with regard to the interest of the spouse
or former spouse.
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(4) "Direct rollover" is a payment by the Plan to the eligible
retirement plan specified by the distributee.
Section 23. Repeal or Termination of System.
1. This Ordinance establishing the System and Fund, and subsequent
Ordinances pertaining to said System and Fund, may be modified, terminated, or
amended, in whole or in part; provided that if this or any subsequent Ordinance shall be
amended or repealed in its application to any person benefitting hereunder, the amount of
benefits which are the time of any such alteration, amendment, or repeal shall have
accrued to the Member or beneficiary shall not be affected thereby,
2. If this Ordinance shall be repealed, or if contributions to the System are
discontinued, the Board shall continue to administer the System in accordance with the
provisions of this Ordinance, for the sole benefit of the then Members, any beneficiaries
then receiving retirement allowances, and any future persons entitled to receive benefits
under one of the options provided for in this Ordinance who are designated by any of said
Members. In the event of repeal, or if contributions to the System are discontinued, there
shall be full vesting (100%) of benefits accrued to date of repeal
. The actuarial
single-sum value may not be less than the employee's accumulated contributions
to the elan, with interest if provided by the plan, less the value of anv elan benefits
previously said to the employee.
3. Upon termination of the elan by the Village for anv reason. or because
Villa a that contributions under the Ulan are being permanently discontinued, the
ri hts of all employees to benefits accrued to the date of such termination or
discontinuance and the amounts credited to the emolovees' accounts are
nonforfeitable. The fund shall be distributed in accordance with the following
procedures:
A. The board of trustees shall determine the date of distribution and
the asset value reauired to fund all the nonforfeitable benefits.
after taking into account the expenses of such distribution. The
board shall inform the Village if additional assets are reauired, in
which event the Village shall continue to financially supa_ort the
plan until all nonforfeitable benefits have been funded.
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B. The board of trustees shall determine the method of distribution
of the asset value, whether distribution shall be by payment in
cash. by the maintenance of another or substituted trust fund. by
the purchase of insured annuities, or otherwise. for each police
officer and firefighter entitled to benefits under the plan, as
specified in subsection C.
C. The board of trustees shall distribute the asset value as of the
date of termination in the manner set forth in this subsection, on
the basis that the amount required to provide anv given
retirement income is the actuarially computed single-sum value
of such retirement income. except that if the method of
distribution determined under subsection B involves the
purchase of an insured annuity, the amount required to provide
the given retirement income is the single premium payable for
such annuity. The actuarial single-sum value may not be less
than the emglovee's accumulated contributions to the elan, with
interest if provided by the plan, less the value of anv plan
benefits previously said to the employee.
D. If there is asset value remaining after the full distribution
s ecified in subsection C. and after gavment of anv expenses
plan, such excess shall be divided proportionately to the total
contributions made by the Village and the state.
E. The board of trustees shall distribute. in accordance with the
manner of distribution determined under subsection B. the
amounts determined under subsection C.
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~Ptitr~
4. 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
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provide the benefits determined in accordance with this subsection. The Fund may be
distributed in one sum to the persons entitled to said benefits or the distribution may be
carried out in such other equitable manner as the Board may direct. The Trust may be
continued in existence for purposes of subsequent distributions.
5.~: 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 24. Exemption from Execution, Non-assignability.
The pensions, annuities, or any other benefits accrued or accruing to any person
under the provisions of this Ordinance and the accumulated contributions and the cash
securities in the Fund created under this Ordinance are hereby exempted from any state,
county or municipal tax of the state and shall not be subject to execution, attachment,
garnishment or any legal process whatsoever and shall be unassignable. However,
pursuant to an income deduction order, the trustees may direct that retirement benefits be
paid for alimony or child support in accordance with rules and regulations adopted by the
Board of Trustees.
Uaon written request by the retiree. the Board of Trustees may authorize the
Plan administrator to withhold from the mon_ thly retirement gavment funds
necessary to•
1. pav for benefits being received through the Village;
2. pav the certified baraaining agent: or
3. to aav for aremiums for accident health and Iona-term care insurance
for the retiree. the retiree's saouse and dependants. A retirement clan
&175.061(7) and 185.05(61.
Section 25. Pension Validity.
The Board of Trustees shall have the power to examine into the facts upon which
any pension shall heretofore have been granted and under any prior or existing law, or
shall hereafter be granted or obtained erroneously, fraudulently or illegally for any reasons.
Said Board is empowered to purge the pension rolls of any person heretofore granted a
pension under prior or existing law or heretofore granted under this Ordinance if the same
is found to be erroneous, fraudulent or illegal for any reason, and to reclassify any person
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who has heretofore under any prior or existing law been or who shall hereafter under this
Ordinance be erroneously, improperly or illegally classified.
