HomeMy WebLinkAboutDocumentation_Regular_Tab 05_06/09/2005 - VILLAGE O� TEQUESTA
Post Office Box 3273 • 250 Tequesta Drive, Suite 300
' .,� e` Tequesta, Florida 33469-U273 •(561) 575-6200
; � Fax:(561)575-6203
�
May 18, 2005
Ms. Patricia F. Shoemaker
Municipal Police Officers & Firefighters Retirement Funds Office
Division of Retirement
PO Box 3010
Tallahassee, F132315-3010
Re: Public Safety Officers Pension Board of Trustees — Ordinance 598
Dear Mr. Slavin:
Enclosed please find a copy of Ordinance 598, including Exhibit B regarding the Village
of Tequesta's Public Safety Officers Pension Board. The Village Council approved on
first reading Ordinance 598 at their May 12, 2005 Regular Council Meeting.
Also attached are the Supplemental Actuarial Valuation Report for the Board prepared by
Mr. Steve Palmquist, of Gabriel, Roeder, Smith & Company. If you have any additional
questions, please feel free to call me at (561) 575-6244.
Sincerely,
3 �� �, �.�.a��-�-.
Gwen Carlisle, CMC
Village Clerk
Enclosure
cc: Attorney Bonni Jenson, Hanson Perry & Jenson, PA
Chief James Weinand, Chair, Public Safety Officers Board of Trustees
Recycled Paper
VILLAGE OF TEQUESTA
� Post Office Box 3273 • 250 Tequesta Drive, Suite 300
' ..� � Tequesta, F7orida 33469-02'13 • (561) 575-6200
s Fax:(561)575-6203
May 17, 2005
Mr. Charles Slavin
Department of Retirement
Cedar Executive Center, Building C
2639 North Monroe Street
Tallahassee, Fl 32399-1560
Re: Public Safety Officers Pension Board of Trustees, and General Employees Pension
Board of Trustees — Ordinance 598
Dear Mr. Slavin: �
Enclosed please find a copy of Ordinance 59$ al Em ees Pens on Board. The Vil age
Safety Officers Pension Board, and the Gener p Y
Council approved on first reading Ordinance 598 at their May 12, 2005 Regular Council
Meeting.
Also attached are the Supplemental Actuarial r� Sm h& Company. If you have any
by Mr. Steve Palmquist, of Gabr�el, Roede ,
additional questions, please feel free to call me at (561) 575-6244.
Sincerely,
� �.z-��-'�'
�
Gwen C�e, CMC
Village Clerk
Enclosure
Recycled Paper
ORDINANCE NO. 598
AN �RDINANCE OF THE VILLAGE COUNCIL Of THE
VILLAGE OF TEQUESTA, PALM BEACH COUNTY,
FLORIDA, AMENDING EXHIBIT "A" AND EXHIBIT "B" OF
SECTION 2�1 OF THE CODE OF ORDINANCES,
VILLAGE OF TEQUESTA, FLORIDA, RELATING TO THE
EMPLOYEES' PENSION TRUST FUNDS; AMENDING
EXHIBIT "A" TO PROYIDE FOR 6 YEAR VESTING FOR
ENTITLEMENT TO DISABILITY BENEFIT; AMENDtNG
EXHIBIT "B" TO PROVIDE FOR BOARD OF TRUSTEES
ADMiNISTRATIVE DUTIES; AMENDING EXHIBIT "B" TO
PROVIDE FOR INCREASE IN CONTRIBUTION OF
FIREFIGHTERS; AMENDING EXHI$iT "B" TO INCREASE
THE NORMAL RETIREMENT BENEFIT; AMENDING
EXHIBIT "B" TO INCREASE THE MONTHLY
SUPPLEMENTAL BENEFIT; PROVIDING FOR REPEAL
OF ORDINANCES IN CONFLICT; PROVIDING FOR
CODIFICATION; PROVIDING FOR AN EFFECTIYE DATE.
BE IT ORDAINED BY THE VtLLAGE COUNCIL OF THE VILLAGE OF
TEQUESTA, PALM BEACH COUNTY, FLORIDA, AS FOLLOWS:
Section 1. Those portions of Exhibit "A" and "B" to Section 2-61, Code of
Ordinances, Village of Tequesta, Palm Beach County, Florida, as deleted and shown by
strike-outs and additions shown by underlining on Exhibits "A" and "B" attached hereto
and made a part hereof, are passed and adopted as amendments to such Exhibits and
section.
Section 2. Severability. 1f any provision of this Ordinance or the application
thereof is held invalid, such invalidity shall not affect the other provisions or applications
of this Ordinance which can be given effect without the invalid provisions or
applications, and to this end; the provisions of the Ordinance are hereby declared
severable.
Section 3. Repeal of Ordinances in Conflict. All other Ordinances of the
Village of Tequesta, Florida, or parts thereof which conflict with this or any part of this
Ordinance are hereby repealed.
Section 4. Codification. This Ordinance shall be codified and made a part of
the official Code of Ordinances of the Village of Tequesta.
Section 5. Effective Date. This Ordinance shall take effect upon passage.
THE FOREGOING ORDINANCE was offered by Councilmember
who moved its adoption. The Ordinance was seconded by
Councilmember and upon being put to a vote, the vote was as follows:
FOR ADOPTION AGAINST ADOPTION
The Mayor thereupon declared the Ordinance duly passed and adopted this day of
April , 20
MAYOR OF TEQUESTA
Jim Humpage
ATTEST:
Gwen Carlisle, Village Clerk
H:ITequesta GE 1012�PIan Docs & Rules\Ord Caption 05.wpd
Viilage of Tequesta
General Employees Pension Trust Fund
Impact Statement — Aprit 14, 2005
Description of Amendment
This change would appiy to General Employees oniy:
- Non-Duty Disability service requirement is increased to 6 years.
Funding Implications of Amendment
An actuarial cost estimate is attached.
Certification of Administrator
I believe the amendment to be in compliance with Part VII, Chapter 112, Florida
Statutes and Section 14, Article X of the Constituti o State of Florida.
i
��
the B ard of Trustees
s Plan dministrator
SUPPLEMENTAL. ACTUARIAL VALUATlON REPORT
Plan •
Viliage of Tequesta Generai Empioyees Pension Trust Fund
Valuation Date
October 1, 2003
Date of Report
Aprif 14, 2005
Repor� Requested by
Board of Trustees
Prepared by
J. Stephen Palmquist
Group Valued
Active General Emp(oyees
Plan Provisions Being Considered for Change
Present Provision Before Chanqe
- No service requirement for Non-Duty Disability .
Proposed Chan,.ge
- Service requirement is 6 years for Non-Duty Disability
Participants Affected
All Active General Employees.
Actuarial Assumptions and Methods
Same as October 1, 2003 Actuarial Valuatian Report with no exceptions.
Some of the key assumptions/methods are:
' Investment return — 8.0% per year
Salary increase — 6.0% per year
Cost Method — Aggregate
Amortization Period for Any Increase in Actuarial Accrued Liability
NA
Summary of Data Used in Report
NA
Actuarial Impact of Proposal(s)
See attached page(s). �
Special Risks involved With the Proposal That the Plan Has Not Been Exposed to
Previously
None
Other Cost Considerations
None
Possible Confiicts With IRS Qualification Rules
None
� �` .
teph n Palmquist, ASA AAA, FCA
Enrolled Actuary No. 02-15
� • a -� Car'ae/ �� } 4 �'
A. Valuation Date ' October '!, 2003 Oetober 1, 2003
Baseline 6 year vesting
for ordinary disability
B. ARC to Be Paid During
Fiscal Year Ending 9/30/2005 9l30/2005
C. Assumed Date of Employer Contrib. Monthly Monthly
D. Annual Payment to Amortize
Unfunded Actuarial Liability $ 0 $ 0
E. Employsr Normal Cost 88,518 86,827
F. ARC if Paid on the Valuation
Date: D+E 88,518 86,827
G. ARC Adjusted for Frequency of
Payments 92,218 90,456
H. ARC as % of Covered Payroll 8.73 % 8.56 %
I. Assumed Rate of Increase in Covered
Payroll to Contribution Year 4.00 % 4.00 %
J: Covered Payroll for Contribution Year 1,099,069 1,099,069
K. ARC for Contribution Year: H x J 95,949 94,080
L. REC as % of Covered Payroll in
Contribution Year: M= J 8.73 % 8.56 %
i iE � i 3
— x ' T d� 9. 'Ca' — P i � �.._ 6
F �� . . � . .. ... �. . . .
r
A. Valuation Date October 1, 2003 October 1, 2003
Baseline 6 year vesting
for ordinary disabilify
B. Actuarial Present Value of Ali Projected
Benefits for
1. Active Members
a. Service Retirement Benefits $ 1,434,003 $ 1,434,003
b. Vesting Benefits 32,187 32,187
c. Disability Benefits 263,556 242,958
d. Preretirement Death Bene�ts 37,719 37,719
e. Return of Member Contributions 19,747 21,063
f. Total 1,787,212 1,767,930
2. Inactive Members �
a. Service Retirees & Beneficiaries - _
b. Disability Retirees _ _
c. Terminated Vested Members _ _
d. Total _ - -
3. Total for All Members 1,787,212 1,767,930
C. Actuarial Accrued (Past Service)
Liability per GASB No. 25 265,486 269,791
D. Actuariai Value of Accumulated Plan
Benefits per FASB No. 35 NA NA
E. Plan Assets
1. Market Value 333,944 333,944
2. Actuarial Value 333,944 333,944
F. Actuarial Present Value of Projected
Covered Payroll 11,724,805 11,724,805
G. Actuarial Present Value of Projected
Member Contributions 586,240 586,240
'F
�9C, b O_ �� . �. .
r
�:
A. Valuation Date October 1, 2003 October 1, 2003
Baseline 6 year vesting
for ordinary disability
B. Actuarial Present Va(ue of Projected
Benefits $ 1,787,212 $ 1,767,930
C. Actuarial Value of Assets 333,944 333,944
D. Unfunded Actuarial Accrued Liability 0 0
E. Actuarial Present Value of Projected
Member Contributions 586,240 586,240
F. Actuarial Present Value of Projected
Employer Normal Costs: B-C-D-E 867,028 847,746
G. Actuariaf Present Value of Projected �
Covered Payroll 11,724,805 11,724,805
H. Employer Normal Cost Rate: F/G 7.39 °!0 7.23 %
I. Covered Annua( Payroll 1,056,797 1,056,797
J. Employer Normal Cost: H x f 78,Q97 76,406
K. Assumed Amount of Administrative
Expenses 10,421 10,421
L. Tota! Employer Normal Cost: J+K 88,518 86,827
M. Employer Normal Cost as % of
Covered Payroll g,�g % g_22 %
May 10, 2005
EXHIBIT "A"
VlLLAGE !,?F TEQUESTA
GENERAL EMPLOYEES' PENSION TRUST FUND
Section 1. Creation of Pension Trust Fund.
The Village of Tequesta General Employees' Pension Trust Fund for the purpose
of providing retir�ement, death and disability beneftts to members of the Fund, certain
former general employees and survivor benefits to beneficiaries.
Section 2. Definitions.
1. Statement of Definitions. As used herein, unless otherwise defined or required
by the context, the fotlowing worcfs and phrases shaii have the meaning indicated:
Accumulated Contribu#ions means a Member's own contributions without interest.
Actuarial Equivalent means a benefit or amount of equal value, based upon #he .
mortality tabies utilized by the Board's actuary or actuaries during most recent actuariat
valuation, and an 8% rate of interest.
Average Final Comc�ensation shafl mean one-twelfth {1/12) of the average salary
of the five {5) best years of the last ten (10) years of credited service prior to netirement,
termination, or death, or the career average as a#ull time General Employee, whichever
is grea#er. A year shall be twelve (12) consecutive months.
Beneficiarv means the person ar persons enti�ed to receive benefits Mereunder at
the death of a M�mber who has or have been designated iri writing by the Member and
filed with the Soard. If no designa#iorr is in effect, or if no person so designated is living,
at the time ofi death of the Member, the beneficiary shall be #he estate of the Member.
Board ar Baard of Trustees, means a member vf the General Employee Board of
Trustees, which shatt administ� �nd manage the Sys#er� herein provided and �erve �s
Trustees ofi #he Fund for the benefit of beneficiaries of the general emplayees.
vde mEans tfie 1�#emal Revenus Gode c�f 1�86, as amends�d from time to time.
Credited Service means the total number of year� and fractional parts of years of
service as a Gener�at Empioyee who mak�s member contributions to the Pkan, omitting
intenrening years c�r fractional par�s of years when such General Employee was no#
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May 10, 2005
employed by the Village of Tequesta. A plan member may voiuntarily leave his/her
contribution in the Fund for a period of five (5) years after teaving the emptoy of the Viltage
of Tequesta pending the possibility of being rehired in a full tims position by the Village of
Tequesta wifihout bsing credit for the time of active participation as a plan member.
Should the employee no# be re-emplayed with the Vllage of Tequesta in a fuil time
capaci#y within five (5) years, hislher contributions shall be retumed to him/her w+thout
interest.
The years or firactional parts of years that a General Empfoyee serves in the military
service of the Armed Forces of the United States or the United States Merchant Marine,
votuntarily or involun#arity, upon being granted leave by the Viltage of Tequesta and
separation ftom employment as a Vitlage o# Tequesta plan member, shall be added to
his/her years of credited service provided that:
A. The Genera! Empfoyee retums to his/her fufl time employmen# with the
Vitlage of Tequesta wi#hin vne (1) year from the date of his/her military
discharge.
B. The General Employee deposits into the Fund the same sum that the
Member � would have contributed ifi he/she had remained a General
Employee, plus an amount of interest that substantialiy approximates the
amount eamed by the Fund from the date of retum to employment to the
date of deposit.
C. The maximum credit for military seroice sMatl be five (5) years.
Effective Date means the date on vuhich this Orciinance becomes effective.
Fund means th►e Trust Fund established herein as part of the System, forthe benefit
of General Empfoyees.
General Em�lo�ree means an activefy emplo}�d ful�time person errtploy�d by the
Vitlage o# Tequesta, including his/her initiai probationary empiaymertt periad, exciuding
certified Firefighters and certified Pofice O#ficers.
General Em l�oyee Boarci means the board of trustees provided hereunder to
administer and manage tMe fu�ds �or the benefrt of the General Employees.
Member means an aetively employed Genera! Employ�e that fulfills the appticabie
prescribed participation requ`trements.
�ne hundced and iwentv monthlv oa�mtents guaranteed means ben�fits are payable
for the life of a retiree wifih a guarantee c3# 12Q monthly p�yments. Should a member die
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May 10, 2005
before 120 monthly payments (10 years) are made, then the remainderofthe 120 monthly
payments will be paid to a beneficiary. Shouid a member receive more than 120 monthly
payments, then no benefit is payable to a beneficiary.
Satarv means base compensation to include regular eamings, vacation pay, sick
pay, plus ail tax deferred items of income, excluding lump sum payments, overfime,
bonuses and longevity bonus.
S�ouse means the tawful wife or husband of a plan member at the time of pre-
retirement, death or retirement.
Statement of Investment Policu means the wsitten investment policy adopted by the
Boards pursuant #o this Ordinance and F.S. 112.fi61, et seq., which shall applyto funds
under the control of the board.
Svstem means the Village of Tequesta General Empioyees' Pension Trust Fund as
contained herein and all amendments thereto.
Vested deferred retirement means a Member who teaves the employ of the Village
with 6 or more years of credited service and who is not eligible for any retirement beneft.
This benefit is payable at early or normai retirement.
Villape means the Village of Tequesta, Fiorida.
2. Mascuiine Gender. The masculine gender, where used herein, unless the
context specificatty requires otherwise, shaN include both the feminine and mascufine
genders.
Section 3. Membershia.
1. Condition of Etigibilitv
Ali fuif time General Employees as of the effE,ctiv+e date, and a1i #uture new
futl time General Employees shall become Members af this System as a
condition of employment.
