HomeMy WebLinkAboutDocumentation_Regular_Tab 16_12/08/2011 VILLAGE CLERI Redistributed from First Reading
AGENDA ITEM TRAN
Meeting Date: Meeting Type: Regular Ordinance #: 25-11
11/10/11
Consent Agenda: No Resolution #:
Originating Department: Manager
AGENDA ITEM TITLE: (Wording form the SUBJECT line of your staff report)
Ordinance 25-11, First Readinq, Amending the Village Code of Ordinances at Chapter 2. Administration. By
Repealing in its Entirety Ordinance 14-11 and Repealing all Amendments to Exhibit "B" of Section 2-61
(Originally Intended to be Section 2-30 but Included as Sec 2-61 at the Editor's Discretion) Relating to the
Employees Pension Trust Funds as Contained in Ordinance 14-11 - Village Manager Couzzo
BUDGET / FINANCIAL IMPACT:
Account #: N/A Amount of this item: N/A
Current Budgeted Amount Available: N/A Amount Remaining after item: N/A
Budget Transfer Required: No Appropriate Fund Balance: No
EXECUTIVE SUMMARY OF MAJOR ISSUES: (This is a snap shot description of the agenda item)
Ordinance 25-11, First Readinq, Amending the Village Code of Ordinances at Chapter 2. Administration. By
Repealing in its Entirety Ordinance 14-11 and Repealing all Amendments to Exhibit "B" of Section 2-61
(Originally Intended to be Section 2-30 but Included as Sec 2-61 at the Editor's Discretion) Relating to the
Employees Pension Trust Funds as Contained in Ordinance 14-11 - Village Manager Couzzo
APPROVALS: SIGNATURE:
Department Head
Finance Director
Reviewed for Financial Sufficiency ❑
No Financial Impact ❑
Attorney: (for legal sufficiency)
Village Manager: �
Submit for Council Discussion: [� � � �) �� ��%�.�-
Approve Item: [� �. C � ,(-� E�� �
Deny Item: � -- d" `
SPECIAL INSTRUCTIONS FOR CLERK: (if you wish to have agreements signed, be sure to include the
number of copies you want signed and place "Sign Here" sticker on them)
Form Amended: 10/20/11
� MEMORANDUM
,,
Village of Tequesta
Clerk's Office
TO: Mayor and Council
FROM: Vilfage Manager Couzzo
DATE: November 1, 2011
SUBJECT: Repeal of Ordinance 14-11
After additional consultation with the ViNage's Pension Attorney, I am recommending the
repeal of Ordinance 14-11. Repeal of the Ordinance will provide additional time to
consider available options and will result in additional revenues to the Village.
McWilliams, Lori
From: Bonni S. Jensen @sjensen�perryjensen�aw.com]
Ser�t: Wednesday, November U2, 2011 4:16 PM
To: MclfVilliams, Lori
Cc: 'Dixie Martinez; Pension Attomey Team; Forsythe, Jody; Reid, Merlene; Telfrin, Debra;
Couzzo, Michael; Keith Davis, Esquire
SubJect: Re: FW: Repeal of ORdinance 1411
Attachments: 2011 Restatement attached to repeal of 14-11.pdf; 2011 Restatement attac�ed to repeal of
14-i i .doc
Lori,
Per your request attached (in both .pdf and .doc versions) is the Pension Plan without any of the changes contained in
Ordinance 14-11. There were some clean up items that were included as part of the amendme�t 14-11, but we will
enact them again once when the Pla� is once again amended.
I tried proofread carefully, but given the short time frame something may have been missed. I guess we will fix it later
as a "scrivener's error."
Please contact me if you have any questions.
TO SEND MAIL TO MY ENTIRE TEAM, PLEASE RESPOND TO THEPENSIOIdTEAM@PERRYJENSENLAW.COM
Bonni 5. Jensen <bsiensen@perrviensenlaw.com>
Law Offices of Perry & Jensen, LLC
400 Executive Cerrter Drive, Suite 207
West Palm Beach, Florida 33401
Telephone: (561)686-6550
Facsimile: (561)686-2802
CONFIDENTIALITY NOTICE: This communication is confidential, may be
privileged and is meant only for the intended recipient. If you are nat
the intended recipient, piease notify the sender ASAP and delete this �
message from your system.
IRS CfRCULAR 230 NOTICE: To the extent that this message or any
attachment concerns tax matters, it is not intended to be used and
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that may be imposed by law. �
On 11/2/201111:56 AM, McWilliams, Lori wrote:
Bonni and Dixie,
Please send me a copy of the Public Safety Officers Pension Plan WITHOUT the revisions that were made by Ordinance
14-11 so I can include as noted by our Viltage Attorney.
I will need these today as the agenda is set to be distributed this afternoon.
Thank you,
i
Lori
From: Keith Davis fmailto:Keith(alcorbettandwhite.com,]
Sent: Wednesday, November 02, 2011 11:44 AM
To: McWilliams, Lori
Cc: Cou�o, Midiael; Telfrin, Debra �
Subject: RE: Repeal of ORdinanoe 1411
Lori:
Attached is as requested. The ordinance needs to have attached to it the public safety officers pension plan
WITHOUT the revisions that were made by 14-11. Although it was discussed at the meeting last week, I need to point
out that this ordinance will put the pension plan and the CBA in conflict with each other.
Ke�th W. Davis, Esquire
Corbett and White, P.A.
Tel: (561) 586-7115
Fax: (561) 586-9611
Email: keith�corbettandwhite.com
From: McWilliams, Lori [maiito:lmcwilliams@teau _ .org]
Sent: Tuesday, November 01, 2011 1:14 PM
To: Keith Davis
SubJect: Repeal of ORdinance 14-1i
Keith,
7he Manager wants me to place on the November Agenda ar� item repealing Ordinance 1411 which closes the plan to
new police members. Will this need to be done by Ordinance? If so, can you provide to me?
Lori
IMPORTANT: The contents of this email and any attachments are confidential. They are intended for the named
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McWilliams, Lori
Subject: FW: Repeal of ORdinance 14-11
AttachmeMs: Ord 25-11 REPEAL 1411.docx
Frorr�: Keith Davis [maiito:Ke'�thCa�orbettandwFiibe.com]
Sent: Wednesday, November 02, 2011 11:44 AM
To: McWiliiams, Lori
Cc: Couzzo, Michael; Telfrin, Debra �
Subject: RE: Repeal of ORdinanc� 14-11
Lori:
Attached is as requested. The ordinance needs to have attached to it the public safety officers pension plan
WITHOUT the revisions that were made by 14-11. Although it was discussed at the meeting last week� I need to point
out that this ordinance will put the pension plan and the CBA in conflict with each other.
Keith W. Davis, Esquire
����"�'�/'� �`�
Tel: (561) 586-7116
Faac: (561) 586-9611
Email: keith@corbettandwhite.com
i
ORDINANCE NO. 25-11 .
AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF
TEQUESTA, FLORIDA, AMENDING THE VILLAGE CODE OF
ORDINANCES AT CHAPTER 2. ADMINISTRATION. BY REPEALING
IN ITS ENTIRETY ORDINANCE 14-11 AND REPEALING ALL
AMENDMENTS TO E�IT `B" OF SECTION 2-61 (ORIGINALLY
INTENDED TO BE SECTION 2-30 BUT INCLUDED AS SEC 2-61 AT
THE EDITOR'S DISCRETIOl� RELATING TO THE EMPLOYEES
PENSION TRUST FUNDS AS CONTAINED IN ORDINANCE 14-11;
PROVIDING THAT EACH AND EVERY OTHER SECTION AND
SUBSECTION OF CHAPTER 2. SIiALL 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 repeal Ordinance
14-11 and repeal the amendments to Exbibit B of Sec. 2-61 of the Village Code of Ordinances
relating to the Public Safety Officers Pension Trust Fund which were adopted on Second
Reading September 8, 2011; and
WHEREAS, the repeal of Ordinance 1411 is necessary in order to allow the Village
Council to fiuther consider the cuirent and future status of the Public Safety Officers Pension
Trust Fund, while contiauing to receive insurance premium tax money pursuant to Chapter 185,
Florida Sxasutes as same were received prior to the adoption of Ordinance 1411; and
WHEREAS, the Village Council believes that the repeal of Ordinance 14-11 and the
further consideration of the Public Safery Officers Pension Trust Fund will be in the best
interests of the Village of Tequesta and the pension trust fund beneficiaries; and will promote the
public health, safety and welfare.
NOW, THEREFORE, BE IT ORDAINED BY THE VILLAGE COUNCII. OF THE
VII..LAGE OF TEQUESTA, PALM BEACH COUNTY, FLORIDA, AS FOLLOWS:
Section 1: Ordinance 1411, adopted on Second Reading September 8, 2011,
including each and every amendment to Exhibit B of Sec. 2-61 of the Village Code of
Ordinances relating to the Public Safety Off'icers Pension Trust Fund contained therein is hereby
1
repealed in its entirety. As such, Exhibit B shall now read as it read prior to the adoption of
Ordinance 14-11, as attached hereto.
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 effe.ct as
previously enacted.
Section 3: All Ordinances or parts of Ordinances in conflict herewith be and the same
aze hereby repealed.
SecNion 4: Shauld any Section or provision of this Ordinance or any portion thereof,
any pazagraph, sentence or word be declared by a Court of competent jurisdiction to be iavalid,
such decision shall not affect the validity of the remainder of this Ordinance.
Section 5: S�cific authority is hereby granted to codify this Ordinance.
Section 6: This Ordinance sha11 become effective immediately upon adoption.
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EXHIBIT "B"
VILLAGE OF TEQUESTA
PUBLIC SAFETY OFFICERS' PENSION TRUST FUND
TABLE OF CONTENTS
Secfion 1. Creation of Pension Trust Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -1-
Section 2. Defini#ions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -1- .
Section 3. Membership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -4-
Section 4. Board of Trustees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -5-
Section 5. Finance And Fund Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -7-
Secdon 6. Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -12-
Section 7. Benefit Amounts and Eligibilit�r . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -14-
Section 8. Pre-retirement Death . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -15-
Section 9. Disability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -16-
Section 10. Monthly Supplemental Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -19-
Section11. Vesting ................................................. -19-
Section 12. Optional Forms of Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -19-
$ection 13. Beneficiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -21-
Section 14. Deferred Retirement Option Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -22-
Section 15. Claims Procedures Before the Board Decision . . . . . . . . . . . . . . . . . . -24-
Section 16. Reports to Division of Retirement . . . . . . : . . . . . . . . . . . . . . . . . . . . . . -26-
Section 17. Roster of Retirees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -27-
Section 18. Board Attomey and Professionals . . . . . . . . . . . . . . . . . . . . . . . . . . . . -27-
Section.19. Maximum Pension . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -27-
Secfion 20. Commencement of Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -2&
Section 21. Distribution of Benefiis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -28-
Section 22. Miscellaneous Provision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -29-
Section 23. Repeal or Termination of System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -31-
Sec�on 24. Exemption from Execu�on, Non-assignabiliiy . . . . . . . . . . . . . . . . . . . -34-
Section 25. Pension Validity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -34-
Section 26. Forfeiture of Pension . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -35-
Section 27. Military Service Prior to Emp{oyment .. . . . . . . . . . . . . . . . . . . . . . . . . . -37-
Section 21. Distribution of Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -28-
Section 22. Miscellaneous Provision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -29-
Section 23. Repeal or Termination of System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -31-
Section 24. Exemption from Execution, Non-assignabiliiy . . . . . . . . . . . . . . . . . . . -34-
Section 25. Pension Validity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -34-
Section 26. Forfeiture of Pension . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -35-
Section 27. Military Senrice Prior to Employment . . . . . . . . . . . . . . . . . . . . . . . . . -37-
EXHIBIT "B"
VILLAGE OF TEQUESTA
PUBLIC SAFETY OFFICERS' PENSION TRUST FUND
Section 1. Creation of Pension Trust Fund.
The �Ilage of Tequesta hereby creates and continues the �Ilage 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 formerVillage Police Officers and Firefighters and sunrivor benefits to beneficiaries.
Section 2. Definitions.
1. Statement of Definitions. As used herein, unless otherwise defined or required
by the context, #he following words and phrases shall have the meaning indicated:
Accumulated Contributions means a Member's own contributions without interest.
Actuarial Eauivalent means a benefit or amount af equal value, based upon the
mortality tables utilized by the Boar�'s actuary or actuaries, and an 8% rate of interest.
Averaqe Final Compensation shall mean one-twelfth (1/12) of the average salary
of the �ve (5) best years of the last ten (10) years of credited service prior to retirement,
termination, or death or the career average as a full time Firefighter or Police Officer,
whichever is greater. A year shall be finrelve (12) consecutive months.
Beneficiarv means the person or persons entitled to receive benefi� hereunder at
the dea#h of a Member who has or have been designated in writing by fihe 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 bene�ciary shall be the estate of the Member.
Board or Board of Trustees mean the Public Safety Board of Trustees, which shall
administer and manage the System herein provided and serve as Trustees of the Fund for
the benefit of Village Police Officers and Firefighters and their beneficiaries.
Ch apter means Chapter 175 and 185 of the Florida Statutes as amended from time
to time.
Code means the Intemal Revenue Code of 1986, as amended from time to time.
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Credited Service means the total number of years and fractional parts of years of
senrice as a Police Officer, or Firefighter who makes member contributions to the Plan,
. omitting intervening years or fractional parts of years when such Police Officer or
Firefighter may not have been employed by the Village of Tequesta. A plan member may
voluntarily leave hislher 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 fufl time
position by the �Ilage of Tequesta without losing cr�edit for the time of active participation
as a plan member. Should the employee not be re-employed witfi the Village of Tequesta
in a full time capacity within five (5) years, his/her contributions shall be retumed to him/her
without interest. Should a Police Officer or Firefighter be subsequently re-employed as
such, he or she may re-purchase his or her years of credit or fractionaf parts of years of
credit by reimbursing such retumed contribution to the Fund, with interest.
The years or fractional parts of years that a Firefighter, or Police Officer serves in
the military service of the Armed Forces of the United States orthe United States Merchant
Marine, voluntarily, upon being granted leave by the Village of Tequesta and separation
from employment as a Village of Tequesta plan member, shall be added to his/her years
of credited senrice for all purposes including vesting, provided that:
. A. The Firefighter or Police Officer must retum to his/her full time employment
_ with the Fire Department or Police Department within one (1) year from the
date of hislher military discharge. Effective January 1, 2007, members who
die or become disabled while serving on active duty military service which .
. intervenes the member's employment shall be entitled to the rights of this
section even though such member was not re-employed by the �Ilage.
Members who die or become disabled whiie on active duty military service
shall be treated as though re-employed the day before the Member became
disabled or died, was credited with the service they would have been entitied
to under this section, and then either died a non-duty death while employed
or became disabled from a non-duty disability.
B. The maximum credit for military senrice shal! be five (5) years.
Effective Date means the date on which this Ordinance becomes effective.
Fire Department means the Tequesta Fire Department.
Firefiqhter means an actively employed full-time person employed by the Fire
Department, inciuding his/her initial probationary employment period, who is certified or
required to be certified as a Firefighter as a condition of employment in accordance with
the provisions of 633.35 Florida Statutes, including paramedic, and whose duty is to
extinguish fires, to protect life and to protect property. The term Firefighter includes all
certfied, supervisory, and command personnel whose duties include, in whole or in part,
the supervision, training, guidance, and management responsibilities of full-time
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firefighters, part-time frrefighters, or auxiliary firefighters but does not include part-time
firefighters or auxiliary firefighters.
Fund means the Trust Fund established herein as part of the System.
Member means an actively employed Police Officer or Firefighter that fulfills the
applicable p�escribed membership requirements.
Police Department means the Tequesta Police Department.
