HomeMy WebLinkAboutDocumentation_Regular_Tab 05_06/12/2014 Redistributed from May meeting
VILLAGE CLERK'S �
AGEWDA ITEAA TR14NS�Af17AL FORNI
AA�ng D�e: �n8 Ty�: Regular Ondinanr.� �: 8-14
5/8lR4
Cor�nt A�enda: Ido Resolution �:
Originating �r� L�af
.
ORDINAWCE 8-74. FIRST READlNG. AANE1dDING THE VILLAGE CODE OF ORDINANCES AT CHAPTER 2.
AD�►AINISTRATION. ARTICLE III.OFFICERS, EMPLOYEES AND DEPARTMENTS. BY AAAENDING THE
PUBLIC SAFETY ERAPLOYEES' PENSION PLAN, FOR FIREFIGHTERS ONLY, BEGINIVING OCTOBER 1�
2010, TO ESTABLISH A 2% MULTIPLIER FOR THE FIRST SU( (6) YEARS OF EMPLOYMENT I�ND A a'/°!o
AAULTIPLiER FOR EACH YEAR OF EMPLOYAAENT THEREAFTER; ALSO AMENDIIdG THE DEFINITION OF
°SAIARYH TO I{dCLUDE �4SE C�AAPENSATtON /►ND TO EXCLUDE LUMP SUM PAYR9ENTS. OVERTiAAE.
BONUSES, INCENTIVES AND LONGEVRY ALLOWANCES FOR PURPOSES OF CALCULATIPIG
A1/ERAGE FINAL COMPENSATION
: � . .
Account �: Amount of �is it�n:
Current Budeet�! Amourrt Arailabl�: Amount R�mainine efl�� ifiem:
Budget Transfer R�uir�d: Choose an Appropr�a�e Fnnd Balance: Choose an item.
item.
+- • •-
.
D�ttrnent W� Submit�d bY �gAe�
Ftnanc� Directo� o� Ropr�ntative
Reviewed for Financi�l S�ff'iciency
No Finanaal Impact ❑
At�rn�y: (for l�al sufiraencY)
v�i�e. �a�e��:
Subm�t for Counal Discuasion: ❑
Approve It�m: ❑
Deny It�m: �
` . -
Form Amended: 3194M4
ORDINANCE NO. 9-14
AN ORDINANCE OF THE VII,LAGE COUNCII� OF THE VII�LAGE OF
TEQUESTA, FLORIDA, AMENDiNG THE VILLAGE CODE OF
ORDINANCES AT CHAPTER 2. ADNIINISTRATION. ARTICLE III.
OFFICElt3, EMPLOYEES AND DEPARTMENTS. BY AMENDING THE
PUBLIC SAFETY EMPLOYEES' PENSION PLAN, FOR FIREFIGHTERS
ONLY, BEGIl�i1�TlNG OC°!'OBER 1, 2010, TO ESTABLISH A 2%
MULTIPLIER FOR 1'HE FIRST SIX (� YEARS OF EMPLOYMENT
AND A 2'/a% MULTIPLIER FOR EACH YEAR OF EMPLOYMENT
1'HEREA�°rER; ALSO ANIENDING 'I� DEFINITION OF "SALARY"
TO INCLUDE BASE COMPENSATION AND TO EXCLUDE LUMP SUM
PAYMENTS, OVERTIME, BONiJSE5, INCENTIVES AND LONGEVITY
ALLOWANCES FOR PURPOSES OF CALCULATING AVERAGE
FINAL COMPENSATION; PROVIDING THAT EACH AND EVERY
OTHER SECTION AND SUBSECTION OF CHAPTER 2.
ADNIINISTRATION. SHAI�L REMAIN IN FULL FORCE AND EFFECT
AS PREVIOUSLY ADOPTED; PROVIDING A CONFLICTS CLAUSE, A
SEVERABILITY CLAUSE AND AUTHORITY TO CODIFY;
PROVIDING AN EFFEGTIVE DATE; AND FOR OTHER PURPOSES.
