HomeMy WebLinkAboutOrdinance_11-11_06/09/2011 ORDINANCE NO. 11-11
AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF
TEQUESTA, FLORIDA, AMENDING THE VILLAGE CODE OF
ORDINANCES AT CHAPTER 2. ADMINISTRATION. BY AMENDING
SECTION 2 -61. PENSION TRUST FUNDS TO CORRECT A
SCRIVENER'S ERROR AND TO AMEND EXHIBIT A, THE GENERAL
EMPLOYEES' PENSION TRUST FUND TO EXPAND CERTAIN
INVESTMENT PROVISIONS; PROVIDING THAT EACH AND EVERY
OTHER SECTION AND SUBSECTION OF CHAPTER 2. SHALL
REMAIN IN FULL FORCE AND EFFECT AS PREVIOUSLY ENACTED;
PROVIDING A CONFLICTS CLAUSE, A SEVERABILITY CLAUSE AND
AUTHORITY TO CODIFY; PROVIDING AN EFFECTIVE DATE; AND
FOR OTHER PURPOSES.
WHEREAS, the Village Council of the Village of Tequesta desires to correct a
scrivener's error at Sec. 2 -61 regarding the general employees' pension trust fund; and
WHEREAS, the Village Council of the Village of Tequesta desires to amend the general
employees' pension trust fund by expanding certain investment options to allow a maximum of
5% of the total market value of the portfolio to be invested in securities that fall below certain
bond rating categories; and
WHEREAS, the Village Council believes that these revisions to the general employees'
pension trust fund are in the best interests of the Village of Tequesta and the general employees'
pension trust fund beneficiaries; and will promote the public health, safety and welfare.
NOW, THEREFORE, BE IT ORDAINED BY THE VILLAGE COUNCIL OF THE
VILLAGE OF TEQUESTA, PALM BEACH COUNTY, FLORIDA, AS FOLLOWS:
Section 1 : Chapter 2 of the Code of Ordinances of the Village of Tequesta is hereby
amended at Sec. 2 -61 by correcting a scrivener's error and by amending Exhibit A (the general
employees' pension trust fund) by expanding certain investment options to allow a maximum of
5% of the total market value of the portfolio to be invested in securities that fall below certain
bond rating categories; providing that Sec. 2 -61 shall hereafter read as follows, and providing
that Exhibit A, attached hereto shall read as attached:
1
Sec. 2 -61. Pension trust funds.
(a) General employees. The Village of Tequesta hereby creates and continues the 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.
(b) Public safety officers. The Village of Tequesta hereby creates and continues the Village of
Tequesta Public Safety Officers' Pension Trust Fund for the purpose of providing retirement,
death and disability benefits to police officers and firefighters who are members of this fund,
certain former village police officers and firefighters and survivor benefits to beneficiaries.
Editor's note: Ordinance No. 585, § 1, adopted December 11, 2003, set out provisions intended
for use as section 2 -30. For purposes of classification, and at the editor's discretion, these
provisions have been included as section 2 -61.
Ord. No. 585 incorporated Exhibit A and B as part of this section and is on file and available for
public inspection in the office of the village clerk.
Section 2: Each and every other section and subsection of Chapter 2. Administration.
of the code of ordinances of the Village of Tequesta shall remain in full force and effect as
previously enacted.
Section 3 : All Ordinances or parts of Ordinances in conflict herewith be and the same
are hereby repealed.
Section 4 : Should any Section or provision of this Ordinance or any portion thereof,
any paragraph, sentence or word be declared by a Court of competent jurisdiction to be invalid,
such decision shall not affect the validity of the remainder of this Ordinance.
Section 5: Specific authority is hereby granted to codify this Ordinance.
Section 6 : This Ordinance shall become effective immediately upon adoption.