2. Membership
Each fulf time General Empfoyee shall complete a form prescribed by the
Board providing the #ollowing info�mation:
A. Acceptance of the terms and conditions of the Retirement Sy�tem,
and,
3
May 10, 2005
B. Designation of a beneficiary or beneficiaries, and,
C. A certified statement as to prior medical and psychological history.
3. Change in Designation of Bene#iciary
A member may from time to time change his/her designated benefiaary by
written notice to the Board upon forms provided by the Board. Upon such
change, the rights of all prevrously designated beneficiaries to receive any
benefits undef the System shall cease.
Section 4, Board of Trustees.
1. The sole and exclusive administration of and responsibility #or the proper
operation of the retirement system and for ma king effective the provisions of this ordinance
is hereby vested in a Board of Trvstees. The Board shatl consist of five (5) Trustees, two
(2) of whom, unless otherwise prohibited by law, shall be legal residents of the municipality,
who shall be appointed by the Tequesta Village Council, and #wo {2) of whom sha!! be fu!!-
time General Empioyee members af the System. The fifth (��'} Trustee shall be selected
by a majority vote of the o#her four (4) Trustees.
Each p+erson seeking to fil! a design�ted emplayee representative Bosrd member
seat shall be elected by their full-time co-workers. Upon receipt of the fiifth {5' person's
name the Tec�uesta ViBage Council shall, as a ministerial duty, appoin# such pe'rson to the
General Empfoyes Board as its fif�h (5' Trustee. The fifth (5' Trustee shall have the
same rights as each of the other Trusfie�s appe'rntecl ar elected as he�in prov�ted and
shall serve a iwo (2) year temn unfess the office is sooner vacated and may succeed
himself ar herself in ptf'iae. �ach re�ident Trustee shall serve as Tnfstee for a Reriod of two
{2) years unless sooner r+�placed by the Tequesta V�lage Counai at whose pteasure #he
Trustee shali serve, and m�y succeed himself or herset� as a Trvstee. Each General
Employee Trust� shaH s�rve as Trustee for a p�riad of two (2) years, unless hef�e
sooner leav�s the emplaym�nt of the Viftage or atherwise vacates histher office as Trust�,
whereupon a suecessor sha#I be chosen in the maRner as #he departing Trustee. Each
+�mployee rep�sentativ�; Trustse may su�se�l himself or herself in office. The General
Emp�oy�e �oard shall mee# at teast q�artecly each year. The 6oard shal! be �t t�gat entity
with, in addi�vn to other powers and responsibilttie� oontained herein, tMe power to bring
and defend lawsuits of �very kind, nature, and de�ip�ior�.
2. The Board shall, by �r►ejoriky vote, elect a chairman and secre#ary. The
secretary of ths �oard sh�ll �ceep, or +cae�se to b� kept, a complete minute book of the
aCtions, procs�dings� or hearings of the Board and shafl presid� ov�r Board meetings in
the absence of the Chairman. TMe Trustees shall rrot receive any cc�mpensa#ion as such,
4
May 10, 2005 �
but may receive expenses and per diem as provided by law.
3. Each Trustee shafl be entitled toone vote on the Board. Three (3) affirmative
votes shail be necessary for any decision by the Trustees at any meeting of the Board. A
Trustee shail have the right to abstain from voting as the result of a conflict of interest
provided that Trustee s#a#es in writing the nature of the confliet compiies with the provisans
of Section 112.3143, Florida Statutes. .
4. The Board of Trustees shaA engage such actuarial, accounting, legal, and
other services as sha!# be required to transact the business of the Retirement System to
administer and manage the fund and to meet the requirements of appticabfe law. The
compensation of ail persons engaged by the Board of Trustees and all other expenses of �
the Board necessary #or the operation o# the Re#irement System sha8 be paid from the
Fund at such rates and in such amounts as the Board of Trustees shaN approve.
5. The duties and responsibilities of the Board of Trustees shatt inciude, but not
necessarily be limited to, the following:
A. To construe the provisions of the System and determine att questions
arising thereunder.
B. To determine at{ questions n:lating to eligibility and participation.
C. To determine and certi#y the amaunt of aN retirement aWowances or
other benefits hereunder.
D. To establish uniform rules and procedures #o be #ollovrreed for
administrative purposes, benefitapplications and all matters required
to administer the System.
E. To distribute to Members, at regular in#ervals, information conceming
the System.
, F. To receive and process aii appfications for participation and benefits.
G. To authorize all payments whatsoever from the Fund, and to notify the
disbursing agent in writing of approved pension payments a�d other
expenditures arising througfi operation of the System and the Fund.
H. To have performed actuarial studies in accordance with Florida
Statute 112.63 provu�ing a copy of #he same to the Division of
Retirement, and witM at teast biennial vatuations, and make
recommendations regarding and all changes in #he pravis�ns af the
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May 10, 2005
System.
I. Ensure compliance with Article X, Section 14, of the Florida
Constitution, requiring that any increase in benefits be funded on an
actuarially sound basis.
J. Ensure the comple#ion of an actuariat 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 Retiremen#.
K. To ensure the funds and assets for the benefrt of the emptoyee
groups they serve are segregated and separated from the funds and
assets under the control of the Board.
L. To perform such other duties as are specified in this Ordinanoe.
M. To adopt and be guided by Statements of Inves#ment Policy
applicable to all funds under the control o€ the Generat Employee
Board of Trustees as required from time to time by F.S. 112.661, et
seq., and/or its successor statutes.
Section 5. Finance And Fund Ma�agemer�t.
Establishmen# and Operation of Fund.
1. As part o# th� System, there is hereby established a Fund, into which shall be
deposited all af the contributions and assets whatsoever attributable to the System, for the
benefit of Genera! Employees.
2. The actual custody and supervision of the Fund (and assets therec�f} shali be
vested in the Board of 7custees. Payment of beneftts and disbursemen#s frorr► the Fund
shaH be made by the ViHage on the Board's agreement, but only upon written authorizafiion
from the Board.
3. All funds and securities of the Fund may be deposified by the Board o# Trustees
with the Treasurer of the municipality, acting in a ministeri�l capacity only, who shall be
liable in the same manner and to #he same ex#ent that as he is liable for the safekeeping
of funds for the municipality. However, any ftands and securitie� so depogited with the
Tr�asurer of the municipalit}r shall be kept in separate funds by the Treasurer or clear{y
i�lerztified as such funds and securities of #he General Employee Trvst Fund. in iieu
thereofi, the Board of Trustees 5ha11 deposit the funds and securities of the Fund in a
quafified public deposi�ory or depositories as d�fined in Section 2�0.t12, Ftvrida Statutes,
which depository or depositories with regard to such fi.tnds and securities shall cQnform to
6
May 10, 2005
and be bound by ail of the provisions of Chapter 280, Fiorida Statutes. In order to fulfill its
inuestment responsibilities as set forth herein, the Board may retain the services of a
custodian bank or banks, an investment advisor or advisors registered under Investment
Advisors Act of 1940, registered broker dealer or otherwise exempt from such required
registration, an insurance company, or a combina#ion af these, for #he purposes of
investment decisions and management. Such investment manager or managers shali
have discretion, subject to any guidelines as prescribed by the Board, in the investment of
all fund assets.
4. Accurate records shall be maintained at aN times reflecting the market vatuations
of funds and assets o# the Fund, including accurate current accounts and entries as
regards the fotlowing:
A. Current amounts of Accumulated Con#ributions 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
what�oever attributable to contributions and deposits from the Village,
County or State, and.
E. All interest, dividends and gains (or losses) whatsoever, and
F. Such other entries as may be properly required so as to reflect a clear
and comp{ete financiaf report of the Fund.
�. An independent audit shall be performed annually by a certified public
accountant for the most recent fiscal year of the Village showing a detailed listing of assets
and a statement of all income and disbursements during the year for eac#� Fund. Such
in€x�me �nd disbursements must be reconciled wi#h the assets at #he beginning and end
of the ysar. Such r�:port shail reflect complete evalua6ons of assets on both a cost and
market basis, a� wetl as other items normally included in a eertifled audit.
6. The Board of Trustees shall have the ft�ltornring investrr�eri# pov�rers and authority:
A. The Board of Trustees shall be ves#ed with full lega! title ta tfie Fund,
subject, hvwe'ver, and in any event to the authority and power of the
Tequesta Village Council to �mend or #ermina#e this Trvst, provided
that no amendment or fund termination shatl ever resuft in the use of
7
May 10, 2005
any assets of the Fund except for the payment of regular expenses
and ber�efits under tk►is System. AIt contributions from time to time
paid into the Fund, and the income thereof, without distinction
between principal and income, shall be held in the Fund and
administered by the Board or its Agents.
B. All moneys paid into or to be held by the Fund shall be invested and
reinvested by the Board and the investment of all or any part of such
funds shali be limited to:
(1) Annuity and life insurance oontracts of life insurance
companies in amounts sufficient to provide, in whole or in part,
the benefits to which all of the participants in the Fund shall be
entitled under the provisions of the Plan and pay the initia! 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 #he Savings Association Insurance
Fund which is administered by #he Federal Deposit Insuranee
Gorporativn or a state or federat chartered credi# union whose
share accoun#s are insured by the National Credit Union Share
Insurance Fund.
(3) Obligations of the United S#ates or obligations guaranteed as
to prineipa{ and interest by the government of the United
States.
(4) Bonds, stocks, commingled funds administered by National or
State Banks or evidences af indeb#ednes� issued or
guaranteed by a corporation organized under the laws of the
United States, or registered investment company pursuant to
the tnvestment Advisors Act of 1940, any state or organized
territory of the United States, or the Distriet o# Columbia,
provided th�# the corporafiaon is traded on a nafiionally
recognized Exchange and in the case of bands only holds a
rating in one of the �iree four highes# classifiicaticros by a
maj+�r r�ting senrice, at�d if such investments are made in a
po�ted funsi administered by a state or na#ional bank, then the
ra#ing of each issue in ihe pooied fund shat! hoid a rating within
the top three (3) rating classifications of a major ra#ing serwce.
(5) Real estate.
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May 10, 2005
(6) Aff monies paid into or held in the Pension Fund shafi be
invested and reinvested by the Board of Trustees and the
investment of afl or any part of such funds shall be invested in
accordance with an established investment policy adopted by
the Board of Trustees.
(7) Up to 10% of the Plan assets may be invested in foreign
securities.
C. The Board of Trustees shatl not invest more than five percent (5%) of
its assets in the common stock or capital stodc of any one issuing
company, nor shall the aggregate investment in any one issuing
company exceed five percent (5%) of the outstanding capital stock of
that company; nor shal! the aggnegate of its investments in common
stock, capita! stock and convertible bonds at cos# exceed sixty percent
(60%) of the assets of the Fund.
D. The Board of Trustees may retain in cash and keep unproductive of
income such amount of the Fund as they maydeem advisabie, having
regard for the cash requiremen#s of the System.
E. No person or entity shall be liable for the making, re#ention or sale of
any investment or reinvestment made as herein provided, nor for any
loss or diminishment of the Fund, except that due to his/her or its own
negtigence, wittful miscanduct or lack of good faith.
F. The Board may cause any investment in securities heid to be
registerec! in or transferred into their name as Trustee or into the
name of such nominee as they may direct, or #hey may retain them
unregistered and in fo�rn permitting transferabil'stSr, but the bvoks artd
records shall at a{I times show that all inves#ments are part of the
Trust Fund.
G. The Board is empowered to vote upon any stocks, bonds or seeurities
of any carporation, 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 simitartr�ansactions with respe�#to such securi#ies;
to deposit such stock or other securiti�s in any voting trust or any
protsct�ive or like ovmmi�kee with the Trustees or wifih depositories
designated thereby; to amortize ar fail to amc�rtize any part of alf of the
premium or discount resulting ftom the �acquisition or disposition of
assets; and generally to exercise any of the pow+ers of an owner with
9
May 10, 2005
respect to stocks, bonds, or other investments comprising the Fund
which it may deem to be the best interest of the Fund to exercise.
This power may be delegated to an agent by the Board of Trustees.
H. The Board shail not be requir�ed ta make any inventory or appraisal or
report to any court, nor secure any order of court for the exercise of
any power contained herein. -
t. Where any action whieh a Board is required to take on any duty or
funetion which +t is required to perform either under the terms herein
or under the genera! law appiicable to it as Trustee under this
� Ordinance, can reasonably be taken � performed oniy after receipt
by it from a Member, the Village, the Department or any other entity,
of specific information, certification, direction or instructions, the Board
shalf be free of liability in failing to take such action or perform such
duty or function un#i1 such information,. certification, direction or
instruction has been received by it.
J. Any overpayments or underpaymen#s from a Fund to a Member or
beneficiary caused by errors of computation shall be adju�te�! wi#h
interest at a rate per annum approved by the Board. Overpayment
shat! be charge�d against member's payments next succeeding #he
correction. Underpaymen�s shall be made up from the Trust Fund.
K. A Board sha{{ �ustain no fiabi�ity w#�atsoever #or the suffieiency o# a
Fund to meet the paymerrts and benefits herein provided.
L. Any of the foregoing powers and functions may be performed or
carried ou# by the Board through duly author�zed Agents, provided
that the Board at atl times mairftains cantinuvus supervision over the
acts of any such Agent; provid�d further, that lagal title to a Fund s#�atl
always remain in the Board of Trustees.
M, A Roard shal! not invest more than ten percent (14°/a) at cost of its
a�sets iR real property or real es#.�te and there shai! be no investment
in a limited partnership or trust.
N. The Viltage shaN maintain Fiduciary �iability insurance to cover the
members of the Board of Trustees.
Section 6. Contributions.
10
May 10, 2005
1. Member Contributions
A. Amount. Membecs of the Retirement Sys#em shall be required to
make regular contributions to the Fund in the amount of five percent
(5%} of his/her sa{ary. Member contributions withhefd by the Vilfage
on behalf of #he Member shall be deposited wi#h the Board o#
Trustees immediately after the withholding of such contributions. The
con#ributions made by each Member to the Fund shall be designed as
emp{oyer confiributions pursuant to Section 414(h) of the Code. Such
designation is contingent upon the +contributions being excluded from
the Members' gross income for Federai Income Tax purposes. For
all other purposes of the Plan, such contributions shall be considered
to be Member contribu#ions.
B. Method. Such contributions shalf be made by payroll deduction.
2. Village Contributions
So long as this Sys#em is in effect, the Village shall make contributions at
ieast quarterly to #he Trus# Fund in an amount equal to the normal cost and the amaunt
required to fund any actuarial deficiency shown by an actuariat valuation as provided in
Part VI! of Chapter 112, Ftorida Statutes.
3. Other
Priva#e donations, gifts and contributions may be deposited to the Fund, but
such deposits must be kept separately and kept Qn a segregated bootckeeping basis.
Funds arising from these sources may be used only for additional benefits for Members,
as determined by the Board, and may not be used fio r,educe what wouki have otherwise
been required by Vi{lage contributions.
Section 7. Benefit Amounts and Etigibilitv.
1. Normal Retirement Date
A Member's normal retirem�nt date shal! be the first day of the month
coincident with, or next following the earlier of:
a) attainment ofi age sixty-two (62) negardless of years of creiiited
service, or
b) attainment of thirty {30) years of credited service regardfess of age.
11
May 10, 2005
A Member may retir�e on his/her normal retirement date or on the first day of
any month thereafter, and each Member shail become '100°!o vested in
his/her accrued benefit on the Member's normal reti�ement date. Normal
retirement under the Plan is retirement from employment with the Village of
Tequesta as a Generat Employee, on or after the normal retirement date.
2. Normal Retirement Benefit.
A Member retiring hereunder on or after his/her normat retirement date shall
receive a monthly ben�fit. which shalt commence on his/her Retirement Date and be
continued thereafter during the Member's lifetime, eeasing upon death, but with one
hundred twenty (120} monthly payments guaran#eed in any event. Benefi#s are payab)e
for the life of a retiree with a guaran#ee of 120 monthly payments. Shouid a member die
before 120 month{y paymen#s (10 years) are made, #hen the remainderof the 120 monthly
paymen#s will be paid to a beneficiary. Should a member receive more than 120 monthly
paymertts, then no beneflt is payabte to a b+�neficiary. The monthly retirer�ent benefit shail
equal finro percent {2°l0) of avera�e final compensation, for each year of credited service
(2% x average final cornpensation x years of credited service).
