HomeMy WebLinkAboutDocumentation_Regular_Tab 08C_12/14/2000 I
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I r"��J�71 �R F7agler Center Tower, Suite 1100 Mailing Address
I T �i �l V S'I'`�N 505 South Flagier Drive Post Office Box 3475
,' Q, �+� - � - p� ` n A West Palm Beach, Florida 33401 West Palm Beach, Florida 33402-3475
� C7� �71 V�7 l.ri. Telephone (561) 659-3000 Facsimile (561 j 832-1454
j Attorneys ami Ca�unselors
I
John B. McCracken, Esq.
I DirectDial: (561) 650-0471
�, Direct Fax: (561) 650-0431
E-mail: imccracken@jones-foster.com
,
November 27, 2000
' Richard Diamond
�� Village of Tequesta
250 Tequesta Drive, Suite 300
I Tequesta, FL 33469
I Dear Richard:
Re: Public Safety Board of Trustees
In furtherance of our discussions, I enclose a proposed Ordinance for consideration by the
Public Safety Board of Trustees for recommendation to the Village Council.
This proposal addresses issues raised by the Division of Retirement in its letter to Mr.
Hansen dated July 28, 2000, as well as issues raised by Stephen Palmquist in his letter of
September 19, 2000, and a number of other matters raised at recent meetings.
Finally, the 2000 Florida. Legislature passed F.S. 112.661 which requires that trustee boards
adopt a"Statement of Investment Policy". T'he proposed Ordinance also requires that the
Tequesta Boards adopt such policies.
Please call if you have any questions or comments.
5incerely yours,
JONES, FOS R, JOHNSTON & STUBBS, P.A.
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J B. McCra ken
N:UBM11315 46�DiamondLl.
Enclosur'
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DFPAR7'MEN'I' OF MANAGEMFNT
� S�RVICES �
J� BU '� GO �� DIVISION OF RETIREMENT TH�as H. McGuxx SEQtETARY
Cedars Executive Center • 2639 North Monroe Street Bldg. C• Tallahassee FL 32399-1560
Mailing Address: Municipal Police Offcers' 8c Firefeghters' Retirement Trust Funds
PosE Office Box 3010 • Tallahassee, Florida 32315-3010
July 28, 2000
Mr. Catl C. Haasen
Chairman, Employees' Retirement Board
Post Of�ice Box 3273
Tequesta, Ftorida 33469
Dear Mr. Hansea:
This is to aclmowledge r�ceipt of the plan attorney's June 23, 19991etter.advisiag the City that the plan needed to be
amended to separat� the police officers and firefight�ers from the general emptoyees' pension plan, and a copy of
final Ordinance No. 549, establishing a combined policc and fire plan.
Please provide our of�ce with a copy of the actvary's review of the newly created police and fire plan in light of the
provisions of Chapter 99-1, Laws of Florida.
In reviewing the ordinance to deternune compliance with Chapters 175 and 185, please consider the foIlowing
comimeats:
Page 2, Section I, "Credited Service," should be ameaded to compty v�ritl� s. 175.032(4}, as firefighters are no toager
required to make employee contnbutions in order to receive credit for the years that he serves in the military v�,hile
on leave of absence (up to five years), This provision should be amended accordingly.
Page 6, Section 3, "Boazd of TnLStees," paragraph 3, provides that four a�'irmative votes shaII be necessary for any
decision by the trustees. This provision should be amended to comply with ss. 175.071(2) and 185.06(2), wluch
states that any and all acts and decisions shall be effectuated by vote of a majority of the members Qf the boatd, q
raajority vote for a five-member board would be three not four. This provision should be amended accord'utgly,
•,,
Page 17, Section 8, "Conditions Disqualifying Disabiliry Benefits," should be amended to comply with the
provisions of s, 175.191(3). There is no exclusion for firefighters that are in.jared w}rile working for anyone other
than the City. .
Page 22, Section 11, "Beneficiaries," paragraph 2, suggesE you amend this to remove the discretionary language so
that if the deceased member fails to name a beneficiary or if the beneficiary predeceases the member the death
bene5t will be paid to the "estate." See ss. 175.181(2) and 185.162(2), F. S.
Page 22, Section 12, "Clairns procedures Before thc Baard Decision," should be amended to allow the board to
adopt such procedures as part of its mles and policy provisions. Sections .175.061(1), 175.071(S), 185.05(1), and
185.06(4) pro�ide that the boazd shall be solely responsible for the adminishation of the plan. This is an
administrative issue that should be addressed by the board.
Telephone (850) 922-0667 • S�ncom 292-0667 • Fax (850) 923-2161
��
Mr. Carl C. Haczsen
Ju1y 28, 2a00
Page hvo
Please provide a copy of the ordinance making fhe amendments as pmvided above alang with an actuariat imgact
statement.
As stated above, we also need a copy of the acfuary's review of your plan ia ligfit of the provisions found in Chapter
99-1, Laws ofFlorida.
Since it appears that Mr. McCracken's review was provided on the combined Police, Fire and General plaq it may
be appropriate for the Police and Fire Board to have its plan attoraey review the plan in light of the provisions of
Cttapter99-1.
Please provide our offiee with the names and addresses of the new police and fire tnxstees so that we xna.y ad.d thern
to our mailing Iist.
In ocder not to delay the release of state premtum taa moneys, ptease provfde opr ofIIce with a copy o� �
actuary's.review.
Thank you for yaur cooperation and assistance in ttus matter, Igyoti bave any questioffi, p�ease coatact our office.
Sincerely,
�GL��•c.v �. •
—�._ .
Patricia F. Shoemaker
Beaeftts Adminisbrator
Municipal Police Officers' and
Firefighters' Retirement Funds
pfs -
cc: Thomas G. Bradford, Secretazy, Employees' Retirement Board
Cyntfiia R. Sementellli, Accountax�t .
John B. McCracken, Plan Attorriey
J. Stepfien Palmquis� Plan Actuary �
Charles Slavin, Actuary, Division of Retireme�t
^ OS/18/00 13:15 FAZ
� Q02
GABRIEL. 1'td��E� SMrTF1 & C'OMPANY
Gonsult�aMs & Aeteraries
301 EsSt Las �as Btvd. • Suite 200 • FL Laud� FL 9930t • 954-527-1610 � FAX 954.5�
September 18. 2000
Ms. Cynthia R_ Sementetti
Ac�untarrt
ViUage of Teques�
35T Tequest� Driv�e
Tequ�, Florida 33469
Re: Public Safety Employeeg' pe�sion Trust Fund ,
Dear Ms_ Sementeifi:
Chapter 99-1. l.�w� of Flotida p1 ovides that minimum be� of Chapters 175 and 185. F[orida
Statutes must be enacted when thene is enough "additional premium f�uc revenue' to pay for thern.
R�dditionat p�mium tax rev�enue me8ns the amount of revenue, if �y. fhat ex�c�eds amourri�
rec:eived in � 998 (baseci on premitur�s paid ir� calendar 'f 997� A c�mparisan �f reve�nue received
in 1998 and 1999 is as faltows:
Incr�ase
� �
Chapfer 1&5 (Police) $25,134 �29,795 � e��� •
Ch�pi�r i75 (Fr+e) 36,341 35,119 (�,��
fn out opinion, fha following �r�e minimum Chapter bertefits that wll have to be enacted.
En�'ctm�t °f these c�a►�9es +a�u have no aduarial irripact on fhe Plan. In o�ltet w�nrds, these
changes can be made un'thout reg��ti to the level of �apter r�evenu�.
1. The defmitiort Qf cxedifed Setvioe w��N have to proVide that r�ued poNce pfflcers
and �iref�ghte►s m�y bu�Fback theK previous �ervice under �in conditians. '
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Z. Member contributiar� withheld by the Vitlage must be deposii+�d immediately af6er . 9
each p�yday instead of °_....at least manfhly , 0 .
7
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3 _ m� �ar'�Y ���nt benefrt must be paid for a minimum of 120 rnonths (same as �
normal retinement), �
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� 09/18/40 13:16 FAg
• � QU.�
Cyrrthi� Sementelii
Vlhage of Tequesta
Sept�mber 19. 2040
Page 7w�o
4. The eariy nefirernent penalty fnr firefighters must be re►d+x�ed to 396 per year.
5- Disability re�irees must be �ItQwed to dioose from among the same option�i forms
af byenefits as �arfy and nvmia{ �etiree�
We uv�x�ld rec:ommend addi4onat changes tA the Rtert that have r�othing to do wiifi Chapters i75
and 185. Fir�f, '�e definidon af actuariat equivalence inoorrecfly descxibes a particular mati�iify
tabte. Additianat �artges, u�ich we q€n cfiscuss fur�tter. s�uki atso be made.
Secorxi, Sectiot� 16 needs major revisinrt due fo dianges made to tntemal I�evenue Gbde Section
415 ov�r the fast few years.
T��, II�'S-rG-`QfAff6t3 fOIlOY6C' l,�flgU� Fl�Q(�S t0 b@ �k'd �� P�R. .
We w�efcorne yr�ur questions and �amments.
Sincer�e�Y ��.
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.i. Stephe�1 Patmquist
JSP/o� . .
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GARR{EL, RC►EDEti. SMIT.�i �& COMiPANIf �
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ORDII�TANCE NO.
AN OR.DINANCE OF THE VILLAGE COUNCIL OF THE
VILLAGE OF TEQUESTA, PALM BEACH COUNTY,
FLORIDA, AMENDING EXHIBIT "A" OF SECTION 2-30
OF THE CODE OF ORDINANCES, VILLAGE OF
� TEQUESTA, FLORIDA, RELATING TO THE EMPLOYEES'
PENSION TRUST FUNDS BY AMENDING DEFINITIONS,
PROVIDING THAT THE BOARDS OF TRUSTEES SHOULD
ADOPT STATEMENTS. OF INVESTMENT POLICY; .