2
Upon Second Reading this 9th day of June 2011, the foregoing Ordinance was offered by Council
Member Brennan who moved its adoption. The motion was seconded by Council Member
Turnquest and upon being put to a vote, the vote was as follows:
For Adoption Against Adoption
Mayor Tom Paterno X
Vice -Mayor Vince Arena X
Council Member Abby Brennan X
Council Member Jim Humpage X
Council Member Calvin Turnquest X
The Mayor thereupon declared the Ordinance duly passed and adopted this 9 day of June 2011.
MAYOR OF TEQUESTA
Tom Paterno
ATTEST:
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Uzi SEAL`
Lori McWilliams, MMC = INCORPORATED ;
Village Clerk
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 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 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 twelve
(12) consecutive months.
Beneficiary means the person or persons entitled to receive
benefits hereunder at the death of a Member who has or have been
designated in writing by the Member and filed with the Board. If no
designation is in effect, or if no person so designated is living, at the time
of death of the Member, the beneficiary shall be the estate of the Member.
Board or Board of Trustees 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.
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 or
the United States Merchant Marine, voluntarily or involuntarily, 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 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 military 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
return to employment to the date of deposit.
C. The maximum credit for military service shall be five (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 Village of Tequesta, including his /her initial probationary
employment period, excluding certified Firefighters and certified Police
Officers.
General Employee 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 guaranteed 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.
Salary 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.
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 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.
Village means the Village of Tequesta, Florida.
2. Masculine Gender The masculine gender, where used herein, unless the
context specifically requires otherwise, shall include both the feminine and
masculine genders.
Section 3. Membership.
1. Condition of Eligibility
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 certified statement as to prior medical and psychological
history.
3. Change in Designation 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 legal residents of the municipality, who shall 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
event that either full time General Employee position remains vacant for
three 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 will be posted to again be
filled by a full time General Employee. The fifth (5 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 elected by their full -time co- workers. Upon
receipt of the fifth (5 th ) 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 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 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 of a conflict of interest provided that Trustee states in
writing the nature of the conflict complies with the provisions of Section
112.3143, Florida Statutes.
4. The Board of Trustees shall engage such actuarial, accounting, legal, and
other services as shall be required to transact the business of the
Retirement System to administer and manage the fund and to meet the
requirements of applicable law. The compensation of all persons engaged
by the Board of Trustees and all other expenses of the Board necessary
for the operation of the Retirement System shall be paid from the Fund 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 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.
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.
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 Management.
Establishment and Operation of Fund
1. As part of the System, there is hereby established a Fund, into which shall
be deposited all of the contributions and assets whatsoever attributable to
the System, for the benefit of 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 municipality, 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 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 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. 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 or otherwise exempt from such required
registration, an insurance company, or a combination of these, for the
purposes of investment decisions and management. Such investment
manager or managers shall have discretion, subject to any guidelines as
prescribed by the Board, in the investment of all fund assets.
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 and benefits under this System. All
contributions from time to time paid into the Fund, and the income
thereof, without distinction between principal and income, shall be
held in the Fund and administered by the Board or its Agents.
B. All moneys paid into or to 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 include 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 Investment
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 market value of the portfolio may be
invested in securities that fall below these rating
guidelines
(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 with 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 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 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 court, 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
supervision 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 shall be no real
estate investment in a limited partnership or trust.
N. The Village shall maintain Fiduciary Liability insurance to
cover the- 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 immediately after the withholding of such
contributions. The contributions made by each Member to the
Fund shall be designed as employer contributions pursuant to
Section 414(h) of the Code. Such designation is contingent upon
the contributions being excluded from the Members' gross income
for Federal Income Tax purposes. For all other purposes of the
Plan, such contributions shall be considered to be Member
contributions.
B. Method Such contributions shall be made by payroll
deduction.
2. 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.
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) monthly 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) 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. 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 early 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.
Section 9. Disabilitv.
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 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 General Employee which disability is not directly
caused by the performance 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 by 2% of his /her average monthly salary based
upon his /her final 5 years of service.