3. Eay Rstirement Da#e
A I�Aember may retire on his/her early retirement date which sha14 be the firs#
day of any month coinadent with or �ejct following the later o# the attainment of age fifty
(50) and #he completion ofi six (6) years of credited service. Early retirement under the
Plan is re#irement from employment wii�t the Viflage of Tequesta on Qr after the early
retiremen# date and prior to the normal r�tiremen# da#e.
4. Early Retiremen# Benefiit
A Member r+atiring hereunder on his/her eariy retiremen# da#e may receive
either a defe� ar an immediate mon#hly retirement benefi# payable for G#e; bu# with ane
hundred twenty (120) monthly payments guaranteed in any event, as foNows:
A. A deferred monthly retirement benefit which shall commence on what
wou[d have been h+s/her normat r�tirement date had helshe remained
a G�nerat E�ployee and shaH be continued on ttte ftrst day of each
month tMereafter. The amount of each such def�rred monthly
retirement benefit shalt be defiermined in the sarne manrter as for
retiremen# as his/her normal retirement date except that c�edi#ed
s�rvice and �ve+rage finat compensation st�aN be determined as of
his/her ear{y retirement date; or � . .
B. An immediate mor�thiy retirement benefit which shatl c:ommence on
12 .
May 10, 2005
his/her early retirement date and shali be con#inued on the first day of
eaeh month thereafter. The benefit payable shatl be as determined
in paragraph A above, which is actuariaily reduced from the amount
to which he/she would have been entitled had he/she retired on
hislher normal retir�ement date and with the same number of years of
� credited service as at the time his/her beneftt commence and based
on his/her average final compensation at that date. In no event shall
the early retirement reduction exeeed five percent (5°fo) each year by
which the commencement of benefits precedes the Member's normal
retirement date.
Section 8. Pre-retirement Death.
Upon the death of any vested member, whether or not still in active employment,
a survivor benefit is payable to the beneficiary starting when #he member would have
reached retirement age. The benefit is equal to the vested pension benefit.
Section 9. Disabili#v.
1. Disability Benefits On-0utv
Eac�t► fu11 time emp{oyee who is a pa�ticipant in the Pens9on Fund System and who
becomes totally and permanently disabled while an active employee of the Village of
Tequesta #o the extent that he/she is unable, by reason of a medically determinable
physicai or mental impairment, to render usefut and eificien# service as a Generat
Empioyee, which disability was directly caused by.the performance of hislher dut}r as a
Generaf Employee sMall upon establishing tne s�me to the satisfaction o# the Board, be
entitted to the greater of A or B:
A. If the injury or disease is service connected, the employee shall be
entitied to #he greater of (1) or {2);
(1) a monthly pension equal to 42°� of his/her aUerage monthfy
campensation as of hislher disability retirement date, Qr
(2} an amount equsl to the number of years of his/her credited
service muttiplied by 2°l0 of hislher average mon�ly salary
based upon hislher final 5 years of service.
13
May 10, 2005
2. Disability Benefits Off-Dutv
� Every General Employee who has six years of credited service. is a
participant in the Pension Fund System and who shall have become tota(ly and
permanently disabled to the extent that he/she is unable, by reason of a medically
determinable physica! or mental impairment, to render useful and efficient service as a
General Employee which disabitity is not directly caused by the performance of his/her
duties as a General Employee shall be entitled to the greater of A or B:
A. a monthly pension equal to 25% of his/her average monthly
compensation based upon his/her frnal5 years of serviee, or
B. An arr�ount equal to the number of years of his/her credi#ed
service multiplied by 2% of his/her average monthly salary
based upon his/her final 5 years of servioe.
3. Condi#ions Qisauatifying Disability Bene�i#s
Each General Employee who is claiming disability benefi#s shalf establish, to
the satis#action of the Board, that such disability was not occasioned primarily by:
A. Excessive or habitual use of any drugs, intoxican#s or aleohoi.
B. Injury or disease sustained while willfully and illegaity participating in
fights, riots or civil insurrections.
C. Injury or disease sustained while committing a crime.
D. Injury or disease sustained while serving in any branch of the Armed
Forces.
E. In}ury or disease sustained after his/her employment shaN have
terminated as a General Employee with #he ViHage of Tequesta.
F. Willful, wanton or gross negfigence of the Member.
G. fnjury or disease sustained by Generai Employee while working for
anyone other than the Village of Teques#a and arising out of such
emptoyment.
H. lnjury or disease sustained by the member before employment with
the Viilage begins. This subparagraph aRplies only in the event of a
duty injury or disease.
14
May 10, 2005
4. Ph,ysicat Examination Requirement
An emptoyee shall not become eligible for disability benefits untii and unless
helshe undergoes a physicaf examination by a qualified physician or physicians andior
surgeons, who shall be selected by the Board for that purp�e.
Any persan receiving disabilitybenefi# under provisions of this Or+dinance may
be periodically re-examined by a qualified physician or physicians and/or surgeon or
surgeons who shall be selected by the Board, to determine if such disability has ceased
to exist. If the Board finds that the retiree is no longer permanently and totally disabled to
the extent that he/she is unable to render useful and efficient senrice as a General
Empfoyee the Board sha{{ recommend to the Vil{age that the retiree be ret�rned to their
previous performance of du#y as a General Empbyee, and #he r�tiree so returned shal!
enjoy the same rights that Member had at the time he/she was plac�d upon pensi4n. In
the event the retiree is so ordered to retum shall refiuse to comply with the order within
thirty (30} days from the issuance #herec3f, Memt�r shali forfeit the righ# to his/her pension.
The cost of the physical examination and/or re-examination of the employee
or retiree claiming andlor receiving disability ben�fit� shall tae bome by the �oard of this
Pension Fund Syst�m. AI! ottter reasonaWe ccasfis as determined by #he Bo�rd incidetrt to
the physical examination, such as, but not iimited to, transparta#ion, meals and hotel
accommodations, shall be borne by the Board.
Ifi the retiree reeovers from disability and reenters his/her #ormer service with
the ViNage af Tequesta heid prior to disaai{i#y retiremen#, hislher service will be deemed
to have been continuaus, but the perioti beginning wifh the first mQnth for which he/she
received a disability retirement income payment and ending wi#h the date he/she reenfiered
the service of #he Vilfage wilt not bs considered as credited service for the purposes of the
Pian. �
The Board shait have the pawec and authority t+� make the finat d�cision
regarding all disability claims.
5. Disability PaXmenfis
The morrfhly benefit to which a Wfember is en#itled in the event of the
Member's disabili#y retirement shall be payable on #he firs# day o# #he first manth after the
Board of Trustees determines sud� en�tlement. However, the monthty retirement income
shall be payable as of the date the Board determined such er►#itlement, and any portion
due for a partial month sha11 be pa�c# together with the first payment. The tast payment wi41
be:
A. I# the plan member recovers from the disability or attains his/her
15
May 10, 2005
normal retirement date, the payment due next preceding the date of
such recovery, or
B. If the plan member dies without recovering from the disability prior to
his/hec normal retirement date while s#ill disabted, the payment due
, next preceding his/herdeath orthe 120"' monthly payment, whichever
is later.
Section 10. Vesting_
If a Member terminates his/her employment with the Village of Tequesta, either
voluntarily or by discharge, and is not el�ible for any other benefits under this Sys#em, the
Member shatl be entitled to the folfowing:
1. If the Member has (ess than six (6) years credited service ar�! has not attained
the age of sixty-two (62) upon termina#ion, the Mei�nber shall be entitled to a refund of
accumulated contribution or the Member may teave it deposited with the Fund, in
accorda�ce with the definition of credited service.
2. If the Member has six (6) or more years of credi#ed servioe upon termination, or
altematively, the Member has attained the age of sixty-#wo (62}, regardless of eredited
years of service, the Member shall be entitfed to a manthly retirement benefit that is the
actuarial equivalen# ofi the �mount ofi such retirement ineome otherwise payable to him/her
commencing a# the Member's otherwise normal or early retirement date, provided he/she
does not elect to withdraw his/her accumulated cantribufiions and provided the Member
survives to his/her r�ormal or eady retirement date.
3. Any plan member of th� System whose position is terminated, for whatever
reason, but who is employed by the Viilage in some capacity, shall have ali r+etirement
benefits accrued up to the da#e of such terminatfon under this System pre�erved, provided
he does not elect to wi#hdr�w his/her accumulafied cQntributionS from this Sys#em. �uch
Accrued retirement benefits shall be payable at his/ner tt�erwise normai retir�ement d�te ,
hereunder, or later, in accordance with the provisions of this System.
Sec#ion 11. Ootional Forms o# Benefits.
1. In lieu ofi the amoun# and form ofi retiremeRt income payabie in the event of
normaf or early retirement as sper,ified herein, a plan member, upon written request to the
Board of Trustees and submissian of evidenve p# good health (except that such evidence
will not be required if such request is made at least three (3) years prior to the date of
commencement of re�irement income or if such r�eques# is made within six (fi) months
follow�ng the ef�ective date of #he Plan, if tat�r), and subjec# to the approval of the Board
of Trustees, may elec# to receive a retirement income or benefit of equiva#ent actuarial
16
May 10, 2005
valuation payabte in accordance with one of the foilowing options
A. A retirement income of a larger month(y amount, payable to the
Member for his/her lifetime oniy.
B. A retirement income of a modified monthly amount, payable to the
Member during #he joint lifetime of the Member and a dependent joint
pensionerdesignated bythe Member and #oilowing 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 paymen#s or benefits as,
in the opinion of the Board of Trustees, will best meet the
circumstances of the retiring Member.
2. The Member, upon electing any option of this sectian, wil! �signate the joint
pensioner or beneficiary (or beneficiaries) to receive the benefit, if any, payabfe under the
Plan in the event of the Member's death, and wi!! have #he power to change such
designation from time to time, but any such change shall be deemed a new election and
witt be subject to approvaf by the Soard of Trustees. Such designatio� wi{1 name a joint
pensioner or one or more primary beneficiaries where applicable. If a Member has elected
an option with joint pensioner or benefia�ry and the Member's retiremen# income benefits
have commQnced, the [Vtember may thereafter �hange his/t�er designat�ed �oint pensioner
or beneficiary, but only if the Board of Trustees consents to change and if the joint
pensioner or beneficiary, but only if the Board of Trvstees consen#s to cMange and if the
joint pensiQner last previausly desi�ate�t by the Member is aliv� when he/she feles with the
Board of Trustees the request for such change.
3. The consent of joint pensioner or beneficiary to any such change shall not be
required.
4. The Board o# Trustees may reques# such evidence of #he good health of joint
pensioner tha# is being removed as it may require a�d the amount of #he retirement income
payable to the Retiree upon designafiion of a new joint pensianer shali be actuariatly
redet�rmineci taking irrto �ccount the age and sex of the former joint pensioner, the new
joint pensianer, and tt►e ftetiree. Each such desi�ation wil! be made in writictg on a form
prepared by the Board of Trustees and on comptetion will be filed with the_Board of
Trustees.
ln the event that no designa#ed beneficiary sunrives tMe Member, such benefits as
are payabte in the �vent of the deatM of the Member subsequent to hisJher ret+rement shaH
be paid as provided in Section 12.
17
May 10, 2005
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 folbwing
limitations:
A. If a Member dies prior to his/her normal retirement date or early
retirement da#e, whichever occurs, no retirement benefi# will be
payable under the option to any person, but the benefits, if any, wifl
be determined under Section 8.
B. If the designated beneficiary (or beneficiaries) or joint pensioner dies
before the Member's retirement underthe Plan, the option elected will
be canceled automatically and a retirementincomeof the normal form
and amount will be payab{e to the Member upon his/her retiremen# as
if the election had nat been made, unless a new election is made in
accordance with the provisions of this section or a new beneficiary is
designated by the Member pr'ror to his/her retirement and within ninety
(90) days after the death of the benefiaary.
G If both the retired Member and the beneficiary (or beneficiaries)
designated by the Member die be#ore fhe full payment has been
effected under any option providing for payments for a period certain
and life thereafter, made pursuant to the provisions o# subsection 1,
the Board of Trustees may in its discretion, direct tha# the computed
va{ue of the remaining paymen#s be paid in a lump sum and in
accordance with Section 12.
D. If a Membercontinuesbeyond histhernormal retirementdate pursuant
to the provisions o# Section 7, subsection 1, and dies prior to his>her
actual retirement and whiie an option made pursuant to #he provisions
of this section is in effect, monthly retirem�nt income payments rn�ll be
made, or a retirement benefrt will be paid, under the option to a
beneficiary (or beneficiaries} designated bythe Member in the amount
or amoun#s computed a� if the Member had retired under #he option
on the date on which his/her death occurred.
6. The Member may not change his/her retir�:ment option after the date of cashing
or deposi#ing his/her fir�t retirement check. �
Section 1�. Bene�ciar�es.
1. Each Member may, on a form provided for that purpose, signed and ftled with
18 .
May 10, 2005
the Board of Trustees, designate a beneficiary (or benEficiaries) to receive the benefit, if
any, which may be payable in the event of hislher death; and each designation may be
revoked by such Member by signing and filing with the Board of Trustees a new
designation-of-beneficiary form.
2. If a deceased Member fails to name a beneficiary in the manner prescribed in
subsection 1, or if the beneficiary (or beneficiaries) named by a deceased Member
predeceases the Member, the death benefit, if any, which may be payable under the Plan
with respect to such deceased Member shall be paid, in the discretion of the Board of
Trustees, either to:
A. TMe wife or dependent children of the Member;
B. The dependent living parents of the Member; or
C. Estate of the Memaer.
Section 13. Claims Procedures Before the Board Decision.
1. If any Member of t#�e Sy�tem has been:
A. Placed on pension under the terms and provisions of this ordinance
for disability, or �
B. Placed on pension beca�se the Member has served the required
number of years to entitle him #o 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
' entitfed to ben�ts under the Plan, #he Member may, in writing,
request the Board to review his/her case. The Board shall review the
case and enfier such order thereon as it deems right and proper within
sixty (60) days from receipt of such written reques# and the receipt by
the Board of a written medical r�elease authorization and a list o#
names and addresses of all treating health care providers #or such
revi�w of disability claims; provided, that #he Board may extend #he
tim� for entering such order by an additional forty-five (45) days if it
determines such time is necessary for discovery in fult and adequate
review.
2, In the event that the order from the Board denies the claim for a change in
such benefits or denies fhe ctaim for benefifis, the order of the Board shall be
put in wRting. Such written order shaN inctude:
19
May 10, 2005
A. The specific reasons for the denial, including specific references to
pertinent provisions of the retirement system on which such deniai is
based;
B. A descripfion of any additional material or information that the Board
feels is necessary for the Member to perfect his/her claim, together
with an explanation of why such ma#erial or information is necessary;
� and
C. An explanation of the review procedure next open to the Member.
Such review procedure shaH provide that:
{1) Prior #o such review, the Member or hislher duly authorized
representative may review any pertinent documents including Plan
provisions, minutes of the meeting of the Board in which denial fa the
claim was originatfy recommended, and any otherdocuments materia{
to the case;
(2) After such review, the Member and/or his/her duly authorized
representative shall submit their case in writing to the Board and
� request a hearing. Such submissivn shall be fited with the Board no
later than ninety �9Q) days after the receipt of fhe orcler of the Board.
Upon receipt of the written submission by the Member, #he Board
shall schedule an opportunity for a#ull and fiair hearing of the issue
within the next ninety (90) days, and such scheduled hearing shali be
communieated in writing to the Member. The Member and/or his/her
duly authorized represen#ativ� may then appear at such scheduled
hearing to present their case. The Board shall oonsider the facts
presented at the scheduled hearing and shall, within thirty (30� days
after such hearing, make a finai ruling in writing on the r�uest of tMe
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 atf eviden�iary and o#her legai questions that
arise during the hearing.