� Pofice Officer means any person who is e{ected, appointed, or employed fuil time
by the Village, who is certified or required to be certified as a!aw enforcement officer in
compliance with Florida Statute 943.1395, who is vested with authority to bear arms and
make arrests, and whose primary responsibility is the prevention and detection of crime or
the en#orcement of the penal, criminal, traffic or highway laws of the state. This definition
includes all certified supervisory and command personnel whose duties include, in whole
or in part, the supervision, training, guidance, and management responsibilities of fuli-time
law enforcement officers, part-time law enforcement oificers or auxiliary law enforcement
officers as the same are defined in F.S. 943.10(6) and (8) respectively. Police OfFcer also
� shall include a public safety officer who is responsible for perfomrting both police and fire
seroices.
Public Safety Board means the Public Safety Board of Trustees provided hereunder
to administer and manage Funds for the benefit of Public Safety Officers.
Public Safeiv OfFicers means Firefighters and/or Police Officers.
Sa lary. means the total cash remuneration paid to a police officer or firefighter for
senrices rendered including Base Pay, Bonuses, Career Service Annual Award, Holiday
Pay, Incentives, Overtime, Sick Leave Payout on Termination, Sick-Leave Buy Back, and .
Straight Time, and effective for payments made after 12/31/08, as provided for by Intemal
Revenue Code §414(u)(7), this definition of salary shall include any differential wage
payment from the employer fo a member as a resuft of the member's absence from
employment while senring in qualified military service. This definition excludes pay
received as a Car Allowance, Clothing Allowance and Shoe/Boot Allowance.
Spouse means the lawful wife or husband of a plan member at the time of
pre-retirement, death or retirement.
Statement of Investment Policv means the written investment policy adopted by the
Board pursuant to this Ordinance and F.S. 112.661, et seq., which shall apply to funds
under the controi of each board.
Svstem means the Village of Tequesta Pubiic Safety Officers' Pension Trust Fund
as contained herein and all amendments thereto.
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Vested deferred retirement means a Member who leaves the employ of the Village
with 6 or more years of credited senrice and who is not efigible for any retirement benefit.
This benefit is payable at early or normal retirement.
Villa e means the Village of Tequesta, Florida.
2. Masculine Gender. The masculine gender, where used herein, unless the
context specfically requires othervvise, shall inGude both the feminine and mascuGne
genders.
Section 3. Membership.
1. Condition of Eliqibility �
All full time Police Officers and Firefighters as of the effective date, and all future
new full time Police Officers and Firefighters shall become Members of this System
as a condition of employment, except that partiapation in this system is optional for
the Police Chief and Fire Chief. .
2. Membership
Each full fime Police Officer or Firefighter shall complete a form prescribed by the .
Board which may include the following information:
A. Acceptance of the terms and condifions of the Retirement System, and,
B. Designation of a beneficiary or benefiaaries, and,
C. A�certified statement as to prior medical and/or psychological history.
3. Chanqe in Desiqnation of Beneficiarv
A. A member may from fime to fime 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.
B. Any retired member who desires to change his or her joint annuitant or
beneficiary shall file with the board ofi trustees a notarized notioe of such
change. Upon receipf of a completed change of joint annuitant form or such
other notice, the board of trustees shall adjust the member`s monthly benefit
by the application of actuarial tables and calculations developed to ensure
that the benefit paid is the actuarial equivalent of the present value of the
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member's current benefit and there is no impact to the Plan. Any costs
associated with these benefit calcula�ons shall be bome by the member.
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 Public Safety Board shall consist of five (5) Trustees, finro (2) of whom, unless
othervvise prohibited by law, shall be legal residents of the Village, who shall be appointed
by the Tequesta Village Council, and one (1) of whom shall be a full-time Police Officer
member of the System and one (1) of whom shall be a full-fime Firefighter member of the
System. The fifth (5th) Trustee shali be selected by a majority vo#e of the other four (4)
Trustees. Each person seeking to fill a designated employee representative Board
member seat shall be separately elected by their full-time co-workers who are members
of the System in the applicable employee representative group, e.g. Police Officer or
Firefighter in which they are employed and shall be elected by a majority of the full-time
employees who are Members of the System within the applicable employee representative
group. Upon receipt of the flfth (5th) person's name the Tequesta Village Council shall, as
a ministerial duty, appoint such person to the Public Safety Board as its fifth (5th) Trustee.
The fifth (5th) 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 ofFce is
sooner vacated and may succeed himself or herseff 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
herseff as a Trustee. Each Police Officer or Firefighter Trustee shall serve as Trustee for
a period of two (2) years, unless he/she sooner leaves the employment of the empfoyee
representative group he/she was elected to represent or othervvise vacates his/her office
as Trustee, whereupon a successor shall be chosen in the manner as the departing
Trustee. Each employee representative Trustee may succeed himself or herself in office.
The Public Safety Board shall meet at least quarterly each year. Such Boards shall be a
legal entity with, in addition to other powers and responsibilities contained herein, the
power to bring and defend lawsuits of every kind, nature, and description.
2. The Board shaN, by majority vote, elect a chafrman and secretary. The
secretary of the Board shall keep, or cause to be kept, a complete minute book of the
actions, proceedings, or hearings of the Board and shall preside over Board meetings in
the absence of the Chairman. The Trustees shall not receive any compensation as such,
but may receive expenses and per diem as provided by law.
3. Each Trustee shall be entitled to one vote. Three (3) affirrnative votes shall
be necessary for any deasion by the Tn�stees 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
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Trustee states in writing the nature of the conflict complies with the provisions of Section
112.3143, Florida Statutes.
4. The Board of Trustees shalf engage such actuarial, accounting, tegal, and
other services as shall be required to transact the busFness of the Retirement System to
administer and manage their funds 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 they administer and manage at such rates and in such amounts as the Board of
Trustees shall approve.
5. The duties and responsibilities of the Board of Trustees shall include, but not
necessarily be limited to, the following:
A. To constrve the provisions of the System and determine all questions arising
thereunder.
B. To determine all questions relating to eligibility and participation.
C. To detennine and certify the amount of ali retirement allowances or other
benefits hereunder.
D. To establish uniform rules and procedures to be foilowed for administrative
purposes, benefit applications and afl matters required to administer the
System. .
E. To distribute to Members, at regular intervals, information conceming 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 paymerrts and other
expenditures arising through operation of the System and the Fund.
H. To have perFormed actuarial studies in accordance with Florida Statute
112.G3 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.
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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 c�mply with the Chapters. �
L. To ensure the funds and assets for the benefit of the employee groups they
serve are segregated and separated from the funds and assets under the
control of the Boarcl.
M. To perform such otherduties as are specified in this Ordinance and generally
do all acts which the Trustees may de�m necessary or desirable for the
protection of the Trust Fund.
N. To adopt and be guided by Statements of Investment Policy applicable to all
funds under the control the Pub1ic Safety Board of Trustees as required from
time to time by F.S. 112.661, et seq., and/or its successor statutes.
O. To sue or be sued.
P: To settle, compromise or submit to arbitration (at the sole discretion of the
Trus#ees) any claims, debts or damages due or owing to or from the Fund.
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 Public Safety Officers to be administered and managed by the Public Safety
Board.
2. The actual custody and supervision of the Fund (and assets thereofl shall be
vested in the Board of Trustees. Payment of benefits and disbursements from the Fund
shall be made by the Village as the Board's agent, but only upon written au�thorization from
the Board. Such written authorization shall require the signature of fwo of the Trustees or
other Board authorized fiduciary.
3. All funds and securities of the Fund may be deposited by the Board of
Trustees with the Treasurer of the Village, acting in a ministerial capacity only, who shall
be liable in the same manner and to the same extent that as he is liable for the
safekeeping of funds for the Village. However, any funds and securities so deposited with
the Treasurer of the Village shall be kept in separate funds by the Treasurer or clearly
ident�ed as such funds and securities of the Public Safety Officer Trust Fund. In lieu
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thereof, the Board of Trustees shaJl 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 conforrn to
and be bound by all of tfie provisions of Chapter 280, Florida Statutes.
4. In order to fulfill its investment responsibilifies as set forth herein, the Boards
may retain the services of a custodian bank or banks, an investment advisor or advisors
registered under Investment Advisors Act of 1940 or otherwise exempt from such required
registration, an insurance company, or a combination of these, for the purposes of
investment decisions and management. SucM investment manager or managers shall
have discretion, subject to a�y guidelines as prescribed by the Board, in the investment of
all fund assets.
5. All funds and securities of the System shall be accounted for separately
based upon the finro (2) applicable employee classes within the Fund namely the Police
Offlcers and Firefighters in the Public Safety Officers Trusf Fund. Accurate records shall
be maintained at all times reflecting the financial composition of the Fund and of the
accounts in place to segregate the assets of the employee classes covered by the System,
including accurate current accounts and entries as regards the following:
A. Current amounts of Accumulated Contributions of Members on both an
individual and aggregate account basis, and
B. Receipts and disbursements, and
C. Benefit payments, and
D. Current amounts clearly reflecting all moneys, funds and assets whatsoever
attributable to contributions and deposits from the Vilfage, County or State,
and
E. All interest, dividends and gains (or losses) whatsoever, and
F. Such other entries as may be properly required so as to reflect a dear and
complete financial report of the Fund.
G. Such other entries as required by the Chapters. �
6. An independent audit shail be performed annuaily 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 inc:ome 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 arid
market basis, as weil as other items normally included in a certified audit.
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7. The Board of Trustees shall have the foliowing investment powers and
authority:
A. The Board of Trustees shali be vested with full legal titie to the Fund, subject,
however, and in any event to the authority and power of the Tequesta �Ilage
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 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 suffiaent 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 govemment of the United States.
(4) Bonds, stocks, commingled funds administered by National or State
Banks or evidences of indebtedness issued or guaranteed by a corporation
organized under the laws of the United States, any state or organized
territory of the United States, or the District of Columbia, provided that the
corporation is traded on a nationally recognized Exchange and in the case
of bonds only holds a rating in one of the four highest classifications by a
major rating service, and if such investments are made in a pooled fund
administered by a state or national bank, then the rating of each issue in the
pooled fund shall hold a rating within #he top four (4) rating classifications of
a major rating service.
(5) Real estate.
(6) Up to 25% of Plan assets may be invested in foreign securities.
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(7) Ail monies paid irrto 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.
C. The Board of Trustees shall not invest more than five percent (5°/a) of its
assefs in tfie common stock or capital stock of any one issuing company, nor
shall the aggregate investrr�ent 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 stodc, capital stock and convertible
bonds at cost exceed s'ixty percent (60%) of the assets of the Fund.
D. The Boarri of Trustees may retain in cash and keep unproductive of income
such amount of the Fund as it may deem advisable, having regard for the
cash requirements af 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 hislher 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 dire�t, or they may retain them unregistered and in form
permitting transferabitity, 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 stodcs, 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 respe�t to such securifies; to deposit such stock or other
securities in any voting trust or any protective or like committee with the
Trust�es or with depositories designated tfiereby; to amortaze or fail to
amortize any part of all of the premium or discount resulting from the
acquisition or disposition of assets; and generally to exercise any of the
powers of an owner with respect to stocks, bonds, or other investments
comprising the Fund which it may deem to be the best interest of the Fund �
to exercise. This responsibility may be delegated to an Agent for the Board.
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.
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I. Where any action which the Board is required to take on any duty or function
which it is required to perform either under the terms herein or under the
general law applicable to it as Trustee under this Ordinance, can reasonably
be taken or performed only after receipt by it from a Member, the �Ilage, the
Department or any other entity, of specific information, certfication, direction
or instructions, the Board shall be free of liability in failing to take such action
orperForm such dutyorfunction until such information, certification, direction
or instruction has been received by it.
J. Any overpayments or underpayments from a Fund to a Member or
bene#iciary 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. The Board shall sustain no liabili�ty whatsoever for the sufficiency of a Fund
to meet the payments and benefits herein provided.
L. Any of the foregoing powers and functions reposed in the Board may be
performed or 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, tha# legal title to the Fund shall
� always remain in the Board of Trustees.
M. The Board shall not invest mare than ten percen# (10%) at cost of its assets
in real property or real estate and there shall be no investrnent in a limited
partnership or trust.
N. The Village shall maintain Fiduciary Liability insurance to cover the members
of #he Board of Trustees.
O. With respect to any investment, #he Trustees may consent or object to any
action or non-action of any corporation or of the directors, officers or
stockholders of any corporation.
P. Notwithstanding anything else in this subsection and as provided in Florida
Statutes §215.473, the board of trustees must identify and publicly report any
direct or indirect holdings it may have in any scrutinized company, as defined
in that section. Beginning January 1, 2010, the Board must proceed to sell,
redeem, divest, or wi#hdraw all publiGy traded securities it may have directly
in that company. The divestiture of any such security must be completed by
September 10, 2010. The board and its named officers or irtvestment
advisors may not be deemed to have breached their fiduciary duty in any
action taken to dispose of any such security, and the board shall have
satisfactorily discharged the fiduciary duties of loyatty, prudence, and sole
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and exdusive benefit to the partiapants of the pension fund and their
beneficiaries if the actions it takes are consistent with the duties imposed by
Florida Statutes §215.473, as provided for in Florida Statutes 185.06(7) /
175.071(8) and the manner of the disposition, if any, is reasonable as to the
means chosen. For purposes of determining which companies are
scrutinized companies, the Board may utilize the list of scxutinized
. companies as developed by the Florida State Board of Administration. No
person may bring any civii, criminal, or administra#ive action against the
board of tn.�stees or any employee, officer, director, or advisor of such
pension fund based upon the divesture of any security pursuant to this
subsection.
Section 6. Contribu�ons.
1. Member Contributions
A. Amount. Effective the first full payroll period after the e�fective date of this
Ordinance, PoCce Officer Members of the Retirement System shall be
required to make regular contributions to the Fund in the amount of five
percent (5%j of hisJher sa{ary effective the first full payroll period after the
effective date of this Ordinance, Firefighter Members of the Retirement
System shall be required to make regular contribution to the Fund in the
amount of five percent (5%) of hisLher salary. The funding for the difference
befinreen the previously required contribution of 6.1 % and the now required
5°10 shall be made up from the monies received from the State pursuant to
Chapter 175, F.S. Should the Chapter 175 money ever become insufficient
to make up the difference, the contribufion rate for Firefighter Members shall
automatically revert to 6.1 %. 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
con#ributions pursuant to Section 414(h) of the Code. Such designation is
contingent upon the contributions being excluded from the Members' gross
income for Federal Income Tax purposes. For all other purposes of the
Plan, such contributions shall be considered to be Member contributions.
B. Method. Such contributions shall be made by payroll deduction.
2. State Contributions
Any monies received or receivable by reason of laws of the State of Florida, for the
express purpose of funding and paying for refirement benefits for Police O�cers or
Firefighters shall be deposited with the applicable segregated account in the Trust Fund
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comprising part of this System immediately and under no circumstances more than five (5).
days after receipt by the Village.
3. VillaQe 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 defiaency shown by an actuarial valuation as provided in Part VII of
Chapter 112, Florida Statutes.
4. Other
Private donations, gifts and contributions may be deposited to the Fund, but such
deposits must be kept separately and kept on a segregated bookkeeping basis. Funds
arising from these sources may be used only for additional benefi.ts for Members, as
determined by the Board of Trustees, and may not be used to reduce what would have
otherwise been required by Village cantributions.
Section 7. Benefit Amounts and Eligibility.
� 1. Normal Retirement Date
A Member's normal retirement date shall be the first day of the month coincident
with, or the next following the earlier of:
A. attainment of age fifty-five (55) and the completion of six (6) years of credited
service, or
B. attainment of age fifty-two (52) and the completion of twenty-five (25) years
of credited service.
A Member may retire on his/Mer normal retirement date or on the first �fay 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
ftom erriployment with the Village of Tequesta as a Police Officer or Firefighter on or after
the normal retirement date.
2. Normal Retirement Benefit
A Member retiring hereunder on or after his/her normal retirement date shall receive
a mon#hly� beneflt which shall commence on his/her Retirement Date and be continued
thereafter during the Member's lifetime, ceasing upon death, but with one hundred twenty �
(120) monthly payments guaranteed in any event. The monthly retirement benefit shall
equal:
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3.0% for the first 6 years of service
3.5% for the next 4 years of service
4.0% for the next 5 years of service
3.0%�for the next 6 years of service
2.0% for the next 4 years of service
3.0% for all years after 25 years
3. Earlv Refiremer�t Date
A Member may retire on his/her early retirement date which shall be #he 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 Viilage of Tequesta on or after the early retiremen#
date and prior to the normal retirement date.