CORRECTING SCRIVENER'S ERRORS; PROVIDING FOR
EARLY RETIREMENT GUARANTEED PAYMENTS;
CLARIFYING DISABILITY RETIREMENT AS REQUIRED
BY STATE LAWS; PROVIDING FOR ELIGIBLE ROLLOVER
DISRIBUTIONS; PROVIDING FOR SEVERABILIT�;
PROVIDING FOR REPEAL OF ORDINANCES IN
CONFLICT; PROVIDING FOR CODIFICATION; AND
PROVIDING AN EFFECTIVE DATE.
NOW THEREFORE, BE IT ORDAINED BY TIiE VILLAGE COUNCIL
OF THE VILLAGE OF TEQUESTA, PALM BEACH COUNTY,
FLORIDA, AS FOLLOWS:
Section 1. Those portions of Exhibit "A" to
Section 2-30, Code of Ordinances, Village of
Tequesta, Palm Beach County, Florida, as amended,
which are shown by line-through on Exhibit "A"
attach.ed hereto are deleted and those portions
shown by double underlining on Exhibit "A"
attached hereto are added and made a part hereof
and are passed and adopted as amendments to such
Exhibit "A" to Section 2
Section 2. Severability. If any provision of
this Ordinance or the app].ication 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 this 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
o.r 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 and approval.
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 14 day of December, A.D,
2000.
MAYOR OF TEQUESTA
Joseph N. Capretta
ATTEST:
Joann Manganiello
Village Clerk
Resolution\Amendment of Code of Ordinances
EXHIBIT �A"
VILLAGE OF TEQUESTA
EMPLOYEES' PENSION TRUST FUNDS
Section 1. Definitions
1. Statement of Definitions. As used herein, unless otherwise defined or
required by the context, the following words and phrases shall have the meaning indicated:
Accumulated Contributions means a Member's own contributions without interest.
Act means the Employee Retirement income Act of 1974 (P.L.93-406) as amended
by the Retirement Equity Act of 1984 (P.L. 98-397) and any regulations issued thereunder
by the Department of Labor and the Intemal Revenue Service, as that Statute and these
regulations shafl be amended.
Actuarial Eauivalent means a benefit or amount of equal value, based upon the
�-l-�f�IFmortality #�bfetables utilized bv the Boards' actuarv or actuaries, and an �9�0
rate of interest.
Average Final Compensation shall mean one-twelith (1/12) of the average salary
of the fve (5) best years of the last ten (10) years of credited senrice prior to retirement�
termination, or death or the career average as a full time Firefighter, General Employee or
Police Officer, whichever is greater. A year shafl be twelve (12) consecutive months.
Beneficiarv means the person or persons entitfed 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. Boards. Board of Trustees. or Boards of Trustees mean either the General
Employee Board of Trustees and/or the Public Safety Board of Trustees, which shall
administer and manage the System herein provided and senre as Trustees of the Funds
for the benefit of beneficiaries of the appropriate classes of employees. Reference to a
Board may, as the context requires, be to Boards.
Chapters means Chapters 175 and 185 of the Florida Statutes as amended from
time to time.
Code means the Internal Revenue Code of 1986, as amended from time to time.
Credited Senrice means the total number of years and fractional parts of years of
senrice as a Police Officer, Firefighter or General Employee and member contributions to
the Plan, omitting intervening years or fractional parts of years when such Police Officer,
Firefighter or General Employee may not be employed by the Village of Tequesta. A plan
member may vo{untarily leave his/her contribution in the Fund for a period of five (5} years
after leaving the employ of the Village of Tequesta pending the possibility of being rehired
in a futl time position by the Village of Tequesta without losing credit for the time of active
participation as a plan rnember. Should the employee not be re-employed with the Village
of Tequesta in a full time capacity within five (5) years, his/h�r contributions shall be
returned to him/her without interest. Should a Police 4fficer or Firefi4hter be
subseauentiv re-emaloved as such. he or she mav re-aurchase his or her vears of
credit orfractional parts ofvears of credit bv reimbursina such returned contribution
to the Fund. with interest.
The years or fractional parts af years that a Fireftghter. Police Officer or General
Empfoyee 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 empfoyment as a Village of Tequesta plan member, shalf
be added to his/her years of credited service provided that: �
A. The Firefighter or Police Officer must retum to his/her full time
employment with the Fire Denartment or Police Department and the General Employee
to his/her fult time employment with the Village of Tequesta within one (1) year from the
date of his/her military discharge.
B. The �ff�efPolice Officer or General Employee deposits into the
Fund the same sum that the Member would have contributed if he/she had remained a
�re#i�#�e�Potice Officer or Generai Employee, whichever is applicable. pfus an amount
of interest that substantially approximates the amount earned by the Fund from the date
of retum to employment to the date of deposit._ FirefiQhters shall not be reauired to
make such deaosits.
C. The maximum credit for military senrice shall be five (5) years.
The y�ars or fractional parts of years that a Police Officer serves in the military
service of the Armed Forces of the United States or the United States Merchant Marine,
voluntarily or involuntarily, after separation from employment with the Village for the
purpose of going on active duty, shall be added to his/her years of credited service, for all
purposes, including vesting, pursuant to conditions that afe required or permitted under
state and federal law. as amended from time to time, provided that the police officer must
returr� to his/her employment as a police officer within one year from the date of his military
discharge or release from active service under honorable conditions.
2
Effective Date means the date on which this Ordinance becomes effective.
Police Department means the Tequesta Police Department.
Fire De�artment means the Tequesta Fire Department.
Police Officer means any person who is elected, appointed, or employed fu(f time
by the Viliage, who is certified or required to be certified as a law enforcement o�cer 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 penaf, criminal, traffic or highway laws of the state. This definition
includes all certified supervisory and command personnel whose duties include, in whofe
or in part. the supervision, training, guidance, and management responsibilities of full-time
law enforcement officers, part-time law enforcement o�cers or auxiliary law enforcement
officers as the same are defined in F.S. 943.10(6)and(8) respectively. Police Officer also
shall include a public safety offcer who is responsibfe for performing both police and fire
services.
Firefighter means an actively employed full-time person employed by the Fire
Department, including his initial probativnary employment period, who is certified as a
Firefighter as a condition of employment in accordance with the provisions of 633.35
Florida Statutes and whose duty is to extinguish fires, to protect life and to protect property.
General EmploXee means an actively employed full-time person employed by the
Village of Tequesta, including his initia! probationary employment period, excluding certified
Firefighters and certified Police Officers.
General Employee Board means the board of trustees provided hereunder to
administer and manage funds for the benefit of General Employees.
Fund or Funds mean the Trust Funds established herein as part of the System,
eitherthe Trust Fund forthe benefit of Pubfic Safety �fficers and/orthe Trust Fund forthe
benefit of General Employees.
Member means an actively employed Police Officer, Firefighter or Genera!
Employee that fulfills the applicable prescribed participation requirements.
Public Safety Board means the Public Safety Board of Trustees provided hereunder
to administer and manage Funds for the benefit of Public Safety Officers.
Public Safety Officers means Firefighters and/or Police Officers.
Salary means:
3
Police Officer: The total cash remuneration paid to a police
officer for services rendered.
Firefghter: The total cash remuneration paid to a firefighter for,
services rendered.
Generaf Emplo�ree: Base compensation to include regular
earnings, vacation pay, sick pay, ptus all tax deferred items of
income, exctuding lump sum payments.
S ouse means the lawful wife or husband of a plan member at the time of pre-
retirement, death or retirement.
Statement of Investment Poficv means the written investment olicv adonted
bv the Boards p ursuant to th is Ordinance and F.S.112.661, et sea., which shall applv
to funds under the control of each such board.
System means the Viltage of Tequesta Employees' Pension Trust Funds as
contained herein and alt amendments thereto.
Villaae means the Village of Tequesta, Fforida.
2. Masculine Gender. The masculine gender, where used herein. unless the
context specifically requires otherwise. shall include both the feminine and masculine
genders.
Section 2. Membershiu
1. Condition of Eligibilitv
All full time Firefighters as of the effective date, and all future new full time
Police Officers, Firefighters and General Emp{oyees shall become Members of this System
as a condition of employment.
2. Membership
Each full time Police Officer, Firefighter or General EmpJoyee shall complete
a form prescribed by the Board providing the following information:
A. Acceptance of the terms and conditions of the Retirement System,
and,
B. Designation of a beneficiary or beneficiaries, and,
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C. A certified statement as to prior medical and psychologicai history.
3. Change in Designation of Beneficiary
A member may from time to time change his designated beneficiary by
written notice to the Board upon forms provided by the Board. Upon such change, the
rights of alf previously designated beneficiaries to receive any benefrts under the System
shall cease.
