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HomeMy WebLinkAboutDocumentation_Pension General_Tab 17_05/03/2010 THE LAw OFFICES OF PERRY & JENSEN LLC ANN H. PERRY BONNI SPATARA JENSEN aperry@perryjensenlaw.com bsjensen @perryjensenlaw.com MEMORANDUM To: BOARD OF TRUSTEES VILLAGE OF TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND From: 'BONNI S. JENSEN, FUND LEGAL COUNSEL THE LAW OFFICES OF PERRY & JENSEN LLC Subject: Insurance Premium Payments Date: April 22, 2010 At the last Board of Trustees meeting, you requested that I provide information regarding the payment of insurance premiums to the Village and to a third party like the Public Safety Plan. Below is some suggested language which provides for all of the choices that are available under the provisions of Florida Statutes 175/185. Section 21. Exemption from Execution, Non - assignability. The pensions, annuities, or any other benefits accrued or accruing to any person under the provisions of this Ordinance and the accumulated contributions and the cash securities in the Fund created under this Ordinance are hereby exempted from any state, county or municipal tax of the state and shall not be subject to execution, attachment, garnishment or any legal process whatsoever and shall be unassignable. However, pursuant to an income deduction order, the Trustees may direct that retirement benefits be paid for alimony or child support in accordance with rules and regulations adopted by the Board of Trustees. Upon written request by the retiree, the Board of Trustees may authorize the Fund administrator to withhold from the monthly retirement payment funds necessary to. a. pay for benefits being received through the Village; b. pay the certified bargaining agent; or C. pay for premiums for accident health and long -term care insurance for the retiree, the retiree's spouse and dependents. Florida Statutes 175 and 185 contain a limitation of liability for the Police and Fire Pension Boards who use good faith in administering the provisions of this section. This 400 EXECUTIVE CENTER DRIVE, SUITE 207e- WEST PALM BEACH F LORIDA 33401 -2922 PH: 561.686.6550 Fx:561.686.2802 13 � RI1C6m Board of Trustees Village of Tequesta General Employees' Pension Trust Fund April 22, 2010 Page 2 of 2 limitation was adopted into the Public Safety Ordinance. This limitation would not be applicable to this plan. See Florida Statutes §175.061(7) and §185.05(6). "A retirement plan does not incur liability for participation in this permissive program if its actions are taken in good faith." I have also attached for your reference a copy of Florida Statutes §112.0801 which allows retirees to purchase health insurance from the municipality at the municipal cost. HATequesta GE 101 2\Board\201 0\2010-04-21 premium payment amendment.wpd Select Year: ` 2009 : ;_ .r Go The 2oo9 Florida Statutes Title X Chapter 112 View Entire PUBLIC OFFICERS, EMPLOYEES, PUBLIC OFFICERS AND EMPLOYEES: Chapter AND RECORDS GENERAL PROVISIONS 112.0801 Group insurance; participation by retired employees.- - (1) Any state agency, county, municipality, special district, community college, or district school board which provides life, health, accident, hospitalization, or annuity insurance, or all of any kinds of such insurance, for its officers and employees and their dependents upon a group insurance plan or self - insurance plan shall allow all former personnel who have retired prior to October 1, 1987, as well as those who retire on or after such date, and their eligible dependents, the option of continuing to participate in such group insurance plan or self - insurance plan. Retirees and their eligible dependents shall be offered the same health and hospitalization insurance coverage as is offered to active employees at a premium cost of no more than the premium cost applicable to active employees. For the retired employees and their eligible dependents, the cost of any such continued participation in any type of plan or any of the cost thereof may be paid by the employer or by the retired employees. To determine health and hospitalization plan costs, the employer shall commingle the claims experience of the retiree group with the claims experience of the active employees; and, for other types of coverage, the employer may commingle the claims experience of the retiree group with the claims experience of active employees. Retirees covered under Medicare may be experience -rated separately from the retirees not covered by Medicare and from active employees, provided that the total premium does not exceed that of the active group and coverage is basically the same as for the active group. (2) For purposes of this section, "retiree" means any officer or employee who retires under a state retirement system or a state optional annuity or retirement program or is placed on disability retirement and who begins receiving retirement benefits immediately after retirement from employment. In addition to these requirements, any officer or employee who retires under the Public Employee Optional Retirement Program established under part II of chapter 121 shall be considered a 'retired officer or employee" or "retiree" as used in this section if he or she: (a) Meets the age and service requirements to qualify for normal retirement as set forth in s. 121.021 or (b) Has attained the age specified by s. 72(t)(2)(A)(i) of the Internal Revenue Code and has 6 years of creditable service. History. - -s. 2, ch. 76 -151; s. 1, ch. 79 -88; s. 1, ch. 80 -304; s. 5, ch. 81 -103; s. 1, ch. 83 -294; s. 1, ch. 87- 373; s. 1, ch. 2007 -92; s. 1, ch. 2007 -100. Copyright © 1995 -2010 The Florida Legislature • Privacy Statement • Contact Us http: / /www.leg.state.fl.us /Statutes /index.cfm ?App mode= Display_Statute &Search String... 4/21/2010