HomeMy WebLinkAboutDocumentation_Regular_Tab 06_04/14/2011 THE LAW OFFICES OF
PERRY � JENSEN LLC
ANN H. PERRY BONNI SPATARA JENSEN
aperryQperryJensenfaw.com bsjensen@perryjensenlaw.com
March 11, 2011
VIA EMAIL
Michael R. Couzzo, Jr.
Village Manager
250 Tequesta Drive, Suite 300
Tequesta, Florida 33469
Re: Village of Tequesta General Employees Pension
Trust Fund - Proposed Amendment
Our File Number: 1012.0050
Dear Mike:
As you know, #his firm represents the Board of Trustees of the Village of Tequesta
General Employees Pension Trust Fund ("Board"). Attached is a proposed amendment
to the Village of Tequesta General Empfoyees Pension Trust Fund plan document,
classified as Exhibit A to Section 2-30 of the Village. The amendment was approved by
the Board of Trustees at their special meeting held on March 10, 2011.
The amendment would permit investments in bonds which do not hold a rating in
one of four highest classifications, and such investments woufd be limited to 5% of the total
market value of the portfolio. See page 9 of the attached. This matter has been discussed
with the Board's fnvestment Consultant and Investment Manager. It is the opinion of the
Board of Trustees and its advisors that this amendment provides an additional level of
Investment Manager flexibiliijr, within a prescribed not to exceed level. The limit of the
investment is not material to the overall size of the fund itself, but still allows the Investment
Managerto position the fund to better optimize ongoing investment returnswith a long term
perspective.
The Board would {ike to meet with the Village Council in a workshop session to
discuss the proposed change, if the Council determines that such a workshop would be
helpful in the consideration of the amendment. To facilitate the discussion, the Board's
Investment Consultant would be available.
400 EXECUTtVE CENTER DRIVE, SUITE 207•3 WEST PALM BEACN F�oR�oA 33401-2922
PH: 561.686.6550 ❖ Fx: 561.686.2802
13
� INhvlm
Michael R. Couuo, Jr.
Village Manager
Proposed Amendment
March 11, 2011
Page 2 of 2
The Board wou(d like this matter to be added to next available agenda, perhaps in
April. After your review, please contact me to discuss the availability of a workshop
session.
Sincerely yours,
;
, �
i
�/,
Bonni S. Jensen
BSJ
Encl.
Copy to: Chairman and Secretary
Pension Resource Center
H:\Tequesta GE 1012\Village\Manager\cover 5% bonds below top 4 classifications.wpd
H:\Tequesta GE 1012\VillageUNanagerlcover 5% bonds below top 4 classificaUons.wpd
March 4, 2011
TABLE OF CONTENTS
Section 1. Creation of Pension Trust Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Section 2. Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Section 3. Membership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Section 4. Board of Trustees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Section 5. Finance And Fund Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Section 6. Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Section 7. Benefit Amounts and Eligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Section 8. Pre-retirement Death . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Section 9. Disability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Section 10. Vesting ................................................. 20
Section 11. Optional Forms of Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Section 12. Beneficiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Section 13. Claims Procedures Before the Board Decision . . . . . . . . . . . . . . . . 23
Section 14. Roster of Retirees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Section 15. Board Attorney and Professionals . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Section 16. Maximum Pension . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Section 17. Commencement of Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Section 18. Distribution of Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Section 19. Miscellaneous Provision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Section 20. Repeal or Termination of System . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Section 21. Exemption from Execution, Non-assignability . . . . . . . . . . . . . . . . . 32
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Section 22. Pension Validity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Section 23. ForFeiture of Pension . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Section 24. Military Service Prior to Employment . . . . . . . . . . . . . . . . . . . . . . . . 34
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EXHIBIT "A"
VILLAGE OF TEQUESTA
GENERAL EMPLOYEES' PENSION TRUST FUND
Section 1. Creation of Pension Trust Fund.
The Village of Tequesta General Employees' Pension Trust Fund for the purpose
of providing retirement, death and disability benefits to members of the Fund, certain
former general employees and survivor benefits to beneficiaries.
Section 2. Definitions.
1. Statement of Definitions. As used herein, unless otherwise defined or
required by the context, the following words and phrases shall have the
meaning indicated:
Accumulated Contributions means a Member's own contnbutions without
interest.
Actuarial Equivatent means a benefit or amount of equal value, based upon
the mortality tables utilized by the Board's actuary or actuaries during most
recent actuarial valuation, and an 8% rate of interest.
Average Final Compensation shall mean one-twelfth (1/12) of the average
salary of the five (5) best years of the last ten (10) years of credited service
prior to retirement, termination, or death, or the career average as a full time
General Employee, whichever is greater. A year shall be finrelve (12)
consecutive months.
Beneficiary means the person or persons entitled to receive benefits
hereunder at the death of a Member who has or have been designated in
writing by the Member and filed with the Board. If no designation is in effect,
or if no person so designated is living, at the time of death of the Member,
the beneficiary shall be the estate of the Member.
Board or Board of Trustees, means a member of the General Employee
Board of Trustees, which shall administer and manage the System herein
provided and serve as Trustees of the Fund for the benefit of beneficiaries
of the general employees.