4. Eariv Retirement Beneft
A Member retiring hereunder on his/her early retirement date may receive either a
deferred or an immediate monthly retirement benefit payable for Iffe, but with one hundred
twenty (120) monthly payments guaranteed in any event, as follows:
A. deferred monthly retirement benefit which shall commence on what would
have been hisfher normal retirement date had he/she remained a Police
Officer or Firefighter and shall be continued on the first day of each month
thereafter. The amount of each such deferred monfhly retirement benefit
shall be determined in the same manner as for retirement as his/F►er normal
refirement date except that credited service and average final compensation
shall be determined as of his/her early re#irement date; or
B. immediate monthly retirement benefitwhich shall commence on his/her early
re#irement date and shall be continued on the first day of each month
thereafter. The benefit payabie shall be as determined in paragraph A
above, which is actuarially reduced from the amount to which he/she would
have been entitied had he/she retired on his/her normal retirement date and
with the same number of years of credited service as at the time his/her
benefit commence and based on his/her average final compensation at that
date. In no event shall the early retirement reduction exceed three percen#
(3%j for each year by which the commencement of benefits precedes the
Member's normal retirement date.
Section 8. Pre-retirement Death.
If a plan member dies prior to retirement from the Vi!lage of Tequesta his/her
beneficiary shall receive a benefit as follows:
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A. Line-of-Duty-Death-Benefit is a pension to the spouse (or children) for life in
the amount of 50% of Average Final Compensafion.
B. No�-Line-of-Duty-Death-Benefit the spouse of a member with 6 years of
credited service will receive the actuarial equivalent of the accrued normal
retirement benefit.
C. In lieu of the benefits provided in A or B above, the beneficiary of a police
officer or flrefighter, with 6 or more years of service who dies prior to
refirement, may receive the benefits otherwise payable to the police officer
at what would have been hislher.early or normal retirement date.
Seetion 9. Disability.
1. Disabilitv Benefits On-Dutv
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 effiaent service as a Police Officer or
Firefighter, as was provided by the employee in their classification (Police Officer or
Firefighter) prior to the alleged impairment, which disability was directly caused by the
perFormance of his/her duty as a Police Officer or Firefighter shall upon establishing the
same to the satisfaction of the Board, be entitted to:
A. If the injury or disease is service connected, the employee shall be entitied
to the greater of (1) or (2):
(1) a monthly pension equal to 42% of his/her average monthly
compensation as of his/her disabilily retirement date, or
(2) the accrued Normal Retirement Benefit.
Any condition or impairment of health of Police Officer or Firefiighter caused
by tuberculosis, hypertension hepatitis, meningococcal meningitis or heart
�disease shall be presumed to have been suFFered in the line of duty unless
the contrary is shown by competent evidence, provided that such Police
Officer or Firefighter shall have successfully passed a physical examination
upon entering into such service, including cardiogram, �rhich examination
failed to revea! any evidence of such condition; and provided further, that
such presumption shall not apply to benefits payable or granted in a policy
of life insurance or disability insurance. In order to be entiUed to the
presumpfion in the case of hepatitis, meningococcal meningitis, or
tuberculosis the member must meet the requirements of Section 112.181,
Florida Statutes.
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2. Disabilitv Benefits Off-Dutv
Every Police Officer or Firefighter who is a partiapant in the Pension Fund System
who shall have become totally and permanently disabled to the extent that he/she is
unable, by reason of a medically detenninable physical or mental impairment, to render
useful and efficient service as a Police Officer or Firefighter which disability is not directly .
caused by the performance of his/her duties as a Police Officer or Fire�gh#er shall be
entitled the greater of A. or B.:
A. A monthly pension equal to 25% of his/her average monthly compensation
as of his/her disability retirement date, or
B. The accxued Normal Refirement Benefit.
3. Conditions Disqualifvinq Disabilitv Bene#its
Each Police Officer or Firefighter vvho is daiming disability benefits shall establish,
to the satisfaction of the Board, that such disability was not occasioned primarily by:
A. Excessive or habitual �se of any drugs, intoxicants or alcohol.
B. Injury oc disease sustained while willfully and illegally participating in fights,
riots or civil insurrections. �
C. Injury or disease sustained while committing a crime.
D. Iniury or disease sustained while serving in any branch of the Armed Forces.
This exclusion does not affect members who have become disabled as a
result of intervening military service under the federat Heroes Eamings
Assistance and Reiief Tax Act of �008 (H.R. 6081; P.L. 110-245).
E. Injury or disease sustained after his/her employment shall have terminated
as a Police Officer with the Tequesta Police Department or a Firefighter with
the Tequesta Fire Department.
F. Injury or disease sustained by a Police Officer, while working for anyone
other than the Tequesta Police Department and arising out of such
employment.
G. Injury or disease sustained by the member before employment with the
Village begins. This subparagraph applies only in the event of a duty injury
or disease.
4. Phvsical Examinafion Requirement
" -16-
An employee shall not become eligible for disability benefits until and unless he/she
undergoes a physical examinafion by a qualified physician or physicians and/or surgeons,
who shall be selected by the Board for that purpose.
Any person receiving disabil+ty benefit under provisions of this Ordinance may be
periodically re-examined by a qualified physician orphysicians and/orsurgeon orsurgeons
who shall be selected by the Board, to determine if such disability has ceased to exist. If
the Board finds that the retiree is no longer permanently and totally disabled to the extent
that he/she is unable to render useful and efficient service as a Police Officer or a
Firefighter, the Board shall recommend to the Village that the retiree be retumed to their
previous performance of duty as a Police Officer or Firefighter, 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 retum shall refuse to comply with the order within
thirly (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 Gaiming and/or receiving disability benefi� shall be bome by the Board. All other
reasonable costs as determined by the Board incident #o the physical examination, such
as, but not limited to, transportation, meals and hotel accommodafions, shall be bome 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 da#e he/she reentered
the service of the Village will not be considered as credited senrice for the purposes of the
Plan.
The Board shall have the power and authority to make the final decision regarding
all disability daims.
. 5. Disabilitv Pavments
The monthly benefit to which a Member is entitled in the event of the
Member's disabifity retirement shall be payable on the first day of the first month after the
Board of Trustees determines such entitlement. However, the monthly retirement inoome
shall be payable as of the date the Board determined such enti�ement, and any portion
due for a partial month shall be paid together with the first payment. The last payment wiN
be:
A. ff the plan member recovers from the disability or attains hisJher normal
refirement date, the payment due next preceding the date of such recovery,
or
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B. If #he plan member dies without recovering from the disabiliiy prior to hislher
normal retirement date while still disabled, the payment due next preceding
his/her death or the 120fih monthly payment, whichever is later.
Section 10. Monthly Supplemental Benefrts. �
1. Effective upon passage of this Ordinance, any retiree or beneficiary receiving
pension benefits is enfitled toa monthly supplemental pension benefit of $20
per year of service, up to a maximum benefit of $600.00.
2. This bene�t shail be payable monthly as a part of the regular mon#hly
pension benefit. The benefit shall be payable to the retiree and any
beneficiary. The benefit shall cease upon the death of the member or
beneficiary, if applicable.
Section 11. Vesting.
If a Member terminates hisfher employment with the Village of Tequesta, either
voluntarily or by discharge, and is not eligible for any other benefits under this System, the
Member shall be entitled to the following:
1. If the Member has less than six (6) years of credited service upon
termination, the Member shall be entitled to a nefvnd of his/her accumulated contribution
or the Member may leave it deposited with the Fund. �
2. If the Member has six (6) or more years of credited service upon termination,
the Member shall be entitled to a monthly retirement benefit that is the actuarial equivalent
of the amount of such retirement income othervvise payable to him cammenang at the
Member's otherwise normal or early retirement date, provided he does not elect to
withdraw his/her accumulated contributions and provided the Member survives to his/her
normal ar early retirement date.
Section 12. Optional Forms of Benefits.
1. In lieu of the amount and form of retirement income payable in the event of
normal, early, or disability retirement as specified herein, a ptan member, upon written
request to the Board of Trus#ees, and subject to the approval of the Board of Trustees,
may elect to receive a re�rement 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.
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B. A retirement income of a modified monthly amount, payabfe 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
opirrion of the Bosrd of Trustees, will best meet the circumstances of the
retiring Member.
2. The Member, upon elecfing any option of this section, will designate the joint
pensioner or beneficiary (ar 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 wili 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 retireme�t income benefits
have commenced, the Member may thereafter change his/her designated joint pensioner
or bene�ciary but only if the Board of Trustees consents to change and if the joint
pensioner or benefiaary, 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 shaN not
be required.
4. The Board of Trustees may request such evidence of the good health of joint
pensionerthat is being removed as it may require and the amount of the retirement income
payable to the Polic:e Officer or Firefighter upon designation of a new joint pensioner shalt
be actuarially redetermined taking into account the age and sex of the former joint
pensioner, the new joint pensioner, and the Police Officer or Firefighter. Each such
designation will be made in writing on a form prepared by the Board of Trustees and on
completion will be filed with the Board of Trustees.
In the event that no designated beneflciary survives the Member, such benefits as
are payable in the event of the death of the Member subsequent to hislher retirement shall
be paid as provided rn 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 wilf be payable under the
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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 benefiaary is designated by the Member prior to
his/her retirement and within ninety (90) days after the death of the
beneficiary. .
C. !f both the retired Member and the beneficiary (or beneficiaries)
designated by the Member die before the fufl 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 vaiue 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 retiremen# 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 effe�t, monthly retirement income payments will be made, or a
retirement benefit will be paid, under the option to a beneficiary (or
benefiaaries) 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 hi�her first retirement check.
3ection 13. Beneficiaries.
1. Each Mernber may, on a forrn provided for that purpose, signed and filed with
the Board of Trustees, designate a beneficiary (or beneficiaRes) �o 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 beneflt, if any, which may be payable under the Plan
with respeet to such deceased Member may be paid, in the disd�etion of the Board of �
Trustees, either to:
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A. The wife or dependent chiidren of the Member;
B. The dependent living parents of the Member; or
C. Estate of the Member.
Sec#ion 14. Deferred Retirement Option Plan.
1. Eliqibilitv to Participate in the Droa
A. Any member who is eligible to receive a normal retirement pension may
participate in the DROP. Members shali elect to participate by applying to
the Board of Trustees on a form provided for that purpose.
B. Elecfion to participate sha�l be forfeited if not exercised within the first
twenty-seven (27) years of combined credited service. However,
participation in the first years of enactment will be extended to those
. members with twenty-eight (28) years of service in 2003.
C. A member shall not participate in the DROP beyond the time of attaining 30
years of senrice and the total years of participation in the DROP shall not
exceed five (5) years. For example:
(1) Members with twenty-five (25) years of credited service at time of
entry shall only participate for five (5) years.
(2) Members with iwenty-six (26) years of credited service at time of entry
shall only partiapate for four (4) years.
(3) Members with twenty-seven (27) years of credited service at time of
entry shall only participate for three (3) years.
D. Upon a member's election to participafie in the DROP, he or she shall cease
to be a member and is precluded from accruing any additional benefit under
the Pension Fund. For all Fund purposes, the member becomes a retirant.
The amount of credited service and final average salary freeze as of the date
of entry into the DROP.
2. Amounts Pavable upon Election to Participate in DROP
A. Monthly retirement benefits that would have been payable had the member
terminated employment with the department and elected to receive monthly
pension payments will be paid into the DROP and credited to the retirant.
Payments into the DROP will be made monthly over the period the retirant
participates in the DROP, up to a maximum of sixiy (60) months.
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B. Payments to the DROP eam interest using the rate of investment retum
eamed on Pension Fund assets during the finrelve (12) month period ending
September 30th. The rate determined shall be the rate reported to the
Division of Retirement pursuan# to Part VII of Chapter 112, Florida Statutes.
However, if a police officer or firefighter does not terminate employment at
the end of participation in the DROP, interest credits shall cease on the
current balance and on all future DROP deposits.
C. No payments will be made from DROP until the member terminates
employment with the department.
D. Upon termination of employment, participants in the DROP will receive the
balance of the DROP account in accordance with the following rules:
(1) Members may elect to begin to receive payment upon termination of
employment or defer payment of DROP until the latest day as
provided under sub-subparagraph c.
(2) Payments shall be made in either:
a. Lump sum - the entire account balance will be paid to the
retirant upon approval of the Board of Trustees.
b. Installments - the account balance will be paid out to the
retirant in three equal payments paid over 3 years the first
payment to be made upon approval of the Board of Trustees.
c. Annuity - the account balance will be used to purchase an
annuiiy to be paid monthly, the flrst payment to be made upon
approval by the Board of Trustees. The annuity must be
purchased from an insurer licensed to seti such annuities in
Florida.
(3) Any form of payment selected by a police officer must comply with the
minimum distribution. requirements of the IRC 401(A)(9) e.g.,
. payments must commence by age 70'/2.
(4) The beneficiary of the DROP participant who dies before payments
from DROP begin shall have the same right as the participant in
acxordance with Ordinance.
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Section 15. Clai�s 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 disabiliiy 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 daim for beneflts, the order of the Boarcf 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 informafion that the Board feels is
necessary for the Member to pertect his/her daim, 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
daim was originally recommended, and any otherdocuments 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
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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 fuli 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 Boarc! shall consider the facts
presented at the scheduled hearing and shall, within thirly (30j days
after such hearing, make a final ruling ir� 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 fegal 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 fumish copies of all pleadings to the opposing
parties and exchange lists with names and addresses of
witnesses expected to be called to tes#ify at the hearing, as
well as the list of exhibits that are intended to be introduced, at
least forty-five (45) days prior to the hearing. Testimony of
witnesses shall be under oath or affirmation. Depositions or
affidavits shall not be admissible unless upon stipulation by all
parties. The Chairman, any Member of the Board, the attomey
for the Board, the claimant and the daimanYs 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 wifiesses, 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 bome by
the party requesfing the court reporter or requesting the
transcription of the proceedings.
(c) fn 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.
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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 fihe
issuance of any subpoenas not #o exceed the fees set farth in Florida
Statutes.
Section 16, Reports to Division of Retirement.
Each year no later than March 15th, the Chairman of #he Board shall file two (2)
separate reports. with the Division of Retirement conta+ning the following relative to the
Police Officers and Firefighters of the Plan. The Police Officer report shall be separate
from the Firefighter report. �
1. Whether in fact the Vitlage is in compliance with the provisions of Chapters
175 and 185, Florida Statutes.
2. A certfied statement of accounting for the most recent fiscal year of the
Village (or an independent audit by a certified public accountant if required by the Division
of Retirement) showing a detailed listing of assets and methods used to value them and
a statement of all income and disbursements during the year by the Public Safety Board.
Such income and disbursements shall be reconciled wi#h the assets at the beginning and
end of the year.
3. A statistical exhibit showing the number of Polioe OfFicers on the force of the
Village, the number included in the Pension Plan, the number of Police Officers ineligible,
class�ed according to the reasons for their being ineligible, and the number of disabled
and retired Police Officers and their benefiaaries receiving pension payments and the
amounts of annual retirement income or pension paymen�s being received by them.
4. A statistical exhibit showing the number of Firefighters on the force of the
. Village, the n�mber included in the Pension Plan, the number of Firefighters ineligible,
classified acxording to the reasons for their being ineligible, and the number of disabled .
and retired Firefighters and their beneficiaries receiving pension payments and the
amounts of annual retirement income or pension payments being received by them.
5. A statement of the amount the Village has contributed to the Public Safety
Pension Fund for the preceding plan year and the amount the Village will contribute to the
Public Safety Pension Fund for the current plan year.
6. If any benefits are insured with a commercial insurance company, the report
shall indude a statement of the relatianship of the insured benefits to the benefits provided
by this Ordinance. This report shall also contain information about the insurer, basis of
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premium rates, mortality table, interest rates and method used in valuating retirement
benefits.
