HomeMy WebLinkAboutOrdinance_14-10_01/13/2011 ORDINANCE 14 -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; PROVIDING FOR INCREASED INVESTMENTS IN
FOREIGN SECURITIES; PROVIDING FOR SEVERABILITY;
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Ordinance are hereby repealed.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.
Page 1 of 1
Upon Second Reading this 13 day of January 2011, the foregoing Ordinance was
offered by Council Member Turnquest who moved its adoption. The motion was
seconded by Council Member Humpage and upon being put to a vote, the vote was as
follows:
For Adoption Against Adoption
Mayor Pat Watkins X
Vice -Mayor Tom Paterno X
Council Member Vince Arena X
Council Member Jim Humpage X
Council Member Calvin Turnquest X
The Mayor thereupon declared the Ordinance duly passed and adopted this 13 day of
January, 2011.
MAYOR OF TEQUESTA
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Pat Watkins
ATTEST:
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Lori McWilliams, MMC
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Village Clerk
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EXHIBIT "B"
VILLAGE OF TEQUESTA
PUBLIC SAFETY OFFICERS' PENSION TRUST FtlM
TABLE OF CONTENTS
Section 1 .......................................... ............................... Creation of Pension Trust Fund. -1-
Section2 ........................................................................... ............................... Definitions. -1-
Section3 .................................................... ............................... .................... Membership. -4-
Section 4 ............................................................... ............................... Board of Trustees. -5-
Section 5 . ...................................... ............................... Finance And Fund Management. -7-
Section6 ..................................................... ............................... ..................Contributions. -12-
Section 7 ............................................ ............................... Benefit Amounts and ENoibility. ;14-
Section 8 .......................................................... ............................... Pre- retirement Death. -15-
Section9 ............................................................................. ............................... Disability. -16-
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Section 10 ................. ............................... ........................Monthly Supplemental Benefits. : 19-
Section11 ...................................................... ............................... ........................ vesting. -19-
Section 12 ............................................... ............................... Optional Forms of Benefits. - -1 9 -
Section 13 ..................................................................... ............................... Beneficiaries. -21-
Section 14 ...................................... ............................... Defend Retirement Option Plan. -22-
Section 15 ................. ............................... Claims Procedures Before the Board Decision. -24-
Section 16 .................... ............ ............................... Reports to Division of Re*ement. ME
Section17 ............................................................. ............................... Roster of Retirees. -27-
Section 18 ........... ............................... ..........................Board Attorney and Professionals. -27-
Section 19 ............................................................ ............................... Maiomum Pension. -27-
Section 20 ........................... ............................... ...................Commencement of Benefits. -28-
Section 21 ...................................................... ............................... Distribution of Benefits. -28-
Section 22 ................................................... ............................... Miscellaneous Provision.
Section 23 ...................................... ............................... Repeal or Termination of System. -31-
Section 24 ................... ............................... Exemption from Execution, Non- assignability. -34-
Section25 ................................................................ ............................... Pension Validity. -34-
Section26 ......................................................... ............................... Forteiture of Pension.
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Section 27 ................................ ............................... Military Service Prior to Employment.
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EXHIBIT SSW
VILLAGE OF TEGUESTA
PUBLIC SAFETY OFFICERS' PENSION TRUST FUND
Section 1. Creation of Pension Trust Fund.
The Village of Tequesta hereby reates and continues the Villa f
Y Village o 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- Defines 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 Come 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. ff 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.
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G—hiat-81 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.
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, his1her 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 Unified 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 employment 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 a non-
duty death while employed or became disabled from a non -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.
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Fir 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 personnel whose duties include, in whole or 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 of full -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.
Sala, 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 Bads,
and Straight Time, and effective for payments made after 12t31108, as provided for by
Internal Revenue Code §414(u)(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 employment while serving in qualified military service. This definition excludes pay
received as a Car Allowance, Clothing Allowance and Shoo/Boot Allowance.
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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.
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.
VNlaoe 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. Membwehip.
1 • 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
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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 Q—eqjgnatIon of Beneficiary
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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.
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B. Any retired member who desires to change his or her joint annuitant or
beneficiary shall file with the board of trustees a notarized notice of 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 equivalent of the present value
of the member's current benefit and there is no impact to the Plan. Any
costs associated with these benefit calculations shall be borne by the
member.
Section 4. Board of Trustees.
1. The sole and exclusive administration of and responsibiNty 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) Tnx tees, two (2) of whom,
unless otherwise prohibited by law, shall be legal residents of the VBage, 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 fume 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) Tnmstee 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 serge as Trustee for a period of two (2) years, unless
he/she sooner leaves the employment of the employee representative group he/she
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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
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, acoounting, legal, and
other services as shall be required to transact the business of the Retirement System to
administer and manage their funds and m 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 partition.