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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 General Employee who makes member contributions
to the Plan, omitting intervening years or fractional parts of years when such
General Employee was not employed by the Village of Tequesta. A plan
member may voluntarily leave his/her contribution in the Fund for a period
of five (5) years after leaving the employ of the Village of Tequesta pending
the possibility of being rehired in a full time position by the Village of
Tequesta without losing credit for the time of active participation as a plan
member. Should the employee not be re-employed with the Village of
Tequesta in a full time capacity within five (5) years, his/her contributions
shall be returned to him/her with 3% interest.
The years or fractional parts of years that a General Employee serves in the
military service of the Armed Forces of the United States orthe United States
Merchant Marine, voluntarily or involuntarily, upon being granted leave bythe
Village of Tequesta and separation from employment as a Village of
Tequesta plan member, shall be added to his/her years of credited service
provided that:
A. The General Employee returns to his/her full time employment with
the Village of Tequesta within one (1) year from the date of his/her
mili#ary discharge.
B. The General Employee deposits into the Fund the same sum that the
Member would have contributed if he/she had remained a General
Employee, plus an amount of interest that substantially approximates
the amount earned by the Fund from the date of retum to employment
to the date of deposit.
C. The maximum credit for military service shall be fi�ve (5) years.
Effective Date means the date on which this Ordinance becomes effective.
Fund means the Trust Fund established herein as part of the System, for the
benefit of General Employees.
General Employee means an actively employed full-time person employed
by the Viltage of Tequesta, including his/her initial probationary employment
period, excluding certified Firefighters and certified Police Officers.
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General Empioyee Board means the board of trustees provided hereunder
to administer and manage the funds for the benefit of the General
Employees.
Member means an actively employed General Employee that fulfills the
applicable prescribed participation requirements.
One hundred and twenty monthly payments quaranteed means benefits are
payable for the life of a retiree with a guarantee of 120 monthly payments.
Should a member die before 120 monthly payments (10 years) are made,
then the remainder of the 120 monthly payments will be paid to a beneficiary.
Should a member receive more than 120 monthly payments, then no benefit
is payable to a beneficiary.
Sa1ary means base compensation to include regular earnings, vacation pay,
sick pay, plus all tax deferred items of income, excluding lump sum
payments, overtime, bonuses and longevity bonus.
S pouse means the la�nrful 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 Boards pursuant to this Ordinance and F.S. 112.661, et seq., which
shall apply to funds under the control of the board.
System means the Village of Tequesta General Employees' 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.
Villaqe means the Village of Tequesta, Florida.
2. Masculine Gender. The masculine gender, where used herein, unless the
cor�text specifically requires otherwise, shall include both the feminine and
masculine genders.
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Section 3. Membership.
1. Condition of Eliqibility
All full time General Employees as of the effective date, and all future new
full time General Employees shall become Members of this System as a
condition of employment.
2. Membership
Each full time General Employee shall complete a form prescribed by the
Board providing 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 certifiied statement as to prior medical and psyct�ological history.
3. Chanqe in Desiqnation of Beneficiary
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.
Section 4. Board of Trustees.
1. The sole and exclusive administration of and responsibility for the proper
operation of the retirement system and for making effective the provisions of
this ordinance is hereby vested in a Board of Trustees. The Board shall
consist of five (5) Trustees, two (2) of whom, unless otherwise prohibited by
law, shall be fegal residents of the municipality, who shal! be appointed by
the Tequesta Village Council, and two (2) of whom shall be full-time General
Employee members of the System , however, in the eventthat eitherfull time
General Employee position remains vacantforthree month or more, then the
position can be filled by a legal resident of the Village of Tequesta elected
by the General Employee Members of the System in accordance with the
election rules established by the Board for one term. At the end of the term
the position wii! be posted to again be filled by a full time General Employee.
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The fifth (5 Trustee shall be selected by a majority vote o# the other four (4)
Trustees.
Each person seeking to fill a designated employee representative Board
member seat shall be elected by their full-time co-workers. Upon receipt of
the fifth (5' person's name the Tequesta Village Council shall, as a
ministerial duty, appoint such person to the General Employee Board as its
fifth (5 Trustee. The fifth (5 Trustee shall have the same rights as each
of the other Trustees appointed or elected as herein provided and shall serve
a two (2) year term unless the office is sooner vacated and may succeed
himself or herself in office. Each resident Trustee shall serve as Trustee for
a period of two (2) years unless sooner replaced by the Tequesta Village
Council at whose pleasure the Trustee shall serve, and may succeed himself
or herself as a Trustee. Each General Employee Trustee shall serve as
Trustee for a period of two (2) years, unless he/she sooner leaves the
employment of the Village 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 General Employee Board shall meet at least quarterly
each year. The Board shall be a legal entity with, in addition to other powers
and responsibilities contained herein, the powerto 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 on the Board. 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
o# a conflict of interest provided that Trustee states in writing the nature of
the conflict complies with the provisions ofi Section 112.3143, Florida
Statutes.
4. The Board of Trustees shall engage such actuarial, accounting, legal, and
other services as shall be required to transact the business of the Retirement
System to administer and manage the fund and to meet the requirements of
applicable law. The compensation of all persons engaged by the Board of
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Trustees and ali other expenses of the Board necessary for the operation of
the Retirement System shall be paid from the Fund at such rates and in such
amounts as the Board of Trustees shall approve.
5. The duties and responsibilities of the Board of Trustees shall include, but not
necessarily be limited to, the following:
A. To construe the provisions of the System and determine all questions
arising thereunder.