W1�REAS, the Village Cowcil of the Villa�ee of Tequesta has previously negotiated a
unioa contract with Village fuefighters that provides a pension benefit giving employ�s hire�rl
after October 1, 2010 a 2% multiplier for the first six (� ye,ars of employment and a 2Ya%
multiplier for each year ther�fter; aad further which defines "salary" to include base
compensation and to exclude ltmip sum payments, overtime, bonus8s, inceniaves and longevity
allowaxices for puiposes of calculating average final compensation; and
WHEREAS, the Village Council of the Villa�e of Tequesta desires to amend tbe Public
Safety Employee Pension Plan to reflect the provision of these benefits.
NOW, THEREFORE, BE IT ORDAIlVED BY THE VILLAGE COUNCIL OF THE
VILLAGE OF TEQUESTA, FLORIDA, THAT:
Sectian 1: Chapter 2. Adminisixation. of the Code of Ordinaaces of the Village of
Tequesta is hereby emended at Article III. Officers, Employ� and Depar�ents, �ection 2-61.
Pension Trust Funds, by amending Exhibit B(Public Safety Officers Pension Trnst Fund) to
provide, for firefighters hired ai�er October 1, 2010 only, a 2% multiplier for the first six (6)
years of employment and a 2 multiplier for e�ch year therea�iter; and to fiuther define
"salary" to include base compensation and to exclude lump sum paymeats, overtime, boauses,
Page 1 of 4
incentives and longevity allowances for purposes of calculating average final compensation;
providing that Sec. 2-61. Article III. Chapter 2. Administxation, es well as Exhibit B(Public
Safety O�cers Pension Trust Fun� of Sec. 2-61. shall hereafter read as follows:
Chapter 2.
ADIVIINISTRATION
A►RTICLE III. - OF�'IICERS, EMPLOYEES AND DEPARTIVIENTS
DIVISION 1. - GENERALLY
Sec. 2-61. - Pension tnxst funds.
Secs. 2-62-2-80. - Reserved.
5ec. Wil. - Pension trast fande.
(a) General employees The Villa�ge of Tequesffi hereby creates and continues the
(�eneral Employees' Pension Trust Fund for the purpose of providing ret�rement,
death and disability benefits to members of the fund, certain former general
employees and s�vivor benefits to beneficiaries.
(b) Public safety officers. The Village of Tequesta hereby cr� aad continue� the
Villa�e of T�uesta PubGc Safety Officers' Pension Tnist Fund for the p�se of
providing retiremeut, death and disability benefits to golice offic� aad firefightezs
who are members of this fund, certain former village police officers and firefighter�
and survivor henefits to beneficiacies.
(c) Police 0�9cers hired a�er February 1, 2013. The Village of Te,questa Fublic Safety
Officers' Pension Trust Fuad shall be closed to any new police officers hired after
Febniary 1, 2013. All police officers hired after February 1, 2013 sha11 be off�l the
opporhmity to participate in a defined contribution pragram.
(dl Firefaghters hired er October 1 ZOl Q ire��ters hir8d at�er Octob�zl` 22D10 sh�il
�ec��ve a 2° o mttltifllier for the fiu� six (6� vsars of eam�ln�_ent a 2'/:% multintier
�nr Pach vpar thereaf�er ��,hon. the definition czf "salarv" f r Fiire�3�ters 1� a8er
Oct9ber 1 2010 sl�?1 Lcl�+�� ba��.° comoe_��on �nd aha �ci�P lun�� Davments-
ov 'm bon�� Lc..-�*:ves a*�d 1 nESVitv s�1 awaa�-� for ��a�-s of calculating
averaae fina� comnensa�ian.
Ed�tor's raote—
Ordinance No. 585� § 1, adopted December 11, 2003, set out provisions intende,d for use
as section 2-30. For purposes of cla�ssification, and at the editor's discretion, these
provisions have been included as ssction 2-61.
4rd No. 585 incor�rated Exhibits A and B as gart of this section and is on file and
available for public inspection in the o�'ic� of the villa�e clerk.