7. An actuarial valuation of the retirement Plan for Public Safety Officers must
be made at least once every three (3) years commencing from the last actuarial report of
the Plan. Such valuation shal! be prepared by an enrolled actuary who is enrolled under
Subtitle C of the Tii1e 3 Employee Retirement Income Security Act ofi 1974 and who is a
. Member of the Society of Actuaries or the American Academy of Actuaries.
Section 17. Roster of Retirees.
The Secretary of the Boards shalt keep a record of all persons enjoying a pension
under the provisions of this Ordinance in which it shall be noted the time when the pension
is allowed and when the same shall cease to be paid. Additionally, the Secretary shall
keep a record of all Police Officers and Firefighters employed by the Village who are
Members of the plan their board administers in such a manner as to show the name,
address, date of employment and date such employment is terminated.
Section 18. Bosrd Attorney and Professionals.
The Board may employ independent legal counsel at the Pension Fund's expense
forthe purposes contained herein, togetherwith such otherprofessional, technical, orother
advisors as the Board deems necessary.
Section 19. Maximum Pension.
1. Basic Limitation.
Subject to #he adjustments herein set forth, the maximum amounfi of annual
refirement income payable with respect to a Member under this Plan shall not exceed the
limits contained in §415 of the Code.
2. Additional Limitation on Pension Benefits. Notwithstanding anything herein
to the contrary: .
A. The normal retirement benefit or pension 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 hisJher average
final compensation. However, nothing contained in this section shall apply
to supplementaf retirement benefits or to pension increases attributable to
cost-of-living increases or adjustments.
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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 20. 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 60th day after the close of the Plan Year in which the
latest following events occur:
A. The attainment by the Member of age 65;
B. The 10th anniversary of the date on which the Member commenced
. participation in the Plan; or
C. The termination of the Member's service with the Village of Tequesta
2. If the payment of a Member's retirement income cannot begin on the date
required under subsection 1 of the Section because the Trustees either cannot ascertain
the amount of the Member's retirement income or cannot locate the Member after making
reasonable efforts to do so, the payrnent of the Member's benefit shall begin not later than
sixty (60) days after the date on which the amount can be ascertained or #he 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
sched�led to begin but which is not later than the date specified under subsection 1 of this
Section. �
Section 21. Distribution of Benefits.
Notwithstanding any other provision of this Plan to #he contrary, a form of retirement
income payable from this Plan after the effecfive date of this ordinance, shall satisfy the
following conditions:
1. If the retirement income is payable before the Member's death, the
distribution shall commence to them not later than the calendar year defined above; and
A. shall be paid over the life of the Member or over the lifetimes of the Member
and spouse, issue or dependent, or,
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B. shall be paid over the period extending not beyond the life expectancy of the
Member and spouse, issue or dependent.
Where a form of retirement income payment has commenc�d in accordance with
the preceding paragraphs and the Member dies before his/her entire inte�est 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 nemaining interest is to be distributed ov�r the life of the spouse, issue
or dependent or over a period not extending beyond the life e�ectancy of
#he 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
Memberwould have attained age 70'/2 and if the spouse, issue ordependent
� dies before the distribution to the spouse, issue or dependent begins, this
Section shall be applied as if the spouse, issue or dependent were the Plan
Member.
Section 22. Miscellaneous Provision.
1. Interest of Members in Pension Fund. At no time prior to the satisfaction of
all liabiiities under the Plan with respect to Members and their spouses or beneficiaries,
shall any part of the corpus or incame of the Pension Fund be used for or diverted to any
purpose other than for �heir exclusive benefit.
2. No amendment or ordinance shall be adopted by the �Ilage 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 appfies to distributions made on or after January 1, 1993.
Notwithstanding any provision of the Plan to the contrary that would
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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 distribubon paid direcdy
to an eligible retirement plan specified by tfie 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 indude any distribution that is one of a series of
substantially equal periodic payments (not less ftequently 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 acxount described �
in section 408(a) of the Code, an individual retirement annuity
described in sectiion 408(b) of the Code, an annuity plan described
in section 403(a) of the Code, or a qualifled trust described in section
401(a) of the Code, that acxepts the distributee's eligible rollover
distribution. Nowever, in the case of al eligible rollover distribution to
the surviving spouse, an eligible retirement plan is an individual
retirement ac�ount 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 entifiled 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 23. Repeal or Termination of System.
1. This Ordinance establishing the System and Fund, and subsequent
Ordinance� 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 hereu�der, the amownt of
benefits which are the #ime of any such alteration, amendment, or repeal shall have
accrued to the Member or beneficiary shali not be afFected thereby.
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2. If this Ordinance shall be repeafed, or if contributions to the System are
disconfinued, the Board shall continue to administer the System in acc�rdance with the
provisions of this Ordinance, for the sole benefit of the then Members, any benefiaaries .
then receiving retirement allowances, and any future persons enti�ed 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. The actuarial single-sum
value may not be less than the employee's accumulated contributions to the plan, with
interest if provided by the plan, tess the value of any plan benefits previously paid to the
employee.
3. Upon termination of the plan by the Village for any reason, or because of a
transfer, merger, orconsolidation of govemmental units, services, orfunctions as provided
in chapter 121, or upon written notice to the board of #rustees by the Village that
contributions under the plan are being permanently discontinued, the rights of all
employees to beneflts ac,crued to the date of such termination or discontinuance and the
amounts credited to the employees' accounts are nonforfeitable. The fund shall be
distribu�ed in ac�oniance with the following procedures: .
A. The board of trustees shall determine the date of distribution and the asset
value required to fund all the nonforFeitable benefits, aftertaking into account
the expense"s of such distribution. The board shall inform the Village if
additional assets are required, in which event the Village shall continue to
financially support the plan until all nonforFeitable benefits have been funded.
B. The board of trustees shall determine the method of distribution of the asset
value, whether distribution shall be by payment in cash, by the maintenance
of another or substituted trust fund, by the purchase of insured annuities, or
othervvise, for each police officer and flrefrghter entitled to benefits under the
plan, as specified in subsection C.
C. The board of trustees shall distribute the asset value as of the date of
termination in the manner set forth in this subsection, on the basis that the
amount required to provide any given retirement income is the actuarially
computed single-surr� value of such retirement income, except fhat if the
method of distribution determined under subsection B involves the purchase
of an insured annuity, the amount required to provide the given retirement
income is the single premium payable for such annuity. The actuarial single-
sum value may not be less than the employee's accumulated contributions
to the plan, with interest if provided by the plan, less the value of any plan
benefits previously paid to the employee.
D. If there is asset value remaining afiter the full distribution specified in
subsection C, and after payment of any expenses incurred wi#h such
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distribution, such excess shall be retumed to the Village, less retum to the
state of the state's contributions, provided that, if the excess is less than the
� total contributions made by the Viilage and the state to date of termination
of the plan, such excess shall be divided proportionately to the total
contributions made by the Village and the state.
E. The board of trustees shall distribute, in accordance with the manner of
distributio� determined under subsection B, the amounts determined under
subsection C.
4. The allocation of the Fund provided for in this subsection may, as deaded
by the Board be carried out through the pur�hase of insurance company contracts to
provide the benefits determined in accordance with this subsection. The Fund may be
distributed in one sum to tfie persons entitled to said benefits or the distribution may be
carried out in such other equitable manner as the Board may direct. The Trust may be
continued in existence for purposes of subsequent distributions.
5. After all the vested and accrued benefits provided hereunder have been paid
and after all other liabilities have been satisfied, then and only then shall any remaining
fund revert to the General Fund of the �Ilage.
Section 24. 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,
gamishment or any legal process whatsoever and shall be unassignable. However,
pursuant to an income deduc�tion order, the trustees may direct that retirement beneflts be
paid for alimony or child support in accorcfance with rules and regulations adopted by the
Board of Trustees. �
Upon written request by the retiree, the Board of Trustees may authorize the Plan
administrator to withhold from the monthly retirement payment funds necessary to:
1. pay for bene�ifs being received through the Village;
2. pay the certified bargaining agent; or
3. to pay for premiums for accident health and long-term care insurance for the
retiree, the retiree's spouse and dependants. A retirement plan does not
incur liability for participation in this permissive program if its actions are
taken in good faith pursuant to Florida Statutes §§175.061(7) and 185.05(6).
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Section 25. Pension Validity.
The Board of Trustees shall have the power to examine into the facts upon which
any pension shall heretofore have been granted and under any prior or existing law, or .
shall hereafter be granted or obtained erroneously, fraudulentky or illegally for any reasons.
Said Board is empowered to purge the pension rolls of any persqn 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 2S. Forfeiture of Pension.
Any Member convicted of the following offenses committed prior to retirement, or
whose employment is terminated by reason of his/her admitted commission, aid or
abatement of the foilowing specified offenses, shall forfeit all rights and benefits under this
Pension Fund, except for the retum of this accumulated contributions as of the date of
termination.
1. Spec'�'ied offenses are as follows:
A. The committing, aiding or abetting of an embezzlement of public funds;
B. The committing, aiding or abetting of any theit 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.
F. The committing of any felony by a public o�cer or employee who willfully and
with intent #o defraud the public or public agency, for which he acts or in
which he is employed, of the right to receive the faithful performance of
his/her duty as a public officer or employee, realizes or obtains or attempts
to obtain a profit, gain, or advantage for himself or for some other person
through use or attempted use of the power, rights, privileges, duties or
position of his/her public office or employment position.
G. The committing on or after October 1, 2008, of any felony defined in
§800.04, Florida Statutes, against a victim younger than 16 years of age, or
any felony defined in Chapter 794, Florida Statutes against a victim younger
than 18 years of age, by a public officer or employee through the use or
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attempted use of power, rights, privileges, duties, or position of his or her
public office or employment position.
2. Definitions
A. Conviction shall be de�ned as:
An adjudication of gujlt by a court of competent jurisdiction; a plea of guifty
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:
Any state or federal court of competent jurisdiction which is exercising
jurisdiction to consider a proceeding involving tt�e alleged commission of a
specified offense. Priorforfeiture, the Board of Trustees shall hold a hearing
on which nofice shall be given to the Member whose beneflts are being
considered for forFeiture. Said Member shall be afforded the right to have an
attomey 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.
3. False, misleading, orfraudulentstatements made to obtain public retirement
benefits is prohibited; penatty
A. It is unlawful for a person to willfuly and knowingiy make, or cause to be
made, or to assist, conspire with, or urge another to make, or cause to be
made, any false, fraudulent, or misleading oral . or written statement or
withhold or conceal material information to obtain any benefit available under
a retirement plan receiving funding under Florida Statutes, Chapters 175 and
185.
B. A person who violates subsection (A) commits a misdemeanor of the first
degree, punishable as provided in s. 775.082 or s. 775.083, Florida Statutes.
In addition to any applicable criminal penalty, upon conviction fior violation
described in subsection (A}, a participant or beneficiary of a pension plan
receiving funding under Florida Statutes, Chapters 175 and 185 may, in the
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discretion of the 8aard of Trustees, be required to forfeit the right to receive
any or all beneflts to which the person would otherwise be entitled under this �
Ordinance. For purposes of this paragraph, "�nvicfion" means a
determination of guilt #hat is the result of a pleas or trial, regardless of
whether adjudication is withheld.
Section 27. 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 Police
Department or Fire Department sha{I be added to his/her years of credited service provided
that:
1. The Police Officer or Firefighter confibutes to the Fund the sum that he/she
would have contributed had he/she been a member of the Plan for the years or fracfional
parts of years for which he/she is requesfing 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 alf professional services �endered 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 finrelve (12) months from the effective da#e of this Ordinance or six (6) months
from the date of his/her employment with the Police Department or Fire Department,
whichever is later.
3. Payment by #he 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/Ig
July 21, 2011
H:\Tequesta PS 10111PIan Docs & RuleslAmend1201112011 RestatemeM atlached to repeal of 14-11.wpd
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■
r i nance .
o e ea
ORDINANCE NO. 14-11
AN ORDINANCE OF THE VII�LAGE COUNCII. OF THE VII�LAGE OF
TEQUESTA, PALM BEACH COUNTY, FLORIDA, AN ORDINANCE OF
THE VII.LAGE COUNCIL OF 1'HE VILLAGE OF TEQUESTA PALM
BEACH COUNTY FLORIDA AMENDING EXHIBIT "B" OF SEG°I'ION 2-
30 OF THE CODE OF ORDINANCES VILLAGE OF TEQUESTA
FLORIDA RELATING TO THE EMPLOYEES PENSION TRUST F�UNDS;
IIV�LEMENTING THE TERMS OF THE PBA COLLECTIVE
BARGAINING AGREEMENT OPTING OUT OF THE CHAPTER 185
MONEY; CLOSING THE PLAN TO NEW POLICE OFFICRES ffiRED
ON OR AFrER OCTOBER 1, 2011; CLARIF'�ING A RETIRED
MEMBERS ABILITY TO CHANGE JOINT ANNUITANTS UNDER
FLORIDA STATUTES � 175.333 AND �185.341; �. G THE
OTHER AMOUNT OF DISTRIBUTION3 UNDER THE OPTIONAL
FORM.S OF B�; PROVIDING FOR SEVERABILITY;
PROVIDING FOR REPEAL OF ORDINANCES IN CONFLICT;
PROVIDING FOR CODIFICATION; PROVIDING FOR AN EFFECTIVE
DATE; AND FOR OTHER PURPOSES.
WSEREAS, the Village Council of the Village of Tequesta desire to amend Exlu'bit "B"
of Section 2-30 of the Code of Ordinances; and
WSEREAS, the Village Council believes that th�ese revisions to the Village's Code of
Ordinances are in the best interest of the Village of Tequesta, and as it relates to the Employees
Pension Trust Fund end tt� PBA Collective Bargaining Agre�ment;
NOW, T�REFORE, BE 1T ORDAINED BY THE VILLAGE CUUNCII. OF THE
VII.LAGE OF TEQUESTA, PALM BEACH COUNTY, FLORIDA, AS I�OLLUWS:
Sect�_'on,l These portians of Exhibit "B" to Section 2-30, Code of Ordinances,
Village of Tequesta, Pa1m Beach County, Florida, as deleted aad shown by st�ce-outs and
additions shown by underlining on Exlu'bit "B" a�tached hereto and made a pait hereo� aze
passed and adopted as amendments to such F.xhibit aad section;
5ection 2 Effective October 1, 2011, the Village hereby op�ts out of particigat�ion in
Florida. Statutes Chapter 185 undea the provisions of Florida Statutes � 185.60;
Secti n Severability. If any provision of this Ordinaace ar the appliaation th�reof
is held invalid, such invalidity shall not affect the other provisions or applications of this
Ordinance wluch can be given effect without th�e invalid provisions or applications, and. to this
en�d, the provisions of the Ordinance are hcreby declared severable;
S�On 4 Repeal of Ordinances in Con�ic� All other Ordi.aa�es of the Village of
Tequesta, Florida, or pazts thereof wtuch conflict with this or any part of this Ordinance are
he�reby repealed.
S�on 5 Codification This Ordinemce sl�all be codified and make a part of the
o�'icial Code of Ordinanc�s of the Village of Tequesta.
Se�n 6 Effective Date. This Ordinance shall take effect upon passage and is
effecti�e b�sed upon the dates contained in the text of the Exhibit B.
Upon Second Readin.g this 8 da.y of September 2011, the foregoing Ordi.nance was offered by
Council MemUer Tuinquest who moved its adoption. The mation was seconded by Council
Member Brennan and upon being put to a vote, the vote �vas as follows:
For Adoption Against Adoption
Mayor Tom Paterno Absent
Vice-Ma.yor Vince Arena X
Council Member Abby Brennan X
Council Member Jim H�page X
Council Member Calvin Turnquest X
The Mayor thereupon declared the Ordinance duly passed and adopted this 8 day of September
2011.