(b) Either party, fihe daimant 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. Atl parties are fio #umish rx3piss of all
pleadings to the opposing parties and exchange lists
20
May 10, 2005
with names and addresses of witnesses expected to be
called to testify at the hearing, as well as the list of
exhibits that are intended to be introduced, at least
forty-five (45) days prior to the hearing. Testimony of
� witnesses shall be under oath or a�cmation.
Depositions or affidavits shatl not be admissibfe unfess
upon stipulation by all par#ies. The Chairman, any
Member of the Board, the attomey for the Board, the
claimant and the daimant's attomey, upon recognition
by the Chairman, may direct questions to any witness
during the proceedings. Each party sha11 have the right
to present evidence relevan# to the issues, to cross-
examine witnesses, to impeach witnesses and to
respond to the evidence presented against the parly.
Each party shall have the right #o present any opening
and dosing arguments. Any party may secure the
senrices o# a court reporter to record the proceedings
with the cost to be ba�ne 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 shail be on the cfaimantwho seeks
to draw his/her entitlement #o a pension, disability
pension, or increased pension benefits.
3. In all proceedings under subsections 1 or 2 hereof, the Board shall have the
power to subpoena and require the attendance of witnesses and the �
production of documents for discovery prior to and at the proceedings
provided for in each paragraph. A reasonable fee may be charged #ar the
issuance o# any subpoenas not to exceed the fees set forth in Florida
Statutes.
Section 14. Ros#er of Retirees.
The Secr�etary of the Board shall keep a record of all persons enjoy'rng a pension
under the provisions o# this Ordinance in which +# shall be no#ed the time when the pension
is ailowed and when the same shall cease to be paid. Additionatfy, the Secretary shall
keep a record of ail General Employees empbyed by the Municipabty who are Members
of the plan in such a manner as to show ifi� name, address, date of empbyment and date
such employment is terminated.
21
- May 10, 2005
Section 15. Board Attorne�and Profiessionais.
The Board may empioy independent legal counsel at the Pension Fund's expense
forthe purposes contained herein, togetherwith such other professional, technical, or other
advisors as the Board deems necessary.
Section 16. Maximum Pension.
1. Basic Limitation. Subject to the adjustments herein set forth, the maximum
amount of annua{ retir�ement income payabte with respect to a Member under this Pian
shali not exceed the limitations set forth in §415 of the Code.
2. Additionai Limi#a#ion on Pension Benefits. Notwi#hstanding anything herein
to the con#rary:
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
Ptan, on or after January 1, 1980, shall not exoeed 100 percent of
� his/hec average final compensation. However, nothing con#ained in
this section shail apply to supplementat retirement benefits or #o
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 shatl
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 atready receiving, or will receive in the future, a retirement benefit
or pension from another retirement system or plan. This restriction
does nv# apply to social security benefits or federat benefi#s under
Chapter 67, Titte 10, U.S. Code.
Section 17. Commencement of Be�efits,
1. Unless the Member o#herwise elects, with such election being in writing and
to #he Trus#ees and specifying the form of retirement inoome and date on which the
retirement income is #o oommence, the payment benefits under the Ptan to the Member
shaH commenee not later than the 60 day after the dose of the Plan Year in which the
la#est following events occur: �
A. The attainment by the Member of age 65;
B. The 10�' anniversary of the date on which the Member commenced
participation in the Ptan; or
22
May 10, 2005
C. The termination of the Member's service with the Viltage 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
reasonabie efforts to do so, the payment of the Member's benefit shall begin not later than
sixty (60) days after the date on which the amount can be ascertained ar the Member is
located, whichever is appticable. Any such paymen# shall be made retroac�ve to a date
which is not earlier than the date on which the payment af the Member's benefit was
scheduled to begin but which is not later than the date specfied under subsection 1 of this
Section.
Section 18 Distribution uf Benefits.
Notwithstanding any other provision of this Plan to the contrary, a farm of retiremen#
income payable ftom th�s Plan after the effective date af this ordinanae, shal! satisfy the
foltowing conditions
1. If the retirement income is payable before the Member's death,
A. it shall either be distributed or comrnence to the Member not later
than April 1 of the calendar year foflowing the later of the calendar
year in which the Member attains age 70'/Z, or the caiendar year in
which the Member retires,
B, the distribution shaU commence to them not later than the calendar
year defined above; and shail be paid over the life of the Member or
overfihe lifetimes of the Member and spouse, issue or dependent, or,
shalf be paid overthe period extending not beyond the life expectancy
of the Member and spouse, issue or dependent.
W here a form of retirement income payment has commenced in accordance
with the preceding paragraphs and the Member dies before his/her en#ire
interest in the Plan has been dis#ributed, the remaining portion of such
interest in the Plan shall t�e distributed no less rapidly than under the form of
distribution in effect at the frme of the Member's death.
2. If the Member's death occurs befQre the distribution o# his/her inte�est in the
Plan has commenced, the Member's entire interest in #he Plan shali be distributed within
five (5) yeafs of the Member's death, unless it is #a be distributed in accordance with the
following rules:
A. The Member's r�emaining irtterest in the Plan is payable to his/her
23
May 10, �005
spouse, issue or dependent;
B. The remaining interest is to be distributed over the life of the spouse,
issue or dependent or over a period not extending beyond the life
expectancy of the spouse, issue or dependent; and
C. Such distribu#ion 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 be#ore the date
on which the Member would have attained age 70'/2 and i€ the
" spouse, issue or dependent dies before the distribution to the spouse,
issue or dependent begins, this Sec�ion shall be applied as if the
spouse, issue or dependent were the Plan Member.
Section 19. Misceflaneous Provision.
1. Interest of Members in Pension Fund. At no time prior to the satisfaction af
ati liabili�es under tt�e P�n with respect tv Members and their spouses or beneficiaries,
shafl any part of the corpus or income of the Pension Fund be used for or diverted to any
purpose other than #or their elusive benefit.
2. No amendment or ordinance shali be adopted by the Village Council of the
Village of Tequesta which shali have the effect of reducing the fhen vested acerued
benefrts to Members or Members beneficiaries.
3. Rollover Dis#ributions.
A. This subsection applies fio distributions made on or after January 1,
1993. Notwithstanding any provision of the Plan to the contrary that
would otherwise limit a distributee's etection under this subsection, a
distributee may etect, at the time and in the manner prescribed by the
Board of Trustees, to have any pQrtion of an eligible ro{lover .
distribu#ion paid directly #o an eligible retirement plan specified by the
distributee in a direct rollover.
B. Definitions.
(1) "Etigible rollover distribution" is any distribution of alt or any
portion of fihe batance #o the credit o# the distributee, except
tha# an eligible rollover does not include any distribution that is
one of a series of substantially equal periodic payments (�ot
less ftequently than annually) made for the life (or life
expectaney) of the distributee or distributee's designated
24
May 14, 2005
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 af any
distribution that is not includible in gross income.
(2) "Eligible retirement plan" is an individual retirement account
described in section 408(a) of the Code, an individual
retiremen# annuity described in section 408(b) of the Code, an
annuity pfan described in section 403(a) of the Cc�de, or a
qualified trust described in section 401(aj of the Code, that
accepts the distributee's eligibie rolloverdistribution. However,
in the case of an eligible rollover distribution to the surviuing
spouse, an eligibie retirement plan is an individual retirement
account or individual retirement annuity.
(�) "Distribu#ee" includes an emRloyee or #ormer employee. In
addttion, the employee's or former employee's sunriving
spouse and the employee's or former employee's spouse who
is entitled to payment for alimony and chiid support under a
domestic relations order determined to be qualified by this
� Fund are dis#ributees with regard to #he interest of the spouse
or #ormer spouse.
(4) "Direct rollaver" is a payment by the Plan to the eligible
� retirement plan specified by the distributee.
Section 20. Repeat or Termination of Svstem.
1. This Ordinance establishing the System and Fund, and subgequent
Ordinances pertaining to said System and Fund, may be modified, terminated, or
amended, in whole or in part; provided that if this or any subsequent Ordinance shall be
amended or repeated in its appiication to any person beneftting her�eunder, the amount af
benefits which a� the time o# any such atteration, amendment, or repeal shall have
accrued to the Member or beneficiary shall not be affected thereby, except to the extent
that fihe assets fo fihe Fund may be determined to be inadequate.
2. If this Ordinance shall be repealed, or if con#ributions to the System are
discontinued, tt�e Baard shatt continue to administ�r the System in accordance with the
provisions of this Ordinance, #ar the soie benefit of the then Members, any beneficiaries
then receiving retirement allowances, and any future persons entitled to receive benefits
under one o€ tt►e vp#ions provided for in this Ordinance who are designated by any of said
Members. in the event o# repeal, or if contributions #o the System are discontinued, there
25
May '10, 2005
shali be full vesting (100%) of benefits accrued to date of repeal and the assets of the
� Sys#em shall be allocated in an equitable manner to provide benefits on a proportionate
basis to the persons so entitled in accordance with the provisior►s thereof.
3. The foilowing shall be the order of priority for purposes of allocating the
assets of #he System as of the date of repeal of this Ordinance, or if contributions to #he
System are discontinued with the date of such discontinuation being determined by the
Board.
A. Apportionment shall frrst be made in respect of each retired General
Employee receiving a re#ir�ement or disability benefit hereunder on
such date, each person receiving a benefit on sudi date on account
of a retired or disabled (but since deceased) Generat Emp{oyee who
has, by such date, become efigible for normal r�etirement but has not
yet retired, an amount which is the actuarial equivalent of such
benefit, based upon the actuarial assumptions in use for purposes of
the most recent actuarial �ralua#�on, provided that, if such asset value
be less #han the aggregate of such amounts, such amoun#s shaif be
proportionately reduced so that the aggregate of such reduced
amounts v�iN be equal ta such asset value.
B. If there be any asset value remaining after the apportionment under
paragraph A, apportionmen# shall next be made in respect of each fulf
time General Emplayee in service of the Viliage of Tequesta on such
date who has completed at least six (6) years of credited servioe and
who is not entitled to an apportionment under paragraph A, in the
amount required to provide the actuarial equivalent, as described in
A above, of the acaved normal retirement benefit based on the �
credited service and average monthly eamings as of such date, and
each vested former Member then entitled to a defened bene�it who
has not by such date, begun reeeiving benefit payments, in the
amount required to prov�4e said actuariat equivalent o# the accrued
normat retirement benefi� provided that, if such remaining asset vafue
be less than #he aggregate of the amounts apportioned hereunder,
such latter amounts shalf be proportionately reduced so that the
aggregate of such reduced amounts will be equal to such remaining
asset value.
.
G. 1# there be any asset u�lue after the apportionment under paragraph
A and B, app�rtionment shatt be made in respect o# each fult time
Generat Employee in service of the Village of Tequesta on such date
who is Rot entitled to an apportionment under paragraphs A and B in
the amount equal to Member's Accumu{ated Contributions, provided
26
� May 10, 2005
that, if such remaining asset value be less than the aggregate of the
amounts apportioned hereunder such latter amount shall be
proportiona#ely reduced so that the aggregate of such reduced
amounts will be equal to such remaining asset value.
D. If there be any asset value remaining after the apportionment's under
paragraphs A, B and C, apportionment shall lastly be made in respect
of each Member included in paragraph C above to the extent of the
actuarial equivalent, as described in paragraph A above, of the
accrued normal retir�ement benefit, less the amount apportioned in
paragraph C, based on credited service and average monthly
earnings as of such date provided that, if such remaining asset value
be less than #he aggregate of the amounts apportioned hereunder
such amounts shall be ceduced so thatthe aggregate of such reduced
amounts will be equal to such remaining asset value.
E. In the event that ther� be asset value remaining after the full
apportionment's specified in paragraphs A, B, C, and D, such excess
shall be retumed to the Village.
The aflocation of the Fund provided for in this subsection may, as decided by the
Board be carried out through the purchase of insurance company contracts to provide the
benefits determined in accordanee with this subsection. The Fund may be distributed in
one sum to the persons entitled to said benefits or #he distribution may be carried out in
such other equitable manner as the Board may direct. The Trus# may be continued in �
existence for purposes of subsequent distributions.
4. After all the ves#ed and accrued benefits provided hereunder have been p�id
and af#er ait other fiabitities have been satisfied, then and only then shatf any nemaining
fund revert to the General Fund of the Village.
� Section 21 ExemQtion from Execu�on, Ncm�ass�gnabiiitv
The pensions, annuities, or any other benefits accrued or accruing to any person
und�r the provisior►s of this Ocdinance and the acc�mulated contributions and the cast�
securities in the Fund cnea#ed under this Ordinance are hereby exempted from any state,
county or municipai tax of the sta#e and shaN not be subject to execution, attachment,
gamishment or any legal process whatsoever and shall be unassignabie. Howev�r,
pursuant to an income deduction order, the Trustees may direct tha# �tirement benefits
be paid for alimony or chifd support in aeeordance with rules and regulations adopted by
the Board of Trustees. .
27
� May 10, 2005
� Section 22. Pension Validitv.
The Board of Trustees shail 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, fraud ulently or illegally for any reasons.
Said Board is empowered to purge the pension roNs of any person her�etofore 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
Ordinanee be erroneously, improperly or illegally classified.
Section 23. Forfeiture of Pension.
Any Plan Member convicted of the following offenses committed prior to retirement,
or whose employment is terminated by reason of his/her admitted commission, aid or
abatement of the following specified offenses, shall forfeit aif rights and benefits under this
Pension Fund, except for the retum of this accumulated contributions as of the date of
termination.
1. Specified offenses are as follows:
A. The commitfing, aiding or abetting of an embezzlement of public
#unds;
B. The committing, aiding or abetting of any theft by a public officer or
employee from employer;
C. Bribery in connection with the employment of a public officer or
employee;
D. Any fetony specified in Chapter 838, Florida Statutes;
E. The committing of an impeachable offense.
2. The committing of any felony by a public officer or employee who willfully and
with intent to defraud the pub(ic o� public agency, for which he acts or in whieh 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 same other person through use or attempted use of #he power, rights,
privileges, duties or position of hislher public office or employment position.
28
May 10, 2005
A. Conviction shall be defined as foilows:
An adjudication of guilt by a court of competent jurisdiction; a plea of
guilty or nolo contendere; a jury verdict of guilty when adjudication of ,
gui�t is withheld and the accused is placed on probation; or a
conviction by the Senate of an impeachable offense.
6. Court shall be defined as follows:
Any state or federal court of competent jurisdiction which is exercising
jurisdiction to considera proceeding involving the alleged commission
of a specified offense. Prior forfeiture, the Board of Trustees shall
hold a hearing on which notice shall be given to #he Member whose
benefits 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
accumutated contributions after Member's rights were forfeited shaN be
required to pay back to the Fund the amount of the benefits received in
excess of hislher accumulated contributions. The Boarrl of Trustees may
imp4ement atl legal action necessary to recover such funds.
Section 24. Militar�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 Sta#es or United States Merchant
Marine, voluntarily or invofuntarily, prior to first and initial employment with the Village of
Tequesta sha!! be added to his/her years of credited service provided that:
1. The General Employee contribu#es to the Fund the sum that he/she would
have contributed had heJshe been a member of the Pfan for the years or ftactional parts
of years for which he/she is requesting credit plus amounts actuarially de#ermined such
that the crediting o# service does not result in any cost to the Fund plus payment of costs
for a{{ professiona{ serviees rendered to the Board in connection with the purchase years
of credited service.
2. The request shall be made onfy once and made by the Member on or before
the later of twelve (12) months from the effective date of this Ordinance or six (6) months
ftom the date of his/her employment with the Village of Tequesta, whichever is iater.
� 3. Payment by the Member of the required amount shall be made within six (6)
29
May 10, 2005
months of his/her request for credit and shall be made in one lump sum payment upon
receipt of which credited servioe shall be given. Credited service purchased pursuan# 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.