Page 2 of 4
[Exlubit B is amended to effectu�te part (d) of tlus section in conjunction with t�is
ordinance as follows:]
�� K B A
VILLAGE OF TEQUESTA
PUBLIC SAFETY OFFICERS' PENSION TRUST FUND
Section 2. De�nitions.
Sa1� means f�* Fi*�fighters and Police o�'icers hired before Octaber 1. 2010. the total
cash remuneration paid to a police officer or firefighter for services rend� includi.ng
Base Pay, Bonuses, Career Service Annual Award, Holiday Pay, Incentives, Overtime,
Sick Leave Payout on Termination, Sick-L.eave Buy Back, and Straight Time, and
effective for payments made after 12/31/08, as provide,cl for by Internal Revenue C�e
§414(u��, this definition of salary shall include any differential wage �yment from the
employer to a mem�r as a result of the member's absenc� from employment while
serving in qualified military service. This definil�on excludes pay received as a Car
Allowance, Clothing Allawance and Shoe/Boot Allowance. For Firefighhteis }aiz� on or
afte October 1 201Q, e definition of � s�ill me an� fixed monthlv remune 'on
�Aid t� a fi*efi�ter for c��ic� render�d (includin� re�ul�zearaings vaca�ion aav and
Qi�vl but shal exclude luma sum navments overtime bonuses. iacentiv�s. �nd
_
lon�
Sect�ioa 7. Beneflt Amonnts and Eligrbility. �
2. Normal Retirement B�nefit
A Member. who wa�s hiac� before OctoTQer 1. 2010 and o is re�iring hereunder on
or after hislher normal retir�ment date shall receive a monthly benefit whicb sh�ll
commence on hi�her RetiremeIIt Date and be continu� there,after during the Member's
lifetime, ceasing upon death, but with one hundred twenty (120) mo�ly pa.yments
guaranteed itt any even�. The moathly retirement benefit shall equal:
3.0% for �e first 6 years of service
3.5% for the next 4 ye�rs of service
4.0% for the next 5 yeazs of senrice
3.0% for the next 6 years of service
2.0'�o for the aext 4 years of service •
3.0% for all years after 25 years
Page 3 of 4
Notwi��*�in� th . f9�oin_Q: however. a Fi����* who was hired on and aft�
Oct�ber 1. 2010 and who is rettrin� hereuder on or a�p* ��+er normal retir�ment date
sha11 recpive � mont!+_1v benefit wlich h il � mence on � er Retireme� Date and be
�^ ��1 th p* durin� the Member's lifetime CeBS�*+r� uflon desth. but with o?+e
hiyndre� ��tv (1201 monthlv �avments guarant�d�in anv event The mQnthl_v
z�.irement benefit,�, :
2.0% for the first 6 vears of service
° or all vears ai�er 6 vears
Sectian 2: Each and every other Section and Subsection of Cbapter 2.
Administration shall remain in full force and effect as previously adopted.
Section 3: All ordinances or parts of ordinances in conflict be and �e same are
hereby repealed.
Sect�ton 4: Should any section or provision of this Ordinance or �ny portion thereof,
aay paragraph, sentence or word be deelazetl by a court of com�tent jutisdiction to be invalid,
such d�ision shall not affeot the validity of the remainder of this Ordinance.
Section 5: Specific authority is hereby granted to codify this Ordinamce•
Sect�ion 6: This Ordinance shall take effect imm�iately upon pass�ge.
Page 4 of 4
R ' � One East Broward Blvd. 954.527.1616 phone
�. �,�isuita,it�.'ti Actu��;�•� Suite 505 954.525.0083 fa�t
Ft.Lauderdale,FL 33301-1804 www.gabrielrceder.com
June 5, 2014
Ms. Dixie Martinez
Resource Centers, LLC
4360 Northlake Blvd., Suite 206
Palm Beach Gardens, FL 33410
Re: Viltage of Tequesta Public Safety Oflicers Pension Trust Fund
Dear Dixie:
As requested,we have reviewed the proposed ordinance pertaining to the Village of Tequesta Public Safety
Officers Pension Trust Fund which would amend the Plan as follows:
■ For firefighters hired after October l, 2010,the definition of"Salary"would be changed from total
cash remuneration to fixed monthly remuneration including regular earnings,vacation pay and sick
pay but excluding lump sum payments,overtime, bonuses, incentives and longevity.