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.
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E. To distribute to Members, at regular Intervals, information
concerning the System.
benefits. F. To receive and process all applications for participation and
G. To authorize all payments whatsoever from the Fund and to notify
the disbursing agent, in writing, of approved pension payments and
other expenditures arising through operation of the System and the
Fund.
H. To have performed actuarial studies in accordance with Florida
Statute 112.63 providing a copy of the same to the Division of
Retirement, and with at least biennial valuations, and make
recommendations regarding and all changes in the provisions of
the System.
1. 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.
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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 111anagsmsnt.
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 them 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 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 as set 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 InvestiTmt manager or
managers shall have discretion, subject to any guidelines as prescribed by the Board, in
the investment of all fund assets.
S. 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
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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
whatsoever attributable to contributions and deposits from the
Village, County or State, and
E. All interest, dividends and gains (or losses) whatsoever, and
F. Such other entries as may be properly required so as to reflect a
dear and complete financial report of the Furst.
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 NMft 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 th 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 temne 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.
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B. All moneys paid Into or to be held 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 Iffe 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
bark insured by the Bank Insurance Fund, or a savings and ban
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 under the laws of the United
States, any state or organized territory of the United States, or the
District of Columbia, provided that the corporation is traded on a
nationally recognized Exchange and in the case of bonds only
holds a rating in one of the four highest classifications by a major
rating service, 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 &%. 4&% of Plan assets may be
invested in foreign securdtles.
(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
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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 to his/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 In form permitting transferability, but the books
and records shall at all times show that all investments are part of
the Trust Fund.
G. The Board is empowered, to vote upon any stocks, bonds or
securities of any corporation, association, or trust and to give
general or specific proxies or powers of attorney with or without
power of substitution; to participate in mergers, reorganizations,
recapitalization, 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.
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H. The Board shall not be required to make any inventory or appraisal
or report to any court, nor secure any order of court for the exercise
of any power contained herein.
I. Where any action which 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 members 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 cabled 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 shall 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.
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 anything else in this subsection and as provided in
Florida Statutes §215.473, the hoard of trustees must identify and
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publicly report any direct or indirect holdings it may have in any
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
company. The divesture of any 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 any action taken to dispose of any 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 consistent with the duties imposed by Florida Statutes
§215.473, as provided for in Florida Statutes 185.06(7) / 175.071(8)
and the manner of the disposition, if any, 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 any civil, criminal, or
administrative action against the board of trustees or any
employee, officer, director, or advisor of such pension fund based
upon the divesture of any security pursuant to this subsection.
Section 6. CorMributions.
1. Member Contributions
A. 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 effective the first
full payroll period after the effective date of this Ordinance,
Firefighter Members of the Retirement System shall be required to
make regular contribution to the Fund in the amount of five percent
(5%) of his/her salary. The funding for the 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 shag
be deposited with the Board of Trustees immediately after the
withholding of such contributions. The contributions made by each
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i
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 Tnist Fund
comprising part of this System immediately and under no circumstances more than five
(6) days after recut 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 may be deposited to the Fund,
but such deposits must be kept separately and kept on a segregated bookkeeping
basis. Funds arising from these sources may be used only for additional benefits for
Members, as determined by the Hoard of Trustees, and may not be used to reduce
what would have otherwise been required by Village contributions.
Section 7. Benefit Amounts and Eligibility.
1. 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 fitly -five (56) and the completion of six (6) years
of credited service, or
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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 nominal 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 hWber 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.
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/her normal retirement date 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
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i
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 ectuarialy 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`retlrorrrent DNth.
If a plan member dies prior to retirement from the Village of Tequesta
his/her beneficiary shall receive a benefit as follows:
A. tine -of - Duty - Death - Benefit is a pension to the spouse (or children)
for life in the amount of WO/o of Average Final Compensation.
B. Non- Une -of- Duty - Death- Benefit the spouse of a member with 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.
Section 9. DhoWlIty.
1. 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
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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, meningocoocal 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 shalt 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, mening0000ca1
meningitis, or tuberculosis the member must meet the requirements of
Section 112.181, Florida Statutes.
2. Disability Benefits Off -Duty
Every Poke 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
B. The accrued Normal Retirement Benefit.
3. Conditions Disaualifvina Disability Benefits
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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 result of Intervening military service 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 Reauirement
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 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
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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 Teques a 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 hisfier
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.
Section 10. Monthly Supplemental Benefits.
1. 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.
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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.
I
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Seaton 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 Berwflte.
1. in lieu of the amount and form of retirement income payable in the event
of normal, early, or disabinty 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 lffetime only.