B3J/ka
March 31, 2005
H:\Tequesta GE 10121PIan Docs & Rules�2005 Restata disability.wpd
30
r
f � ��, ,-_
MAR 1 g 2005
� ��� -�
�onn��rs�r��,�-ao
GABRIE4 ROEDER, SMITH & COMPANY
Consultants & Actuar[es
301 East Las Olas Blvd. • Suite 200 • Ft. Lauderdale, FL 33301-2254 • 954-527-1616 • FAX 954-525-0083
March 15, 2005 �
James Weinand, Chairman
Pubiic Safety Officers Board of Trustees �
Viltage of Tequesta
_ 357 Tequesta Drive
Tequesta, FL 32960-6441
Re: Tequesta Public Safety Pension Plan
Dear Jim:
As requesfed, we have prepared an Actuarial fmpact Statement for an ordinance that makes the
following changes for Public Safety Officer Plan Members:
1. Benefit multiplier is increased to 3.0% for years sixteen through twenty-one
2. Benefit multiplier is increased to 3.0% for all years of service after twenty-five
3. Supplemental bene�t is increased to $ZQ.00 per year of service
4. Employee contributions increased from 5:0°/a to 6.1% of pay for Firefighters .
Please have a member of the Board of Trustees sign the Statement. Then send it along with a
copy of the proposed ordinance to Tailahassee.
We welcome your questions and comments. .
Sincerely yours, , �
�� •
J. Stephen Paimquist
Enclosures
Vitlage of Tequesta
Public Safety Officers Pension Plan
Impact Statement — March 15, 2005
Description of Amendment
These changes would apply to both Firefighter and Police Officers except for the
change in employee contributions:
1. Benefit multiplier is increased to 3.0°!o for years sixteen.#hrough twenty-one
2. Benefit multiplier is increased to 3.0% for ail years of service after twenty-five
3. Supptemental benefit is increased to $20.00 per year of service
4. Empioyee contributions increased from 5.0% to 6.1 % of pay far Firefrghters
Funding Imptications of Amendment
An actuarial cost estimate is attached.
Certification of Administrator
i believe the amendment to be in compliance with Part V)t, Chapter 112, Florida
Statutes and Sectian 14, Artic(e X of the Constitution of the State of Florida.
Fo he Board of Truste s
Pian Administrator
SUPPLEMENTAL ACTUARIAL VALUATI�N REPORT
Pian
Village of Tequesta Public Safety Officers Pension Trust Fund
Valuation Date �
Octaber 1, 2003
Date of Report
March 15, 2005
Report Requested by
Board of Trustees
Prepared by
J. Stephen Palmquist
Group Valued
Active Firefighters and Police Officers
Plan Provisions Being Considered for Change
Present Provision Before Chanqe
1. Benefit Multiplier is 2.5% fior years of service 16-21
2. Benefit Multiplier is 2.0°lo afiter 25 years of service
3. Supplemental Benefit is $5.00
4. Emplayee Contributions a�e 5.0% (Firefighters)
Proposed Chanae
1. Benefit Multiplier is 3.0% for years af service 16-21
2. Benefit Multiplier is 3.Q% after 25 years af senrice �
3. Supplemen#al Beriefit is $20.00
4. Employee Contributions are 6.1% (Firefighters)
Participants Affected
Ail Active Police and Firefighters.
Actuarial Assumptions and Methods
Same as October 1, 2003 Actuariai Valuation Report with no exceptions.
Some of the key assumptions/methods are:
Investment return — 8.0°lo per year
Sa1ary increase — 6.0% per year
� Cost Method � Aggregate
Amortization Period for Any Increase in Actuarial Accrued Liability
NA
Summary of Data Used in Report
NA
Actuarial Impact of Proposal(sj
See attached page(s). The changes are being funded by an increase in the Firefighters'
contribution rate and by availabie Chapter 175 and Chapter 185 revenue.
Special Risks Involved With the Proposal That the Plan Has Not Been Exposed to
Previously
None
Other Cost Considerations
None
Possible Conflicts With IRS Qualificatio� Rules
None
. �� �-
J teph n Palmquist, AS MAAA, FGA •
nroiled Actuary No: 02-1 6Q
A. Va{uation Date Octaber 1, 2003 Octaber 1, 2003
Valuafion After Changes
B, ARC to Be Paid. During
Fiscat Year Ending 9/30/2005 9/30/2005
C. Assumed Date of Employer Contrib. Monthiy Monthly
D. Annual Payment to Amortize :
Unfunded Actuarial Liability $ 0 $ 0
E. Employer Norma! Cost a3,969 61,361
' F. ARC if Paid on the Valuation
Date: D+E 53,969 61,361 �
G. ARC Adjusted for Frequency of
Payments � 56,225 63,926
H: ARC as % of Covered Payroll 13.24 °l0 15.05 %
I, Assumed Rate of Increase in Covered
Payroll to Contribu#ion Year 4.00 % 4.00 %
J. Covered Payroll for Contribution Year 441,787 441,787
K. ARC for Contributian Year: H x J 58,493 66,489
L_ Allowab(e Credit for Chapter Revenue 25,134 33,130
M.. Required City Contribu#ion: K- L 33,359 33,359
N. REC as % of Cove�ed Payroll in
Contribution Year: M� J 7.55 % 7.55 %
A. Valuatian Date t)ctober 1, 20Q3 October 1, 2003
Va/uation After Changes
B. Actuarial Present Value of All Projected
Benefits for '
1. Active Members
a. Service Retirement Benefits $ 1,004,997 $ 1,089,064
b. Vesting Benefits 90,476 97,867
c. Disability Benefits 'i21,761 130,094
d. Preretirement Death Benefits 36,004 38,216
e. Return af Member Contributions 7,683 7,683
f. Total 1,260,921 1,362,924 �
2. Inactive Members
a. Service Retirees & Beneficiaries - -
b. Disability Retirees - -
c. Terminated Vested Members - -
d. Total - -
3. Total far All Members 1,260,921 1,362,924
C. Actuaria! Accrued (Past Service)
Liability per GA56 Na. 25 184,947 2fl1,349
D. Actuarial Value of Accumulated Plan
Benefits per FASB No. 35 NA NA
E. Plan Assets
1. Actuariat Value 35Q,404 358,282
2. Market Va1ue 350,404 358,282
F. Actuarial Present Value of Projected
Covered Payroil 5,396,996 5,396,996
G. Actuarial Present Vaiue of Projected
Member Contributions 269,850 269,850
A. Valuation Date October 1, 2003 October 1, 2003
Valuation Afiter Changes
B. Actuarial Present Value of Projected
Benefits $ 1,260,921 $ 1,362,924
C. Actuarial Value of Assets 350,4Q4 358,282
D. Unfunded Actuariaf Accn�ed �iability 0 . 0
E. Actuarial Presenfi Value of Projected
Member Contributions 269,850 269,850
F. Actuarial Present Valu� of Projected
Emp{oyer Normaf Costs: B-C-D-E 640,667 734,792
G. Actuarial Present Value of Projected
Covered Payroll 5,396,996 5,396,996
H. Employer Norma! Gost Rate: F/G 11.87 % 13.61 %
1, Cavered Annual Payrall 424,795 424,795
J. Employer Norma! Cost: H x 1 50,423 57,815
K. Assurned Amount of Administrative
Expenses 3,546 3,546
L. Tota1 Employer Norma{ Cast: J+K 53,969 61,361
M. Employer Norma( Cost as % of
Covered Payroll 12.70 °l0 14.44 °fo
A. Valuation Date October 1, 2003 October 1, 2003
Valuation After Changes
B. ARC to Be Paid During
Fiscal Year Ending 9130/2Q05 9130/2005
. C. Assumed Date o€ Employer Contrib. Month{y Monthly
D. Annual Payment to Amortize
Unfunded Actuarial Liabitity $ 0 $ 0
E. Employer Normal Cost 134,132 150,051
F. ARC 'rf Paid on the Valuation
Date: D+E 134,132 150,051
G. ARC Adjusted for Frequency of '
Payments '139, 739 156, 323
H. ARC as % of Covered Payroll 15.27 % 17.09 %
L Assumed Rate of Increase in Covered �
Payroll to Contribution Year 4.00 % 4.00 %
J. Covered Payroll far Cantributian Year 951,467 951,467
K. ARC for Contribution Ysar: H x J 145,289 162,606
L. Allowable Credit for Chapter Rsvenue 50,733 68,050
1�. Required City Contribution: K- L 94,556 94,556
N. REC as % of Covered Payroll in _.
Contribution Year: M= J 9.94 % � 9.94 %
A. Vatuafion Date October 1, 2003 Qctober 1, 2003
Valuafion After Changes
B. Actuarial Present Vatue of Ait Projected
Benefits for
1. Active Members
a. Service Retirement Benefits $ 2,796,246 $ 3,041,036
b. Vesting Benefits 233,233 253,015
c. Disability Benefits 277,931 299,341
d. Preretirement Death Benefi#s 89,613 95,740
e. Retum of Member Con#ributions 7,811 8,316
f. Total 3,404,834 3,697,448
2. Inactive Members
� a. Service Retirees & Bene�ciaries - -
b. Disability Retirees - -
c. Terminated Vested Members - -
. d. Total - -
3. To#a! for All Members 3,404,834 3,697,448
C. ActuariaM Accrued {Past Service)
Liability per GASB No. 25 1,433,188 1,552,768 -
D. Ac#uarial Value of Accumufated Plan
Benefits per FASB No, 35 NA NA
E. Plan Assets
1. Market Value 1,607,866 1,607,866
� 2. Actuaria! Vatue 1,607,866 1,607,866
F. Actuariai Present Value of Projected
Covered Payrail 10,304,009 10,304,009
G. Actuaria! Present Value of Projected .
Member Contributions 515,200 fi28,545
A. Vafuation Date 4ctober 1, 2443 Ocfo6er 1, 2003
Vaivation After Changes
B. Actuarial Present Value of Projected
Bene�ts $ 3,404,834 $ 3,697,448
C. Actuarial Value of Assets 1,607,866 1,607,866
D. Unfunded Actuarial Accrued Liability 0 0
E. Actuariai Present Value of Projected
Member Contributions 515,200 628,545
F. Actuariat Present Value of Projected
Employer Normal Costs: B-GD-E 1,281,768 . 1,461,037
G. Actuaria! Present Value of Projected
Covered Payrol{ 1i},304,009 10,304,009
H. Employer Normal Cost Rate: F/G 12.44 °/a 14.1�8 %
l. Covered Annual Payroll 914,872 914,872
J. Employer Normal Cost: H x! 113,810 129,729 .
K. Assumed Amount of Administrative
Expenses 20,322 20,322
L. Total Employer Normal Cost: J+K � 134,132 150,051
M. Employer Normal Cost as % of
Covered Payrolf 14.66 % 16.40 %
April 14, 2005
EXHIBIT "B"
VILLAGE OF TEQUESTA
PUBLIC SAFETY OFFICERS' PENSION TRUST FUND
Section 1. Creation of Pension Trust Fund.
The Village of Tequesta hereby creates and continues the Viliage of Tequesta
Public Safety Officers' Pension Trust Fund for the purpose of providing retirement, death
and disability benefits to Police Officers and Firefighters who are Members of this Fund,
certain former Village Police Officers and Firefighters and survivor benefits to beneficiaries.
Section 2. Definitions.
1. Statement of Definitions. As used herein, unless othecwise defined or required
by the context, the following words and phrases shall have the meaning indicated:
Aecumulated Contributions means a Member's own contributions without interest.
Actuarial Equivalent means a benefit oc amount of equal value, based upon the
mortality tables utifized by the Board's actuary or actuaries, and an 8% rate of interest.
Averaae Final Compensation shall mean one-twelfth (1/12) of the average salary
of the five (5) best years of the tast ten (10) years of credited service prior to retirement,
termination, or death or the career average as a full time Firefighter or Police Officer,
whichever is greater. A year shall be twelve (12) consecutive months.
Beneficiarv means the person or persons entitled to receive benefits hereunder at
the death of a Member who has or have been designated in writing by the Member and
filed with the Board. If no designation is in effect, or if no person so designated is living,
at the time of death of the Member, the beneficiary shall be the estate of the Member.
Board or Board of Trustees 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.
Chapters means Chapters � 75 and 185 of the Florida Statutes as amended from
time to time.
Code means the Internal Revenue Code of 1986, as amended from time to time.
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April 14, 2005
Credited Service means the total number of years and fractional parts of years of
service as a Police Officer, or Firefighter who makes member contributions to the Plan,
omitting intervening years or fractional parts of years when such Police Officer or
Firefighter may not have been employed by the Village of Tequesta. A ptan member may
voluntarily leave his/her contritaution in the Fund for a period of five (5) years after leaving
the employ of the Vil(age of Tequesta pending the possibility of being rehired in a full time
position by the Village af Tequesta without losing credit for the time of active participation
as a plan member. Should the employee not be re-employed with the Village of Tequesta
. in a full time capacity within five (5) years, his/her oontributions shall be returned to him/her
without interest. Should a Police Officer or Firefighter be subsequently re-employed as
such, he or she may re-purchase his her years af credit or fractiona( 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 the 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 hislher years
of credited service for al1 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 his/her military discharge.
B. The maximum credit for military service shall be five (5) years.
Effective Date means the date on which this Ordinance becomes effective.
Fire Department means the Tequesta Fire Department.
Firefighter means an actively employed full-time person employed by the Fire
Department, including his/her initial probationary employment period, who is certified or
required to be certified as a Firefighter as a condition of employment in accordance with
the provisions of 633.35 Ftorida Statutes, including paramedic, and whose duty is to
extinguish fires, to protect life and to protect property .
Fund means the Trust Fund established herein as part of the System.
Member means an actively emptoyed Police Officer or Firefighter that fulfills the
applicable prescribed membership requirements.
Police Department means the Tequesta Police Department.
Police O�cer means any person who is elected, appointed, or employed full time
Page 2 of 35
April 14, 2005
by the Village, who is certified or required to be certified as a law enforcement officer in
compliance with Florida Statute 943.1395, who is vested with authority to bear arms and
make arrests, and whose primary responsibility is the prevention and detection of crime or
the enforcement of the penal, a traffic or highway laws of the state. This definition
includes all certified supervisory and command personnel whose duties include, in whole
or in part, the supervision, training, guidance, and management responsibilities of full-time
law enforcement officers, part-time law enforcement officers or auxitiary law enforcement
officers as the same are defined in F.S. 943.10(6) and (8) respectively. Police Officer also
shall include a public safety officer who is �sponsible for performing both police and fire
services.
Public Safety Board means the Public Safety Board of Trustees provided hereunder
to administer and manage Funds for the benefit of Public Safety Officers.
Public Safety Officers means Firefighters and/or Police 4fficers.
Salarymeans the total cash remuneration paid to a police officer or firefighter for
services rendered.
S .�ouse means the lawful wife or husband of a plan member at the time of pr�e-
retirement, death or retirement.
Statement of Investment Policv means the written investment policy adopted by the
Board pursuant to this O�dinance and F.S. 112.661, et seq., which shall apply to funds
under the control of each board.
Svstem means the Village of Tequesta Pubfic Safety O�cers' Pension Trust Fund
as contained herein and all amendments therefio.
Vested deferred retirement means a Member who leaves the employ of the Village
with 6 or more years of credited service and who is not eligible for any retirement benefit.
This benefit is payable at early or normal retirement.
Vitlaqe means the Village of Tequesta, Florida.
2. Masculine Gender. The masculine gender, where used herein, unless the
context specifically requires othervuise, shall include both the feminine and masculine
genders.
Section 3. Membershia.
1. Condition of Eligibilitv
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April 14, 2005
All full time Police Officers and Firefighters as of the effective date, and all
future new full time Police Officers and Firefighters shall become Members
of this System as a condition of employment, except that participation in this
system is optional for the Police Chief and the Fire Chief.
2. Membership
Each full time Police Offieer or Firefighter shal{ complete a form prescribed
by the Board which may include the following information:
: A. Acceptance of the terms and conditions of the Retirement System,
and, : _ _
B. Designation of a beneficiary or beneficiaries, and,
. C. A certified statement as to prior medical and/or psychological history.
3. Change in Designation of Beneficiarv
A member may from time to time change his/her designated beneficiary by
written notice to the Board upon forms provided by the Board. Upon such
change, the rights of all previously designated beneficiaries to receive any
benefits under the System shall cease.