VICE-1�YOR OF TEQUESTA
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AT'TEST: ����..E�ti���������,,,,��
Vince Arena
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EXHIBIT �
VILLAGf OF TEQUESTA
PUBLIC SAFETY OFFICERS= PENSION TRUST FUND
TABLE 4F CONTENTS
Section 1. Creation of Pension Trust Fund . ............................................................. -1-
Sectian2. Definitions . ............................................................................................. -1-
Section3. Membership ............................................:................................................ -4-
Section 4. Board of Trustees ................................................................................... -5-
Section 5. Finance And Fund Management . ............................................................ -7-
Section6. Contributions . ........................................................................................ -12-
Section 7. Benefit Amounts and Eligibility . ............................................................ -14-
Section 8. Pre-retirement Death ............................................................................ -15-
Section9. Disability ............................................................................................... -16-
Section 10. Monthly Supptemental Benefits .............................................................. -19-
Section Vesting . ................................................................................................ -19-
SeGtion 12. Optional Forms of Benefi�s........ ........................................................... -19-
Sec#ion 13. Beneficiaries ......................................................................................... -21-
Section 14. Deferred Retirement Option Plan . ......................................................... -22-
Section 15. Clairns Procedures Betore the Board Decisian . .................................... -24-
Section 16. Reports to Division of Retirement ......................................................... -26-
Sect�on 17. Roster of Retirees . ............................................................................... -27-
Section 18. Board Attorney and Professionals ......................................................... -27-
Section 19. Maximum Pension ................................................................................. -27-
Section 20. �ommencement of Benefits .................................................................. -28-
Section 21. Distribu#ion of Benefits . ........................................................................ -28-
Section 22. Miscellaneous Provision ........................................................................ -29-
Section 23. Repeal or Termination of System .......................................................... -31-
Section 24. Exemption from Execution, Non-assignability . ...................................... -34-
Section 25. Pension Validity ...................................................................................... -34-
Section 26. Forfeiture of Pension ............................................................................. -35-
Section 27. Military Service Prior to Employment .................................................... -37-
EXHIBIT �
VILLAGE OF TEQUESTA
PUBLIC SAFETY OFF7CERS� PENSION TRUST FUND
Sectlon 1. Creation of Pension Trust Fund.
The Village of Tequesta hereby creates and continues the Village of Tequesta
Public Safety Officers= Pension Trust Fund for the purpose of providing refirement, death
and disabiliiy ben�fits to Pol'K:e Officers and Firefighters who are Members of thls Fund,
certain former Village Police Officers and Frefighters and survivor benefi�s to beneficiaries.
ctober 1 2011. olan is closed to t�w P�i� Offlcer member�_�Il
ice Offlcers hired �fter Oct�er 1. 2011 shall be offared the onoortunitv to
�rticinste in the Villaae�s new de�Aned con�ri�u_tie_r± nrnn�"s_m. There Is no nae tQ
the �lan for the Flreflahters re ains �nchanaed In anv wav. Flrefla ters hired after
Octo r 1 2011 will contlnue t o be mandat nar�clnants in thls defined benefit
�
Section 2. Deflnitions.
1. ,Statement of Deflnitions. As used herein, unless othervvise defined or required
by the context, the foilowing words and phrases shall have the meaning indicated:
Accumulated Contributions means a Member=s own contributions without irrterest.
Actuarial Eauivalerrt means a benefrt or amount of equal vafue, based upon the
mortalit�r tables utilized by the Board=s actuary or actuaries, and an 8�o rate of interest.
Averaae Final Comuensa�ion shall mean one-iwelfth (1/12) of the average salaryof
the five (5) bes# years of the last ten (10) years of credited service prior to retfrement,
termination, or death or the career average as a full nme Fire�ighter or Police Officer,
whichever is greater. A year shall be twelve (12) consecutive moMhs.
Beneficiarv means the person or persons entitled to receive benefits hereunder at
the death of a Member who has or have been designated in w�iting by the Member and
filed with the Board. tf 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.
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Board or Board of Trustees mean the Public Safety Board of Trustees, which shall
adminfster and manage the System herein provided and serve as Trustees of the Fund for
the benefit of Village Police Officers and Fireflghters and their beneficiaries.
Chanters means Chapte�s 175 a�el-�-66-of the Florida Statutes as amended from
time to time.
Code means the Irrtemal Revenue Code of 1986� as amended from tlme to fime.
Credited Service means the #otal number of years and fractional parts of years of
service as a Police Officer, or Fireflghter who makes member contribufions to the Plan,
omitting intervening years or fractional parts of years when such Police Officer or
Fire�ghter may not have been employed by the Village of Tequesta. A plan member may
voluntarity 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
posfion by the Village of Tequesta without losing cnedit 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 corrtributions shall be retumed to him/her
without interest. Should a Police Officer or Firefighter be subsequently re-employed as
such, he or she may re-purohase his or her years of credit or fractional parts of years of
credit by reimbursing such retumed contribution to the Fund, with interest.
The years or fractional parts of years that a Firefighter, or Police Officer serves in
the military service of the Armed Forces of the United States or tt� United States Mer�chartt
Marine, voluntarily, upon being granted leave by the �Ilage of Tequesta and separation
from employment as a Village of Tequesta plan member, shall be added to hisJher years of
cred�ted service for all purposes including vesting, provided that:
A. The Firefrghter or Police Officer must retum to his✓her full time employmerrt
with the Fire Department or Police Depafinent within one (1) year from the
date of hisJher mititary discharge Effective January 1, 2007, members who
die or become disabled while serving on active duty mil�ary service which
intervenes the member=s employment shali be entitled to the rights of �is
section even though sucF� member was not re-employ�l by the Viflage.
Members who die or bec�me disabled while on active duty military servioe shall
be treated as though re-employed the day before the Member became disabled
or died, was credited with the service they would have been errtitled to under
this section, and then either died a non-duty death while employed or became
disabied from a non-duty disability.
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B. The maximum credit for military ser�Ce shalt be five (5) years.
Effective Date means the date on which this Ordinance becomes effective.
�re Deua�ment means the Tequesta Flre Department.
Fireflghter means an actively employed full-time person employed by the Fire
Department, incfuding hisTher initial probationary employment perlod, who is cerdfied or
requlred to be certified as a Fire�ghter as a condition of employment in accordance with
the provisions of 633.35 Florida Statutes, including paramedic, and wh�e duly ts to
extinguish fires, to prot8ct life and to protect property. The term Fireflghter includes al!
certified, supervisory� and command personnel whose duties include, in whole or in part,
the supervision, training, guidance, and management responsibilities of full-time
firefighters, part-time firefighters, or auxiliary firefighters but does not include part-time
firefighters or auxiliary firefighters.
Fund means the Trust Fund estabiished herein as part of the S�stem.
Member means an actively employed �eiice-A#�seFeF Firefighter that fuffills the
applicable prescribed membership requiremen .
Of�icer ired b�fore October 1. 2011 thst fulfiNed the DDIICSL�I� nrescrlbed
Police De�artment means the Tequesta Police Department.
Police Officer means any person who is elected, appointed, or empioyed full time by
the Village l�fQre October 1. 2011. who is certified or required to be certi#ied as a law
enforcement officer in compliance with Florida Statute 943.1395, who is vested wwithh
authorliy to bear arms and make arrests, and whose primary responsibiliiy is the preverrtion
and detection of crime or the en#orcement of the penal, criminal, traffic or highway laws of
the state. This definifion includes all certified supervisory and command personnel whose
duuties include, in whole or in part, the supervision, training, guidance, and management
responsibilities of full-time law enforcement officers, part-fime law enforcement officers or
auxiliary law enforr.ement officers as the same are defined in F.S. 943.10(6) and (8)
respectively. Police OH'icer also shall include a public safeiy of�cer who is responsible for
performing both police and fire services. Police OfNcer as us�d in this Pisn does nat
include anv Po{ice Officer hired on or aft�r Oetober 1. 20,11
Public Safetv Board means the Public Safety Board of Tnistees provided hereunder
to administer and manage Funds for the benefit of Public Safety Officers.
Public Safetv Officers means Firefighters and/or Police Officers.
Salary means the total cash remuneration paid to a police officer or flrefighter for
senrices rendered including Base Pay, Bonuses, Career Service Annual Award, Hofiday
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Pay, Incentives, Overdme, Sick Leave Payout on Termination, Sick-i.eave Buy Back, and
Straight Time, and effective for payments made after 12/31/O8, as provided for by Intemal
Revenue Code � 414(u)(7), this de�n�tion of salary shall include any differ�ential wage
payment from the employer to a member as a resuit of the member=s absence from
employment while serving in qual'rfied mili�ry senri�. This definit�on excludes pay
received as a Car AUowance, Clothing Allowance and ShoeBoot Allowance.
Sc�ouse means the lawful wife or husband of a plan member at the �me of
pre-retirement, death or retirement.
Statement of Investment Policv means the written investment poUcy adopted by the
Board pursuarrt to this Ordinance and F.S. 1 i 2.661, et seq., which shall apply to funds
under the control of each board.
S tem means the Viliage of Tequesta Public Safety Officers= Pension Trust Fund
as contained herein and a!I amendments thereto.
V�sted deferred retirement means a Member who leaves the employ of #he Village
with 6 or more years of credited service and who is not eligible for any refirement benefit.
This benefit is payable at early or normal retirement.
Villa�e means the Village of Teq�sta, Florida.
2. Masculine Gender. The masculine gender, where used herein, unless the
context specffically requires othe�, shall include both the feminine and masculirte
genders.
Sectlon 3. Membership.
1. Conditio� of Eli, f�bi�.i_
A!I fult time Police Officers lhired 6�fore October 1. 20111 and Firefighters as of
the effective date, and all future new full time Firefighters shall
become Members of this System as a condition of employment, except that
participation in this system is optional for the ire Chief.
2. Membershio
Each full time Polk:e Of�cer (hired befor+e October 1. 20111 or Fire�ighter shall
complete a form prescribed by the Board which may include the following
information:
A. Acceptance of the terms and cond�ions of the Retirement System, and,
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B. Designation of a beneficiary or beneficiaries, and,
C. A certified statemerrt as to prior medical and/or psychological history.
3. Chan�e tn Desi�na�on of Beneficciarv
A. A member may from time to time change his/her designated beneficiary by
written notice to the Board upon forms provided by the Board. Upon such
change, the rights of all previously designated beneficiaries to receive any
benefits under the System shall cease.
B. Any reflred member �gv chanae the deslansted 9oint o�nsloner or
beneflciarv u� to twice in accordance with Fiorida � 175.3�
and � 7 .341 witheut the annravsl of the board o� ustees or t�
c�nent lolnt ann��+,nt nr 6eneflcianr. m The retlred member is n�!t
reauired to urovid� nroof af the aoa! health of the ioint snn rrt or
t�neflcisrv l�ina remev�ed. and the ioint ennuitent or b�neflclarv be1Ra
removed need not be livina. Anv re�tiired member who desires to change
his or her joint annuitant or beneficiary shall file with the board of trustees a
notarized notice of such change. Upon receipt of a completed change of
jolr�t annuitant form or such other notice, the board of trustees shall adjust
the member's monthty benefit by the applica�on of ac�tuarial tables and
calculations developed to ensure that the benefit paid is the actuarial
equivalerrt of the preserrt value of the members currerrt benefit and there is
no impact to the Plan. Any costs associated with these benefit ca�ula�ons
shall be bome by the member.
Sectlon 4. . Board of Trustees.
1. The sole and exdusive administration of and responsibiliiy for the proper
operation of the retirement system and for maldng effectivve the provisions of this ordinance
is hereby vested in a Board of Trustees.
� The Public Sa#eiy Board shall consist of five (5) Trustess, two (2) of whom,
unless otherwise prohibited by law, shall be legal residen� of the Village,
who shali be appointed by the Tequesta Village Council, and one (1) of
whom shall be a full-fime Police Officer member of the System and one (1) of
whom shall be a full-time Firefighter member of the System. The ftfth (5th)
Trustee shall be selected by a majority vote of the other four (4) Trustees.
Each person seeking to fill a designated employee representative Board
member seat shall be separatefy elected by their full-time co-workers who
are members of the System in the applicable employee representati� gro�,
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e.g. Police OfFicer or Frefighter in which they are employed and shall be
elected by a majoriiy of the fulf-time employees who are Members of the
System within the applicable employee representafive group. Upon receipt
of the f'ifth (5th) person=s name the Tequesta Village Council shall, as a
ministerial duty, appoint such person to the Public Safety Board as its �ifth
(5th) Trustee. The fifth (5th) Trustee shall have the same rights as each of
the other Trustees appointed or etected as herein provided and shall serve a
two {2) � year term unless the of�ce is sooner vacated and may succeed
himself or herseif in office. Each resident Trustee shaN serve as Trustee for
a period of two (2) years unless sooner replaced by the Tequesta Village
Council at whose pteasure the Trustee sha{I serve, and may s�ed himself
or herseff as a Trustee. Each Police Officer or Firefighter Tn�stee shall senre
as Trustee for a period of iwo (2) years, unless he/she sooner leaves the --
employment of the employee representative group he/she was elected to
represent or otherwise vacates his/her office as Trustee, whereupon a
successor shali be ch�en in the manner as the departing Trustee. Each
employee representative Trustee may succeed himself or herself in office.
� Whenever the acdve colice officer mernbershin falls below 10. an active
oolice offioer member seat mav be held bv elther a retired oolic�e of�oer or
an active ualice officer member of the dan who is elected bv the adive and
retired embers of the olan. If there are no ' e or retlred oolice officers
�mainin� in the olan or caeable of servina. the remafeina �ard members
mav eled an individual to serve in the acCtivve nolice otficer �ber seat.
Uoon receiut of such oerson•s name. the leaislaiive bodv of the munic�alitv
s I. as a ministeria! dutv. a000int such nerson to tl�e board of trustees.
� The Public Safety Board shatl meet at least quarterly each year. Such
Boards shall be a legal enfity with, in addifion to other powers and
res�nsibitities contained herein, the power to bring and defend fawsuits 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 pres�de over Board meetings in
the abser�e 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 ent�led to one vote. Three (3) affirmative vote,s 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 confl'ict of lnterest provided that
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Trustee states in writing the nature of the conflict complies with the provislons of Section
112.3143, Florida Statutes.
4. The Board of Trustees shall engage such actuarial, acxounting, legal, and
other services as shall be required to transact the business of the Retiremerrt System to
administer and manage their funds and to meet the requiremen#s of applfcable law. The
compensation of all persons engaged by the Board of Trustees and all other e�enses of
the Board necessary for the operation of the Retirement System shall be paid from the
Fund they administer and manage at s�h rates and in such amounts as the Board of
Trustees shalf approve.
5. The duties and responsibilities of the Board of Trustees sha(I indude, but not
necessarily be limited to, the foll�nring:
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, inforrnation conc�ming the
System.
F. To recelve and process all applications for participation and benefits.
G. To authorize all paymerrts whatsoever from the Fund and to nofify the
disbursing agent, in writing, of approved penslon payments and other
expenditures arising through operafion 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.
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J. Ensure the complefion of an actuarial impact statement prior to the adoption
of a change in the plan=s retirement benefits, a copy of which must be
provided to the Division of Retirement.
K. To comply with the Chapters.
L. To ensure the funds and assets for the benefit of the employee groups they
serve are segregated and separated from the funds and assets under tf�e
control of the Board.
M. To perform such other duties as are spec�ied in this Orclinance and generafly
do all acls which the Tna,stees may deem necessary or desirable for the
protecction of the Tnist Fund.
N. To adopt and be guided by Statements of Invesiment Policy a�licable to all -
funds under the control the Public Safety Boarc! of Trustees as required from
time to time by F.S. 112.661, et seq.� and/or its successor statutes.
O. To sue or be sued.
P. To set�e, compromise or submit to arbitraiion (at' the sole discrefion of the
Trustees) any claims, debts or damages due or owing to or from the Fund.
SeCtlon 5. Finance And Fund Managemerrt.
Establishment and Operafion of Fund
1. As part of the System, there is hereby established a Fund, into which shall be
deposited all of the cor�tributions and assets whatsoever attributable to the System, for the
benefit of Public Safety Officers to be administered and managed by the Public Safeiy
Board.