Section 3. Boards 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 two (2) Boards of Trustees, the General Employee Board and the
Public Safety Board. The General Empfoyee Board shafl consist of five (5) Trustees two
(2) of whom, unless otherwise prohibited by law� shail be legal residents of the municipality,
who shall be appointed by the Tequesta Village Council, and two (2) of whom shall be
full-time General Employee members of the system. The fifth (5�') Trustee shall be
selected by a majority vote of the other four (4) Trustees. The Public Safety Board shall
consist of five (5) Trustees, finro (2) of whom, unless otfierwise prohibited by law, shall be
fegal residents of the municipality, who shall be appointed by the Tequesta Village Cau�cil,
one (9 ) of whom shall be a full-time Police Officer member of the System and one (1) of
whom shall be a ful!-time Firefighter member of the Systern. Th� fifth (5t'') Trustee shall be
setected 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 electe� by
their full time co-workers who are members of the System in the applicable employee
representative group, e.g. Police Officer, Firefighter or General Employee in which they are
employed and sha{I 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 for either board, the Tequesta Village Councit shall, as a ministerial
duty, appoint such person to the General Employee Board and/or the Public Safety Board
as its fifth (5"') Trustee. The fifth (5"') Trustee shall have the same rights as each of the
other Trustees appointed �r elected as herein provided and shall serve a two (2) year term
unless the office is sooner vacated and may succeed himself or herself in office. Each
resident Trustee shall serve as Trustee for a period of two (2) years unless sooner
replaced by the Tequesta Village Council at whose pleasure the Trustee shalt serve, and
may succeed himself or herself as a Trustee. Each Police Officer Firefighter and General
Employee Trustee shall 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 shal!
be chosen in the same manner as the departing Trustee. Each employee representative
Trustee may succeed himself or herself in office. The General Employee Board and the
Public Safety Board shall meet at least quarterly each year. Such Boards shall be legaf
5
entities with, in addition to other powers and responsibilities contained herein, the power
to bring and defend lawsuits of every kind, nature, and description.
2. Each Board shall, by a majority vote, elect a chairman and a secretary. The
secretary of the Board shall keep, or cause to be kept, a complete minute book of the
actions, proceedings, or hearings of the Board and shall preside over Board meetings in
the absence of the Chairman. The Trustees shall not receive any compensation as such,
but may receive expenses and per diem as provided by �aw.
3. Each Trustee shall be entitled to one vote on his or her Board. �etti= �
(�4� affirmative votes shall be necessary for any decision by the Trustees at any meeting
of a Board. A Trustee shall have the right to abstain from voting as the result of a conflict
of interest provided that Trustee states in writing that the nature of the conflict complies
with tt�e provisions of Section 112.3143, Flo�ida Statutes.
4. The Boards of Trustees shall engage such actuarial, accounting, legal, and
other services as shall be.required to transact the business of the Retirement System to
administer and manage their funds and to meet the requirements of applicable law. The
compensation of all persons engaged by the Boards of Trustees and a{I other e�enses
of the Boards necessary for the operation of the Retirement System shall be paid from the
Funds they administer and manage at such rates and in such amounts as the Board of
Trustees shall approve.
5. The duties and responsibilities of the Boards of Trustees shall include, but
not necessarily be limited to, the following: �
A. To construe the provisions of the S.ystem and determine ail questions
arising thereunder. �
B. To determine al! questions relating to eligibility and participation.
C. To determine and certify the amount of all retirement allowa�ces ar
other benefits hereunder. �
D. To establish uniform rutes and procedures to be foltowed for
administrative purposes, benefit applications and all matters required to administer the
System.
E. To distribute to Members, at regular intenrals, information concerning
the System.
F. To receive and process all applications for participation and benefits.
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G. To authorize all payments whatsoever from the Funds which they
administer and rnanage, and to notify the disbursing agent, in writing, of approved health
payments and other expenditures arising through operatian of the System and the Funds
which they administer and manage.
H. To have perform�d actuaria! studies in accordance with Florida Statute
112.63 providing a copy of the same to the Division of Retirement, and with at least
biennia! valuations� and make recommendations regarding any and all changes in the
provisions of the System.
I. Ensure compliance with Article X, Section 14, of the Florida
Constitution, requiring that any increase in benefits be funded on an actuarially sound
basis.
J. Ensure the completion of an actuaria! 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. fn the case of the Public Safety Board, to comply with the Chapters. .
L. To ensure the funds and assets for the benefit of the employee groups
they senre are segregated and separated from the funds and assets under the control of
the other Board.
� M. To perform such other duties as are specified in this Ordinance.
N To adout and be auided bv Statements of Investment Policv
aaplicable to all funds under the control of the Public Safetv Board of Trustees and
of the Generat Emolovee Board of Trustees as reauired from time to time bv F.S.
112.661, et sea., and/or its successor statutes.
Section 4. Finances And Fund Management.
Establishment and O�eration of ,Fund.
1. As part of the System� there is hereby established two (2� Funds, into which
shall be deposited a!t of the contributions and assets whatsoever attributable to the
System� one (1) to consist of the funds and assets for the benefit of Genera! Employees
to be administered and manag�d by the Generat Employee Board and one (1) to consist
of the funds and assets for the bene�t of Public Safety Officers to be administered and
managed by the Public Safety Board.
2. The actual custody and supervision of the Funds (and assets thereofl shall
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be vested in the Boards of Trustees. Payment of benefits and disbursements from the
Funds shall be made by the disbursing agent, but only upon written authorization from the
Boards.
3. All funds and securities of the Funds may be deposited by the Boarrls of
Trustees with the Treasurer of the municipality, acting in a ministerial capacity onfy, who
shall be liable in the same manner and to the same e�ctent as he is liable foc the
safekeeping of funds forthe municipality. However, any funds and securities so deposited
with the Treasurer of the municipality shali be kept in separate funds by the Treasurer or
clearly identified as such funds and securities of the General Employee Trust Fund or the
Public Safety Officer Trust Fund. In lieu thereof, the Boards of Trustees shall deposit the
funds and securities of the Funds 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 shafl conform to and be bound by all of the provisions of Chapter 280�
Florida Statutes . In order to fulfilf its 'rnvestment responsibilities as set forth herein, the
Boards may retain tfie services of a custodian bank or banks, an invesfiment� advisor or �
advisors registered under Investment Advisors Act of 1940 or otherwise exern�t from such �
required registration, an insurance company, or a combination of these, for the purposes
of investment decisions and management. Such investment manager or managers shall
have discretion, subject to any guidelines as prescribed by the Board, in the investment
of all fund assets.
4. All funds and securities of the System shail be accounted for separately
based upon the three (3) applicable employee classes within the Fund namely, the Police
Officers, Firefighters in the Public Safety Officers Trust Fund and the General Employees
in the Generat Employee Trust Fund. Accurate records shall be maintained at atf times
reflecting the financial composition of the Funds and of the accounts in place to segregate
the assets of the employee classes covered by the System, inctuding accurate current
accounts and entries as regards the foltowing: .
A. Current amounts of Accumulated Contributions of Members on both
an individual and aggregate account basis, and
B. Receipts and disbursements, and
C. Benefit payments, and
D. Current amounts clearly reflecting all moneys, funds and assets
whatsoever attributable to contributions and deposits from the Village , County or State and
E. All interest, dividends and gains (or losses) whatsoever, and
F. Such other entries as may be properly required so as to reflect a clear
8
and complete financiai report of the Fund.
G. Such other entries as required by the Chapters.
5. An independent audit shall be performed annually by a certified public
accountant for the mos# recent fisca! year of the Vitfage showing a detailed listing of assets
and a statement of atl income and disbursements during the year for each Fund. Such
income and disbursements must be reconciled with the assets at the beginning and end
of the year. Such report shall reflect complete evaluations of assets on both a cost and
market basis, as well as other items normally included in a certified audit.
6. The Boards of Trustees shall have the following investment powers and
authority:
A. The Boards of Trustees shall be vested with full legal title to the Funds,
subject, however, and in any event to the authority and power of the Tequesta Vitlage
-� 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 Funds except for the payment of reg�lar
� expenses and ben�fits under this System. All contributions from time to time paid into ifie
Funds, and the income thereof, without distinction befinreen principal and income, shall be
held and administered by the Boards or their Agents in the Funds.
B. All moneys paid into or to be held shall be invested and reinvested
by the Boards and the investment of all or any part of such funds shall be limited to:
(1) Annuity and life insurance con#racts of life insurance companies
in amounts sufficient to provide, in whole or in _part, the benefits to which atf of the
participants in the Fund shal! be enti#ied under the provisions of this P1an and pay the initial
and subsequent premium thereon.
(2) Time or savings accounts of a national bank, a state bank or
a savings/bui�ding and loan association insured by the Federa! Deposit Insurance
Corporation or the Federal Savings and Loan Insurance Corpvration. .
(3) Obligations of the United States or obligations guaranteed as
to principa! and interest by the government of the United States.
� (4) Bonds issued by the State of Israel.
(5) Bonds, stocks, commingled #unds administered by Nationaf or
State Banks or evidences of indebtedness issued or• guaranteed by a corporation
organized underthe laws of the United States, any state ororganized territoryof the United
States, or the District of Columbia, provided that the corporation is traded on a nationally
9
recognized Exchange and holds a rating in one of the three highest classifications by a
major rating service, and if such investments are made in a pooled fund administered by
a state or national bank, then the rating of each issue in the pooled fund sha!! hofd a rating
within the top three (3) rating classifications of a major rating service.
(6) Rea! estate.
(7) All monies paid into or held in the Pension Fund shalf be invested
and reinvested by the Board of Trustees and the investment of all or any part of such funds
shall be invested in accordance with an established investment policy adopted by the
Board of Trustees.
C. The Boards 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 sha(I
the aggregate investment in any one issuing company exceed five percent (5%) of the
outstanding capitaf stock of that company; nor shall the aggregate of its investments in
common stock� �capital stock and convertible bonds at cost exceed �ysix percen�
(58�60%) of the assets of the Fund.
D. The Boards of Trustees may retain in cash and keep unproductive of
income such amount of the Fund as they may deem advisable, having regard for the cash
requirements of tHe System. � �
E. No person or entity shafl be liable for the making, retention or sale of
any investment or reinvestment made as herein provided. norfor any loss ordiminishment
of the Fund. except that due to his or its own negligence, willful misconduct or lack of good
faith.