B. To determine all questions relating to eligibility and participation.
C. To determine and certify the amount of all retirement allowances or
other benefits hereunder.
D. To establish uniform rules and procedures to be followed for
administrative purposes, benefit applications and all matters required
to administer the System.
E. To distribute to Members, at regular intervals, information concerning
the System.
F. To receive and process all applications for participation and benefits.
G. To authorize all payments whatsoeverfrom the Fund, and to notify the
disbursing agent in writing of approved pension payments and other
expenditures arising through operation of the System and the Fund.
H. To have performed actuarial studies in accordance with Florida
Statute 112.63 providing a copy of the same to the Division of
Retirement, and with at least biennial valuations, and make
recommendations regarding and all changes in the provisions of the
Sys#em.
I. 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.
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K. 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.
L. To perform such other duties as are specified in this Ordinance.
M. To adopt and be guided by Statements of Investment Policy
applicable to all funds under the control of the General Employee
Board of Trustees as required from time to time by F.S. 112.661, et
seq., and/or its successor statutes.
Section 5. Finance And Fund Manaqement.
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 General Employees.
2. The actual custody and supervision of the Fund (and assets thereof) shall be
vested in the Board of Trustees. Payment of benefits and disbursements
from the Fund shall be made by the Village on the Board's agreement, but
only upon written authorization from the Board.
3. All funds and securities of the Fund may be deposited by the Board of
Trustees with the Treasurer of the municipaiity, acting in a ministerial
capacity oniy, 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 municipality.
However, any funds and securities so deposited with the Treasurer of the
municipality shall be kept in separate funds by the Treasurer or clearly
identified as such funds and securities of the General Employee Trust Fund.
In lieu thereofi, 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. In order to fulfill its
investment responsibilities as set forth herein, the Board may retain the
services of a custodian bank or banks, an investment advisor or advisors
registered under Investment Advisors Act of 1940, registered broker dealer
orotherwise exemptfrom such required registration, an insurance company,
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or a combination of these, for the purposes of investment decisions and
management. Such investment manager or managers shall have discretion,
subject to any guidelines as prescribed by the Board, in the investment of all
fund assets.
4. Accurate records shall be maintained at all times reflecting the market
valuations of funds and assets of the Fund, 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 clear
and complete financial report of the Fund.
5. An independent audit shall be perFormed annually by a certified public
accountant for the most recent fiscal year of the Village showing a detailed
listing of assets and a statement of all income and disbursements during the
year for each Fund. Such income and disbursements must be reconciled
with the assets at the beginning and end of the year. Such report shall
reflect complete evaluations of assets on both a cost and market basis, as
well as other items normally included in a certified audit.
6. The Board of Trustees shall have the following investment powers and
authority:
A. The Board of Trustees shall be vested with full legal title to the Fund,
subject, however, and in any event to the authority and power of the
Tequesta Village Council to amend or terminate this Trust, provided
that no amendment or Fund termination shall ever result in the use of
any assets of the Fund except for the payment of regular expenses
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and benefiits under this System. All contributions from time to time
paid into the Fund, and the income thereof, without distinction
between principal and income, shall be held in the Fund and
administered by the Board or its Agents.
B. All moneys paid into or to be held by the Fund shall be invested and
reinvested by the Board and the investment of all or any part of such
funds shall be limited to:
(1) Annuity and life insurance contracts of life insurance
companies in amounts sufficient to provide, in whole or in part,
the benefits to which all of the participants in the Fund shall be
entitled under the provisions of the Plan and pay the initial and
subsequent premium thereon.
(2) Time or savings accounts of a national bank, a state bank
insured by the Bank Insurance Fund, or a savings and loan
association insured by the Savings Association Insurance
Fund which is administered by the Federal Deposit Insurance
Corporation or a state or federal chartered credit union whose
share accounts are insured by the National Credit Union Share
Insurance Fund.
(3) Obligations of the United States or obligations guaranteed as
to principal and interest by the government of the United
States.
(4) Bonds, stocks, commingled or other pooled funds, which may
incfude mutual funds or exchange-traded funds or trusts,
except as provided in paragraph M below, or evidences of
indebtedness issued or guaranteed by a corporation organized
under the laws of the United States, or registered investment
company pursuant to the Inves#ment Advisors Act of 1940, 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, except that 5% of the total portfolio
mav be invested in securities that fall below these ratinp
g�idelines. .
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(5) Real estate.
(6) All monies paid into or held in the Pension Fund shall be
invested and reinvested by the Board of Trustees and the
investment of all or any part of such funds shall be invested in
accordance witFi an established investment policy adopted by
the Board of Trustees.
(7) Up to 25% at market value of the Plan assets may be invested
in foreign securities.
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 market exceed seventy
percent (70%) 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 they 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 ordiminishment 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 F�t�d.
G. The Board is empowered to vote upon any stocks, bonds orsecurities
of any aorporation, 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
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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 power may be delegated to an agent by the Board of Trustees.
H. The Board shall not be required to make any inventory or appraisal or
report to any cou�t, nor secure any order of court for the exercise of
any power contained herein.
I. Where any action which a Board is required to take on any duty or
function which it is required to perform either under the terms herein
or under the general law applicable to it as Trustee under this
Ordinance, can reasonably be taken or performed only after receipt
by it from a Member, the Village, the Department or any other entity,
of specific information, certification, direction or instructions, the Board
shall be free of liability in failing to take such action or perform such
duty or function until such information, certification, direction or
instruction has been received by it.