2. Trie actual custody and supervision of the Fund (and assets thereofl shall be
vested in the Board of Trustees. Payment of benefits and disbursemerrts from the Fund
shall be made by the Village as the Board=s agent, but only upon written authorization
from the Board. Such written authorization shall requ+re the signature of two of the
Trustees or other Board authorized fiduciary.
3. All funds and securities of the Fund may be deposited by the Board of
Trustees with the Treasurer of the ViUage, acting in a ministerial capacity only, who shall be
liable in the same manner and to the same exterrt that as he is liable for the sa#ekeeping of
funds for the Village. However, any funds and securities so deposited with the Treasurer of
the Viilage shall be kept in separate funds by the Treasurer or clearly identified as such
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funds and securfies of the Public Safety Officer Trust Fund. tn Ileu thereof, the Board of
Tnastees shall deposit the funds and securities of the Fund in a qualifi�ed 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 Chepter 280, Florida Statutes.
4. in orcfer to fu�i11 its investment responsibili�es as set forth herein, the Boards
may retain the servtces of a custodian bank or banks, an investment advisor or advisors
registered under investment Advisors Act of 1940 or othervvise exempt from s�h required
registration, an insurance company� or a combinafion of these, for the purposes of
investment decisions and management. Such investment manager or managers shaN
have discretion� subject to any guidelines as prescribed by the Board, in the investment of
ail fund assets.
5. Aii funds and securities of the System shali be aocounted for separately
based upon the iwo (2) applicable emplo�e classes within the Fund namely, the Police
Officers and Firefighters in the Public Safety Officers Trust Fund. Accurate records shall
be mairrtained at all times reflecting the flnanciai composition of the Fund and of the
accounts in place to segregate the assets of the employee classes covered bythe System,
including accurate current acxx�unts and entries as regards the following:
A. Current amounts of Accumulated Contributions of Members on both an
individual and aggregate ac�ount basis� and
B. Receipts and disbursements, and
C. Beneflt paymen�s, and
D. Current amounts cfearly reflecting all mor�ys� funds and assets whatsoever
aitributable to contributlons and deposits from the Village, Couniy or State,
and
E. AI! interest, dividends and gains (or losses) wha�.soever� and
F. Such other entries as may be properly required so as to reflect a clear and
complete financial report of the Fund.
G. Such other entries as required by the Chapters.
6. An independent audit shafl be performed annuaNy by a certfied public
accouri#ant 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 disbursemer�ts must be r�iled 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.
. -9- -
� 7. The Board of Trustees shall have the following investment �wers and
authority:
A. The Board of Trustees shall be vested with ful� lega! ti�e to the Fund, subject,
however, and in any event to the authority and power of the Tequesta Village
Council to amend or terminate ifiis Tnast, 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
contribudons from time to time paid into the Fund, and the income thereof,
without disfinction between principal and income, shall be held in the Fund
and administered by the Board or its Agents.
B. AII moneys paid irrto or to be held shaN be irnested and reinvested � the
Board and the invesfiment of ail 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
ifie paficipants in the Fund shall be entitled under the provisions of the Plan
and pay the in�ial 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 associa�on insured l�► the
Savings Association Insurance Fund which is administered 1� the Federal
Deposit Insurance Corporation or a state or federal chartered credit union
whose share ac�ounts are insured by the National Credit Union Share
Insurance Fund.
(3) Obiigations of �the United States or obliga�ons guaranteed as to
principal and interest by the govemment of the United States.
(4) Bonds, stocks, commingled funds administered by National or State
Banks or evidences of indebtedness issued or guaran�ed by a corporation
organized under the laws of the United States, any state or organized
territory of the United States� or the District of Columbia, provided that the
corporafiion 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
ra�ing service, and if such investmenis are made in a pooled ivnd
administered by a state or nafional bank, tt�en the ra�ng of each issue in the
pooled fund shall hold a rating within the top four (4) rating classifications of
a major rating service.
(5) Real esta#e. �
(6) Up to 25% of Plan assets may be invested in foreign securities.
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(7) All monies paid into or held in the Pension Fund shall be invested and
reinvested by the Board of Trustees and the investment of all or any part of
such funds shall be invested in aa:ordance wi#h an estabiished investment
pol�y adopted by the Board of Trustees.
C. The Board of Trustees shall not invest more than five percent (5%) of its
assets in the common stock or capital stxk of any one issuing company� nor
shall the a�regate investment in any one issufng company exceed five
percent (5%) of the o�nding capital stock of that company; nor shall the
aggregate of its Investments in common stock, capital stock and convertible
bonds at cost exceed sixiy per+cent (60%) of the assets of the Fund.
D. The Board of Trustees may retain in cash and keep unproductive of income
such amount of the Fund as it may deem advisable, having regard for the
cash requirements of the System.
E. No person or enfity shali be liable for the making� retention or sale of any
investment or reinvestmerrt made as herein provided, nor for any loss or
diminishment of the Fund, except that due to hisJher or its own negligence,
wilfful misconduct or lack of good faith.
F. The Board may cause any investment In securides held to be registered in or
transferred Into their name as Trustee or into the name of such nominee as
they may dlrect, or they may retain them unregistered and in form permitting
transferability, but the books and records shall at all fimes show that all
investments are part of the Trust Fund.
G. The Board is empowered, to vote upon any stocks, bonds or securities of
arry «�rporafion, association, or trust and to give general or specific proxies
or powers of attomey with or without power of substitution; to pardcipate in
mergers, reorganizations, recapitalization, consolidations and similar
transactions with respect to such securities; to deposit such stock or other
securities in any vo#ing trust or any protective or ttke committee with the
Trustees or with depositories designated thereby; to amortize or fail to
amortize any part of all of the premium or discount resu�ing 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
exencise. This responsibility may be delegated to an Agent for the Board.
H. The Board shall not be required to make any inventory or appraisal or report
to arry court, nor secure any order of court for the ex�rcise of any power
cor�tained herein.
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I. Where any action which the Board is required to take on any duty or function
which it is required to pe�form 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, certif�ation, 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, cert'�'ication, direction
or instruction has been rer.eived by it.
J. Any overpayments or underpayments from a Fund to a INl�mber or
beneficiary caused by errors of computation shall be adjustedwith irrterest at
a rate per annum approved by the Board. Overpayment shall be charged
against member=s payments next succeeding the correct�on.
Underpayments shall be made up from the Trust Fund.
K. The Board shall sustain no liability whatsoever for the sufficiency of a Fund
to meet the payment,s and benefits herein provided.
L. Any of the foregoing powers and functions reposed in the Board may be
performed or canied out by the Board through duly authorized Agents�
provided that the Boarcl at sll times maintains continuous supervision over
the acts of any such Agent; provided further� that fegal title to the Fund shall
always remain in the Board of Trustees.
M. The Board shall not invest more than ten percent (10%) at c�st of its assets
in real property or real estate and there shall be no investment in a Nmited
partnership or trust.
N. The Village shall maintain Fiduciary Liability insurance to c:ov�erthe members
of the Board of Trustees.
O. With respect to any Investment� the Trustees may consent or object to arry
action or non-action of any corpora�on or of the directors, officers or
stockholders of any corpora#ion.
P. Notwithstanding anything else in this subsection and as provided in Florida
Staiutes � 215.473, tfie board of fiust�ees must i�n�fy and publicly report any
direct or indirect holdings it may have in any scrutinized company, as defined
in that section. Beginning January 1, 2010, the Board must proceed to sell,
redeem, divest, or withdraw all publicly traded securities it may have directly
in that company. The divesture of any such securtty must be completed by
September 10, 2010. The board and its named officers or investmen#
advisors may not be deemed to have breached their fiduciary duiy in any
action taken to dispose of any such security, and the board shall have
satisfactorily discharged the fiduciary duties of loyalty, pr�ience, and sole
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and exclusive benefit to the participants of the pension fund and their
beneficiaries if the actions it takes are consistent with the duties imposed by
Florida Statutes � 215.473, as provided for in Florida Statutes i 85.06(7j /
175.071(8) and the manner of the dispasitiori, if any, is reasonable as to the
means chosen. For purposes of determining which companies are
scn�tinized companies, the Board may utilize the list of scrutinized
companies as developed by the Florida State Board of Administration. No
person may bring any civil, criminal, or administrative acfion against the
board of trustees or any employee, officer, director, or advisor of such
. pension fund based upon the divesture of any securily pursuant to this
subsection.
Section 6. Contrlbutlons.
1. Member Contribufions
A. Amount. Effec�ive the flrst full payroll period after the effective date of this
Ordinar�ce, Police Officer Members of the Re�rement System shall be
required to make regular contributions to the Fund in the amount of five
percent (5%) of hisJher salary effective the first full payroll period after the
effective date of th�s Ordinance, Firefighter Members of the Retirement
System shall � required to make regular contribution to the Fund in the
amount of five percerrt (5%) of his/her salary. The funding for the difference
between the previously required confibution of 6.19�o and the now required
5% shall be made up from the monies received from the State pursuant to
Chapter 175, F.S. Should the Chapter 175 money ever become insufficient
to make up the difference, the contribution rate for Firefighter Members shall
automatically revert to 6.1 %. Member contributions withheld by the Village
on behalf of the Member shall be deposited with the Board of Trustees
immediately after the withholding of such contributions. The contribu�ons
made by each Member to tl�e Fund shall be designed as employer
contributions pursuant to Section 414(h) of the Code. Such designation is
contingent upon the contribufions being excluded from the Members= gross
income for Federal Income Tax purposes. For ali other purposes of the
Plan, such contributions shall be considered to be Member contributions.
B. Method. Such contributions shall be made by payroll deduction.
2. State CoriMMbutions
Any monies received or receivable by reason of laws of the State of Florida� for the
express purpose of funding and paying for retirement benefitss for Police Officers or
Firefighters shall be deposited with the applicable segregated accourrt in the Trust Fund
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comprising part of this System immediately and under no circumstances more than five (5)
days after receipt by the Viliage.
3. Villaae 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 c�st and the amount required
to fund any actuarial deficiency shown by an actuarial valuation as provided in Part VII of
Chapter 112, Florida Statutes.
4. Other
. Private donations, gffts 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 soun:es may be used only for additional benef�ts for Members, as
determined by the Baard of Trustees, and may not be used to reduce what would have
othervvise been requlred by Village contribufions.
Section 7. Beneflt Amounts and Eligibil'�ty.
1. Nortnai Retirement Date
A Member=s normal retirement date shall be tMe first day of the month coincident
with, or the next following the earlier of:
A. attainment of age fifly-five (55) and the compietion of six (6) years of credited
service, or
B. attainment of age fifty-finro (52) and the completion of finrenty-five (25) years
of credited service.
A Member may refire on his/her normal retirement date or on the first day of any
month thereafter, and each Member shall become 100% vested in hiss/hher accrued benef�t
on the Member=s normal retirement date. Normal retirement under the Plan is retirement
from employment with the Villa� of Tequesta as a PoAce Officer or Firefighter on or after
#he normat retirement date.
2. Normal Retirement Benefit
A Member retiring hereunder on or after hisJher normal retirement date shall receive
a monthly benefit whlch shall cornmence on hisJher Retirement Date and be continued
thereafter during the Member=s lifetime, ceasing upon death, but with one hundred twenty
(120) morrthly paymer�ts guaranteed in any event. The monthly retirement benefit shall
equal:
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3.0°/a for the first 6 years of service
3.5% for the next 4 years of senrice
4.0% for the next 5 years of seniice
3.0% for the next 6 years of service
2.0% for the next 4 years of service
3.0% for all years after 25 years
3. Early Retirernent Date
A Member may retire on hisJher early retirement date which shall be the first day of
any month coincident with or next foflowing the later o�f the attainment of age fifty (50) and
the completion of six (6j years of credited service. Early retirement under the Plan is
retirement from employmerrt with the Village of Tequesta on or after the early refirement
date and prior to the normal refirement date.
4. Earlv Retiremerrt 8enefit
A Member retir�ng hereunder on hisrher early retirement date may receive either a
deferred or an immediate monthly retiremerrt benefit payable for life, but with one hundred
iwenty (120) monthly payments guaranteed in any event, as follows:
A. deferred monthly refirement benefit which shall commence on what woutd
have been hisJher norma! retirement date had he%he rematned a Police
Off'�r or Fire�ghter and shall be ca��lnued on the first day of each month
thereafter. The amourrt of each such deferred monihly refirement benefit
shall be determined in the same manner as for retlrement as his/her normal
retiremer�t date except that credited service and average final compensati�on
shall be determined as of hisJher early retirement date; or
B. immediate month{y retirement benefit which shall commence on his/her early
retirement date and shall be continued on the first day of each month
there�fter. The benefit payable shall be .as determined in paragraph A
above, whtch is actuarially reduced from the amount to which he/she would
have been eMTtled had he/she retired on his/her normal retirement date and
with the same number of years of credited service as at the time hisfher
benefit commence and based on hislher average final compensation at that
date. In no event shall the early retir�ement reduction exceed three percent
(3%) for each year by which the commencement of benefits precedes the
Member=s normal retirernerrt date.
Section 8. Pre-retirement Death.
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If a plan member dies prior to retirement from the �Ilage of Tequesta hisJher
beneficiary shall receive a benefit as follows:
A. Une-of-Duty-Deaifi-Benefit fs a pension to the spouse (or childrenj for life in
the amount of 50% of Average Final Compensation.
B. Non-Line-of-Duty-Death-Benefit the spouse of a member with 6 years of
credited service will receive the actuarial equivalent of the accrued normal
retirement beneflt.
C. !n lieu of the benefits provided in A or B above, the bsneflclary of a pofice
officer or firefighter, with 6 or more years of senrice who dies prior to
retirement, may receive the benefits otherwise payable to the police oificer at
what would have been his/her early or normal retirement date.
Se�tion 9. Dfsability.
1. Disabiliiv Benefits On-Du#v
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 Vitlage of
Tequesta to the extent that heJshe is unable, by reason of a medfcally determinable
physical or mental impairment, to render useful and efficient service as a Police Officer or
Firefighter, as was provided by the employee in their classifica�on (Police Officer or
Fire�ighter) prior to the alleged impairment, which disability was directly caused by the
performance of his/her duiy as a Police Officer or Fre�+ghter shali upon es#eblishing the
same to the satisfaction of the Board, be entitled to:
A. If the injury or disease is service connected, the employee shall be entided to
fhe greater of (1) or (2):
(1) a monthly pension equal to 429�0 of his/her averag� monthly
compensation as of hisJher disability retirement date, or
(2) the accrued Normal Retirement Beneflt.
Any condition or impairment of health of Pofice Officer or Firefighter caused
by tubencutosis, hypertension hepaiitis, meningococcal meningifis or heart
disease shalt be presumed to have been suffered in the line of duty unless
the contrary is shown by competent evidence, provided that such Police
Officer or Firefighter shaii have successfully passed a physical examination
upon entering into such service, including cardiogram, which examination
faifed to reveal any evidence of such candition; and provided further, that
such presumption shall not apply to benefits payable or granted in a policy of
life insurance or disabilifiy insurance. in order to be eniiiied to the
presumption in the case of hepatittis, meningococcal meningitis, or
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tuberculosis the member must meet the requirements of Section 112. f 81,
Florida Statutes.
2. Disabilitv Benefi#s Off-Duiy
Every Police Officer or Firefighter who is a participant in the Pension Fund System
who shall have become totally and permanently disabled to the extent that he/she is
unable, by reason of a medically determinable physical or mental impairment, to render
useful and efficient sen�ice as a Police Officer or Fire#ighter which dlsability is not direc�y
caused by the performance of hisJher duties as a Police Officer or Firefighter sha8 be
entitled the greater of A. or B.:
A. A monthly pension equal to 25% of hisJher average monthly compensation
as of hisJher disabiliiy retirement date, or
B. The accrued Normal Re�irement Benefit.
3. Condmons Disaualifvinq Disabilitv Benefits
Each Police Officer or Firefighter who is claiming disability benefits shall establish,
to the satisfacfion 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 �'ights,
riots or civil insurrections.
