HomeMy WebLinkAboutOrdinance_11-14_06/12/2014 ORDINANCE NO. 11 -14
AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF
TEQUESTA, FLORIDA, AMENDING THE VILLAGE CODE OF
ORDINANCES AT CHAPTER 2. ADMINISTRATION. BY AMENDING
SECTION 2 -61. PENSION TRUST FUNDS, EDIT A, THE GENERAL
EMPLOYEES' PENSION TRUST FUND, TO ADOPT REVISIONS
REQUIRED BY THE TERMS OF IRS FAVORABLE DETERMWATION
LETTER DATED JUNE 17, 2013, KNOWN AS "EGTRRA" REVISIONS;
PROVIDING THAT EACH AND EVERY OTHER SECTION AND
SUBSECTION OF CHAPTER 2. SHALL REMAIN IN FULL FORCE AND
EFFECT AS PREVIOUSLY ENACTED; PROVIDING A CONFLICTS
CLAUSE, A SEVERABILITY CLAUSE AND AUTHORITY TO CODIFY;
PROVIDING AN EFFECTIVE DATE; AND FOR OTHER PURPOSES.
WHEREAS, the Village Council of the Village of Tequesta desires to amend the general
employees' pension trust fund pursuant to IRS Favorable Determination Letter dated June 17,
2013 to adopt a series of amendments known as "EGTRRA" amendments; and
WHEREAS, said amendments have been approved by the Board of Trustees; and
WHEREAS, the pension trust fund actuary has reviewed the proposed EGTRRA
amendments and has made a determination that said amendments have no actuarial impact on the
cost of the pension fund; and
WHEREAS, the Village Council believes that these revisions to the general employees'
pension trust fund are in the best interests of the Village of Tequesta and the general employees'
pension trust fund beneficiaries; and will promote the public health, safety and welfare.
NOW, THEREFORE, BE IT ORDAINED BY THE VILLAGE COUNCIL OF THE
VILLAGE OF TEQUESTA, PALM BEACH COUNTY, FLORIDA, AS FOLLOWS:
Section 1 : Chapter 2 of the Code of Ordinances of the Village of Tequesta is hereby
amended at Sec. 2 -61 Pension Trust Funds, Exhibit A, the General Employees' Pension Trust
Fund, to adopt revisions required by the terms of IRS favorable determination letter dated June
17, 2013, known as "EGTRRA" revisions; providing that Exhibit A, attached hereto shall read as
attached:
1
Section 2: Each and every other section and subsection of Chapter 2. Administration.
of the code of ordinances of the Village of Tequesta. shall remain in full force and effect as
previously enacted.
Section 3 : All Ordinances or parts of Ordinances in conflict herewith be and the same
are hereby repealed.
Section 4 : Should any Section or provision of this Ordinance or any portion thereof,
any paragraph, sentence or word be declared by a Court of competent jurisdiction to be invalid,
such decision shall not affect the validity of the remainder of this Ordinance.
Section 5: Specific authority is hereby granted to codify this Ordinance.
Section 6 : This Ordinance shall become effective immediately upon adoption.
2
Upon Second Reading this 12 day of June2014, the foregoing Ordinance was offered by Council
Member Okun who moved its adoption. The motion was seconded by Vice -Mayor Arena and
upon being put to a vote, the vote was as follows:
For Adoption Against Adoption
Mayor Abby Brennan X
Vice -Mayor Vince Arena X
Council Member Steve Okun X
Council Member Tom Paterno X
Council Member Frank D'Ambra 7C
The Mayor thereupon declared the Ordinance duly passed and adopted this 12 day of June 2014.
MAYOR OF TEQUESTA
Abigail B nnan
ATTEST:
Lori McWilliams, M ., 6Rp'0"
Village Clerk �' y,; m
� m•.cn
NO
R ArFD -
.��` . 4 19"x
3
EXHIBIT "A"
VILLAGE OF TEQUESTA �
GENERAL EMPLOYEES' PENSION TRUST FUND
Section 1. Creation of Pension Trust Fund.
The Village of Tequesta General Employees' Pension Trust Fund for the purpose
of providing retirement, death and disability benefits to members of the Fund, certain
former general employees and survivor benefits to beneficiaries. Prior to November 9,
1999, all Village Employees were part of one Plan. Effective November 9,1999, by Village
of Tequesta Ordinance No. 549, the Plan was separated between the General Employees �
and the Public Safety Employees. This System is intended to be a tax qualified plan
under Code Section 401(a) and meet the requirements of a uovernmental plan as
defined in Code Section 414(d).
Section 2. Definitions.
1. Statement of Definitions. As used herein, unless otherwise defined or required
by the context, the following words and phrases shall have the meaning indicated:
Accumulated Contributions means a Member's own contributions without interest.