F. The Boards may cause any investment in securities held to be
registered in or transferred into their name as Trus#ee or into the name of such nominee
as they may dir�ct, or they may retain them unregistered and in form permitting
transferabifity, but the books and records shait at ali times show that ali investments are
part of the Trust Funds.
G. The �oards are empowered, but is not required, 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 wi#hout power of substitution; to participate
in mergers, reorganizations, recapitalization, corisolidations 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 designate thereby;
to amortize or fail to amortize any part of all of the premium or discount resulting from the
acquisition or disposition of assets; and generally to exercise any of the powers of an
owner with respect to stocks, bonds, or other investments comprising the Fund which it
10
may deem to be to the best interest of the Funds to exercise.
H. The Boards shall not be required to make any inventory or appraisal
or report to any court, rior to secure any order of court for the exercise of any power
contained herein.
I. VI/here any action which a Board is required to take or 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 underthis Ordinance, can reasonably be taken or pertormed
only after receipt by it from a Member, the Village, the Department or any other entity, of
specific information, certification, direction or instructions, the Board shall be free of liability
in failing to take such action or perform such duty or function until such information,
certification. direction or instruction has been received by it.
J. Any overpayments or underpayments from a Fund to a Member or
beneficiary caused by errors of computation shall be adjusted with interest at a rate per
annum approved by the relevant Board. Overpayment shall be charged against payments
next succeeding the correction. Underpayments shall be made up from the retevant Trust
Fund.
K. A Board shall sustain no liabifity whatsoever for the sufficiency af a
Fund to meet the payments and benefits herein provided.
L. In any application to or proceeding or action in the courts, only, a
Board shall be a necessary party, and no Member or other person having an interest in a
Fund shall be entitled to any notice or service of process. Any judgment entered in such
a proceeding or action shall be conclusive upon all persons.
M. Any of the foregoing powers and functions reposed in a Board may be
performed or carried out by the Board through duly authorized Agents, provided that the
Board at aN times maintains continuous supe�rision over the acts of any such Agent;
�rovided further. that legal title to a Fund shall atways remain in the Board of Trustees.
N. A Board shall not invest more than ten percent (10%) at cost of its
assets in real property or real estate and there shall be no investment in a limited
partnership or trust.
Section 5. � Contributions
1. Member Contributions
A. Amount. Members of the Retirement System shall be required to
make regular contributions to the Fund in the amount of five percent (5%) of his/her salary.
11
Member contributions withheld by the Village on behalf of the Member shall be deposited
with the Boards of Trustees °"���` ---- `I�{p immediatelv after the withhoidinq of such
contributions - The contributions made by each Member to the Fund shali be designed
as empfoyer contributions pursuant to Section 414(h) of the �°}�---' °_..--..� Code-e�'
�-98�. Such designation is contingent �pon the contributions being excluded from the
Members' gross income for Federaf Incame Tax purposes. For all other purposes of the
Ptan, such contributions shall be considered to be Member contributions.
B. Method. Such contributions shall be made by payroll deduction.
2. State Contributions
Any monies received or receivable by reason of laws of the State of Florida,
for the express purpose of funding and paying for retirement benefits for Police Officers or
Firefighters shall be deposited within the appficable 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 quarterly
contributions to the Trust Funds in an amount equal to the difference in each year,
befinreen the total aggregate Member contributions for tfie year, plus state contributions,
if applicable, for such year, and the total cost for any year shall be defined as the total
normal cost plus the additional amount sufficient to amortize the unfunded past senrice
fiability overthe appropriate periods, commencing with the fiscal year in which the effective
date of this system occurs.
4. Other
Private donations, gifts and contributions may be deposited to the Funds, 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 relevant Board, and may not be used to reduce what would have
otherwise been required Village contributians.
Section 6. Benefit Amounts and Eligibilitv
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:
12
For Police Officers and Firefighters:
a) attainment of age fifty-five (55) and the compietion of (10) years of
credited service, or
b} attainment of age fifty-two (52) and the completion of iwenty-five (25)
years of credited service.
For General �mployees: �
a) attainment of age sixty-two (62) regardless of years of credited
_ service, or
b) attainment of thirty (30) years of credited service regareifess of age.
A Member may retire on his normal retirement date or on the first d�ay of any
month thereafter, and each Member shall become 100% vested in his accrued benefit on
the Member's normal retirement date. Normal retirement under the Plan is retirement from
employment with the Viilage of Tequesta as a Police Officer, Firefighter or Genera(
Employee, whichever is applicable, on or after the normal retirement date.
2. Normal Retirement Benefit.
A Member re#iring hereunder on or after his normal retirement date shall
receive a monthly benefit which shal! commence on hi� Retirement Date and be continued
thereafter during Member's lifetime, �easing upon death, but with one hundred finrenty
(120) monthly payments guaranteed in any event. The monthly retirement ber�efit shalf
equal:
For Police Officers and Firefighters - three percent (3%) of
average final compensation, for each year of credited service
(3% x average final compensation x years of credited service).
For General Employees - two percent (2%) of average final
compensation, for each year of credi#ed service (2% x average
final compensation x years of credited senrice).
� 3. Early Retirement Date
A Member may retire on his/her early re#irernent date which shall be the first
day of any month coincident with or next following the later of the attainment of age fifty
(50) and the completion of ten (10) years of credited service. Early retirement under the
Plan is retirement from employment with the Village of Tequesta on or after the early
13
retirement date and prior to the normal retirement date.
4. Early Retirement Benefit
A Member retiring hereunder on his/her eariy retirement date may receive
either a deferred or an immediate monthfy retirement benefit payable for life but wifh
one hundred twentv 1120) monthtv pavments quaranteed in anv event as follows:
A. A deferred monthly retirement benefit which shal! commence on what
would have been his/her normal retirement date had he/she remained a Police Officer,
Firefighter or General Employee and shall be continued on the first day of each month
thereafter. The amount of each such deferred monthly retirement benefit shall be
determined in the same manner as for retirement as his/her normal retirement date except
that credited service and average final compensation shall 6e determined as of his earty
retirement date; or
B. An immediate month{y retirement benefit which shall commence on
his/her early retirement date and shall be continued on the first day of each month
thereafter. The benefit payable shall be as determined 'rn paragraph A above, which is
actuarially reduced from the amount to which he/she would have been entitled had he/she
retired on his/her normal retirement date and with the same number of years on his normal
retirement date with the same number of years of credited serviEe as at the time hislher
benefits commence and based on his average final compensation at that date. I n no event
shall the early retirement reduction exceed:
For Police Officers - three percent (3°/a)
For Firefighters - , „ , ; �-,�gg�
• � � ,
� , ,
• ; , , three percent
(3%)
For General Employees - five percent (5%)
each year by which the commencement of benefits precedes the Member's normal
retirement date.
Section 7. Pre-retirement Death
1. Death Before Retirement
If a plan member dies prior to retirement from the Village of Tequesta his/her
94
beneficiary shall receive a benefit based upon the applicable empioyee classification as
follows:
Police Officer:
A. Line-of-Duty-Benefit is a pension to the spouse (or children) of 50%
of Average Compensation for life.
B. Non-Line-of-Duty-Death the spouse of a member with 10 years of
credited service will receive the actuarial equivalent of the accrued early or normal
retirement benefit.
C. In lieu of the benefits provided in A or B above, the beneficiary of a
pofice officer, with 10 or more years of service who dies prior to retirement, may receive
the benefts otherwise payable to the pofice officer at would have been his early or normaf
retirement date.
Firefighter:
A. Line-of-Duty-Benefit is a pension to the spouse (or children) of 50%
of Average Compensation for life .(Ord. 478)
B. Non-Line-of-Duty-Death the spouse of a member with 10 years of
credited service will receive the actuarial equivalent of the accrued early or normal
retirement benefit.
C. In tieu of the benefits provided in A or B above� the beneficiary of a
firefghter, with 10 or more years of service who dies prior to retirement, may receive the
benefits otherwise payable to the firefighter at would have been his early or normal
retirement date.
General Employee :
Upon the death of any vested member, whether or not still in active
employment , a survivor benefit is payable to the beneficiary starting when the member
would have reached retirement age. The benefit is equal to the vested pension benefit.
Section 8. DISABILITY �
1. Disability Benefits On-Duty �
Each full time employee who is a participant in the Pension Fund System and
who shall have become totally and permanently disabled while an active employee of the
15
Village of Tequesta to the extent that he/she is unable, by reason of a medically
determinable physical or mental impairment, to render useful and efficient service as a
Police Officer, Firefighter, or General Employee, as was provided by the employee in their
classification (Police Officer, Firefighter� or General Employee} prior to the alleged
impairment, which disabi{ity was direct{y caused by the perFormance ofi his/her duty as a
Police O�cer, Firefighter, or General Employes shafl upon establishing the same to the
satisfaction of the Board, be entit(ed to:
A. If the injury or disease is service connected, the employee shall be
entitled to the greater of (a) or (b):
(a) For General Employees: a monthly pension equal to
42% of his/her average monthly compensation based
upon his/her final 5 years of service, or
For Police Officers and Firefighters: a monthly pension
equal to 42% of his/her average monthly compensation
as of his/her disability retirement date, or
(b) y4For Police Officers and Firefi4hters: an amount
. calculated on the basis of the Normal Retirement
Benefit. or
For General Emnlovees: an amount equat to the
number of years of his/her credited service mu{tiplied
by:
2% of his/her average monthly salary based upon
his/her final 5 years of servic .