C. Injury or disease sustained while committing a crime.
D. Injury or disease sustained whiie serving in any branch of the Armed Forces.
This exclusion does not affect members who have become disabled as a
result of irrtervening military service under the federal Heroes Eamings
Assistance and Relief Tax Act of 2008 (H.R. 6081; P.L. 110-245).
E. Injury or disease sustained after hlsJher employment shall have terminated
as a Police Officer with the Tequesta Police Department or a Fireflghter with
the Tequesta Fire Depa,rtment.
F. tnjury or disease sustained by a Police 4fficer, while working for anyone
other than the Tequesta Police Deparl�nent and arising out of such
employment.
G. Injury or disease sustained by the member before employment with the
Village begins. This subparagraph applies only in the event of a duty injury
or disease.
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4. Physical Examina�on Requiremen�
An employee shall not become eligible for disabiUiy benefits urKil arrcl unless he/she
undergoes a physical examination by a qualified physician or physicians and/or surgeons,
wfio shall be selected by the Board for that purpose.
My person receiving disabiliiy beneflt under provisions of this Ordinance may be
periodically re-examined by a qualified physk.ian or physicians and/or sur�geon or sutgeons
who shall be selected by the Board, to determine if such disabiiit�r has ceased to exist. (f
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 efficier�t service as a Poiice Oificer or a
Firefighter, the Board shall recommend to the Village that the re�ree be retumed to their
previous performance of duty as a Police Officer or Frefighter, and the refiree so retumed
shall enjoy the same rights that Member had at the fime he/she was placed upon pension.
In the event the retiree is so ordered to retum shall refuse to compiy with the order within
thirty (30) days from the issuance thereof, Member shall forfeit the right to hisJher pension.
The cost of the physical examination and/or re-examination of the employee or
retiree claiming and/or receiving disability benefits shall be bome by the Board. All other
reasonable costs as determined by the Board incident to the physical examination, such
as, but not limited to, transportation� meals and hotel aa�mmodations, shall be bome by
the Board.
If the retiree recovers from disabiliiy and reenters his/her former senrice with the
Village of Tequesta held prior to disability retirement, hislher service will be deemed to
have been confinuous, but the period beginning with the first month for whfch he/she
received a disability refirement income paymerrt and ending with the date he/she reentered
the service of the Village will not be considered as credited senrice for the purposes of the
Plan.
The Board shall have the power and authority to make the flnal decision regarding
all disability claims.
5. Disabilitv Pavments
The monthly benefit to which a Member is entitled in the event of the
Member=s disability refirement shall be payable on the first day of the first month after the
Board of Trustees determines such eMitlemer�t. However, the mbnthly retirement income
shall be payable as of the date the Board determined such entitlement, and any portion
due fo� a partial mond� shall be paid together with the first payment. The last payment will
be:
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A. If the plan member rec;overs from the disability or attains hisJher 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 hislher
nonnal retirement date while s�ll disabled, the payment due next preceding
his/her death or the 120th monthly payment, whichever is later.
Sectlon 10. Monthly Supplementa! Benefits.
1. Effective upon passage of this Ordinar�ce, any retiree or benefi�.�iary recenring
pension benefits is eMitled to a monthly supplemer�ta( pension benefit of $20
per year of service, up to a maximum beneflt of $600.00.
2. Th�s benefit shall be payable monthly as a part of the regular monthly
pension benefit. The benefit shall be payable to the retiree and any
beneficiary. The benefit shall cease upon the death of the member or
beneficiary, if applicable.
Sectlon 11. Vesting.
if a Member terminates his/her employme�rt with the Village of Tequesta, either
voluntarily or by dischacge, and is not eligible for any other benefits under this System, the
Member shall be er�titled to the followfig:
1. If the Member has less than sbc (6) years of credited service upon
termina�on, the Member shall be enti�ed to a refund of hislher accumulated c:orrtribution or
the Member may leave it deposited with the Fund.
2. If the Mernber has six (6) or more years of credlted service upon termination,
the Member shall be entitled to a monthly retirement benefit that is the actuariaf equivalerrt
of the amount of such retirement income otherwise payable to him commencing at the
Member=s otherwise normal or early retirement date, provided he does not elect to
withdraw his�/her accumula#ed contributions and provided the Member survives to hisJher
normal or early retirement date.
Sectlon 12. Qptional Forms of Benefits.
1. In lieu of the amount and form of retirement income payable in the event of
normal, early, or disabiliiy retirement as specifled herein, a plan member, upon written
request to the Board of Trustees, and subject to the approval of the Board of Trustees,
may efect to receive a retirement income or benefit of equivalent actuaria! valuafion
payable in acx:ordance with one of the fvllowing op�ons:
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A. A retirement income of a Iarger monthly amount, payab� 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,l �%,
76%, 66-2/3�0, or 50% of such monthly amounts payable to the survivor for
the lifetime of the sunrivor,
C. Such other amoun.t and form of retirement payments or benefits as, in the
opinion of the Board of Trustees, will best meet the circumstances of ifie
retiring Member.
2. The Member, upon electing any op�on of this section, wfll 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 nQw 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 joirrt pensioner or beneficiary and the Member=s retirement income benefits
have commenced, the Member may thereafter change his/her designated joint pensioner
or benefioiary uu to twioe in aocordatroe with Florida St�hite.s � 175.333 and ' 185.341
without the auQroyal of the board of trustee or the cume ioiM annuitant or beneflaarv.
The retir+ed member 1� not reauired to �rovide nroof of the aood health of the ioint
annui#ant or beneflclarv beina removed, and the ioint annuitant or beneflciarv beina
removed need not be Ifvina. Thereafter the beneficisrv mav be c�a�, but only if the
Board of Trustees consents to change and (f the joint pe�sioner or beneficiary, ��
ast previously
des�gnated by the Member is alive when he/she files w[th the Board of Trustees the
request for SuCh change. Uoon re�cei�t of a comoleted chan�e of ioint annuitant_ for�
such other nodce. the Board of Trus�ees shall adiust the retired member�s mo�thiv benefit
bv the ao�licatlon of actuarial �btes and c�lc�iations develot�ed to ensure that the bene�it
oaid is the actuarial eauivalent of the oreserit value of the r�emlter�s current benefit and
+� is no imoad to the Plan The beneficiarv or ioint annuitaM beina removed w II_ be
assumed deceased bv the actuarv in de�rmi th acbua�iallv eauivalent arn�wnt of the
revised mornhly oavment No retired member•s cu� benefit shall be in��
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result of the chanae of beneficiarv. The retired member shall also be resoonsible for the
cost of the recalculation af the b�nefit bv the actuarv.
3. The consent of joint pensioner or beneficiary to ar�y 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 requir� and fhe amount of the redrement income
payable to the Police Officer or Fir�flghter upon designation of a new joint pensioner shall
be actuarially redetermined taking into aa:ount the age and sex of the former joint
pensioner, the new joint pensioner, and the Police �ff'icer ar Firefighter. Each such
designation will be made in writing on a form prepared by the Board of Trustees and on
completion will be filed with the Board of Trustees.
In the event that no designated beneficiary survives the Member, such benefits as •
are payable in the event of the death of the Member subsequent to his✓her retirement shall
be paid as provided in Section 12.
5. Retirement income payments shall be made under the option elected in
accordance with the provisions of tfiis section and shall be subject to the folirnnring
limitations:
A. If a Member dies prior to hislher normal re�rement 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 re�rement under the Plan, the option elected waill be canceled
automatically and a retirement income of the normal form and amount will be
payable to the Member u�n his/her retirement as if the election had not
been made, unless a new elecfion is made in accordance with the provisions
of ifiis section or a new bene�iciary is designated by the Member prior to
hisJher retirement and within ninety (90) days after the death of the
beneficiary.
C. If both the redred 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 fife
thereaftec, rnade pursuant to the provisions of subsection 1, the Board of
Trustees may in its discretion, direct that the computed value of the
remaining payrr�ents be paid in a lump sum and in accordance with Section
12.
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D. if a Member confinues beyond his/her namal re�rement date pursuant to the
provisions of Section 7, subsection 1, and dies prior to his/her actual
retirement and while an op�on made pUrsuant to the provisions of this
secti�on is in effect, monthly refirement income paymertts will be made, or a
retirement benefit wil{ be pald, 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 op�on on the date on
which hisJher death occurred.
6. The Member may not change hisJher retirement op�ion after the date of
cashing or depositing hisJher first retirement check.
Section 13. Beneficfari�.
1. Each Member may, on a form provided for that purpose, signed and flled with
the Board of Trustees, des[gnate a beneficiary (or beneficiaries) to receive the benefit, i#
any, which may be payable in the event of h�/her death; and each designa�on may be
revoked by such Member by signing and �iling with the Board of Trustees a new
designation-of-beneficiary form.
2. If a deceased Member fails to name a beneficiary in the manner prescribed in
subsection 1, or if the beneficiary (or beneficiaries) named by a deceased Member
predeceases the Member, the death benefit, if any, which may be payable under the Plan
with respect to such deceased Member may be paid, in the discretion of the Board of
Trustees, either to:
A. The wife or dependent chiidren of the Member,
B. The dependent living parents of the Member, or
C. Estate of the Mem�r.
Sectfon 14. De}er�ed Retirement Optlon Plan.
1. Eli�ibilifii to Pardci�ate in the Dron
A. Any member who is eligible to receive a normal re�rement pension may
participate in the DROP. Members shall elect to participate by applying to
the Board of Trustees on a form provided for that purpose.
B. Election to participate shall be forfeited if not exercised within the i�rst
finrenty-seven (27� years of combined credited service. However,
participatio� in the first years of enactment will be extended to those
members with twenty-eight (28) years of senrice in 2003.
_�_
C. A member shall not participate in the DROP beyond the time of attaining 30
years of service and the total yesrs of participation in the DROP shall not
exceed five (5) years. For example:
(1� Members with finrenty-five (25) years of credited sen�ce at time of
entry shall only �rticipate for five (5) years.
(2) Members witt� tweniy-six (26) years of credited service at time of entry
shall only participate for four (4) years.
(3) Members with twenty-seven (27) years of credited senrice at �me of
entry shall only participate for three (3) ysars.
D. Upon a member's election to participate in the DROP� he or she shall cease
to be a member and is precluded from accruing any addi�onal benefit under
the Pension Fund. For all Fund purposes, the member becomes a re�rant.
The amount of credited service and final average salary freeze as of the date
of entry into the DROP.
2. Amounts Pavable uoon Election to Particivate in DROP
A. Monthiy retirement benefits that would have been payable had the member
terminated employment with the department and elected to receive monthly
pension payments will be paid into the DROP and credited to the retirant.
Payments into the DROP will be made monthly over the period the retirant
participates in the DROP, up to a maximum of saiy (60) months.
B. Payments to the DROP eam interest using the rate of investment retum
eamed on Pension Fund assets during the twelve (12) morrth period ending
September 30th. The rate determined shall be the rate reported to the
Division of Retirement pursuarrt to Part VII of Chapter 112, Florida Statutes.
However, if a police officer or firefighter does not terminate employment at
the end of participation in the DROP, interest credits shall cease or� the
current balance and on all future DROP deposits.
C. No payments will be made from DROP untii the member terminates
employmerrt with the department.
D. Upon termination of employment, participants in the DROP wfll receive the
balance of the DROP account in accordance with the following rules:
(1) Members may elect to begin to receive payment upon terminat�on of
employment or defer payment of DROP until the latest day as
provided under sub-subparagraph c.
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(2) Paymen#s shall be made in either:
a. Lump sum - the en�re account balance will be paid to the
retirant upon approval of the Board of Trustees.
b. Installmen�s - the account balance will be paid out to the
retirant in three equal payments paid over 3 years the first
payment to be made upon approval of the Board of Trustees.
c. Annuity - the account balance wiN be used to purchase an
annuiiy to be paid monthly, the first payment to be made upon
approval by the Board of Trustees. T'he annuiiy must be
purchased from an insurer licensed to seli such annufies in
Florida.
(3) Any form of payment selected by a police officer must comply with the
minimum distribution requiremerits of the IRC 401(A)(9) e.g.,
payments must commence by age 702.
(4) The beneficiary of the DROP participant who dies before payments
from DROP begin shall have the same right as the participant in
aa:ordance with Ordinance.
Section 15. Clsims Prooedures 8efore the Board Declslon.
1. If any Member of the System has been:
A. Placed on pension under the terms and provisions of this ordinance for
disabilily, or
B. Placed on pension because the Member has senred the required number of
years to enMie him to a pension, or
C. Refused benefi�s under this Plan, and is dissatisfied with the amourrt of
pension the Member is receiving, or believes that he should be entitied to
benefits under the Plan, the Member may, in writing, request the Board to
review his✓her case. The Board shali review the case and enter such order
thereon as it deems right and proper within sixiy (60) days from receipt of
such written request and the receipt by the Board of a written medtcal
release authorizaiion 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 �me for entering such order by an additional forty-five (45)
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days lf 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 shali be
put in writing. Such written order shall include: -
A. The specific reasons for the denial, including spec'fiic references to pertiner�t
provisions of the refirement system on which such denial is based;
B. A description of any addfional material or information that the Board feels is
necessary for the Nlember to perFect his/her claim, together with an
explanafion of why such material or information is necessary; and
C. An explanatian of the review procedure next open to the Member.
Such review procedure shall provide that:
(1) Prior to such review, the Member or hislher duly authorized
representative may review any pertiner�t documents including Plan
provisions, minutes of the meeting of the Board in which deniat fo the
claim was originally recommended, and any other documents material
to the case;
(2) After such review, the Member and/or hislher duly authorized
representafire shall submit their case in writing to the Board and
requesf a hearing. Such submission shall be ffled with the Board no
later than ninety (90) days after the receipt of the order of the Board.
Upon receipt of the writtten submission by the Member, the Board
shall schedule an op�rtunity for a full and fair hear�ng of the issue
within the next ninety (90) days, and such schedufed hearing shall be
communicated in wrlting to the Member. The Member and/or his/her
duly suthorized representai�ve may then appear at such scheduled
hearing to present their case. The Board shall consider the facts
presented at the scheduled hearing and shall, wlthtn thirty {30) days
after such hearing, make a final ruling in writing on the request of the
Member. The wriiten 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 evidenfiary and other legal questions that arise during the
hearing.
(b) Either party, the claimant or the Boarcl, may file pleadtngs
within the time limits set herein. Proceduraf motions are to be
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determined by the Chairman of the Board at any time. All
parties are to fumish copies of all pleadings to the opp�ing
parties and exchange lists with names and addresses of
witnesses expected to be called to tesMy 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 shal! be unc�r oath or affirmati�on. Depositions or
affidavits shall not be admissible unless upon stipulation by all
parties. The Chairman, any Member of the Board, the attomey
for the Board, the claimant and the 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 wifiesses and to
respond to the evidence presented against the parly. Each
party shail 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 bome by
the pariy 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 en#itlement to a pension, disabiliiy 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 Fforida
Statutes.
Section 16. Reports to Division of Retiremerrt.
Each year no later than March 15th, the Chairman of the Board shall file two (2)
separate reports with the Division of Retirement containing the follo`nring relathre to the
Police Offlcers and Firefighters of the Plan. The Police Officer report shall be separate
from the Fireflghter report.
1. Whether in fact the Village is in compliance with the provisions of Chapters
175 and 185, Florida Statutes.
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2. A cerd�ied statement of accounting for the most recent fiscai year of the
Viflage (or an �ndependent audit by a certified public accountant if required I�r the Division
of Retirement) showing a detailed Asting af assets and methods used to vaiue them and a
statement of all income and disbursements during the year by the Public Safeiy Boand.
Such income and disbursements shall be reconciled with the assets at the beginning and
end of the year.
3. A statis�cal exhibit showing the number of Police Offjcers on the force of the
Village, the number included in the Pension Plan, the number of Police Officers ineligible,
classffled acxording to the reasons for their being ineligible, and the number of disabled
and retired Police Officers and their beneficiaries receiving pension paymen�s and the
amounts of annual retirement income or pension payments being received by them.