J. Any overpayments or underpayments from a Fund to a Member or
beneficiary caused by errors of computation shall be adjusted with
interest at a rate per annum approved by the Board. Overpayment
shall be charged against member's payments next succeeding the
correction. Underpayments shall be made up from the Trust Fund.
K. A 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 may be performed or
carried out by the Board through duly authorized Agents, provided
that the Board at all times maintains continuous sup�;rvision over the
acts of any such Agent; provided further, that legal title to a Fund shall
always remain in the Board of Trustees.
M. A Board shall not invest more than ten percent (10%) at cost of its
assets in real property or real estate and there sha19 t�e no real estate
investment in a limited partnership or trust.
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N. The Village shall maintain Fiduciary Liability insurance to cover the
members of the Board of Trustees.
Section 6. Contributions.
1. Member Contributions
A. Amount. 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. Member contributions withheld by the Village
on behalf of the Member shall be deposited with the Board of
Trustees immediatelyafterthewithholding of such contributions. The
contributions made by each Memberto 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. 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.
3. 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 Board, and may not
be used to reduce what would have otherwise been required by Village
contributions.
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Section 7. Benefit Amounts and Eligibility.
1. Normal Retirement Date
A Member's normal retirement date shall be the first day of the month
coincident with, or next following the earlier of:
a) attainment of age sixty-two (62) regardless of years of credited
service, or
b) attainment of thirty (30) years of credited service regardless of age.
A Member may retire on his/her normal retirement date or on the first day of
any month thereafter, and each Member shall become 100% vested in
his/her accrued benefit on the Member's normal retirement date. Normal
retirement under the Plan is retirement from employment with the Village of
Tequesta as a General Employee, on or after the normal retirement date.
2. Normal Retirement Benefit
A Member retiring hereunder on or after his/her normal retirement date shall
receive a monthly benefit which shall commence on his/her Retirement Date
and be continued thereafter during the Member's lifetime, ceasing upon
death, but with one hundred twenty (120) monthfy payments guaranteed in
any event. Benefits are payable for the life of a retiree with a guarantee of
120 monthly payments. Should a member die before 120 monthly payments
(10 years) are made, then the remainder of the 120 monthly payments will
be paid to a beneficiary. Should a member receive more than 120 monthly
payments, then no benefit is payable to a beneficiary. The monthly
retirement benefit shall equal two percent (2%) of average final
compensation, for each year of credited service (2% x average final
compensation x years of credited service).
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) yeafs 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
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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. A deferred monthly retirement benefit which shall commence on what
would have been his/her normal retirement date had he/she remained
a General Employee and shall be continued on the first day of each
month thereafter. The amount of each such deferred monthly
retirement benefit shall be determined in the same manner as for
retirement as his/her normal retirement date except that credited
service and average final compensation shall be determined as of
his/her early retirement date; or
B. An immediate monthly retirement benefit which shall commence on
his/her early retirement date and shall be continued on the first day of
each month thereafter. The benefit payable shall be as determined
in paragraph A above, which is actuarially reduced from the amount
to which he/she would have been entitled had he/she retired on
his/her normal retirement date and with the same number of years of
credited service as at the time his/her benefit commence and based
on his/her average final compensation at that date. In no event shall
the earty retirement reduction exceed five percent (5%) each year by
which the commencement of benefits precedes the Member's normal
retirement date.
Section 8. Pre-retirement Death.
Upon the death of any vested member, whether or not still in active employment,
a survivor benefit is payable to the beneficiary starting when the member would
have reached retirement age. The benefit is equal to the vested pension benefit.
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Section 9. Disability.
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 General Employee, which disability was
directly caused by the performance of his/her duty as a General Employee
shall upon establishing the same to the satisfaction of the Board, be entitled
to the greater of A or B:
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) an amount equal to the number of years of his/her credited
service multiplied by 2% of his/her average monthly salary
based upon his/her final 5 years of service.
2. Disability Benefits Off-Duty
Every General Employee who has six years of credited service, is a
participant in the Pension Fund System and who shall have become totally
and permaner�tly 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 General Employee which disability is not directly caused
by the perfiormance of his/her duties as a General Employee shall be entitled
to the greater of A or B:
A. a monthly pension equal to 25% of his/her average monthly
compensation based upon his/her final 5 years of service, or
B. An amount equal to the number of years of his/her credited service
multiplied by2%ofhis/heraverage monthlysalarybased upon his/her
final 5 years of service.
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3. Conditions Disqualifyinq Disability Benefits
Each General Employee 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.
E. Injury or disease sustained after his/her employment shall have
terminated as a General Employee with the Village of Tequesta.
F. Willful, wanton or gross negligence of the Member.
G. lnjury or disease sustained by General Employee while working for
anyone other than the Village of Tequesta and arising out of such
employment.
H. lnjury or disease sustained by the member before employment with
the Village begins. This subparagraph applies only in the event of a
duty injury or disease.
4. Physical Examination Requirement
An employee shall not become eligible for disability bene#its until and unless
he/she undergoes a physical examination by a qualifed physician or
physicians and/or surgeons, who shall be selected by the Board for that
purpose.