Any condition or impairment of health of Police Officer or Firefighter caused
by tuberculosis, hypertension or heart disease shall be presumed to have been suffered
in the line of duty untess the contrary is shown by competent evidence, provided that such
Police Officer or Firefighter shall have successfully passed a physical examination upon
entering into such service, including cardiogram, which examination failed to reveat any
evidence of such condition; and provided further, that such presumption shall not apply to
benefits payable or granted in a policy of life insurance or disability insurance. •
16
2. Disability Benefits Off-Dutv
Every Police Officer, Firefighter or Generaf Empioyee who is a participant in
the Pension Fund System who shaii have become totally and permanently disabled to the
extent that he/she is unable. by reason of a medically determinable physical or menta!
impairment, to render useful and effcient service as a Police Officer, Firefighter or General
Employee which disability is not direct{y caused by the perFormance of his/her duties as a
Police Officer, Firefighter or General Employee shafl be entitled to:
A. If the injury or disease is not service connected, the Police Officer,
Firefighter or General Employee shall be entitled to the greater of (a) or (b):
(a) For General Employees: a monthly pension equat to
25% of his/her average monthly compensation based
upon his/her fina( 5 years of senrice, or
For Police Officers and Firefighters: a monthly pension
equal to 25% of his/her average monthly compensation
as of his/her disability retirement date, or
(b) An amount equal to the number of years of his/her
credited senrice mult�plied by: .
3% of his/her average monthly salary based upon
his/her final 5 years of service for Police Officers
3% of hislher average monthly salary based upon
his/her final 5 years of service for Firefighters
2% of his/her average monthly salary based upon
his/her final5 years of service for General Employees.
3. Conditions Disqualifying Disability Benefits
Each Police Officer, Firefighter or Genera! Employee who is claiming
disability benefits shall establish, to the satisfaction of the Board, that such disability was
not occasioned primarily by:
A. Excessive or habitual use of any drugs, intoxican#s or alcohol.
17
B. lnjury or disease sustained while willfulfy and illega(fy participating in
fights, riots or civil insurrections.
C. Injury or disease sustained while committing a crime.
D. Injury or disease sustained while serving in any branch of the Armed
Forces.
E. Injury or disease sustained after his/her employment shall have
terminated as a Police Officer with the Tequesta Police Department ; Firefighter with the
Tequesta Fire Department or General Employee with the Village of Tequesta.
F. Willful, wanton or gross negligence of ##�e-A�et�tbef Police Officer or
Generai Emalovee
G. Injury or disease sustained by #+tea Police Officer, -Ffr�€�ef or
General Employee while working for anyone other than the Tequesta Police Department;
or-, for General Employees, the Village of Tequesta and arising
out of such employment.
4. Physical Examination Requirement
An employee eligible shall not become eligible for disability benefits until and
unless he/she undergoes a physical examination by a qualified physician or physicians
and/or surgeons, who shall be selected by the Board for that purpose.
Any person receiving disability benefits under provisions of this Ordinance
may be periodicalty re-examined by a qualified physician or physicians and/or surgeon or
surgeons who shall be selected by the Board, to deterrnine if such disability has ceased
to exist. If the Board finds that the retiree is no longer permanently and totally disabled to
the extent that he/she is unable to render useful and efficient service as a Police Officer�
Fir+efighter, or General Employee the Board shali recomrnend tc� the ViNage t1�at the r�tiree
be retumed to their previous performance of duty as a Po{ice Officer. Firefighter� or
Generat Employee, and the retiree so returned shall enjoy the same rights that Member
had at the time he/she was placed upon. pension. In the event the re#iree is so ordered to
retum shall refuse to compty with the order within thirty (30) days from the issuance
thereof, Member shal! forfeit the right to his/her pension.
The cost of the physical examination and/or re-examination of the employee
or retiree claiming and/or receiving disability benefits shall be borne by the Board of this
Pension Fund System. All o#her reasonable costs as determined by the Board incident to
the physical examination,. such as, but not limited to, transportation, meals and hotel
accommodations, shall be bome by the Board.
18
If the retiree recovers from disability and reenters his/her former service with
the Village of Tequesta held prior to disability retirement, his/her service will be deemed
to have been continuous, but the period beginning with the first month for which he/she
received a disabiiity retirement income payment and ending with the date he/she reentered
the service of the Village wil{ not be considered as credited service for the purpases of the
Plan.
The Boar�d shall have the power and authority to make the final decision
regarding all disability claims.
5. Disability Payments
The rnonthly benefit to which a Member is entitled in the event of #he
Member's disability retirement shatl be payable on the first day of the first month after the
Board of Trustees determines such entitlement. However, the month[y retirement income
shall be payable as of the date the Board determined such entitlement, and any portion
due for a partiat month shat( be paid together with the first payment. The last payment wiii
be:
A. If the plan member recovers from the disability prior to 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 disability or attains
his/her normal retirement date while still disabled, the payment due next preceding his
death or the 120th monthty payment� whichever is later.
Section 9. Vestin4 . �
If a Member terminates his employment with the Village of Tequesta, either
voluntarily or by discharge, and is not eligible for any other benefits underthis System, the
Member shall be entitled to the following:
For Police and Firefighters:
1. If the Member has tess than ten (10} years credited service upon
termination, the Member shall be entitled to a refund of his accumulated contribution or
Member may leave it deposited with the Fund.
2. If the I�lember has ten (10) or more years of credited service upon
termination, the Member shall be entitled to a monthly retirement benefit that is the
actuarial equivalent af the amount of such �etirement income otherwise payable to him
commencing at Member's otherwise normal or ear{y retirement date, provided he does not
elect to withdraw his accumulated contributions and provided Member survives to his
19
normal or early retirement date.
For General Empioyees:
1. If the Member has less than ten (10) years credited service and has
not attained the age of sixty-two (62) upon termination, the Member shall be entitled to a
refund of h�s accumutated contribution or Member may leave it deposited with the Fu�d.
2. If the Member has ten (10) or more years of credited service upon
termination, or, alternatively, the Member has attained the age of sixty-two (62) , regardless
of credited years of service, the Member shall be entitled to a monthly retirement benefit
that is the actuarial equivalent of the amount of such retirement income otherwise payabfe
to him/her commencing at Member's otherwise normal or early retirement date, provided
he/she does not elect to withdraw his/her accumulated contributions and provided Member
survives to his/her norma! or early retirement date.
3. Any plan member of the System whose position is terminated. for
whatever reason. but who is employed by the Viffage in some capacity, shall have alt
retirement benefits accrued up to the date of such termination under this System
preserved, provided he does not elect to withdraw his/her accumulated contributions from
this System. Such Accrued retirement benefits shall be payable at his/her otherwise
normal retirement date hereunder, or later, in accordance with the provisions of this
System.
Seetion 10. Optional Forms of Benefits
1. In lieu of the amount and form of retirement income payable in the event of
norrna! or early retirement as specified herein, a plan mernber, upon written request to the
Board of Trustees and submission of evidence of good health (except that such evidence
will no# be required if such request is made.at least three (3) years prior to the date of
commencement of retirement income or if such request is made within six (6) monfhs
fotlowing the effective date of the Plan, if later)� and subject to the approval of the Board
of Trus#ees, may elect to receive a retirement income or benefit of equivalent actuarial
value payable in accordance with one of the following options:
A. A retirement income of a larger monthly amount, payable to the
Member for his/her lifetime onfy.
B. A retirement income of a modified monthty amount, payable to the
Member during the joint lifetime of the Member and a dependent joint pensioner
designated by the Member and fol{owing the death of either of them,100%, 75%, 66-2/3%,
or 50% of such monthly amounts payable to the survivor for the lifetime of the survivor.
20
C. Such other amount and form of retirement payments or benefits as,
in the opinion of the Board of Trustees, will best meet the circumstances of the retiring
Member.
2. The Member, upon electing any option of this section, will designate the joint
pensioner or beneficiary (or beneficiaries} to receive the benefit, if any, payable under the
Pian in the event of Member's death, and will have the power to change such designation
from time to time, but any such change shall be deemed a new election and will be subject
to approval by the Board of Trustees. Such designation will name a joint pensioner or one
or more primary beneficiaries where applicable. If a Member h�s elected an option with
a joint pensioner or beneficiary and Member's retirement income benefits have
commenced, Member maythereafterchange his designated joint pensioner or beneficiary,
but only if the Board of Trustees consents to change and if the joint pensioner last
previously designated by 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 shafl not
be required.
4. The Board of Trustees may request such evidence of the good health of the
joint pensioner tfiat is being removed as it may require and the amount of the retirement
income payable to the Firefighter upon designation of a new joint pensioner shall be
a�tuarialiy redetermined taking into account the age and sex of the former joint pensioner,
the new joint pensioner, and the 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 �he event that no designated benefciary sunrives the Member, such
benefits as are payabte in the event of the death of the Member subsequent to his/her
retirement shati be paid as provided in Se�tion 11.
5. Retirement income payr�nents shall be made under the option elected in
accordance with the provisions of this section and shall be subject to the following
limitations:
A. If a Member dies prior to his/her normal retirement date or early
retirement date, whichever first occurs, no retirement 6enefi# will be payabte under the
option to any person, but the benefits, if any, will be determined under Section 7.
B. If the designated beneficiary (or beneficiaries) or joint pensioner dies
before the Members retirement under the Plan, the option elected will be canceled
automatically and a retirement income of the normal form and amount will be payable to
the Member upon his/her retirement as if the election had not been made, unless a new
21
elec�ion is made in accordance with the provisions of this section or a new beneficiary is
designated by the Member prior to has/her retirement and within ninety (90) days after the_
death of the beneficiary.
C. If both the retired Member and the beneficiary (or beneficiaries)
designated by Member die before the full payment has been effected under any option
providing for payments for a period certain and life thereafter, made pursuant to the
provisions of subsection 1, the Board of Trvstees may in its discretion, direct that the
computed value of the remaining payments be paid in a fump sum and in accordance with
Section 11.
