HomeMy WebLinkAboutHandouts_Pension General_06_08/02/2010 i/illage of Tequesta General Employees' Pension Trust Fund
(EfFective 07/01/2010)
Average Final Compensation: The final average salary consists of the highest 5 highest years of earnings,
each year consisting of 12 months, paid in the last 10 years of service. Earnings include base
compensation, vacation pay, sick pay, and tax deferred items, but exclude lump sum payments, overtime,
bonuses, and longevity pay.
Credited Service: Members receive credit for years and fractional parts of years of service, adjusted
for any breaks in service. Members can also receive credit for up to 5 years of military service after
returning to employment within 1 year following discharge, by depositing member contributions plus
earnings calculated from the date of return to the date of payment.
Buyback: In the first 6 months of employment, participants may purchase up to 5 years of
prior qualifying military service credit by paying the full actuarial cost within 6 months of the request.
Purchased service credit counts for all purposes except vesting.
Vesting: A participant becomes vested with 6 years of service or the normal retirement date
if earlier.
Normal Retirement: Members can retire at age 62 regardless of service or with 30 years of service
regardless of age.
Early Retirement: Members age 50 with 6 years service can retire early and receive a benefit
actuarially reduced to the early date, but in no case shall the reduction exceed 5% per year.
Vested Deferred: Benefits for vested deferred members commence the early or normal retirement
date.
Benefit Formula: Credit 2% per year of service, not to exceed 100% of the final average
compensation.
Duty Disability: A disabled member receives the greater of the accrued benefit or 42% of the
average monthly compensation as of the disability retirement date.
Non-duty Disability: A vested member receives the greater of the accrued benefit or 25% of the final
average salary based on the last 5 years of service.
Death: The beneficiary of any vested member receives the vested pension benefit starting on the
otherwise normal retirement date.
Account Balances: Members contribute 5% of pensionable earnings. ;; �•��;d'r+j`��
Refunds: A non-vested participant receives a refund of contributions with 3%' interest upon
termination. Members may leave contributions on deposit with the Pension Fund for up to 5 years.
Commencement: Members may retire on the normal retirement date or the first day of any month
thereafter. Benefits become payable on retirement. Disability benefits are payable on the first of the month,
pro-rated to the day the Board approves the benefit.
Optional Forms Payment: The normal form of benefit payment is Ten Years Certain and Life. Optional
forms of benefit payment include a Life Annuity, Joint and 100% Survivor, Joint and 75% Survivor, Joint and
66-2/3 % Survivor, and Joint and 50% Survivor. A member may change the joint annuitant before or
following retirement, subject to approval by the Board. The Board may require evidence of good health.
{� �-� ; � �,� �i l.Jl- 1 � � � � 1 G. (V �, �� 1
f t ��J
1