Any person receiving disability benefit under provisions c�# 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
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March 4, 2011
is unable to render useful and efficient service as a General Employee the
Board shall recommend to the Village that the retiree be returned to their
previous performance of duty as a General Employee, and the retiree so
retumed shall enjoy the same rights that Member had at the time he/she
was placed upon pension. In the event the retiree is so ordered to return
shall refuse to comply with the order within thirty (30) days from the issuance
thereof, Member shall forfeit the right to his/her pension.
The cost of the physical examination and/or re-examination of the employee
or retiree claiming and/or receiving disability benefits shall be borne by the
Board of this Pension Fund System. All other reasonable costs as
determined by the Board incident to the physical examination, such as, but
not limited to, transportation, meals and hotel accommodations, shall be
borne by the Board.
If the retiree recovers from disability and reenters his/her former service with
the Village of Tequesta held prior to disability retirement, his/her service will
be deemed to have been continuous, but the period beginning with the first
month for which he/she received a disability retirement income payment and
ending with the date he/she reentered the service of the Village will not be
considered as credited service for the purposes of the Plan.
The Board shall have the power and authority to make the final decision
regarding all disability claims.
5. Disability Payments
The monthly benefit to which a Member is entitled in the event of the
Member's disability retirement shall be payable on the first day of the first
mon#h after the Board of Trustees determines such entitlement. However,
the monthly retirement income shall be payable as of the date the Board
determined such entitlement, and any portion due for a partial month shall
be paid together with the first payment. The last payment will be:
A. If the plan member recovers from the disability or attains his/her
normal retirement date, the payment due next preceding the date of
such recovery, or
B. If the plan member dies without recovering from the disability prior to
his/her normal retirement date while still disabled, the payment due
next preceding his/her death or the 120 monthly payment, whichever
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March 4, 2011
is later.
Section 10. 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 credited service and has not
attained the age of sixty-finro (62) upon termination, the Member shall be
entitled to a refund of accumulated contribution plus three percent (3%)
interest or the Member may leave it deposited with the Fund, in accordance
with the definition of credited service.
2. If the Member has six (6) or more years of credited service upon termination,
or alternatively, the Member has attained the age of sixty-two (62),
regardless of credited years of service, 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/her commencing at the
Member's otherwise normal or early retirement date, provided he/she does
not elect to withdraw his/her accumulated contributions plus three percent
(3%) interest and provided the Member survives to his/her normal or early
retirement date.
3. Any plan member of the System whose position is terminated, for whatever
reason, but who is employed by the Village in some capacity, shall have all
retirement benefits accrued up to the date of such termination under this
Systern preserved, provided he does not elect to withdraw his/her
accumulated contributions plus three percent (3%) interestfrom this System.
Such Accrued retirement benefits shall be payable at his/her otherwise
normal retirement date hereunder, or later, in accordance with the provisions
of this System.
Section 11. Optional Forms of Benefits.
1. In iieu of the amount and form of retirement income payable in the event of
normal or early retirement as specified herein, a plan member, upon written
request to the Board of Trustees and submission of evidence of good health
(except that such evidence will not be required if such reguest is made at
least three (3) years prior to the date of commencement of retirement income
or if such request is made within six (6) months following the effective date
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of the Plan, if la#erj, and subject to the approval of the Board of Trustees,
may elect to receive a retirement income or benefit of equivalent actuarial
valuation payable in accordance with one of the following options:
A. A retirement income of a larger monthly amount, payable to the
Member for his/her lifetime only.
B. A retirement income of a modified monthly amount, payable to the
Member during the joint lifetime of the Member and a dependent joint
pensioner designated by the Member and following the death of either
of them, 100%, 76%, 66-2/3%, or 50% of such monthly amounts
payable to the survivor for the lifetime of the survivor.
C. Such other amount and form of retirement payments or benefits as,
in the opinion of the Board of Trustees, will best meet the
circumstances of the retiring Member.
2. The Member, upon electing any option of this section, will designate the joint
pensioner or beneficiary (or beneficiaries) to receive the benefit, if any,
payable under the Plan in the event of the Member's death, and will have the
power to change such designation from time to time, but any such change
shall be deemed a new election and will be subject to approval by the Board
of Trustees. Such designation will name a joint pensioner or one or more
primary beneficiaries where applicable. If a Member has elected an option
with joint pensioner or beneficiary and the Member's retirement income
benefits have commenced, the Member may thereafter change his/her
designated joint pensioner or beneficiary, but oniy 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 Retiree 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 pensior�er, and the Retiree.
Each such designation will be made in writing on a form prepared by the
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March 4, 2011
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 occurs, no retirement benefit will be
payable under the option to any person, but the benefits, if any, will
be determined under Section 8.
B. If the designated beneficiary (or beneficiaries) or joint pensioner dies
before the Member's retirement under the Plan, the option elected will
be canceled automatically and a retirement income of the normal form
and amount will be payable to the Member upon his/her retirement as
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.
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 retirementand while an option made pursuantto 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.
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6. The Member may not change his/her retirement option after the date of
cashing or depositing his/her first retirement check.
Section 12. Beneficiaries.
1. Each Member may, on a form provided for that purpose, signed and filed
with the Board of Trustees, designate a beneficiary (or beneficiaries) to
receive the benefit, if any, which may be payable in the event of his/her
death; and each designation may be revoked by such Member by signing
and filing with the Board of Trustees a new designation-of-beneficiary form.