Section 4. Board of Trustees.
1. The sole and exclusive administration of and responsibility for the proper
operation of the retirement system and for making effective the provisions of this ordinance
is hereby vested in a Board of Trustees.
The Public Safety Board shall consist of five (5) Trustees, two (2) of whom, unless
otherwise prohibited by 1aw, shall be legal residents of the Village, who shall be appointed
by the Tequesta Village Counal, 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-time Firefighter member of the
System. The fifth (5 Trustee shall be selected'by a majority vote of the other four (4)
Trustees. Each person seeking to fill a designated employee representative Board
member seat shall be separately elected by their full-time co-workers who are members
of the System in the applicable employee representative group, e.g. Police Officer or
Firefighter in which they are employed and shall be elected by a majority of the full-time
employees who are Members of the System within the applicable employee representative
group. Upon receipt of the fifth (5` person's name the Tequesta Village Counal shall, as
a ministerial duty, appoint such person to the Public Safety Board as its fifth (5 Trustee.
Page 4 of 35
April 14, 2005
The fifth (5' Trustee shall have the same rights as each of the other Trustees appointed
or elected as herein provided and shal{ serve a two (2) year term unless the office is
sooner vacated and may succeed himseif or herself in office. Each resident Trustee shall
serve as Trustee for a period of two (2) years uniess sooner replaced by the Tequesta
Village Council at whose pleasure the Trustee shaH serve, and may succeed himself or
herself as a Trustee. Each Police Offieeror FirefighterTrustee shali serve as Trustee for
a period of two (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 shalf be chosen in the manner as the departing
Trustee. Each employee representative Trustee may succeed himself or herself in office.
The Public Safety Board shall meet at least quarterly each year. Such Boards shall be a
legal entity with, in addition to other powers and responsibilities contained herein, the
power to bring and defend lawsuits of every kind, nature, and description.
2. The Board shall, by majority vote, elect a chairman and secretary. The
secretary of the Board shatl 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) affinr►ative votes shall
be necessary for any decision by the Trustees at any meeting of the Board. A Trustee
shall have fihe right to abstain f�om voting as the result of a conflict of interest provided that
Trustee states ifl writing the nature of the con#liet complies with the provisions of Section
112.3143, Florida Statutes.
4. The Board of Trustees shall engage such actuarial, accounting, legal, and
other services as shall be required to transact the business of the Retirement System to
administec and manage their funds and to meet the requirements of applicable law. The
. compensation of alf 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 manac,�e at such rates and in such amounts as the Board of
Trustees shall approve.
5. The duties and responsibilities of the Board of Trustees shall include, but not
necessarily be limited to, the following:
A. To construe the provisions of the System and determine all questions
arising thereunder.
B. To determine atl questions relating to eligibility and participation.
C. To determine and certify the amount of all retirement allowances or
Page 5 of 35
April 14, 2005
other benefits hereunder.
D. To establish uniform rules and procedures to be followed for
administrative purposes, benefit applications and all matters required
to administer the System.
E. To distribute to Members, at regular intervals, information 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 payments and other
expenditures arising through operation of the System and the Fund. '
H. To have performed actuarial studies in accordance with Florida
Statute 112.63 providing a copy of the same to the Division of
Retirement, and with at least biennial valuations, and make
recommendations regarding and all changes in the provisions of the
System.
I. Ensure compliance with Article X, Section 14, of the Florida
Constitution, requiring that any increase in benefits be fu�ded on an
actuarially sound basis.
J. Ensure the completion of an actuarial impact statement prior to the
adoption of a change in the plan's retirement benefits, a copy of which
must be provided to the Division of Retirement.
K. To comply with the Chapters.
L. To ensure the funds and assets for the benefit of the employee
groups they serve are segregated and separated from the funds and
assets under the control of the Board.
M. To perform such other duties as are speci�ed in this Ordinance and
qenerallx do all acts which the Trustees mav deem necessarv 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 Pub(ic Safety Board of
Trustees as required from time to time by F.S. 112.661, et seq.,
and/or its successor statutes.
Page 6 of 35 ,
April 14, 2005
O. To sue or be sued.
P To settle com �romise or submit to arbitration (at the sole discretion
of the Trustees) any daims debts or damages due or owina to or
ftom the Fund.
Section 5 Finance And Fund Management.
Establishment and Operation of Fund
1. As part of the System, there is hereby estabtished a Fund, into which shalt 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 thereo� shall be
vested in the Board of Trustees. Payment of benefits and disbursements from the Fund
shall be made by the Village as the Board's agent, but only upon written authorization from
the Board. Such written authorization shall re�uire the signature of two of the Trustees.
3. All funds and securities of the Fund may be deposited by the Board of Trustees
with the Treasurer of the Viltage, acting in a ministerial capacity oniy, who shali be liabte
in the same manner and to the same extent that as he is liable for the safekeeping of funds
for the Vif{age. However, any funds and securities so deposited with the Treasurer of the
Village shall be kept in separate funds by the Treasurer or clearly identified as such funds
and securities of the Public Safety O�cer Trust Fund. In lieu thereof, the Board of
Trustees shall deposit the funds and securities of the Fund in a qualified public depository
or depositories as defined in Section 280.02, Florida Statutes, which depository or
depositories with regard to such funds and securities shall conform to and be bound by all
of the provisions of Chapter 280, Florida Statutes.
4 orderto fulfill its investment responsibilities as set forth herein, the Boards may
retain the services of a custodian bank or banks, an investment advisor or advisors
registered_ under Investment Advisors Act af 1940 or otherwise exempt from such required
registration, an insurance company, or a oombination of these, for the purposes of
investment decisions and management. Such investment manager or managers shall
have discretion, subject to any guidefines 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 two (2) appticable employee classes within the Fund namely, the Potice Officers
and Firefighters<in the Public Safety Officers Trust Fund. Accurate records shall be
Page 7 of 35
April 74, 2005
mainfiained at all times reflecting the financial composition of the Fund and of the accounts
in piace to segregate the assets ofthe employee classes covered by the System, induding
accurate current accounts and entries as regards the following:
A. Current amounts of Accumutated Contributions of Members on both
an individual and aggregate account basis, and
� B. Receipts and disbursements, and
C. Benefit payments, and
D. Current amounts clearly reflecting all moneys, funds and assets
whatsoever attributable to contributions and deposits from the Village,
County or State, and
E. All interest, dividends and gains (or losses) whatsoever, and
F. Such other entries as may be properly required so as to reflect a ciear '
and complete financial report of the Fund.
G. Such other entries as required by the Chapters.
6�. An independent audit shall be performed annually by a certifed public
accountant for the most recent fiscal year of the Village showing a detailed listing of assets
and a statement of all income and disbursements during the year for each Fund. Such
income and disbursements must be reconciled with the assets at the beginning and end
of the year. Such report shall neflect complete evaluations of assefs on both a cost and
market basis, as wel{ as other items normal{y included in a certified audit.
7G. The Board of Trustees shall have the following investment powers and
auth ority:
� . A. The Board of T'rustees shatt be vested with full legal title to the Fund,
subject, however, and in any event to the authority and power of �he
Tequesta Village Council to amend or terminate this Trust, provided
that no amendment or Fund termination shall ever result in the use of
any assets of the Fund except for the payment of regular expenses
and benefits under this System. All contributions from time to time
paid into the Fund, and the income thereof, without distinction
between principal and income, shall be held in the Fund and
administered by the. Board or its Agents.
B. All moneys paid into vr to be held shall be invested and reinvested by
Page 8 of 35
April 14, 2005
the Board and the investment of all or any part of such funds shall be
limited ta �
(1) Annuity and life insurance contracts of life insurance companies
in amounts sufficient to provide, in whole or in part, the benefits to
which all of the participants in the Fund shall be entitled under the
provisions of the Plan and pay the initial and subsequent premium
thereon.
(2) Time or savings accounts of a national bank, a state bank insured
by the Bank Fnsurance Fund, or a savings,and loan association
insured by the Savings Association Insurance Fund which is
administered by the Federaf Deposit Insurance Corporation or a state
� or federaf chartered credit union whose share accounts are insured
by fihe National Credit Union Share Insurance Fund.
(3) Obligations of the United States or obligations guaranteed as to
principal and interest by the government of the United States.
(4) Bonds, stocks, commingled funds administered by National or
State Banks or evidences of indebtedness issued or guaranteed by
a corporation organized under the laws of the United States, any state
or organized territory of the United States, or the Distric� of Calumbia,
provided that the corporation is traded on a nationally recognized
Exchange and in the case of bonds onty 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
nationaf bank, then the rating of each issue in the pooled fund shaN
hold a rating within the top four (4) rating classifications of a major
rating service.
(5) Real estate.
(6) Up to 10% vf Plan assets may be invested in foreign securities.
(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 al! or any part of such funds shall be invested in accordanoe with
an established investment policy adopted by the Board of Trustees.
C. The Board of Trustees shall not invest more than five percent (5%) of
its assets in the common stock or capital stock of any one issuing
company, nor shall the aggregate investment in any one issuing
Page 9 of 35
April 14, 2005
company exceed five percent (5%) of the outstanding capital stodc of
that company; nor shall the aggregate of its investments in common
stock, capitat stodc and convertible bonds at cost exceed sixty percent
(60°!0) 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 o� entity shall be liabte for the making, retention or sate of
__ ;
any investment or reinvestment made as herein provided, nor for any
loss or diminishment of the Fund, except that due to his/her or its own
negligenoe, willful misconduct or lack of good faith.
F. � The Board may cause any investment in securities held to be
registered in or transferred into their name as Trustee or into the
name of such nominee as they may direct, or they may retain them
unregistered and in form permitting transferability, but the books and
records shall at all times show that all investments are part of the
Trust Fund. .
G. The Board is empowered, to vote upon any stocks, bonds or
securities of any corporation, association, or trust and to give general
or specific proxies or powers of attorney with or without power of
substitution; to participate in mergers, reorganizations,
recapitalization, consolidations and similar transactions with respect
to such securities; to deposit such stock or other securities in any
voting trust or any protective or like committee with the Trustees or
with depositories designated thereby; to amortize or fail to amortize
any part of a!I of the pr�emium or discount resulting from the
acquisition or disposition of assets; and general{y to exerc�se 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 nequired to make any inven#ory or appraisal or
report to any oourt, nor secure any order of court for the exercise of
any power contained herein.
t. 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 ;;
Page 10 of 35
April 14, 2005
Ordinance, can reasonably be taken or perFormed only after neceipt
' by it from a Member, the Village, the Department or any other entity,
of specific information, certification, direction or instructions, fihe Board
shall be free of liability in failing to take such action or perform such
duty or function until such information, certification, direction or
instruction has been received by it.
J. Any overpayments or underpayments from a Fund to a Member or
beneficiary caused by errors of computation shall be adjusted with
interest at a rate per annum approved by the Board. Overpayment
shall be charged against members payments ne� succeeding the
correction. Underpayments shall be made up from the Trust Fund. �
K. The Board shall sustain no liability whatsoever for the sufficiency of
a Fund to meet the payments and benefits herein provided.
L. Any of the foregoing powers and functions reposed in the Board may
be performed or carried out by the Boacd through duty authorized
Agents, provided that the Board at all times maintains continuous
supervision over the acts of any such Agent; provided further, that
legal title to the Fund shall always remain in the Board of Trustees.
M. The Board shall not invest more than ten percent (10%) at cost of its
assets in reaf property or real estate and there shall be no investment
in a limited partnership or trust.
N. The Village shall maintain Fiduciary Liability insurance to cover the
members of the Board of Trustees.
O With respect to any investment the Trustees may consent or obiect
to any action or non-action of any corporation or of the directors.
officers or stodcholders of any corporation.
Section 6. Contributions.
1. Member Contributions
A. Amount. Effective the first full payroll Qeriod after the effective date
of this Ordinance. Po{ice Officer Members of the Retirement System
shall be required to make regular contributions to the Fund in the
amount of five percent (5%) of his/her salary. Effective the first full
payrolt �eriod after the effective date of this Ordinance. Firefiahter
Members of the Retirement Svstem shall be required to make reqular
Page 11 of 35
April 14, 2005
contribution to the Fund in the amount of six and one tenth qercent
(6.1 %) of his/her salary. Member contributions withheld by the Village
on behatf of the Member shatl be deposited with the Board of
Trustees immediately after the withholding of such contributions. The
contributions made by each Member to the Fund sha{I be designed as
employer contributions pursuant to Section 414(h) of the Code. Such
designation is continge�t upon the contributions being excluded from
the Members' gross income for Federal Inoome Tax purposes. For
all other purposes of the Plan, such contributions shalt 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 {aws of the State of Florida,
for the express purpose of funding and paying for retirement benefits for Police Officers
or Firefighters shall be deposited with the applicable segregated account in the Trust Fund
comprising part of this System immediately and under no circumstances more than five (5)
days after receipt by the Village.
3. Village Contributions
So long as this System is in effect, the Village shall make contr�butions at
least quarte�ly to the Trust Fund in an amount equal to the normai cost and the amount
required to fund any actuarial deficiency shown by an actuarial valuation as pravided in
Part VII of Chapter 112, F{orida Statutes.
4. Other �
Private donations, gifts and contributions may be deposited to the Fund, but
such deposits must be kept separately and kept on a segregated bookkeeping basis.
Funds arising from these sources may be used only for additional benefits for Members,
as determined by the Board of Trustees, and may not be used to reduce what woufd have
otherwise been required by Village contributions.
Section 7 Benefit Amounts and Eliqibilitv.
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:
Page 12 of 35
April 14, 2005
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 finrenty-five (25)
years of c�dited service.
A Member may retire on his/her normal r�etirement date or on the first day
of any month thereafter, and each Member shall become 100% vested in his/her accrued
benefit on the Member's normal retinement date. Normal retirement under the Plan is
retirement from employment with the Village of Tequesta as a Police Officer or Firefighter
on or after the normal retirement date. -_
2. Normal Retirement Benefit .
A Member retiring hereunder on or after his/her normal re6rement date shall
receive a monthly benefit which shall commence on his/her Retirement Date and be
continued thereafter during the Member's lifetime, ceasing upon death, but with one
hundred finrenty (120) monthly payments guaranteed in any event. The monthly retirement
benefit shall equal:
3.0% for the first 6 years of service
3.5% for the next 4 years of service
4.0% for the next 5 years of service
3_(�-:5% for the next 6 years of service
2.0% for the next 4 vears of service
3 0% for all years after 25 years
3. Earl�Retirement Date
A Member may retire on his/her early retirement date which shaU be the first
day of any month coincident with or next following the later of the attainment of age fifty
(50) and the completion of six (6) years of credited service. Ea�ty retirement under the
Plan is retirement from employment with the Village of Tequesta on or after the early
retirement date and prior to the normal retirement date.
4. Earl�Retirement Beneft
A Member retiring hereunder on his/her early retirement date may receive
either a deferred or an immediate monthly reti�ement benefit payable for life, but with one
hundred twenty (120) monthfy payments guaranteed in any event, as follows:
A. A deferred monthly retirement benefit which shall commence on what
would have been his/her normal retirement date had he/she remained
a Police Officer or Firefighter and shall be continued on the first day
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April 14, 2005
of each month thereafter. The amount of each such deferred monthly
retirement benefit shall be determined in the same manner as for
retirement as his/her normal retirement date except that credited
senrice and average final compensation shall be determined as of
his/her early retirement date; or
' B. An immediate mo�thly retirement benefit which shall commence on
his/her early retirement date and shall be continued on the first day of
each month thereafter. The benefit payable shall be as determined
in parag�aph A above, which is actuarially reduced from the amount
- to which he/she would have been entitled had he/she retired on
his/her normal retirement date and with the same number of years of
credited service as at the time his/her benefit commence and based
on his/her average final oompensation at that date. In no event shall
the early retirement reduction exceed three percent (3%) for each
year by which the commencement of benefits precedes the Member's
normal retir�ement date.
Section 8. Pre-retirement Death.