D. Ifa Membercontinues beyond his/hernormal retirementdate pursuant
to the provisions of Section 6, 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 wilf be paid, under the
option to a beneficiary (or beneficiaries) designated by the Member in the amount or
amounts computed as if the Member had retired under the option on the date on which
his/her death occurred.
6. Member may not change his/her retirement option after the date of cashing
or depositing his/her first retirement check.
Section 11. Beneficiaries
1. Each Member may, on a form provided forthat purpose, signed and filed with
the Board of Trustees, designate a beneficiary (or benefciaries) to receive the benefit, if
any, which may be payable in the event of his/her death; and each designation ra�ay 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 Merr�ber .
predeceases the Member� the death benefit, if any, which may be payable under the Plan
with respect to such deceased Member r�tshal{ be paid;-i�t to the '
..i_T.....a......_ ..:at.,._ i...
' t
'
estate of tMe deceased Member. �
22
Section 12. Claims Procedures Before The Board Decision.
1. If any Member of the system has been:
A. Placed on pension under the terms and provisions of this ordinance
for disability, or
B. Placed on pension because the Member has served the required
number of years to entitle him to a pension, or
C. Refused benefits underthis 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 case. The Board
shall review the case and enter such orderthereon as it deems right and proper within sixty
(60) days from receipt of such written request and the receipt by the Board of a written
medical release authorization and a fist of names and addresses of all treating health care
providers for such review of disability claims; provided, that the Board may extend the time
for entering such order by an additional forty-five (45) days if it determines such time is
necessary for discovery in full and adequate review.
2. In tlie 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 sha{I be put in writing.
Such written order shall include:
A. The specific reasons for the denial, including specific references to
pertinent provisions of the retirement system on which such deniat is based;
B. A description of any additional material or information that the Board
feels is necessary for the Member to perfect his/her claim. together with an explana#ion of .
why such material �r information is necessary; and
C. Ac� explanafron of the review procedure next open to the Member.
Such review procedure shall provide that:
(1) Prior to such review, the Member or his/her duly authorized
representative may review any pertinent documents inctuding Pfan provisions, minutes of
the meeting ofthe Board in which denial of the claim was originally recommended� and any
other documents material to the case;
(2) After such review, the Member and/or his/her duly authorized
representative shall submit their case in writing to the Board and request a hearing. Such
submission shall be filed with the Board no later than ninety (90) days after the receipt of
23
the order of the Board. Upon receipt of the written submission by the Member, the Board
shall schedule an opportunity for a full and fair hearing of the issue within the next ninety
(90) days, and such scheduled hearing shal{ be communicated in writing to the Member.
The Mernber and/or his/her duly authorized representative may then appear at such
scheduled hearing to present their case. The Board shalf consider the facts presented at
the scheduled hearing and shall, within thirty (30) days after such hearing, make a fnal
ruling in writing on the request of the Member. The written decision shall inciude the
reasons for such decision and, such decision shall be final.
(a) The Chairman shall preside over the hearing and shall
rule on all evidentiary and other legal questions that arise during the hearing.
(b) Either party, the claimant orthe Board, mayfile pleadings
within the time limi#s set herein. Procedurat 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 fists with names and addresses of witnesses expe�ted to be caf�ed
to testify at the hearing, as well as the list of exhibits that are intended to be introduced, at
least forty-five (45) days prior to the hearing. Testimony of witnesses shall be under oath
or affirmation. Depositions or affidavits shall not be admissible uniess upon stipulation by
all parties. The Chairman, any Member of the Hoard, the attomey for the Board, the
claimant and the claimant's attomey, upon recognition by the Chairman may direct
questions to any witness during the proceedings. Each party shall have the right to
present evidence relevant to the issues, to cross-examine witnesses, to impeach witnesses
and to respond to the evidence presented against the party. Each party shall have the
right to present any opening and cfosing arguments. Any party may secure the services
of'a court reporter to record the proceedings with the cost to be bome by the party
requesting the court reporter or requesting the transcription of the proceedings.
(c) In all cases, unless otherwise provided in �his section,
the burden of praof shall be on the claimant who seeks to draw his/her entitlement fio a .
pension, disability pension, or increased pension benef�ts.
3. In alt proceedings under subsections 1 or 2 hereof, the Board sMall have the
power #o 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 F{orida S#atutes.
Section 13. Reports to Division of Retirement.
Each year and no later than March 15th, the Chairman of the Public Safety Board
shall file a report with the Division af Retirement containing tl�e following relative to the
Firefighters of tF�e Pfan:
24
1. Whether in fact the Municipality is in compliance with the provisions of
Chapter 175 Florida Statutes ,
2. A certified statement of accounting for the most recent fiscal year of the
Municipafity (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 afl income and disbursements during the year by the Public Safety
Board. Such income and disbursements shati be reconcifed with the assets at the
beginning and end of the year. �
3. A statistical exhibit showing the number of Firefighters on the force of the
Municipality, the number included in the Pension Plan. the numberof Firefighters ineligible,
classified according to the reasons for their being ineligible, and the number of disabled
and retired Firefighters and their beneficiaries receiving pension payments and the
amounts of annual retirement income or pension payments being received by them.
4. A statement of the amount the Municipality has contributed to the Public
Safety Pension Fund for the preceding ptan year and the amount the Municipality will
contribute to the Public Safety Pension Fund for fhe current plan year.
5. If any benefits are insured with a commercial insurance company, the report
shali include a statement of the relationsf�ip of the insured benefits to the benefits provi�ded
by this Ordinance. This report shall also contain information about the insurer, basis of
premium rates, mortality table, interest rates and method used in valuating retirement
benefits.
6: An actuarial valuation of the retirement Plan for Public Safety O�cers must
be made at least once every three (3) years commencing from the last actuarial repor# of
the Plan. Such valuation shall be prepared by an enrofled actuary who is enrolled under
Subtitle C of Title 3 of the Employee Retirement Income Security Act of 1974 and who is
a Member of the Society of Actuaries or the American Academy of Actuaries.
Each year and no later than March 15th, the Chairman of the Public Sa#ety Board
shall file a report with the Division of Retirement containing the following retative to Police
Officers:
1. Whether in fact the Municipality is in compliance with the provisions of
Chapter 185, Florida Statutes.
2. A certified statement of accounting for the most recent fiscal year of the
Municipality (or an independent audit by a certified public accountant if required by the
Department of Insurance) 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
25
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 Officer on the force of the
Municipality, the number included in the Pension Plan, the number of Police Officers
ineligible, ctassified according to the reasons for their being ineligible, and the number of
disabled and retired Police O�cers and their beneficiaries receiving pension payments and
the amounts of annual retirement income or pension payments being received by them.
4. A statement of the amount the Municipality has contributed to the Public
Safety Pension Fund for the pceceding plan year and the amount the Municipality will
contribute to the Public Safety Pension Fund for the current plan year.
5. 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 shafl also contain information about the insurer� basis of
premi�m rates, mortality table, interest rates and method used in valuating retirement
benefts.
6. An actuariai valuation of the retirement Plan for Public Safety Officers must
be made at least once every three (3) years commencing from the last actuarial report of
the Plan. Such valuation shall be prepared by an enrolled actuary who is enroli�ed under
Subtitle C of Title 3 of the Employee Retirement Income Security Act of 1974 and who is
a Member of the Society of Actuaries or the American Academy of Actuaries.
Section 14. 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 no#ed the time.when th� pension
is allowed and when the same shall cease to be paid. Additionally, the Secretaries shall
keep a record of all Police Officers, Firefighters and General Employees employed by the
Municipaiity wha are Members of the pian their board adminis#ers in such a manner as to
show fihe name, address, date of empluyment and date such employment is terminated.
Section 15. Board Attorr►ey and Professionals.
The Boards may employ independent legal counsel at the Pension Funds' expense
forthe purposes contained herein, togetherwith such otherprofessional, technicaf, orother
advisors as th.e Boards deems necessary.
Section. 16. Maximum Pens.ion.
1. Basic Limitation. _
26
Subject to the adjustments hereinafter set forth, the maximum amount of
annual retirement income payable with respect to a Member under this Plan shall not
exceed the lesser of:
A. $90,000 (or such fessefadiusted dollar amount as may be a(lowable
for any cafendar year pursuant to e�4�5Section 415(b) of the ode, as
adjusted in such calendar year for increases in the cost of living in accordance with
regulations issued by the Secretary of the Treasury under e4'FSSection 415(d) of the
Code), or
B. 100% of the Member's average aggregate Compensation forthe three
(3) consecutive cafendar years during which the Member was an active Member and had
his/her highest aggregate compensation. "Compensation" shall mean the Member's total
annual remuneration paid or accrued for personal services rendered to the Viilage of
Tequesta during the Plan Year as reported on the Membe�'s W-2.
For purposes of applying the above limitation, benefits payable in any form
other than a straight life annuity with no ancillary benefits shall be adjusted, as provided
by Treasury Regulations, so that such benefits are the Actuarial Equivalent of a straight
life annuity. For purposes of this Section, the following benefits shall not be taken into
account:
(1) Any ancillary benefit which is not directly related to retirement
income benefits;
(2) Any other benefit not required undere445Section 415(b)(2) of
the Code and Regulations thereunder to be taken into account for
purposes of the limitation of e�4-1��ection 415(b)(1) of the :-:`__:--:�' °___::�:_ �ode.