2. If a deceased Member fails to name a beneficiary in the manner prescribed
in subsection 1, or if the beneficiary (or beneficiaries) named by a deceased
Member predeceases the Member, the death benefit, if any, which may be
payable under the Plan with respect to such deceased Member shall 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 13. Claims 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
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March 4, 2011
review of disability claims; provided, that the Board may extend the
time for entering such order by an additional forty-five (45) days if it
determines such time is necessary for discovery in full and adequate
review.
2. In the event that the order from the Board denies the claim for a change in
such benefits or denies the claim for benefits, the order of the Board shall be
put in writing. Such written order shall include:
A. The specific reasons for the denial, including specific references to
pertinent provisions of the retirement system on which such denial is
based;
B. A description of any additional material or information that the Board
feels is necessary for the Member to perfect his/her claim, together
with an explanation of why such material or information is necessary;
and
C. An explanation of the review procedure next open to the Member.
Such review procedure shall provide that:
(1) Prior to such review, the Member or his/her duly authorized
representative may review any pertinent documents including Plan
provisions, minutes of the meeting of the Board in which denial fo the
claim was originally recommended, and anyotherdocuments 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 receipt of the order of the Board.
Upon receipt of the written submission by the Member, the Board
shall schedule an opportunity for a full and fair hearing of the issue
within the next ninety (90) days, and such scheduled hearing shall be
communicated in writing to the Member. The Member and/or his/her
duly authorized representative may then appear at such scheduled
hearing to present their case. The Board shall consider the facts
presented at the scheduled hearing and shall, within thirty (30) days
after such hearing, make a final ruling in writing on the request of the
Member. The written decision shall include the reasons for such
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March 4, 2011
decision and, such decision shall be final.
(a) The Chairman shall preside over the hearing and shall
rule on all evidentiary and other legal questions that
arise during the hearing.
(b) Either party, the claimant or the Board, may file
pleadings within the time limits set herein. Procedural
motions are to be determined by the Chairman of the
Board at any time. All parties are to furnish copies of all
pleadings to the opposing parties and exchange lists
with names and addresses of witnesses expected to be
called to testify at the hearing, as well as the list of
exhibits that are intended to be introduced, at least
forty-five (45) days prior to the hearing. Testimony of
witnesses shall be under oath or affirmation.
Depositions or affidavits shall not be admissible unless
upon stipulation by all parties. The Chairman, any
Member of the Board, the attorney for the Board, the
claimant and the claimant's attomey, upon recognition
by the Chairman, may direct questions to any witness
during the proceedings. Each party shall have the right
to present evidence relevant to the issues, to cross-
examine witnesses, to impeach witnesses and to
respond to the evidence presented against the party.
Each party shall have the right to present any opening
and closing arguments. Any party may secure the
services of a court reporter to record the proceedings
with the cost to be borne by the party requesting the
court reporter or requesting the transcription of the
proceedings.
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 #or discovery prior to and at the proceedings
provided for in each paragraph. A reasonable fee may be charged for the
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issuance of any subpoenas not to exceed the fees set forth in Florida
Statutes.
Section 14. Roster of Retirees.
The Secretary of the Board 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 General Employees employed by the
Municipality who are Members of the plan in such a manner as to show the name,
address, date of employment and date such employment is terminated.
Section 15. Board Attorney and Professionals.
The Board may employ independent legal counsel at the Pension Fund's expense
for the purposes contained herein, together with such other professional, technical,
or other advisors as the Board deems necessary.
Section 16. Maximum Pension.
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 limitations set forth in §415 of the Code.
2. Additional Limitation on Pension Benefits. Notwithstanding anything herein
to the contrary:
A. The normal retirement benefit or pension to a retiree who becomes a
member of the Plan and who has not previously pa�ticipated in such
Plan, on or after January 1, 1980, shall not exceed 100 percent of
his/her average final compensation. However, noti�ing contained in
this section shall apply to supplemental retirement benefits or to
pension increases attributable to cost-of-living increases or
adjustments.
B. No member of the Plan who is not now a member of such Plan shall
be allowed to receive a retirement benefit or pension which is in part
or in whole based upon any service with respect to which the member
is already receiving, or will receive in the future, a retirement benefit
or pension from another retirement system or pian. This restriction
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March 4, 2011
does not apply to social security benefits or federal benefits under
Chapter 67, Title 10, U.S. Code.
Section 17. Commencement of Benefits.
1. Unless the Member otherwise elects, with such election being in writing and
to the Trustees and specifying the form of retirement income and date on
which the retirement income is to commence, the payment benefits under
the Plan to the Member shall commence not later than the 60' day after the
close of the Plan Year in which the latest following events occur:
A. The attainment by the Member of age 65;
B. The 10 anniversary of the date on which the Member commenced
participation in the Plan; or
C. The termination of the Member's service with the Village of Tequesta
2. If the payment of a Member's retirement income cannot begin on the date
required under subsection 1 of the Section because the Trustees either
cannot ascertain the amount of the Member's retirement income or cannot
locate the Member after making reasonable efforts to do so, the payment of
the Member's benefit shall begin not later than sixty {60) days after the date
on which the amount can be ascertained or the Member is located,
whichever is applicable. Any such payment shall be made retroactive to a
date which is not earlier than the date on which the payment of the Member's
benefit was scheduled to begin but which is not later than the date specified
under subsection 1 of this Section.
Section 18. Distribution of Benefits.