If a plan member dies prior to retirement from the Village of Tequesta his/her
beneficiary shall receive a benefit as follows:
A. Line-of-Duty-Death-Benefit is a pension to the spouse (or children) 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 benefit.
C. In lieu of the benefits provided in A or B above, the heneficiary of a
police officer or firefighter, with 6 or more years of service who dies
prior to retirement, may receive the benefits otherwise payable to the
police officer at what would have been his/her early or. normal
retirement date.
Section 9. Disabilitv.
1. Disabit� 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
Page 14 of 35
April 14, 2005
physical or mental impairment, to render useful and efficient 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 Pofice Officer or Firefighter shatl upon estab{ishing the
same to the satisfaction of the Board, be entitled to:
A. If the injury or disease is service connected, the employee shall be
entitled to the greater of (1) or (2):
(1) a monthly pension equal to 42% of his/her average monthly
. _: compensation as of his/her disability retirement date, or
(2) the accrued Normal Retirement Benefit.
Any condition or impairment of health of Police Officer or Firefighter caused
by tuberculosis, hypertension hepatitis, 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, provideci that such Police
Officer or Firefighter shall have successfully passed a physical examination
upon entering into such service, including cardiogram, which examination
failed to reveal any evidence of such condition; and provided further, that
such presumption shall not apply to �enefits payable or granted in a policy
of life insurance or disability insurance. In order to be entitled to the
presumption in the case of hepatitis, meningococcal meningitis, or
tuberculosis the member must meet the requirements af Section 112.181,
Florida Statutes.
. 2. Disability Benefits Off-Dutv
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 physicaf or menta( impairment, to render
useful and efficienf service as a Police Officer or Firefighter which disability is not directly
caused by the performance of his/her duties as a Police Officer or Firefighter shall be
entitled the greater of A. or B.:
A. A monthly pension equal to 25°!0 of his/her average monthly
compensation as of his/her disability retirement date, c�r
B. The accrued Normal Retirement Benefit.
3. Conditions Disqualifving Disability Benefits
Page 15 of 35
April 14, 2005
Each Police Officer or Firefighter who is ctaiming disability benefits shail
establish, to the satisfaction of the Board, that such disability was not occasioned primarily
by:
A. Excessive or habitual use of any drugs, intoxicants or alcohol.
B. Injury or disease sustained while willfully and illegally participating in
fights, riots or civil insurrections.
C. fnjury or disease sustained while committing a crime.
D. tnjury or disease sustained while serving in any branch of the Armed
Forces.
E. Injury or disease sustained after his/her employment shall have
terminated as a Police O�cer with the Tequesta Potice 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. Physicai Examination Requirement
An employee shall not become eligib{e for disability benefits until and ur►less
he/she undergoes a physical examination by a qualified physician or physiaans and/or
surgeons, who shall be selected by the Board for that purpose.
Any person receiving disabilitybenefit under provisions of this Ordinance may
be periodically re-examined by a quatified physician or physicians and/or surgeon or
surgeons who shall be selected by the Board, to determine if such disabitity has ceased
to exis#. If the Board finds that the retiree is no longer permanently and totally disabled to
the extent that he/she is unable #o render useful and efficient service as a Police Officer
or a Firefighter, the Board shall recommend to the Village that the retiree be returned to
their previous performance of duty as a Police Officer or Firefighter, and the retiree so
returned shall enjoy the same rights that Member had at the time he/she was pfaced upan
Pension. In the event the retiree is so ordered to return shal! refuse to eomply with the
order within thirty (30) days from the issuance thereof, Member shall forfeit the right to
his/her pension. •
Page 16 of 35
April 14, 2005
The cost of the physical examination and/or re-examination of the employee
or retiree claiming and/or receiving disability benefits shall be borne by the Board. All other
reasonable costs as determined by the Board incident to the physical examination, such
as, but not limited to, transportation, meals and hote! accommodations, shall be borne by
the Board.
If the retiree recovers from disability and reenters his/her former service with
the Village of Tequesta held prior to disability �etirement, 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 paymentand ending with the date he/she reentered
the service of the Village will not be considered as credited servioe for the purposes of the
Plan.
The Board shall have the power and authority to make the final decision
regarding all disability claims.
5. Disabilitv Payments
The monthly benefit to which a Member is entitled in the event af the
Member's disability retirement shaN be payable on the first day of the first month after the
Board of Trustees determines such entitlement. However, the monthly retirement income
shall be payable as of the date the Board determined such entitlement, and any portion
due for a partial month shafl be paid together with the first payment. The tast payment wifl
be:
A. If the pfan member recovers from the disability or attains his/her
normal retirement date, the payment due next preceding the date of
such recovery, or
B. . If the plan member dies without recovering from the disability prior to
his/her normal retirement date while stilt disabled, the payment due
next preceding his/her death orthe 120` monthly payment, whichever
is later.
Section 10 Monthly Supplemental Benefits.
1. Effective upon aassaae of this Ordinance @etei�er��883, any retiree or
beneficiary receiving pension benefits is entitled to a monthly supplemental
pension benefit of $20 $5-per year of service, up ta a maximum benefit of
600.00$�9@.
2. This benefit shall be payable monthly as a part of the regular monthly
pension benefit. The benefit shall be payable to the retiree and any
Page 17 of 35
April 74, 2005
beneficiary. The benefit shall cease upon the death of the member or
beneficiary, if applicable.
Section 11. Vestinq.
If a Member terminates his/her employment with the Village of Tequesta, either
voluntarily or by discharge, and is not eligible for any other benefits under this System, the
Member shall be entitled to the following:
1. If the Member has less than six (6) years of credited service upon termination,
the Member shall be entitled to a refund of his/her accumulated contribution or the Member
may leave it deposited with the Fund.
2. If the Member has six (6) or more years of credited service upon termination, the
Membershall be entitled to a monthly retirement benefit that is the acfuarial equivalent of
the amount of such retirement income otherwise payable to him commencing at the
Member's otherwise normal or early retirement date, provided he does no# elect to
withdraw his/her accumulated contributions and provided the Member survives to his/her
normal or earty 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 plan member, upon written
request to the Board of Trustees, and subject to the approval of the Board of Trustees,
� may elect to receive a retirement income or benefit of equivalent actuarial valuation
payable in accordance with one of the following options:
A. A retirement income af a larger monthly amount, payable to the
Member for his/her lifetime only.
B. A retirement income of a modified mon#hly amount, payable to the
Member during the joint lifetime of the Member and a dependent joint
pensionerdesignated bythe Memberand following the death ofeither
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 retir�ement payments or benefits as,
in the opinion of the Board of Trustees, will best meet the
circumstances of the retiring Member.
2. The Member, upon electing any option of this section, will designate the joint
pensioner or beneficiary (or beneficiaries) to receive the benefit, if any, payable under the
Page 18 of 35
April 14, 2005
Plan in the event of the Member's death, and wili have the power to change such
designation from time to time, but any such change shall be deemed a new election and
will be subject to approval by the Board of Trustees. Such designation will name a joint
pensioner or one or more primary beneficiaries where applicable. If a Member has elected
an option with joint pensioner or beneficiary and the Member's retirement inoome benefits
have commenced, the Member may thereafter change his/her designated joint pensioner
or beneficiary, but only if the Board of Trustees consents to change and if the joint
pensioner or beneficiary, but only if the Board of Trustees consents to change and if the
joint pensioner last previously designated by the Member is alive when he/she files with the
Board of Trustees the request for such change.
3. The consent of joint pensioner or beneficiary to any such change shall not be
required.
4. The Board of Trustees may request such evidence of the good health of joint
pensionerthat is being removed as it may require and the amount ofthe retirement inoome
payable to the Police Officer or Firefighter upon designation of a new joint pensioner shall
be actuarially redetermined taking into account the age and sex of the former joint
pensioner, the new joint pensioner, and the Police Officer or Firefighter. Each such
designation will be made in writing on a form prepared by the Board of Trustees and on
completion will be filed with the Board of Trustees.
In the event that no designated beneficiary survives the Member, such bene�ts as
are payable in the event of the death of the Member subsequent to his/her retirement shall
be paid as provided in Secfiion 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, whiehever. occurs, no retir�ement benefit will be
payable under the option to any person, but the benefits, if any, will
be determined under Section 8.
B. If the designated beneficiary (or beneficiaries) or joint pensioner dies
before the Member's retirement underthe Plan, the option elected will
be eanceled automatically and a retirement income of the normal form
and amount will be payable to the Member upon his/her retirement as
if the election had not been made, unless a new election is made in
accordance with the provisions of this section or a new beneficiary is
designated by the Memberpriorto his/herretirement and within ninety
(90) days after the death of the t�eneficiary.
Page 19 of 35
April 14, 2005
C. If both the retired Member and the beneficiary (or beneficiaries)
designated by the Member die before the fuit payment has been
effected under any option providing for payments for a period certain
and life thereafter, made pursuant to the provisions of subsection 1,
the Board of Trustees may in its discretion, direct that the computed
value of the cemaining payments be paid in a lump sum and in
accordance with Section 12.
D. If a Membercontinues beyond his/hernormal retirementdate pursuant
to the provisio�s of Section 7, subsection 1, and dies prior to his/her
actual retirement and while an option made pursuant to the provisions
of this section is in effect, monthly retirement income payments will be
made, or a retirement benefit will be paid, under #he option to a
beneficiary (or beneficiaries) designated bythe Member in the amount
or amounts computed as if the Member had retired under the option
on the date on which his/her death occurred.
6. The Member may not change his/her retirement option after the date of cashing
or depositing his/her first retirement check.
Section 13. Beneficiaries.
1. Each Member may, on a form provided for that purpose, signed and filed with
the Board of Trustees, designate a beneficiary (or beneficiaries) to receive the benefit, if
any, which may be payable in the event of his/her death; and each designation may be
revoked by such Member by signing and filing with the Board of Trustees a new
designation-of-beneficiary form.
2. tf a deceased Member faifs to name a benefaary in the manner prescribed in
subsection 1, or if the �benefiaary (or beneficiaries) named by a deceased Member
predeceases the Member, the death benefit, if any, which may be payab{e under the P{an
with respect to such deceased Member may be paid, in the discretion of the Board of
Trustees, either to:
A. The wife or dependent children of the Member;
B. The dependent tiving parents of the Membe�; or
C. Estate of the Member.
Section 14 Deferred Retirement Option Plan.
1: Eligibility to Partici�ate in the Drop
Page 20 of 35
April 14, 2005
A. Any member who is eligible to receive a normal retiremenfi pension
may participate in the DROP. Members shall elect to participate by
apptying to the Board of Trustees on a form provided for that purpose.
B. Election to participate shall be forfeited if not exercised within the first
twenty-seven (27) years of combined credited service. However,
participation in the first years of enactment will be extended to those
members with 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 years of participation in the
DROP shall not exceed five (5} years. For e�mple:
(1) Members with twenty-five {25) years of credited service at time
of entry shall on{y participate for five (5) years.
(2) Members with twenty-six (26) years of credited servioe at time
of entry shall onty participate for four (4) years.
(3) Members with twenty-seven (27j years of credited service at
time of entry shall only participate for three (3) years.
D. Upon a member's election to participate in the DROP, he or she shalt
cease to be a member and is precluded from accruing any additional
benefit under the Pension Fund. For all Fund purposes, the member
becomes a retirant. The amount of credited service and final average
salary freeze as of the date of entry into the DROP.
2. Amounts Payable upon Election to 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 sixty (60} months.
B. Payments to the DROP eam interest using the rate of investment
return earned on Pension Fund assets during the twelve (12) month
period ending September 30th. The rate determined shall be the rate
reported to the Division of Retinement pursuant:to Part VII of Chapter
112, Florida Statutes. However, if a police o�cer does not terminate
empfoyment at the end of participation in the DROP, interest a�edits
Page 21 of 35
April 14, 2005
shall cease on the current balance and on ail future DROP deposits.
C. No payments will be made from DROP untii the member terminates
emptoyment with the department.
D. Upon termination of employment, participants in the DROP will
receive the balance of the DROP account in accordanoe 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 - fhe entire account balance will be paid to
the retirant upon approval of the Board of Trustees.
b. Instalfinents - the account balance wi!{ be paid out to
the retirant in three equal payments paid over 3 years
the first payment to be made upon approval of the
Board of Trustees.
c. Annuity - the account balance will be used to purchase
an annuity to be paid monthly, the first payment to be
made upon approval by the Board of Trustees. The
annuity must be purchased from an insurer licensed to
sell such annuities in Florida.
(3) Any form of payment setected 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 paficipant who dies before
payments from DROP begin shall have the same right as the
participant in accordance with Ordinance.
Section 15 Claims Procedures Before the Board Decision.
1. If any Member of the System has been:
A. Placed on pension under the terms and provisions of this ordinance
far disabitiiy, or
Page 22 of 35
April 14. 2005
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 nelease authorization and a list of
names and addresses of all treating health care providers for such
review of disability claims; provided, that the Board may extend the
time for entering such order by an additiona! forty-five (45) days if it
determines such time is necessary for discovery in full and adequate
review.
� 2. In the event that the order from the Board denies the claim for a change in
such benefits or denies the claim for benefits, the order of the Board shall be
put in writing. Such written order shal! include:
A. The speafic reasons for the denial, including speafic references to
pertinent provisions of the retirement system on which such denial is
based;
B. A description of any additia�af materiai or information that the Board
feels is necessary for the Member to perfect his/her claim, together
with an explanation of why such material or information is necessary;
and
C. An explanation of the review procedure next open to the Member.
Such review procedune shall provide that:
(1) Prior to such review, the Member or his/her duly authorized
representative may review any pertinent documents including Plan
provisions, minutes of the meeting of the Board in which denial fo the
claim was originalty recommended, and any other documents material
to the case;
(2) After such review, the Member and/or his/her duly authorized
representative shall submit their case in writing to the Bo�rd and
request a hearing. Such submission shall be filed with the Board no ,
later than ninety (90) days after the receipt of the order of the Board.
Page 23 of 35
April 14, 2005
Upon receipt of the written submission by the Member, the Board
shall schedule an opportunity for a full and fair hearing of the issue
within the next ninety (90) days, and such scheduled hearing shall be
communicated in writing to the Member. The Member and/or his/her
duly authorized representative may then appear at such scheduled
hearing to present their case. The Boarcl shatl consider the facts
presented at the scheduJed hearing and shall, within thirty (30) days
after such hearing, make a final ruling in writing on the request of the
Member. The written decision shall include the reasons for such
decision and, such decision shall be final.
(a) The Chairman shall preside over the hearing and shall
rule on all evidentiary and other legat questions that
, arise during the hearing.
(b) Either party, the claimant or #he Board, may file
pleadings within the time limits set herein. Procedural
motions are to be determined by the Chairman of the
Board at any time. All parties are to furnish copies of all
pleadings to the opposing parties and exchange lists
with names and addresses of witnesses expected to be
called to testify at the hearing, as well as the list of
exhibits that are intended to be introduced, at least
forty-five (45) days prior to the hearing. Testimony of
- witnesses shall be under oath or a�rmation.
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 daimant's attomey, upon �ecognition
by the Chairman, may direct questions to any witness
during the proceedings. Each party shalt have the right
to present evidence relevant to the issues, to cross-.
examine witnesses, to impeach witnesses and to
' respond to the evidence presented against the party.
Each party shall have the right to present any opening
and closing arguments. Any party may secure the
services of a court reporter to record the proceedings
with the cost to be borne by the party requesting the
court reporter or requesting the transcription of the
proceedings.
(c) In all cases, unless otherwise provided in this section,
the burden of proof shali be on the claimant who seeks
Page 24 of 35
April 14, 2005
to draw his/her entitlement to a pension, disability
pension, oc increased pension benefits.
3. In all proceedings under subsections 1 or 2 hereof, the Board shall have the
power to subpoena and require the attendance of witnesses and the
production of documents for discovery prior to and at the proceedings
provided for in each paragraph. A reasonable fee may be charged for the
issuance of any subpoenas not to exceed the fees set forth in Florida
Statutes.
Section 16 Reports to Division of Retirement.