B. A retirement Income of a modified monthly amount, payable to the
Member during the joint lifetime of the Member and a dependent
joint pensioner designated by the Member and following the death
of either of them, 100%, 76%, 66.2/3%, or 50% of such monthly
amounts payable to the survivor for the lifetime of the survivor.
C. Such other amount and form of retirement payments or benefits as,
In the opinion of the Board of Trustees, win 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 benefff, d 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
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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 benefidary, but only if the Board of Trustees
consents to change and If the joint pensioner or beneficiary, but only if the Board of
Trustees consents to change and If the joint pensioner last previously designated by the
Member is alive when he/she files with the Board of Trustees the request for such
change.
3. The consent of joint pensioner or beneficiary to any such change shall not
be required.
4. The Board of Trustees may request such evidence of the good health of
joint pensioner that is being removed as it may require and the amount of the retirement
income payable to the 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 to his/her retirement
shall be paid as provided in Section 12.
5. Retirement income payments shall be made under the option elected In
accordance with the provisions of this section and shall be subject to the following
limitations:
A. if a Member dies prior to his/her normal retirement date or early
retirement date, whichever oocurs, no retirement benefit will be
payable under the option to any person, but the benefits, if any, will
be determined under Section S.
B. If the designated beneficiary (or beneficaries) or joint pensioner
dies before the Member's retirement under the Plan, the option
elected will be canceled automatically and a retirement income of
the normal form and amount will be payable to the Member upon
his/her retirement as if the election had not been made, unless a
new election is made in accordance with the provisions of this
section or a new beneficiary is designated by the Member prior to
his/her retirement and within ninety (90) days after the death of the
beneficiary.
II
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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. Berwficiariss.
1. Each Member may, on a form provided for that purpose, sued and filed
with the Board of Trustees, designate a beneficiary (or benefidaries) 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.
Section 14. Defwred to Unent Option Plan.
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1. 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 twen"Ight (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 Paffidwte 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 wig be made
monthly over the period the retirant participates in the DROP, up to
a maximum of sixty (60) months.
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B. Payments to the DROP earn 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 112, Florida Statutes. However, if a police officer or
firefighter does not terminate employment at the end of parcipation
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 703.
(4) The beneficiary of the DROP participant who dies before
payments from DROP begin shah have the same right as the
participant in accordance with Ordinance.
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Section IS. Chdno Procedures Before the Board Decision.
1. If any Member of the System has been:
A. Placed on pension under the terms and provisions of this ordinance
for disability, or
B. Placed on pension because the Member has served the required
number of years to entitle him to a pension, or
C. Refused benefits under this Plan, and is dissatisfied with the
amount of pension the Member is receiving, or believes that he
should be entitled to benefits under the Plan, the Member may, in
writing, request the Board to review his/her case. The Board shall
review the case and enter such order thereon as it deems right and
proper within 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:
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(1) Prior to such review, the Member or his/her duly authorized
representative may review any pertinent documents
including Plan provisions, minutes of the meeting of the
Board in which denial fo the claim was originally
recommended, and any other documents material to the
case;
(2) After such review, the Member and/or his/her duly
authorized representative shall submit their case in writing to
the Board and request a hearing. Such submission shall be
filed with the Board no later .than ninety (90) days after the
recent 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 shad 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
expelled 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 attomey for
the Board, the claimant and the daMMUWs attorney,
upon recognition by the Chairman, may direct
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questions to any witness during the proceedings.
Each parry shall have the right to present evidence
relevant to the issues, to cross - examine witnesses, to
impeach witnesses and to respond to the evidence
presented against the party. Each party shall have
the right to present any opening and closing
arguments. Any party may secure the services of a
court reporter to record the proceedings with the cost
to be borne by the party requesting the court reporter
or requesting the transcription of the proceedings.
(c) In all cases, unless otherwise provided in this section,
the burden of proof shall be on the claimant who
seeks to draw his/her entitlement to a pension,
disability pension, or increased pension benefits.
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 Retlrement.
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
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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.
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. Rooter 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.
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i
The Board may employ independent legal '
Y P Y Pe ga counsel at the Pennon Fund's
expense for the purposes contained herein, together with such other professional,
technical, or other advisors as the Board deems necessary.
Section 19. Meidmum Penelon.
1. Basic Limitation.
Subject to the adjustments herein set forth, the maximum amount of
annual retirement income payable with respect to a Member under this Plan shall not
exceed the 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 th a retiree who becomes
a member of the Plan and who has not previously Participated in
such Plan, on or after January 1, 1980, shell not exceed 100
percent of hWher average final compensation. However, nothing
contained In this section shall apply to supplemental retirement
benefits or to pension increases attributable to cost- of- Iiving
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, Tide 10, U.S. Code.
Secdon 20. Commencement of Benstits.