Notwithstanding any other provision of this Plan to the contrary, a form of retirement
income payable from this Plan after the effective date of this ordinance, shall satisfy
the following conditions:
1. If the retirement income is payable before the Member's death,
A. it shall either be distributed or commence to the Member not later
than April 1 of the calendar year following the la#er of the calendar
year in which the Member attains age 70'/z, or the calendar year in
which the Member retires,
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March 4, 2011
B. the distribution shall commence to them not later than the calendar
year defined above; and shall be paid over the life of the Member or
over the lifetimes of the Member and spouse, issue or dependent, or,
shall be paid over the period extending not beyond the life expectancy
of the Member and spouse, issue or dependent.
Where a form of retirement income payment has commenced in accordance
with the preceding paragraphs and the Member dies before his/her entire
interest in the Plan has been distributed, the remaining portion of such
interest in the Plan shall be distributed no less rapidly than under the form of
distribution in effect at the time of the Member's death.
2. If the Member's death occurs before the distribution of his/her interest in the
Plan has commenced, the Member's entire interest in the Plan shall be
distributed within five (5) years of the Member's death, unless it is to be
distributed in accordance with the following rules:
A. The Member's remaining interest in the Plan is payable to his/her
spouse, issue or dependent;
B. The remaining interest is to be distributed over the life of the spouse,
issue or dependent or over a period not extending beyond the life
expectancy of the spouse, issue ar dependent; and
C. Such distribution beginswithin one yearof the Membe�'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'/2 and if the
spouse, issue or dependent dies before the distribution to the spouse,
issue or dependent begins, this Section shafl be applied as if the
spouse, issue or dependent were the Plan Member.
Section 19. Miscellaneous Provision.
1. Interest of Members in Pension Fund. At no time prior to the satisfaction of
all liabilities under the Plan with respect to Members and their spouses or
beneficiaries, shall any part of the corpus or income of the Pension Fund be
used for or diverted to any purpose other than for their elusive benefit.
2. No amendment or ordinance shall be adopted by the Viilage Council of the
Village of Tequesta which sha11 have the effect of reducing the then vested
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March 4, 2011
accrued benefits #o IVlembers or Members beneficiaries.
3. Rollover Distributions.
A. This subsection applies to distributions made on or after January 1,
1993. Notwithstanding any provision of the Plan to the contrary that
would otherwise limit a distributee's election under this subsection, a
distributee may elect, at the time and in the manner prescribed by the
Board of Trustees, to have any portion of an eligible rollover
distribution paid directly to an eligible retirement plan specified by the
distributee in a direct rollover.
B. Definitions.
(1) "Eligibie rollover distribution" is any distribution of all or any
portion of the balance to the credit of the distributee, except
that an eligible rollover does not include any distribution that is
one of a series of substantially equal periodic payments (not
less frequently than annually) made for the life (or life
expectancy) of the distributee or distributee's designated
beneficiary, or for a specified period of 10 years or more; any
distrib�ation to the extent such distribution is required under
sec#ion 401(a)(9) of the Code; and the portion of any
distr�bution that is not includible in gross income.
(2) "Eli�ible retirement plan" is an individual retirement account
described in section 408(a) of the Code, 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
quaiifed trust described in section 401(a) of the Code, that
accepts the distributee's eligible rollover distribution. However,
in the case of an eligible rollover distribution to the surviving
spo�se, an eligible retirement plan is an individual retirement
acco�nt or individual retirement annuity.
(3) "Dist�butee" includes an employee or former employee. In
adrlition, the employee's or former employee's surviving
spouse and the employee's or former employee's spouse who
is en#itled to payment for alimony and child support under a
domes#ic relations order determined to be qualified by this
Fund are distributees with regard to the interest of the spouse
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March 4, 2011
or former spouse.
(4) "Direct rollover" is a payment by the Plan to the eligible
retirement plan specified by the distributee.
Section 20. Repeal or Termination of System.
1. This Ordinance establishing the System and Fund, and subsequent
Ordinances pertaining to said System and Fund, may be modified,
terminated, or amended, in whole or in part; provided that if this or any
subsequent Ordinance shall be amended or repealed in its application to any
person benefitting hereunder, the amount of benefits which are the time of
any such alteration, amendment, or repeal shall have accrued to the Member
or beneficiary shall not be affected thereby, except to the extent that the
assets fo the Fund may be determined to be inadequate.
2. If this Ordinance shall be repealed, or if contributions to the System are
discontinued, the Board shall continue to administer the System in
accordance with the provisions of this Ordinance, for the sole benefit of the
then Members, any beneficiaries then receiving retirement allowances, and
any future persons entitled to receive benefits under one of the options
provided for in this Ordinance who are designated by any of said Members.
In the event of repeal, or if contributions to the System are discontinued,
there shall be full vesting (100%) of benefits accrued to date of repeal and
the assets of the System shall be allocated in an equitable mannerto provide
benefits on a proportionate basis to the persons so en#itled in accordance
with the provisions thereof.
3. The following shall be the order of priority for purposes of allocating the
assets of the System as of the date of repeal of this Ordinance, or if
contributions to the System are discontinued with the date of such
discontinuation being determined by the Board.