2. Partici�a#io.n in Other Defined Benefit Pians. The limitafion of this Sec#ion
with respect to any Member who at any time has been a Member in any other defined
beneft Plan (as de�ined in e�4�4S�c#io� 494{j) of th� ode) tr�air�tai�ed
by the Department sMall apply as if the total benefits payable under alt defined benefit
plans in which the Member h�s been a Member were payable from one Plan.
3. Adiustments in Limi#ations. In the event the Member's retirement benefits
become payable before age fi2, the $90,000 limitation prescribed by this Section shall be
reduced in accordance with Regulations issued by the Secretary of the Treasury pursuant
to the provisions of Sect�ron 415(b) of the '�}�~~�' °-..--..- Code, but not less than
$75,000.
In the event the Member's retirement benefit becomes payable before age fifty-five
(55), the $75,000 limitation shall be reduced from age fifty-five (55) in accordance with
27
Regulations issued by the Secretary of the Treasury pursuant to the provision of Section
415(b) of the Code. �
ff the Member's retirement benefit becomes payable after age sixty-fnre (65), for
purpose of determining whether this benefit meets the limitation set forth in subsection 1
herein, such benefit shall be adjusted so that it is actuarially equivalent to the benefit
beginning at age 65. This adjustment shall be made using an assumed interest rate of five
percent (5%) and shall be made in accordance with regulations promulgated by the
Secretary of the Treasury or his delegate.
4. Less than Ten Years of Service. The maximum retirement benefits payable
under this Section to any Member who has completed less than ten (10) years of
accredited service with the Village shall be the amount determined under subsection 1 of
this Section multiplied by a fraction, the numerator of which is the number of the Member's
years of credited service and the denominator of which is ten (10).
5. $10,000 Limit. Notwithstanding the foregoing, the retirement benefit payable
with respect to a Member shall be deemed not to exceed the limitations set forth in this
Section if the Benefits payable, with respect to such member under this Plan and under all
other qualified defined benefit pension plans to which the Village of Tequesta contributes,
do not exceed $10,000 for the applicable Pian Year and for any prior Plan Year and the
Village of Tequesta has not at any time maintained a qualified defined contribution plan in
which the Member participated.
6. Accrued Benefit as of Effective Date. Nofinrithstanding the above timitations,
if any Member as of the effective date hereof, has an accrued benefit as of that date that
exceeds the above limitations, therr such limitations shall equal such accrued benefit.
However, no cost of living adjustments as provided in subsection
9 befow shall be applicable to the amount of retirement benefi# so determined.
7. Member in Defined Contribution Plan. In any case where a Member under
this Pian is also a Member in a"Defined Contribution Plan" as defined in e�4� Section
414(i) of the' °-..-�..� ^ode, maintained by the Village of Tequesta, the sum of the
"Defined Benefit Pfan Fraction" and the °Defined ,Contribution Plan Fraction" (both as
defined in e�4'f-5��+ection 415(e) of tMe '-=----_'-°-.�_-..- ^ode) shaU not, subject to the
restrictions and exceptions con#ained in e�88�4�ection 2004 of the Act, exceed 1.0.
8. Reduction of Benefits. Reduction of benefits and/orcontributions to all plans,
where required, shall be accomplished by first reducing the Member's benefit under any
defined benefit plans in which Member participated, such reduc#ion to be made first with
respec# to the plan in which Member most recentty accrued benefits and thereafter in such
priority as shall be determined by the Trustees and the Pfan /kdministrator of such other
plans, and next, by reducing or allocating excess forfeitures for defined contribution plans �
28 ,
in which the Member participated, such reduction to be made first with respect to the plan
in which Member most recently accrued benefits and thereafter in such priority as shall be .
established by the Trustees and the Plan Administrator for such other provided, however�
that necessary reductions may be made in a different manner and priority pursuant to the
agreement of the Trustees and the Plan Administrator of all other plans covering such
Member.
9. Cost-of-Living Adiustments. The limitations as stated in subsections 1, 2, 3,
and 7 herein shalf be adjusted to the time payment of a benefit begins in accordance with
any cost-of-living adjustments prescribed by the Secretary of the Treasury pursuant to
e4�3Section 415(d) of the' °-..---.._ ^ .
10. Additional Limitation on Pension Benefits. Nofinrithstanding anything herein
to the contrary:
A. The normal retirement benefit or pension payable to a retiree who
becomes a member of the Plan and who has not previousiy participated in such Plan, on
or after January 1,1980, shall not exceed 100 percent of his average final compensation.
However, no#hing contained in this section shaff apply to supplementa! retirement benefits
or to pension increases attributable to cost-of-living increases or adjustments.
B. No member of the Plan who is not now a member of such Plan shall
be allowed to receive a retirement benefit or pension which is in part or in whole based
upon any service with respect to which the member is already receiving, or will receive in
the fvture a retirement benefit or pension from another retirement system or p{an. This
restriction does not apply to social security benefits or federal benefits under Chapter 67,
Title 10, U.S. Code.
Section 17. Commencement of Benefits.
1. �Unless the Member otherwise elects, with such election being in wri#ing and
to tMe Trus#ees and spe�ifying the form of retirement incom� and date on which the
retirement income is to commence, the payment benefits under the Plan to the Member
shall commence not later than the 60th day after the close of the Plan Year in which the
latest of the following events occur: �
A. The attainment by the Member of age 65;
B. The 10th anniversary of the date on whicM the Member commenced
participation in the Plan; or
C. The termination of the Member's service with the Village of Tequesta
� 29
2. If the payment of a Member's retirement income cannot begin on the date
required under subsection 1 of this Section because the Trustees either cannot ascertain
the amount of the Member's retirement income or cannot locate the Member after making
reasonable efforts to do so, the payment of the Member's benefit shall begin not later than
sixty (60) days after the date on which the amount can be ascertained or the Member is
located, whichever is applicable. Any such payment shall be made retroactive to a date
which is not earlier than the date on which the payment of the Member's benefrt was
scheduled to begin but which is not later than the date specified under subsection 1 of this
Section. �
Section 18. Distribution of Benefits
Notwithstanding any other provision of this Plan to the contrary, a form of retirement
income payable from this Plan after the effective date of this ordinance, shall satisfy the
following conditions:
1. If the retirement income is payable before the Member's death:
A. ft shafl either be distributed or commence to the Member not later than
April 1 of the calendar year fallowing the later of the calendar year in which the Member
attains age 70-1/2, or the calendar year in which Member retires,
B. The distribution shall commence not later than the calendar year
defined above; and a), shalf be paid over the life of the Member or over the lifetimes of the
Member and spouse, issue or dependent, or b), shall be paid over the period extending not
beyond the life expectancy of the Member and spouse, issue or dependent.
Where a form of retirement income payment has commenced in accordance
with the preceding paragraphs and the Member dies before his/her entire interest in the
Plan has been distributed, the remaining portion of such interest in the Plan shal! be
distributed no less rapidly than under the form of distribution in effect at the time of the
Member's deafiM.
2. If the Member's death occurs before the distribution of his/her interes# in the
Plan has commenced, Allember's entire i�ter�st in the Plan shall be distributsd wi#hin fNe
(5) years of 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 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
30
spouse, issue or dependent; and
C. Such distribution begins v�rithin one year of the Member's death unless
the Member's spouse, issue or dependent shall receive the remaining interest in which
case the distribution need not begin before the date on which the Member would have
attained age 70-112 and if the spouse, issue or dependent dies before the distribution to
the spouse issue or dependent begi�s, this Section shall be app(ied as if the spouse, issue
or dependent were the Plan Member.
Section 19. Miscellaneous Provisions.
1. lnterest of Members in Pension Fund. At no time prior to the satisfaction of
all liabilities under the Plan with respect to Members and their spouses or beneficiaries,
shall any part of the corpus or income of the Pension Fund be used for or diverted to any
purpose other than for their elusive benefit.
2. Liquidation of Pension Fund Assets-.
A. In the event that contributions of the Viltage are permanently
discontinued or in the ev,ent that it becomes necessary for the Village to discontinue either
or both of the Plans, the Boards of Trustees shall determine proposed dates of termination
and liquidate the Pension Funds, in accordance wi#h the applicable requirements of the
Act goveming termination. The rights of affected Plan Members, joint annuitants,
beneficiaries and surviving spouses to benefits accrued to the date of any such termination
or discontinuance to the extent then funded. shall become fully vested and nonforfeitable
and upon occurre�ce of such event, the Village's aliquo# share of the assets then
remaining in the Pension Funds shall be allocated among the Members and their
beneficiari�s and administered and distributed at such time or times as is determined by
the Boards of Trustees. ,
B. Any reserves which shall be released as a result o# the application of
the provisio�s of Section 20, subsection 3E, shaN be added to the portion of #he Pension
Fund which is distributed as provided above to Members whose benefits are not restricted,
provided that in the event #hat all of the benefits accrued to such Members are fully
provided for, such released reserves (ar any remaining portion thereofl shall be alfocated
to provide to the extent possible up to one hundred perceht (10Q%) of the benefits
otherwise canceled pursuan#to Section 20, subsection 3E, allocating such remaining funds
in proportion to the value of the benefits so car�celed.
C. The Boards of Trustees may in their discretion give efFect to the
provisions of the foregoing paragraphs A and B by the purchase of annuities, by continuing
the Trust Funds in existence and rnaking provisions thereunder for pension benefits, or by
immediate distribution from the Trust Funds. If the assets of the Pension Funds applicable
31
to any asset distribution priority category are insufficient to provide fufl benefits for all
persons in such group, the benefits otherwise payable to such persons shai{ be reduced
proportionately except as may otherwise be specifed by regulations. If there is any
balance remaining in the Pension Funds after all obligations to Plan Members, joint
annuitants, beneficiaries and sunriving spouses are met. such balance will revert to the
Viffage. The actuary shali calcufate the allocation of the assets of the Pension Funds in
accordance with the asset distribution priority category, and certify his calculations to the
Fiduciaries. No liquidation of assets and payment of benefits (or provisions therefore) shall
actually be made by the Boards of Trustees until after they are advised by the Village, in
writing, that applicable requirements, if any, of the Act governing termination of "Police
O�cer, Firefighter or General Employee Pension Benefit Plans" have been, or are being
complied with or that appropriate authorizations, waivers, exceptions or variances have
been, or are being, obtained.