■ For frefighters hired after October l,2010,the benefit multiplier would be changed to 2.0%for the
first 6 years of service and 2.5%for all years of service after 6 years.
As of October l, 2013,there were no active firefighters who were hired after October 1,2010. Since the
above changes apply only to firefighters who are hired after October 1,2010,the proposed ordinance would
have no immediate actuarial impact on the costs of the Plan. The reduction in cost would occur gradually
over time as an increasing percentage of the population is made up of firefighters hired after October l, 2U10.
The timeframe for the cost reduction will depend on the Village's hiring practices and how quickly cunent
active firefighters retire or terminate employment. Ultimately,when the total population is made up of new
firefighters,the expected savings generated by the proposed lower benefits as indicated above would be
about 5.6%of covered payroll for firefighters.
Since these changes will not have an immediate actuarial impact on the costs of the Plan,it is our opinion that
a formal Actuarial [mpact Statement is not required. However,we recommend that you send a copy of this
letter and the ordinance to the Municipal Police Of�tticers and Firefighters' Retirement Trust Funds Office and to
the Bureau of Local Retirement Systems.
Additional Disclosures
This report was prepared at the request ofthe Board and is intended for use by the Retirement System and
those designated or approved by the Board. This repoR may be provided to parties other than the Board only
in its entirety and only with the permission of the Board.
The purpose of this report is to describe the financial effect of the proposed plan changes. This report should
not be reiied on for any purpose other than the purpose described above.
The calculations in this report are based upon information furnished by the Plan Administrator for the
October l, 20i3 Actuarial Valuation concerning Plan benefits, financial transactions, plan provisions and
active members,terminated members, retirees and beneficiaries. We reviewed this information for internal
and year-to-year consistency, but did not otherwise audit the data. We are not responsible for the accuracy or
completeness of the information provided by the Plan Administrator.
Ms. Dixie Martinez
June 5.,2014
Page 2
The calculations are based upon assumptions regarding future events,which may or may not materialize.
They are also based on the assumptions,methods,and plan provisions outlined in this report. Future
actuarial measurements may differ significantly from the current measurements presented in this report due
to such factors as the following: plan experience differing from that anticipated by the economic or
demographic assumptions;changes in economic or demographic assumptions; increases or decreases
expected as part of the natural operation of the methodology used for these measurements(such as the end of
an amortization period or additiona!cost or contribution requirements based on the plan's funded status);and
changes in plan provisions or applicable law. If you have reason to believe that the assumptions that were
used are unreasonable,that the plan provisions are incorrectly described,that important plan provisions
relevant to this proposal are not described,or that conditions have changed since the calculations were made,
you should contact the author of the report prior to relying on information in the report.
The undersigned actuary is a member of the American Academy of Actuaries and meets the Qualifrcation
Standards of tl�e American Academy of Actuaries to render the actuarial opinions contained herein. The
undersigned actuaries are independent of the plan sponsor.
This report has been prepared by actuaries who have substantial experience valuing public employee
retirement systems. To the best of our knowledge the information contained in this report is accurate and
fairly presents the actuaria(position of the Plan as of the valuation date. All calculations have been made in
conformity with generally accepted actuarial principles and practices,and with the Actuarial Standards of
Practice issued by the Actuarial Standards Board and with app{icable statutes.
We welcome your questions and comments.
Respectfully submitted,
n
,' rJ �
4 1Yi/'��.,
ffr �Amrose, MAAA .
Enrolled Actuary No. 14-6599
cc: Bonni Jensen
i:abriel Rocdcr Smith �: C;ornpany