Section 26. Forfeiture of Pension.
Any Member convicted of the following offenses committed prior to retirement, or
whose employment is terminated by reason of his/her admitted commission, aid or
abatement of the following specified offenses, shall forfeit all rights and benefits under this
Pension Fund, except for the return of this accumulated contributions as of the date of
termination.
Specified offenses are as follows:
A. The committing, aiding or abetting of an embezzlement of public funds;
B. The committing, aiding or abetting of any theft by a public officer or
employee from employer;
C. Bribery in connection with the employment of a public officer or
employee;
D. Any felony specified in Chapter 838, Florida Statutes;
E. The committing of an impeachable offense.
F. The committing of any felony by a public officer or employee who
willfully and with intent to defraud the public or public agency, for
which he acts or in which he is employed, of the right to receive the
faithful performance of his/her duty as a public officer or employee,
realizes or obtains or attempts to obtain a profit, gain, or advantage
for himself or for some other person through use or attempted use of
the power, rights, privileges, duties or position of his/her public office
or employment position.
G. The committing on or after October 1.2008, of any felonv defined
in &800.04. Florida Statutes. aaainst a victim vounaer than 16
years of aae, or any felonv defined in Chanter 794. Florida
Statutes aaainst a victim vounaer than 18 years of aae, by a
public officer or employee through the use or attempted use of
power, rights, privileges, duties. or position of his or her public
office or em~lovment position.
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2. Definitions
A. Conviction shall be defined as:
An adjudication of guilt by a court of competent jurisdiction; a plea of
guilty or nolo contendere; a jury verdict of guilty when adjudication of
guilt is withheld and the accused is placed on probation; or a
conviction by the Senate of an impeachable offense.
B. Court shall be defined as:
Anystate orfederal courtof competent jurisdiction which is exercising
jurisdiction to considera 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 Memberwho has received benefits from the System in excess of his/her
accumulated contributions after Member's rights were forfeited shall be
required to pay back to the Fund the amount of the benefits received in
excess of his/her accumulated contributions. The Board of Trustees may
implement all legal action necessary to recover such funds.
3. False, misleading, orfraudulent statements made to obtain public retirement
benefits is prohibited; penalty
A. It is unlawful for a person to willfully and knowingly make, or cause to
be made, or to assist, conspire with, or urge another to make, or
cause to be made, any false, fraudulent, or misleading oral or written
statement or withhold or conceal material information to obtain any
benefit available under a retirement plan receiving funding under
Florida Statutes, Chapters 175 and 185.
B. A person who violates subsection (A) commits a misdemeanor of the
first degree, punishable as provided in s. 775.082 or s. 775.083,
Florida Statutes.
In addition to any applicable criminal penalty, upon conviction for
violation described in subsection (A), a participant or beneficiary of a
pension plan receiving funding under Florida Statutes, Chapters 175
and 185 may, in the discretion of the Board of Trustees, be required
to forfeit the right to receive any or all benefits to which the person
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would otherwise be entitled under this Ordinance. For purposes of
this paragraph; "conviction" means a determination of guilt that is the
result of a pleas or trial, regardless of whether adjudication is
withheld.
Section 27. Military Service Prior to Employment.
The years or fractional parts of years that a Member serves or has served in the
military service of the Armed Forces of the United States or United States Merchant
Marine, voluntarily or involuntarily, prior to first and initial employment with the Police
Department or Fire Department shall be added to his/heryears of credited service provided
that:
1. The Police Officer or Firefighter contributes to the Fund the sum that he/she
would have contributed had he/she been a member of the Plan for the years or fractional
parts of years for which he/she is requesting credit plus amounts actuarially determined
such that the crediting of service does not result in any cost to the Fund plus payment of
costs for all professional services rendered to the Board in connection with the purchase
years of credited service.
2. The request shall be made only once and made by the Member on or before
the later of twelve (12) months from the effective date of this Ordinance or six (6) months
from the date of his/her employment with the Police Department or Fire Department,
whichever is later.
3. Payment by the Member of the required amount shall be made within six (6)
months of his/her request for credit and shall be made in one lump sum payment upon
receipt of which credited service shall be given. Credited service purchased pursuant to
this section shall be counted for all purposes except toward vesting of benefits.
4. The maximum credit under this section shall be five (5) years.
BSJ/adt
October 20, 2009
November 3, 2009
February 16, 2010
H:\Tequesta PS 1011\Plan Docs & RulesWmend\2009\2009 Restatement (538-HEART-BUYBACK).wpd
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