3. Conditions Disqualifying 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. Injury or disease sustained by General Employee while
working for anyone other than the Village of Tequesta and arising
out of such employment.
H. Injury or disease sustained by the member before
employment with the Village begins. This subparagraph applies
only in the event of a duty injury or disease.
4. Physical Examination Requirement
An employee shall not become eligible for disability benefits until and
unless he /she undergoes a physical examination by a qualified physician
or physicians and /or surgeons, who shall be selected by the Board for that
purpose.
Any person receiving disability benefit under provisions of this
Ordinance may be periodically re- examined by a qualified physician or
physicians and /or surgeon or surgeons who shall be selected by the
Board, to determine if such disability has ceased to exist. If the Board
finds that the retiree is no longer permanently and totally disabled to the
extent that he /she is unable to render useful and efficient service as a
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 returned shall enjoy the same rights that
Member had at the time he /she was placed upon pension. In the event
the retiree is so ordered to return shall refuse to comply with the order
within thirty (30) days from the issuance thereof, Member shall forfeit the
right to his /her pension.
The cost of the physical examination and /or re- examination of the
employee or retiree claiming and /or receiving disability benefits shall be
borne by the Board 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 month after the Board of Trustees determines such entitlement.
However, the monthly retirement income shall be payable as of the date
the Board determined such entitlement, and any portion due for a partial
month shall be paid together with the first payment. The last payment will
be:
A. If the plan member recovers from the disability or attains
his /her normal retirement date, the payment due next preceding the
date of such recovery, or
B. If the plan member dies without recovering from the disability
prior to his /her normal retirement date while still disabled, the
payment due next preceding his /her death or the 120 monthly
payment, whichever 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 -two (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 System preserved, provided he does not elect to
withdraw his /her accumulated contributions plus three percent (3 %)
interest from 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 lieu 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 request
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 of the Plan, if later), 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
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 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 pensioner, and the
Retiree. 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 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 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 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 review of disability claims; provided,
that the Board may extend the time for entering such order by an
additional forty -five (45) days if it determines such time is
necessary for discovery in full and adequate review.
2. In the event that the order from the Board denies the claim for a
change in such benefits or denies the claim for benefits, the order of the
Board shall be put in writing. Such written order shall include:
A. The specific reasons for the denial, including specific
references to pertinent provisions of the retirement system on
which such denial is based;
B. A description of any additional material or information that
the Board feels is necessary for the Member to perfect his /her
claim, together with an explanation of why such material or
information is necessary; and
C. An explanation of the review procedure next open to the
Member.
Such review procedure shall provide that:
(1) Prior to such review, the Member or his /her duly
authorized representative may review any pertinent documents
including Plan provisions, minutes of the meeting of the Board in
which denial fo the claim was originally recommended, and any
other documents material to the case;
(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 decision and, such decision shall
be final.
(a) The Chairman shall preside over the hearing
and shall rule on all evidentiary and other legal
questions that arise during the hearing.
(b) Either party, the claimant or the Board, may file
pleadings within the time limits set herein. Procedural
motions are to be determined by the Chairman of the
Board at any time. All parties are to furnish copies of
all pleadings to the opposing parties and exchange
lists with names and addresses of witnesses
expected to be called to testify at the hearing, as well
as the list of exhibits that are intended to be
introduced, at least forty -five (45) days prior to the
hearing. Testimony of witnesses shall be under oath
or affirmation. Depositions or affidavits shall not be
admissible unless upon stipulation by all parties. The
Chairman, any Member of the Board, the attorney for
the Board, the claimant and the claimant's attorney,
upon recognition by the Chairman, may direct
questions to any witness during the proceedings.
Each party shall have the right to present evidence
relevant to the issues, to cross - examine witnesses, to
impeach witnesses and to respond to the evidence
presented against the party. Each party shall have
the right to present any opening and closing
arguments. Any party may secure the services of a
court reporter to record the proceedings with the cost
to be borne by the party requesting the court reporter
or requesting the transcription of the proceedings.