3. No amendment or ordinance shall be adopted by the Village Counci� of the
Vilfage of Tequesta which shall have the effect of reducing the then vested accrued
benefits of Members or Members' beneficiaries.
4 Eliaible Rollover Distributions. If the disfributes of an eliaible rnllover
distribution. as defned bv Section 402(i)(21(Aj of the Code. eiects to hav� such
'dis#ribution uaid directiv to an eiiqible retirement plan, as defi.ned in Section
402(cl(S)(B) of the Code /exceat that a. trust shall be considered an eli4ible
ret�rement plan onlv if it is a defined con#ribution alan. the terms ofwhi�h�
accep#ance of rol#dver distrib utions) and su the eliqible retirernent r�lan to
which such distribution is to be oaid, such distribution sh�l! be made in fihe fe�rm of
a direct trus#ee-to trustee trans�er to the eti4ible re#iremen�t nlan so specified
Section 20. Reueal or Termination of S„ystem. �
1. This Qrdinance establishing the System and Fund, and subs�quen#
Ordinances pertaining to said System and Fund, may be modified, terminated, or
amended, in whc�le or ir� part; provided tMat if this or ar�y subsequent Ordi�ance shail 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 shatt have
accrued ta the Member or b+�neficiary shalE not be affected thereby, excep# to the extent
that the assets of the Fund may be determined to be inadequate.
2. If this Ordinance shall be repealed. or if contributions to the System are
discontinued, the Board shall continue to administer the System in accordance wi#h 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 op#ions 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
32
shall be fuil vesting (100%) of benefits accrued to date of repeal and the assets of the
System shall be allocated in an equitabte 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 Systern as of the date of repeal of this Ordinance, or if contributions to the
System are discontinued with the date of such discontinuation being determined by the
Board.
A. Appartionment shall first be made in respect of each retired Police
Officer, Firefighter, or General Employee receiving a retirement or disability benefit
hereunder on such date, each person receiving a benefit on such date on account of a
retired or disabled (but since deceased) Police O�cer, Firefighter or General Employee
who has. by such date, become eligible for normal retirement but has not yet retired, an
amount which is the actuarial equivalent of such benefit, based upon the actuariaf
assumptions in use for purposes of the most recent actuarial valuation, provided that, if
such asset value be less than the aggregate of such amounts, such amounts shall be
proportionately reduced so that the aggregate of such reduced amounts wilf 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,
Firefighter or General Employee in the service of the Police Department, Fire Department
or the Village of Tequesta on such date who has completed at least ten (10) years of
credited service and who is not entitled to an apportionrnent under paragraph A, in the
amount required to provide the actuarial equivalent. as described in A above, of the
accrued normal retirement benefit, based on the credited service and average monthly
earnings as af such date, and each vested former Member then entitled to a deferred
benefit who has not by such date, begun receiving beneft payments, in the amount
required to provide said actuarial equivalent of the accrued normal retirement benefit;
provided that, if such remaining asset value be less than the aggregate of the amounts
apportioned hereunder, such iatter amounts shall be proport�onately reduced so that tMe
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, Firefighter
or General Employee in the service of the Police Department. Fire Department or Village
of Tequesta on such date who is no# entitled to an apportionment under paragraphs A and
B in the amount equal to Member's Accumulated Contributions, provided that, if such
remaining asset value be less than the aggregate of the amounts apportioned hereunder
such latter amount shal! be proportionately reduced so that the aggregate of such reduced
amounts will be equal to such remaining asset value.
33
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 actuar�al equivalent, as described in
paragraph A above, of the accrued normal retirement benefit, less the amount apportioned
in paragraph C, based on the credited senrice and average monthly eamings as of such
� date, provided that, if such remaining asset value be less than the aggregate of the
amounts apportioned hereunder, such amounts shall be reduced so that the aggregate of
such amounts will be equal to such remaining asset value.
E. In the event that there be asset value remaini�g after the full
apportionment's specified in paragraphs A, B� C, and D, such excess shall be returried 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 shall be divided proportionately to the total contributions made by
the Viltage and the State.
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.
If, any time during the first ten (10) years after the effiective date of this Ordinance,
the System shall be terminated or the fuA current costs of the System shalt not have been
met, anything in the System to the contrary notwithstanding, Village contributions which
may be used for the benefit of any one of the finrenty-five(25) highest paid Police Officers,
Firefighters or General Employees or Participants of the Potice Department, Fire
Department or Village o# Tequesta on the effective date, whose anticipated annuai
retirement aliowance provided by the Village's contributions at Member's normal re#irement
date would exceed $1,500, shall not exceed greater of either a) $20,000, or b) an amount
computed by mWtiplying the smaller of $10,000 or twen#y percent (^�0%} of such Pofi�e
Offrcer's, Firefighter's or Genera! Employee's average annual eamings during his last five
(5) years of senrice by the number of years of service since the effective date. In the event
that it shall hereafter b� determined by statute, court decisions, rtrling by th� Commissianer
of Ir�ternal Revenue, or otherwise. that the provisions of this paragraph are not then
nec�ssary to qualifjr the system under tMe ode, this paragraph shal! be
' ineffective without the necessity of further amendment of this Ordinance.
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 remain'[ng
fund revert to the General Fund of the Village.
34
Section 21. Exemption from Execution, Non-assi nabititv.
The pensions, annuities, or any other benefits accrued or accruing to any person
under the provisions of this Ordinance and the accumulated contributions and the cash
securities in the Fund created under this Ordinance are hereby exempted from any state,
county or municipal tax of the state and shall not be subject to execution, attachment,
garnishment or any legal process whatsoever and sha(I be unassignable.
Section 22. Pension Validitv .
The Board of Trustees shall have the power to examine into the facts upon which
any pension sha11 heretofore have been granted under any prior or existing law� or shall
hereafter be granted or obtained erroneously, fraudulently or illegatly for any reasons. Said
Board is empowered to purge the pension rolls of any person heretofore granted a pension
under prior or existing law or heretofore granted under this Ordinance if the same is found
to be erroneous, fraudulent or ilfegal for any reason; and to reclassify any person who has
� heretofore under any prior or existing law been orwho shall hereafter underthis Ordinance
be erroneously, improperly or illegally classified.
S
�Section 23. Forfeiture of Pension. �
�� Any Member convicted. of the following offenses committed prior to retirement, or
whose employment is terminated by reason of his admitted commission, aid or abatement
of the following specified offenses, shall forFeit all rights and benefits under this Pension
Fund, except for the retum of this accumulated contributions as of the date of tecmination.
1. � Specified offenses are as follows:
A. The committing, aiding or abetting of an embezz(ement of public
funds;
B. The committing, aiding or abetting of any theft by a public offieer or
employee from employer;
C. Bribery in connection with the employment of a public officer or
employee;
D. Any felony specified in Chapter 838� Florida Statutes ;
E. The committing of an impeachable offense.
2. The committing of any felony by a pubf ic officer or employee who willfully and
with intent to defraud the public or the public agency, for which he acts or in which he is
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employed. af the right to receive the faithful performance of his duty as a public officer or
employee, realizes or obtains or attempts to obtain a prafit, gain, or advantage for himself
or for some other person through the use or attempted use of the power, rights, privileges,
duties or position of his public office or employment position.
A. Conviction shall be defined as folfows:
An adjudication of guilt by a court of competent jurisdiction; a plea of guilty
or a nolo contendere; a jury verdi�t of guilty when adjudication of guilt is withheld and the
accused is placed on probation; or a conviction by the Senate of an impeachable offense.
B. Court shall be defined as follows:
Any state or federal caurt of competent }urisdiction which is exercising its
� jurisdiction to consider a proceeding involving the alleged commission of a specifted�
offense. Prior to forFeiture, the �oard of Trustees shall hold a hearing on which notice shal!
, be given to the Member whose benefits are being considered for forFeiture. Said Member
shall be afforded the right to have an attorney present. No forma! rules of evidence shail
�apply, but the Member shall be afforded a fuN opportunity to present his case against
�orfeiture.
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� Any Member who has received benefits from the System in excess of his
' accumulated contributions after Member's rights were forfeited shall be required to pay
back to the Fund the amount of the benefits received in excess of his accumulated
contributions. The Board of Trustees may implement all legal action necessary to recover
such funds.
Section 24. Military Senrice 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 the United States Merchant
Marine, voluntarily or involuntarily, prior to flrst and initial employment with the Potice
Department, Fire Department or Village of Tequesta shall be added to his/her years of
credited service provided that:
1. The Police OfFcer, Firefigh#er or General Ernployee contributes to the Fund
the sum that he/she would have contribute.d had he/sMe been a member of the P1an�for the
years or fractional parts of years for which he/she is requesti�g credi# plus amounts
actuarially determined such that the crediting of service does not result in any cost to the -
Fund plus payment of costs for all professional senrices rendered to the Board in
connection with the purchase of years of credited senrice.
2. The request shall be made only once and made by the Member on or before
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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, Fire Department or
Village of Tequesta, whichever is fater.
3. Payment by the Member of the required amount shall be made within six (6}
months of his/her request for credit and shall be made in one lump sum payment upon
receipt of which credited service shall be given. Credited senrice 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.
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