Each year no later than March 15` the Chairman of the Board shall fife two (2)
separate reparts with the Division of Retirement containing the following relative to the
Police Officers and Firefighters of the Plan. The Police Officer report shalt be separate
from the Firefighter report.
1. Whether in fact the Village is in compliance with the provisions of Chapters 175
and 185, Florida Statutes.
2. A certified statement of accounting for the most recent fiscal year of the ViUage
(or an independent audit by a certified public accountant if required by the Division of
Retirement) showing a detailed listing of assets and methods used to value them and a
statement of all income and disbursements during the year by the Public Safety Board.
Such income and disbursements shall be reconciled with the assets at the beginning and
end of the year. �
3. A statistical exhibit showing the number of Police Officers on the force of the
Village, the number included in the Pension Plan, the number of Police Officers ineligible,
classified according to the reasons for their being ineligible, and the number of disabled
and retired Poiice OfFicers and their beneficiaries receiving pension payments and the
amounts of annual retirement income or pension payments being reaeived by them.
4. A statistical exhibit showing the number of Firefighters on the force of the
Village, the number included in the Pension Plan, the number of Firefighters ineligible,
classified according to the reasons for their being ineligibte, 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 Viliage 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. :
Page 25 of 35
April 14, 2005
6. If any benefits are insured with a commercial insurance company, the report
shall include a statement of the relationship of the insured benefits to the benefits provided
by this Ordinance. This report shall also contain info�mation 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 tast actuarial report of the
Plan. Such vatuation shall be prepared by an enrolled actuary who is enrolled under
Subtitle C of the Title 3 Employee Retirement fncome Security Act of 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 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 altowed and when the same shall cease to be paid. Additionally, the Secretary shall
keep a record of all Police Officers and Firefighters employed by the Village who are
Members of the plan their board administers in such a manner as to show the name,
address, date of employment and date such employment is terminated.
Section 18 Board Attorney and Professionals.
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 the adjustments herein set forth, the maximum amount of annual
retirement income payable with respect to a Member under this Plan shall not exceed the
limits contained in §415 of the Code.
2. Additional Limitation on Pension Benefits. Notwithstanding anything herein to
the contrary:
A. The normal retirement benefit or pension to a retiree who becomes a
member of the Plan and who has not previously participated in such
Plan, on or afte� January 1, 1980, shalt not exceed 100 percent of
his/her average final compensation. However, nothing contained in
this section shall appty to supplemental retirement benefits or to
Page 26 of 35
April 74, 2005
pension increases attributable to cost-of-living increases or
adjustments.
B. No member of the Plan who is not now a member of such Plan shall
be allowed to receive a retirement benefit or pension which is in part
or in whole based upon any service with respect to which the member
is already receiving, or wi{I 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. Untess the Member otherwise elects, with such e{ection being in writing and
to the Trustees and specifying the form of retirement income and date on which the
retirement income is to commence, the payment benefits under the Plan to the Member
shall commence not later than the 60` day after the dose of the Plan Year in which the
latest following events occur:
A. The attainment by the Member af age 65;
B. The 10' anniversary of the date on which #he Member commenced
part+cipation in the Ptan; or
C. The termination of the Member's service with the Village of Tequesta
2. If the payment of a Member's retirement income cannot begin on the date
required under subsection 1 of the Section because the Trustees either cannot ascertain
the amount of the Member's retirement income or cannot locate the Member after making
reasonable efforts to do so, the payment of the Member's benefit shall begin not tater than
sixty (60) days after the date on which the amount can be ascertained or the Member is
tocated, whichever is applicable. Any such payment shal! be made retroac�ve to a date
which is not earlier than the date on which the payment of the Member's benefit was
scheduled to begin but which is not later than the date specified under subsection 1 of this
Section.
Section 21. Distribution of Benefits.
Nofinrithstandi�g any other provision of this Plan to the contrary, a form of retirement
income payable from this Plan after the effective date of this ordinance, shall satisfy the
following conditions
1. If the retirement income is payable before the Member's death, the
Page 27 of 35
Apri1 14, 2005
distribution shatl commence to them not {ater than the calendar year defined abave; and
A. shall be paid over the life of the Member or over the lifetimes of the
Member and spouse, issue or dependent, or,
B. shall be paid overthe period extending not beyond the life expectancy
of the Member and spouse, issue or dependent.
Where a form of retirement income payment has commenced in accordance with
the preceding paragraphs and the Member dies before his/her entire interest in the Plan
has been distributed, the remaining portion of such interest in the Plan shail be distributed
no less rapidly than under the form of distribution in effect at the time of the Member's
death.
2. If the Member's death occurs before the distribution of his/her interest in the
Plan has commenced, the Member's entire interest in the Plan shall be distributed within
five (5) years of the Member's death, unless it is to be distributed in accordance with the
following rules:
A. The Member's remaining interest in the Plan is payable to his/her
spouse, issue or dependent;
B. The remaining interest is to be distributed over the life of the spouse,
issue or dependent or over a period not extending beyond the life
expectancy of the spouse, issue or dependent; and
C. Such distribution begins within one year of the Membec's death unless
the Member's spouse, issue ordependent shall receive the remaining
interest in which case the distribution need not begin before the date
on which the Member would have attained age 70'/2 and if the
spouse, issue or dependent dies before the distribution to the spouse, ,
issue or dependent begins, this Section shall be applied as if the
spouse, issue or dependent were the Plan Member.
Section 22. Misceltaneous Provision.
1. Interest of Members in Pension Fund. At no time prior to the satisfaction of
all liabilities under the Plan with respect to Members and their spouses or beneficiaries,
shatl any part of the corpus or income of the Pension Fund be used for or diverted to any
purpose other than for their exclusive benefit.
2. No amendment or ordinance shall be adopted by the Village Council of the
Vitlage of Tequesta which shafl have the effect of reducing the then vested acccued
Page 28 of 35
April 14, 2005
benefits to Members or Members beneficiaries.
� 3. Rollover Distributions
A. This subsection applies to distributions made on or after January 1,
1993. Notwithstanding any provision of the Plan to the contrary that
would otherwise limit a distributee's election under this subsection, a
distributee may eiect, at the time and in the manner prescribed by the
Board of Trustees, to have any portion of an eligible rollover
distribution paid directly to an eligible retirement plan specified by the
- distributee in a direct rollover. :
B. Definitions.
(1) "Eligible rollover distribution" is any distribution of all or any
portion of the balance to the credit of the distributee, except
that an eligible rollover does not include any distribution that is
one of a series of substantially equal periodic payments (not
less frequently than annually) made for the life (or life
expectancy) of the distributee ar distributee's designated
beneficiary, or for a specified period of 10 years or more; any
distribution to the extent such distribution is required under
section 401(a)(9) of the Code; and the portion of any
distribution that is not includible in gross income.
(2) "Eligible retirement plan" is an individual retirement account
described in section 408(a) of the Code, an individual
retirement annuity described in sectiion 408(b) of the Code, an
annuity plan described in section 403(a) of the Code, or a
qualified trust described in section 401(a) of the Code, that
accepts the distributee's eligible rollover distribution. However,
in the case of al eligibte rollover distribution to the sunriving
spouse, an eligible retirement plan is an individual retirement
account or individual retirement annuity.
(3) "Distributee" includes an employee or former employee. In
addition, the employee's or former employee's surviving
spouse and the employee's or former employee's spouse who
is entitled to payment for alimony and child support under a
domestic relations order determined to be qualified by this
Fund are distributees with regard to the interest of the spouse
or former spouse.
Page 29 of 35
April 14, 2005
(4) "Direct roliover" 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
Ordinances pertaining to said System and Fund, may be modified, terminated, or
amended, in whole or in part; provided that if this or any subsequent Ordinance shall be
amended or repealed in its application to any person benefitting hereunder, the amount of
benefits which are the time of any such alteration, amendment, or repeal shall have
� accrued to the Member or beneficiary shall not be affected thereby; except to the extent
that the assets of the Fund may be determined to be inadequate.
2. If this Ordinance shall be repealed, or if contributbns to the System are
discontinued, the Board shall continue to administer the System in accordance with the
provisions of this Ordinance, for the sole benefit of the then Members, any beneficiaries
then receiving retirement allowances, and any future persons entitled to receive benefits
under one of the options provided for in this Ordinance who are designated by any of said
Members. In the event of repeal, or if contributions to the System are discontinued, there
shall be full vesting (100%) of benefits accrued to date of repeal and the assets of the
System shall be allocated in an equitable manner to provide benefits on a proportionate
basis to the persons so entitled in accordance with the provisions thereof.
3. The following shall be the order of priority for purposes of allocating the
assets of the System as of the date of repeaf of this Ordinanee, or if contributions to the
System are discontinued with the date of such discontinuation being determined by the
Board.
A. Apportionment shall first be made in respect of each retired Police
Officer or Firefighter receiving a retirement or disability benefit
hereunderon such date, each person receiving abenefit on such date
on account of a retired or disabled (but since deceased) Police Officer
or Firefighter who has, by such date, become eligible for normal
retirement but has not yet retired, an amount which is the aetuarial
equivalent of such benefit, based upon the actuarial assumptions in
use foc purposes of the most recent actuariat valuation, provided that,
if such asset value be less than the aggregate of such amounts, such
amounts shall be proportionately reduced so that the aggregate of
such reduced amounts will be equal to such asset value.
B. If there be any asset value remaining after the apportionment under
paragraph A, apportionment shall next be made in respect of each full
time Police Officer or Firefighter in service of the Police Department
Page 30 of 35
April 14, 2005
or Fire Department on such date who has completed at least six (6)
years of credited service and who is not entitled to an apportionment
under paragraph A, in the amount required to provide the actuarial
equivalent, as described in A above, of the accrued normal retirement
benefit based on the credited service and average monthly eamings
as of such da#e, and each vested former Member then entitled to a
deferred benefit who has not by such date, begun receiving benefit
payments, in the amount required to provide said actuarial equivalent
of the accrued normal retirement benefit; provided that, if such
remaining asset value be less than the aggnegate of the amounts
apportioned hereunder, such latter amounts shatl be proportionatety
reduced so that the aggregate of such reduced amounts will be equal
to such remaining asset value.
� C. If there be any asset value after the apportionment under paragraph
A and B, apportionment shall be made in respect of each full time
Police Officer or Firefigh#er in service of the Police Department or Fire
Department on such date who is not entitled to an apportionment
under paragraphs A and B in the amount equal to Member's
Accumulated Contributions, provided that, if such r�emaining asset
vatue be less than the aggregate of the amounts apportioned
hereunder such latteramount sha{I be proportionately reduced so that
the aggregate of such reduced amounts wilf be equal to such
remaining asset value.
D. If there be any asset value remaining after the apportionment's under
paragraphs A, B and C, apportionment shall las�y be made in respect
of each Member included in paragraph C above to the extent of the
actuarial equivalent, as described in paragraph A above, of the
accrued normal retirement benefit, {ess the amount apportioned in
paragraph C, based on credited service and average monthly
earnings as of such date provided that, if such remaining asset value
be less than the aggregate of the amounts apportioned hereunder
such amounts shall be reduced so thatthe aggregate of such reduced
amounts will be equal to such remaining asset value.
E. {n the event that there be asset value remaining after the futl
apportionment's specified in paragraphs A, B, C, and D, such excess
shall be retumed to the Village, less retum of the State's contributions
to the State, if any, provided that, if the excess is less than the total
contributions made by the Village and the State to the date of
termination, such excess shafl be divided proportionately to the tota{
of contributions made by the Village and the State.
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April 14, 2005
The allocation of the Fund provided for in this subsection may, as decided by the
Board be carried out through the purchase of insurance company contracts to provide the
benefits determined in accordance with this subsection. The Fund may be distributed in
one sum to the persons entitled to said benefits or the distribution may be carried out in
such other equitable manner as the Board may direct. The Trust may be continued in
existence for purposes of subsequent distributions.
4. After all the vested and accrued benefits provided hereunder have been paid
and after all other liabilities have been satisfied, then and only then shall any remaining
fund rever� to the General Fund of the Village.
Section 24 Exemption from Execution. Non-assiqnabilitv.
The pensions, annuities, or any other benefits accrued or accruing to any person
under the provisions of this Orclinance 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 {egal process whatsoever and shall be unassignabfe. However,
pursuant to an income deduction order, the trustees may direct that retirement benefits be
paid for alimony or child support in accordance with rules and regulations adopted by the
Board of Trustees.
Section 25. Pension Validitv. '
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
shalf hereafter be granted or obtained erroneousfy, fraudulently or illegatly fior any reasons.
Said Board is empowered to purge the pension rolls of any person heretofore granted a
pension under prioror existing law or heretofore granted under this Ordinance if the same
is found to be erroneous, fraudu{ent or iflegaf for any reason, and to reclassify any person
who has heretofore under any prior or existing law been or who shall hereafter under this
Ordinance be erroneously, improperly or illegally classified.
Section 26. ForFeiture of Pension.
Any Member convicted of the folfowing offenses committed prior to retirement, or
whose employment is terminated by reason of his/her admitted commission, aid or
abatement of the following specified offenses, shall forfeit all rights and benefits under this
Pension Fund, except for the return of this accumulated contributions as of the date of
termination.
1. Specified offenses are as follows:
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April 14, 2005
A. The committing, aiding or abetting of an embezzlement of pubiic
funds;
B. The committing, aiding or abetting of any theft by a public officer or
employee from employer;
C. Bribery in connection with the employment of a public officer or
employee;
D. Any felony specified in Chapter 838, Florida Statutes;
E. The committing of an impeachable offense.
2. The committing of any fe{ony by a public officer or employse who willfutly
and with intent to defraud the public or public agency, for which he acts or in which he is
employed, of the right to receive the faithfiul 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 hislher public o�ce or emptoyment position.
A. Conviction sha{I be defined as foNows:
An adjudication of guilt by a court of competent jurisdiction; a plea of
guilty or nolo contendere; a jury verdict of guilty when adjudication of
guilt is withheld and the accused is placed on probation; or a
conviction by the Senate of an impeachable offense.
B. Court shatt be defined as follows: .
Any state or federal court of competent jurisdiction which is exercising
jurisdiction to considera proceeding involving the alleged commission
of a specified offense. Prior forfeiture, the Board of Trustees shall
hold a hearing on which notice shall be given to the Member whose
benefits are being considered for forfeiture. Said Member shall be
afforded the right to have an attomey present. No formal rules of
evidence shall appty, 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 shatl be
required to pay back to the Fund the amount of the benefits received in
excess of his/her accumulated contribufions. The Board of Trustees may
implement all legal action necessary to recover such funds.
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April 14, 2005
3. False, misleading, or fraudulent statements made to obtain public retirement
benefits is prohibited; penaity
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 material information to obtain any
benefit available under a retirement plan reoeiving funding under
Florida Statutes, Chapters 175 and 185.
B. A person who violates subsection (A) commits a misdemeanor of the
first degree, punishable as provided in s. 775.082 or s. 775.083,
Florida Statutes.
In addition to any applicable criminal penalty, upon conviction for
violation described in subsection (A), a participant or beneficiary of a
pension ptan receiving funding under Florida Statutes, Chapters 175
and 185 may, in the discretion of the Board of Trustees, be required
to forfeit the right to receive any or all benefits to which the person
would otherwise be entitled under this Ordinance. For purposes of
this paragraph, "conviction" means a determination of guilt that 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, voluntari{y or involuntarify, prior to first and initia{ employment with the Pofice
Department or Fire Department shall be added to his/her years of credited service provided
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 actuarially dete�rnined
such that the crediting of service does not result in any cost to the Fund plus payment of
costs for all professional services rendered to the Board in connection with the purchase
years of credited service.
2. The request shall be made only once and made by the Member on or before
the later of twelve (12) months from the effective date of this Ordinance or six (6) months
from the date of his/her employment with the Police Department or Fire Department,
whichever is later.
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April 14, 2005
3. Payment by the Member of the required amount shall be made within six (6)
months of his/her request for credit and shall be made in one lump sum payment upon
receipt of which credi#ed service shaif 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/ka
March 11, 2005
H:1Tequesta PS 1011\Plan Docs 8 Rules\Restatement 2005.wpd
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