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 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
participated in such Plan, on or after January 1, 1980, shall not
exceed 100 percent of his /her average final compensation.
However, nothing contained in this section shall apply to
supplemental retirement benefits or to pension increases
attributable to cost -of- living increases or adjustments.
B. No member of the Plan who is not now a member of such
Plan shall be allowed to receive a retirement benefit or pension
which is in part or in whole based upon any service with respect to
which the member is already receiving, or will receive in the future,
a retirement benefit or pension from another retirement system or
plan. This restriction does not apply to social security benefits or
federal benefits under Chapter 67, Title 10, U.S. Code.
Section 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 later of the
calendar year in which the Member attains age 70'/2, or the
calendar year in which the Member retires,
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 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'/2 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 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 Village Council of the
Village of Tequesta which shall have the effect of reducing the then vested
accrued benefits to Members or Members beneficiaries.
3. Rollover Distributions.
A. This subsection applies to distributions made on or after
January 1, 1993. Notwithstanding any provision of the Plan to the
contrary that would otherwise limit a distributee's election under this
subsection, a distributee may elect, at the time and in the manner
prescribed by the Board of Trustees, to have any portion of an
eligible rollover distribution paid directly to an eligible retirement
plan specified by the distributee in a direct rollover.
B. Definitions.
(1) "Eligible rollover distribution" is any distribution of all
or any portion of the balance to the credit of the distributee,
except that an eligible rollover does not include any
distribution that is one of a series of substantially equal
periodic payments (not less frequently than annually) made
for the life (or life expectancy) of the distributee or
distributee's designated beneficiary, or for a specified period
of 10 years or more; any distribution to the extent such
distribution is required under section 401(a)(9) of the Code;
and the portion of any distribution that is not includible in
gross income.
(2) "Eligible retirement plan" is an individual retirement
account described in section 408(a) of the Code, an
individual retirement annuity described in 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 distributee's eligible rollover
distribution. However, in the case of an eligible rollover
distribution to the surviving spouse, an eligible retirement
plan is an individual retirement account or individual
retirement annuity.
(3) "Distributee" includes an employee or former
employee. In addition, the employee's or former employee's
surviving spouse and the employee's or former employee's
spouse who is entitled to payment for alimony and child
support under a domestic relations order determined to be
qualified by this Fund are distributees with regard to the
interest of the spouse or former spouse.
(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
manner to provide benefits on a proportionate basis to the persons so
entitled 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 such
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 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 there 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. If 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 paragraph C, based on credited service
and average monthly earnings as of such date provided that, if
such remaining asset value be less than the aggregate of the
amounts apportioned hereunder such amounts shall be reduced so
that the aggregate of such reduced amounts will be equal to such
remaining asset value.
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 - assignability.
The pensions, annuities, or any other benefits accrued or accruing to any person
under the provisions of this Ordinance and the accumulated contributions and the
cash securities in the Fund created under this Ordinance are hereby exempted
from any state, county or municipal tax of the state and shall not be subject to
execution, attachment, garnishment or any legal process whatsoever and shall
be unassignable. However, pursuant to an income deduction order, the Trustees
may direct that retirement benefits be paid for alimony or child support in
accordance with rules and regulations adopted by the Board of Trustees.
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 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 23. Forfeiture of Pension
Any Plan Member convicted of the following offenses committed prior to
retirement, or whose employment is terminated by reason of his /her admitted
commission, aid or abatement of the following specified offenses, shall forfeit all
rights and benefits under this Pension Fund, except for the return of this
accumulated contributions as of the date of termination.
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, privileges, 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 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 his /her case
against forfeiture.
Any Member who 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: \Tequesta GE 1012 \Plan Docs & Rules\Amend\201 1\201 1-Restate GE - Investment Amend Sec 5B.wpd