A. Apportionment shall first be made in respect of each retired General
Employee receiving a retirement or disability benefit hereunder on
such date, each person receiving a benefit on sucf� date on account
of a retired or disabled (but since deceased) General Employee who
has, by such date, become eligible for normal retirement but has not
yet retired, an amount which is the actuarial equivalent of such
benefit, based upon the actuarial assumptions in use for purposes of
the most recent actuarial valuation, provided that, if such asset value
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be less than the aggregate of such amounts, such amounts shall be
proportionately reduced so that the aggregate of such reduced
amounts will be equal to such asset value.
B. If there be any asset value remaining after the apportionment under
paragraph A, apportionment shall next be made in respect of each full
time General Employee in service of the Village of Tequesta on such
date who has completed at least six (6) years of credited service and
who is not entitled to an apportionment under paragraph A, in the
amount required to provide the actuarial equivalent, as described in
A above, of the accrued normal retirement benefit based on the
credited service and average monthly earnings as of such date, and
each vested former Member then entitled to a deferred benefit who
has not by such date, begun receiving benefit payments, in the
amount required to provide said actuarial equivalent of the accrued
normal retirement benefit; provided that, if such remaining asset value
be less than the aggregate of the amounts apportioned hereunder,
such latter amounts shall be proportionately reduced so that the
aggregate of such reduced amounts will be equal to such remaining
asset value.
C. If #here be any asset value after the apportionment under paragraph
A and B, apportionment shall be made in respect of each full time
General Employee in service of the Village of Tequesta on such date
who is not entitled to an apportionment under paragraphs A and B in
the amount equal to Member's Accumulated Contributions, provided
that, if such remaining asset value be less than the aggregate of the
amounts apportioned hereunder such latter amount shall be
proportionately reduced so that the aggregate of such reduced
amounts will be equal to such remaining asset value.
D. lf there be any asset value remaining after the apportionment's under
paragraphs A, B and C, apportionment shall lastly be made in respect
of each Member included in paragraph C above to the extent of the
actuarial equivalent, as described in paragraph A above, of the
accrued normal retirement benefit, less the amount apportioned in
para�raph C, based on credited service and average monthly
ea�ings as of such date provided that, if such remaining asset value
be less than the aggregate of the amounts apportioned hereunder
suc3� amounts shall be reduced so that the aggregate of such reduced
amfl�+nts wi�l be equal to such remaining asset value.
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E. In the event that there be asset value remaining after the full
apportionment's specified in paragraphs A, B, C, and D, such excess
shall be returned to the Village.
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.
4. 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 21. Exemption from Execution, Non-assiqnability.
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 underthis 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.
Section 22. 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 p�ior or existing law,
or shall hereafter be granted or obtained erroneously, fraudulentiy or illegally for any
reasons. Said Board is empowered to purge the pension rfllls 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 erroneousiy, improperly or
illegally classified.
Section 23. Forfeiture of Pension
Any Plan Member convicted of the following offenses committed pr�or to retirement,
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March 4, 2011
or whose employment is terminated by reason of his/her admitted commission, aid
or abatement of the following specified offenses, shall forfeit all rights and benefits
under this Pension Fund, except for the return of this accumulated contributions as
of the date of termination.
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.
2. 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, priviieges, duties or
position of his/her public office or employment position.
A. Conviction shall be defined as follows:
An adjudication of guilt by a court of competent jurisdiction; a plea of
guilty or nolo contendere; a jury verdict of guilty when adjudication of
guilt is withheld and the accused is placed on probation; or a
conviction by the Senate of an impeachable offense.
B. Court shall be defined as follows:
Any state or federal court of competent jurisdiction which is exercising
jurisdiction to considera proceeding involving the alleged commission
of a specified offense. Prior forfeiture, the Board of Trustees shall
hold a hearing on which notice shall be given to the Member whose
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March 4, 2011
benefits are being considered for forfeiture. Said Member shall be
afforded #he right to have an attorney present. No formal rules of
evidence shall apply, but the Member shall be afforded a full
opportunity to present his/her case against forfeiture.
Any Memberwho has received benefits from the System in excess of his/her
accumulated contributions after Member's rights were forfeited shall be
required to pay back to the Fund the amount of the benefits received in
excess of his/her accumulated contributions. The Board of Trustees may
implement all legal action necessary to recover such funds.
Section 24. Military Service Prior to Employment.
The years or fractional parts of years that a Member serves or has served in the
military service of the Armed Forces of the United States or United States Merchant
Marine, voluntarily or involuntarily, prior to first and initial employment with the
Village of Tequesta shall be added to his/her years of credited service provided that:
1. The General Employee contributes to the Fund the sum that he/she would
have contributed had he/she been a member of the Plan for the years or
fractional parts of years for which he/she is requesting credit plus amounts
actuarially determined such that the crediting of service does not result in
any cost to the Fund plus payment of costs for all professional services
rendered to the Board in connection with the purchase years of credited
service.
2. The request shall be made only once and made by the Member on or before
the later of twelve (12) months from the effective date of this Ordinance or
six (6) months from the date of his/her employment with the Village of
Tequesta, whichever is later.
3. Payment by the Member of the required amount shall be made within six (6)
months of his/her request for credit and shall be made in one lump sum
payment upon receipt of which credited service shall be given. Credited
service purchased pursuant to this section shall be counted for all purposes
except toward vesting of benefits.
4. The maximum credit under this section shall be five (5) years.
BSJ
March 4, 2011
H:1Tequasta GE 1012\Plan Docs 8 RulesWmend\2011\2011-Restate GE -Investment Amend Sec SB.wpd
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