4. A statistical exhibit sh�v+ng the number of Firefighters on the force of �e
Village, the number included in the Pension Plan, the number of Firefighters ineligible,
class�ied according to the reasons for their being lneligible� and the number of disabled
and retired Firefighters and th�ir beneficiaries receiving pension payments and the
amounts of annual retirement in�me or pension payments be�ng received by them.
5. A statement of the amount the �Ilage has contributed to the Public Safety
Pension Fund for the preceding plan year and the amourrt the Village will contribute to the
Public Safety Pension Fund for the current plan year.
6. If any benefi�s are insured with a commercial insurance company, the report
shall inctude a statement of the relationship of the insured benefi#s to the benefits provided
by this Ordinance. This report shall also contain information about the insurer, basis of
premium rates, mortality table, interest rates and method used in valuating retirement
benefits.
7. An actuarial valuation of the retirement Plan for Public Safety Officers must
be made at least once every three (3) years commencing from the iast actuarial report of
the Plan. Such valuation shal! be prepared by an enrolled actuary who is enrolled under
Subtitle C of the Ti�e 3 Employee Retirement Income Security Act ofi 1974 and vYrho is a
Member of the Society of Actuaries or the American Academy of Ac�aries.
Section 17. Rosfier of Retirees.
The Secretary of the Boards shall keep a record of all persons enjoying a pension
under the provisions of this Ordinance in which it shall be noted the time when the pension
is allowed and when the same shall cease to be paid. Addfionally, the Secretary shall
keep a record of all Pollce Officers and Frefighters employed by the Village who are
Members of the plan their board administers in such a manner as to show the name,
address, date of employment and date such employment js terminated.
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Section 18. Boerd Attorney end Professionala
Th� Board may employ indepen�nt legal counsel at the Pension Fund=s expense
for the purposes corrtained herein, together with such other professional, technical, or other
advisors as the Board deems necessary.
Section 19. Msximum Penslon.
1. Basic Limitation.
Sub)ect to the adjustments herein set forth, the maximum amount of annual
retirement income payable with respect to a Member under this Plan shall not exceed the
limits contained in � 415 of the Code.
2. Addifional Limitation on Pension Benefits. Notwithstanding anything herein to
the contrary:
A. The narmal 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 JarYUary 1, 1980, shall not exceed 100 percerrt of hisJher average
� flnal compensation. However, nothing cor�ined in this section shall apply to
supplemerrtal 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
aliowed to receive a re�irement beneftt or pension whfch is in part or tn whole
based upon any service with respect ta which the member is already
receiving, or wil! receive in the future, a refirement bene�t or pension from
another retirement system or plan. This restriction does not apply to social
security benefits or federal benefits under Chapter 67, Titte 10, U.S. Code.
Section 20. Commencement of Benefits.
1. Unless the Member othervvise elects, with such election being in writing and
to the Trustees and specifying the form of retirement irx;ome and c�te on which the
retirement income is to commence, the payment benef'� under the Plan to the Member
shall commence not later than the 60th day after the close of the Plan Year in which the
latest foll�ving events occur:
A. The attainment by the Member of age 65;
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B. The 10th anniversary of the date on which the Memt�r cammenced
participafion in the Plan; or
C. The tennination of the Member=s service with the Village of Tequesta
2. If the payment of a Member=s refirement income cannot begin on the date
required under subsecfion 1 of the Section because the Trustees either cannot ascertain
the amount of the Member=s retirement income or cannot locate the Member after maldng
reasonable efforts to do so, the payment of the Member=s beneflt 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 beneflt was
scheduled to begin but which is not later than the date specified under subsection 7 of this
Section.
Section 21. DistNbutlon of Beneflts.
Notvvithstanding any other provision of this Plan to the contrary, a foRn of re�iremerrt
income payable from this Plan after the effective date of fihis ordinance, shall satisfy the
foliowing conditions:
1. If the retirement income is payable before the Member=s death, the
distribution shall commence to them not tater than the calendar year defined above; and
A. shall be paid over the life of the Member or over the I'ifetimes of the Member
and s�use, issue or dependent, or,
B. shall be paid over the period extending not beyond the life expectancy of the
Member and spouse, issue or dependent.
Where a form of re�rement income paymerit has commenced in accordance with
the preceding paragraphs and the Member dies before hisJNer entlre 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 distribu�on of hislher 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 ac�cordance with the
following rules:
A. The Member=s remaining irr�rest in the Plan is payable to hisJher spouse,
issue or dependent;
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B. The remainfng interest is to be distributed over the Iffe 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 uniess the
Member=s spouse, issue or dependent sha8 receive the remaining interest in
which case the distribution need not begin before the date on which the
Member would have attained age 702 and if the spouse� issue or dependent
dies before the distribution to the spouse, issue or dependent begins, this
Seation shall be applied as if the spouse, issue or dependent were the Plan
Member.
Section 22. Miscellan�ous Provis[on.
1. Interest of 11Aembers in Pension Fund. At no time prior to the satisfaction of
all (iabilities under the Plan with respect to Members and their spouses or beneftciaries,
shall any part of the corpus or income of the Pension Fund be used for or diverted to any
purpose other than for their exclusive benefit.
2. No amendment or ordinance sha11 be adopted by the Vifiage Counc�l of #he
Village of Tequesta which shall have the effect of reducing the then vested accrued
benet�ts 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
othervvise limit a distributee=s election under this subsection, a distributee
may elect, at the time and in the manner prescrfbed 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. Defini�ons.
(1) p,Eligible rollover distribution� �s any distribution of all or any portion of
the balance to the credit of the distributee, except tMat an eligible
rollover does not include any disfibu�on that is one of a series of
substan4aliy equal periodic payments (not less ftequently than
annualiy) made for the life (or life expectancy) of the distributee or
distributee=s designated beneficiary, or for a specffied 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.
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(2) AEligible retirement plan� is an individual retirement acxount
described in section 408(a) of the Code, an individual retiremerrt
annuity described in sectiion 408(b) of the Code, an annuity plan
described in section 403(a) of the Code, or a qual'rf'ied trust described
in section 401(a) of the Code, that accepts the distributee=s eligible
rollover distribution. However, in the case of al eUgible roilover
distrlbution to the sunriving spouse, an eligible retirement plan is an
individual re�rement aocount or individual retirement annuiiy.
(3) p,Distributee� includes an employee or former employee. In add'ition,
the employee=s or former employee=s surviving spouse and the
employee=s or former employee=s spouse who is errtFtted to paymerrt
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� xDirect rollover� is a payment by the Plan to the eligible retiremerrt
pian speci�ed by the distributee.
Section 23. Repeal or Termination of System.
1. This Ordinance establishir�g the System and Fund, and subsequent
4rdinances pertaining to said System and Fund, may be malified, 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 bene�ciary shall not be affected thereby.
2. If this Ordinance shal! be repealed, or ff contributions to the System are
discontinued, the Board shall confinue to administer the System in accordance with the
provisions of this 4rdinance, 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 opfions provided for in this 4rdinance who are designated by any of said
Members. In the event of repeal, or if contribufions to tFie System are discontinued, there
shall be full vesting (100%) of benefits accrued to date of repeal. The actuarial single-sum
value may not be less than the employee=s accumulated contributions to the plan, with
interest if provided by the plan, less the value of any plan benefits previously paid to the
employee.
3. Upon termination of the plan by the Viliage for any reason, or because of a
transfer, merger, or consolidation of governmental units, sernlces, or funcdons as provided
in chapter 121, or upon wriiten no�ce to the board of trustees by the Viilage that
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contributions under the plan are being permanently disconfinued, the rights of atl
employees to bene�tts accrueal to the date of such termination or discontinuance and the
amounts credited to the employees' ac:counts are rronforfeitable. The fund shail be
distributed in accordance with the following procedures:
A. The boarc! of trustees shall determine the date of distributi�on and the asset
value required to fund all the nonforfeitable benefiis, after taking into accourrt
the expenses of such distribution. The board shaN inform the �tlage if
addi�onal assets are required, in which event the Village shall cont�nue to
financiafly support the plan untii all nonforFeitab� benents h�ve been funded.
B. The board of trustees shall determine the method of distribution ofi the asset
value� whether distribution shall be by payment in cash, by the maintenance
of another or substituted trust fund� by the purchase of insured annulties, or
othenivise, for each police officer and fireffghter entitled #o benefits under the
plan, as specified in subsection C.
C. The board of trustees shall distribute the asset value as of the date of
terminatlon in the manner set forth in this subsection, on the basis that the
amount required to provide any given retirement lncome is the actuarially
c�mputed single-sum value of such refireme�rt income, except that if the �
meth�l of distribution determined under subsection B involves the purchase
of an insured annuity, the amount required to provide the given retirement
income is the single premium payable for such annuity. The actuarial single-
sum value may not be less than the employee's acaumulated c�ntributlons to
the plan, with ir�terest if provided by the plan, (ess the value of any plan
beneflts previousy paid to the employee.
D. If there is asset vaiue remaining after the full distriibution specified in
subsection C, and after pa,ymerrt of any expenses incurred with such
distribution, such excess shall be retumed to the Village� less retum to the
state af the state's contributions, provided that, if the excess is less than the
total contributions made by the Village and the state to date of termination of
the plan, such excess shall be divided proportlonately to the total
confibutions made by the Village and the state.
E. The board of trustees shall distribute, in aa:ordance with the manner of
distribution determined under subsection B, the amounts determined under
subsectlon C.
4. The allocation of the Fund provided for in this subsection may, as decided by
the Board be carried out through the purchase of insurance company contracts to provide
the benefi�ts determined in acxordance with this subsection. The Fund may be disfiibuted
in one sum to the persons entitfed to said benefits or the distribution may be carried out in
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such other equitable manner as the Board may direct. The Trust may be continued in
e�astence for purposes of subsequerrt distributions.
5. After all the vested and acxrued benefits provided hereurwter have been paid
and after all other liabil�ies have been safis#ied, then and only then shall any remaining -
fund revert to the General Fund of the Viliage.
Sec�Non 24. Exemption trom ExecuHon, Non-asslgnability.
The pensions, annuities, or any other benefits accru�l or acxruing to any person
under the provisions of this Urdinance and the accumulated contributions and the cash
securities in the Fund created under this Ordinar�ce are hereby exempted from any state,
coun�jr or municipal tax of the state and shall not be subject to execution, attachment,
gamishment or any legal process whatsoever and shall be unassignable. However,
pursuant to an income deduction order, the trustees may direct that retirement benefi�s be
paid for afimony or child support in accordance with rules and regulations adopted by the
Board of Trustees.
Upon written request by the retiree, the Board of Trustees may authorize the Plan
administrat�r to withhold from the monthly retirement payment funds necessary to:
1. pay for benefits being received through the Village;
2. pay the certified bargaining agent; or
3. to pay for premiums for acciderit health and long-term care insurance for the
re�ree, the retiree=s spouse and dependants. A retirement plan does not
incur liability �or participation in this permissive program 'rf its actions are
taken in good faith pursuant to Florida 3tatutes �� 175.061{� and 185.05(6).
Section 25. Pension Valldity.
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 taw, or
shall hereafter be granted or obtained erroneously, frauduierrify or illegally for any reasons.
Sajd Board is empowered to purge the pension rolls of any person heretofore grarrted 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 enoneously, improperiy or iilegally classified.
_3,3_
Sectlon Z6. For�eitur+e of Pensla�.
Any Member convicted of the folla+n+ing offenses committed prior to retirement, or
whose empioyment is termtnated by reason of hisJher admitted commission� aid or
abatement of the following specifled offenses� shall forfeit aN rights and benefits under this
Pension Fund, except for the retum of this accumulated contributions as of the date of
termination.
1. Spec'rf'ied offenses are as follows:
A. The commit�ng, aiding or abetting of an ernbezzlement of public funds;
B. The committing, aiding or abetting of ar�y iheft by a public offk:er or employee
from empioyer,
C. Bribery 1n connect�on with the empfoyment of a public officer or employee;
D. Any felony specrfled in Chapter 838, Florida Statutes;
E. The committing ot an impeachable offense.
F. The committing of any felony by a public officer or employee who wilffully and
with intent to defraud the public or public agency, for which he acts or in
which he is employed, of the r�ght to receive the faithfui performance of
hisJher duty as a pubiic officer or employee, realizes or obtains or aitempts to
obtain a profit, gain, or advantage for F�imself or for some o#�er person
through use or attempted use of the power, rights, privileges, duties or
position of hislher public office or employment posifion.
G. The committing on or after October 1, 2008, of any felony defined in
� 800.04, Florida Statutes, against a victim younger than 16 years of age, or
any felony defined in Chapter 794, FloMda Statutes against a vlctim younger
than 1 S years of age, by a pubiic off'�cer or employee through the use or
attempted use of power, rights, privlleges, duties, or posfion of his or her
public office or employment position.
2. Definlfions
A. Conviction shaif be defined as:
An adjudication of gullt by a court of competent jurisdiction; a plea of guiliy or
nolo contendere; a jury verd�ct of guilty when adjudication of guilt fs withheld
and the accused is piaced on probation; or a conviction by the Senate of an
impeachable offense.
_�_
B. Court shall be defined as:
Any state or federal court of competent jurisdiction which is exercising
jurisdiction to consider a proceeding involving the alleged commission of a
specified offense. Prior forfeiture� the Board of Trustees shall hold a hearing
on which notice shall be given to the Mem�r whose benefits are being
considered for forfeiture. Said Member shall be afforded the right to have an
attomey present. No forma! rules of evidence shall apply, but the Member
shall be afforded a full opportunity to present his/her case against forteiture.
Any Member who has received benefits from the System In excess of hisfier
accumulated contribu#ions after Member=s rights were forFeited shall be
required to pay back to the Fund the amount of the benefits r�eived In
excess of his/her accumulated contribu�ions. The Board of Trustees may
implement all legal actlon necessary to recover such funds.
3. False, misleading, or fra.udulerrt statements made to obtaln public refiremerrt
benefits is prohibited; penalty
A. It is unlawful for a person to willfully and knowingly make, or cause to be
made, or to assist, conspire with, or urge another to make, or cause to be
made, any false, fraudulent, or misleading oral or written statement or
withhold or conceal materlal informatio� to obt�i� any benefit available under
a refirement plan receiving funding under Florida Statutes, Chapters 175 and
t85.
B. A person who violates subsectlon (A) commits a misdemeanor of the flrs#
degree, punishable as provided in s. 775.082 or s. 775.083� Fforida Statutes.
In addfion to any applicable criminal penaliy, upon �nvictlon for viofation
described in subsection (A), a participant or beneficiary of a pension plan
receiving funding under Florida Staiutes, Chapters 175 and 185 may, in the
discretion of the Board of Trustees, be required to forfeit the right to receive
any or all benefifis to which the person woufd othervvise be entitled under this
Ordinance. For purposes of this paragraph, Aconviction� means a
determination of guilt that is the result of a pleas or trial, regardless o#
whether adjudicafion is withheld.
Seation 27. Mllltary Senrioe Pria� to Emptoyme�.
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 Merchar�t
Marine, voluntarily or involuntarily, prior to first and in�ial err�ployment with the Police
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Depar[ment or Fire Dep�rtment shall be ackled to hisJher years of credited service prov�ded
that:
1. The Police Officer or Firefighter contributes to the Fund the sum that he/she
would have contributed had he/she been a member of the Plan for the years or fractional
parts of years for which he/she is requesting credit plus amounts actuarialty determined
such that the cred�ing of service does not result in any cost to the Fund plus payment of
costs for ali professional services rendered to the Board tn 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 iwelve (12) months from the effec�ve date of this Ordinance or six (6) months
from the date of his/her employment with the Police Department or Fire Department,
whichever is later.
3. Payment by the Member of the required amount shall be rnade within six (6)
mor�ths of hisJher request for credit and shall be made in one lump sum payment upon
receipt of which credited service shaii be given. Credited service purchased pursuant to
this section shall be counted for all purposes except toward vesting of benefi�.
4. The maximum credit under this section shall be five (5) years.
es,u�
Juy 21, 2011
H:�Tequ�ta PS 10111PIan Docs d� Ru1881Arnend1201112011 Re�ement a�end Opt �t of 185.wpd
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