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 benents 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;
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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 Members 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. iDIeWbutlon 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:
1. If the retirement income is payable before the Members 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
Members death.
2. if the Member's death occurs before the distribution of his/her interest in
the Plan has commenced, the Members entire interest in the Plan shall be distributed
within five (5) years of the Members death, unless it is to be distributed in accordance
with the following rules:
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A. The Member's remaining interest in the Plan is payable to his/her
spouse, issue or dependent;
B. The remaining interest is to be distributed over the life of the
spouse, issue or dependent or over a period not extending beyond
the life expectancy of the spouse, issue or dependent; and
C. Such distribution begins - within one year of the Member's death
unless the Member's spouse, issue or dependent shall receive the
remaining interest in which case the distribution need not begin
before the date on which the Member would have attained age 70%
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. IUiscsli meous Provision.
1. merest 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.
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 accred
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 distributes's election under this
subsection, a distrloutee 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 distributes 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 wee, except
that an eligible rollover does not include any distribution that
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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 Cade, an individual
retirement annuity described in section 408(b) of the Code,
an annuity plan described in section 403(a) of the Code, or a
qualified trust described in section 401(a) of the Code, that
accepts the distrlbutee's elide 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) "DisMbutee" includes an employee or former employee. In
addition, the employee's or former employee's surviving
spouse and the employee's or former employee's spouse
who Is entitled to payment for alimony and child support
under a domestic relations order determined to be qualified
by this Fund are distributees with regard to the interest of the
spouse or former spouse.
(4) "Direct rollover" Is a payment by the Plan to the eligible
retirement plan specified by the distributes.
Section 23. Repeal or Terminetlon 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 benefiting hereunder, the amount
of benefits which are the time of arty such alteration, amendment, or repeal shall have
accrued to the Member or beneficlary 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
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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
plan, with interest if provided by the plan, less the value of any plan benefits previously
paid to the employee.
3. Upon termination of the plan by the Village for any reason, or because of a
transfer, merger, or consolidation of governmental units, services, or functions as
provided in chapter 121, or upon written notice to the board of trustees by the Village
that contributions under the plan are being permanently discontinued, the rights of all
employees to benefits accrued to the date of such termination or discontinuance and
the amounts credited to the employees' accounts are nonforfeltabie. 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 required 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 required, in which
event the Village shall continue to financially support the plan until
all nonforfeitable benefits have been funded.
B. The boars 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 substihuted 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 any given retirement
Income is the actuarially computed single -sum value of such
retirement income, except that 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 employee's
accumulated contributions to the plan, with Interest if provided by
the plan, less the value of any plan benefits previously paid to the
employee.
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D. If there is asset value remaining after the full distribution specified
in subsection C, and after payment of any expenses incurred with
such distribution, such excess shall be returned to the Village, less
return to the state of the state's contributions, provided that, if the
excess is less than the total oontributions made by the Village and
the state to date of termination of the 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.
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
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. ExNnpdon from Execution, Non- asslynabli ty.
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
Plan administrator to withhold from the monthly retirement payment funds necessary to:
1. pay for benefits being received through the Village;
2. pay the certified bargaining agent; or
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3. to pay for premiums for accident health and long -term care insurance for
the retiree, the retiree's spouse and dependants. A retirement plan does
not incur liability for participation in this permissive program if its actions
are taken in good faith pursuant to Florida Statutes §§175.061(7) and
185.05(6).
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 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. Forle ture 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 spedfied 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.
1. 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.
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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 felony defined in
§800.04, Florida Statutes, against a victim younger than 16 years of
age, or any felony defined in Chapter 794, Florida Statutes against
a victim younger than 18 years of age, 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
employment position.
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 impeatthable offense.
B. Court shall be defined as:
Any state or federal court of competent jurisdiction which is
exercising jurisdiction to consider a proceeding involving the
alleged commission of a specified offense. Prior forfeiture, the
Board of Trustees shall hold a hearing on which notice shall be
given to the Member whose benefits are being considered for
forfeiture. Said Member shall be afforded the right to have an
attorney present. No formal rules of evidence shall apply, but the
Member shall be afforded a full opportunity to present hisfier case
against forfeiture.
Any Member who has received benefits from the System in excess
of his/her accumulated contributions after Member's dghls were forfeited
shall be required to pay back to the Fund the amount of the benefits
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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, or fraudulent 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 fake, 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 would otherwise be entitled under this Ordinance. For
purposes of this paragraph, "conviction" means a determination of
guile that is the result of a pleas or trial, regardless of whether
adjudication is withheld.
Section 27. ttiliNbry 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/her years of credited service
provided that:
1. The Poke 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.
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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 thin section shall be counted for all purposes except toward vesting of .
benefits.
4. The maximum credit under this section shall be five (5) years.
November 30.2010
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