Actuarial Equivalent means a benefit or amount of equal value, based upon 1983
Group Annuity Mortality table and an 8% rate of interest. For Plan Years beginning after
December 31. 2002 ' , for purposes of Code
Section 415(b), the mortality table is the table used under Code Section 417(e) as
prescribed by the Secretary of the Treasury in Rev. Rul. 2001-62 95=G.
Average Final Compensation shall mean one-twelfth (1/12) of the average salary
of the five (5) highest years of the last ten (10) years of credited service prior to retirement,
termination, or death, or the career average as a full time General Employee, whichever
is greater. A year shall be twelve (12) consecutive months
Beneficiarv means the person or persons entitled to receive benefits hereunder at
the death of a Member who has or have been designated in writing by the Member and
filed with the Board. If no designation is in effect, or if no person so designated is living,
at the time of death of the Member, the beneficiary shall be the estate of the Member.
Board or Board of Trustees, means a member of the General Employee Board of
Trustees, which shall administer and manage the System herein provided and senre as
Trustees of the Fund for the benefit of beneficiaries of the general employees.
1
Code means the Intemal Revenue Code of 1986, as amended from time to time.
Credited Service means the total number of years and fractional parts of years of
service as a General Employee who makes member contributions to the Plan, orr�itting
intervening years or fractional parts of years when such General Employee was not
employed by the Village of Tequesta. A plan member may voluntarily leave his/her
contribution in the Fund for a period of five (5) years after leaving the employ of the Willage
of Tequesta pending the possibility of being rehired in a full time position by the Village of
Tequesta without losing credit for the time of active participation as a plan member.
Should the employee not be re-employed with the Village of Tequesta in a full time
capacity within five (5) years, his/her contributions shall be retumed to him/her with three
percent (3%) interest.
The years or fractional parts of years that a General Employee serves in the rr�ilitary
service of the Armed Forces of the United States or the United States Merchant M�arine,
voluntarily or involuntarily, upon being granted leave by the Village of Tequest� and
separation from employment as a Village of Tequesta plan member, shall be ad�ed to
his/her years of credited service provided that:
A. The General Employee retums to his/her full time employment with the
Village of Tequesta within one (1) year from the date of his/her military
discharge.
B. The General Employee deposits into the Fund the same sum that the
Member would have contributed if he/she had remained a General
Employee, plus an amount of interest that substantially approximates the
amount eamed by the Fund from the date of retum to employment to the
date of deposit in accordance with Code Section 414(u) effective December
12, 1994.
C. The maximum credit for military service shall be five (5) years.
Effective Date means the date on which this Ordinance becomes effective.
Fund means the Trust Fund established herein as part of the System, for the benefit
of General Employees.
General Emplovee means an actively employed full-time person employed by the
Village of Tequesta, including his/her initial probationary employment period, excluding
certified Firefighters and certified Police Officers.
General Emplovee Board means the board of trustees provided hereunder to
administer and manage the funds for the benefit of the General Employees.
2
Member means an a�tively employed General Employee that fulfills the applicable
prescribed participation requirements.
One hundred and finrenty monthiv pavments quaranteed means benefits are payable
for the life of a retiree with a guarantee of 120 monthly payments. Should a member die
before 120 monthly payments (10 years) are made, then the remainder of the 120 monthly
payments will be paid to a beneficiary. Should a member receive more than 120 monthly
payments, then no benefit is payable to a beneficiary.
Plan Year means the 12 month period beginning October 1 of each year and ending
the following September 30.
Salary or Compensation means base wages to include regular earr�ings, vacation
pay, sick pay, plus all tax deferred items of income, excluding lump sum payments,
overtime, bonuses and longevity bonus. The amount of compensation taken into account
under the System may not exceed $200,000. This amount is subject to adjustment as
provided for in Code Section 401(a)(17), Code Section 415(d) and Section 16 of this Plan.
S pouse means the lawful wife or husband of a plan member at the time of pre-
retirement, death or retirement.
Statement of I nvestment Policv means the written investment policy adopted by the
Boards pursuant to this Ordinance and F.S. 112.661, et seq., which shall apply to funds
under the control of the board.
System means the Village of Tequesta General Employees' Pension Trust Fund as
contained herein and all amendments thereto.
Vested deferred retirement means a Member who leaves the employ of the Village
with 6 or more years of credited service and who is not eligible for any retirement benefit.
This benefit is payable at early or normal retirement.
Villaqe means the Village of Tequesta, Florida.
2. Masculine Gender. The masculine gender, where used herein, unless the
context specifically requires otherwise, shall include both the feminine and masculine
genders.
Section 3. Membership.
1. Condition of Eliqibility
All full time General Employees as of the effective date, and all future new
full time General Employees shall become Members of this System as a
condition of employment.
3
2. Membership
Each full time General Empioyee shall complete a form prescribed by the
Board providing the following information:
A. Acceptance of the terms and conditions of the Retirement System,
and,
B. Designation of a beneficiary or beneficiaries, and,
C. A certified statement as to prior medical and psychological history.
3. Change in Desiqnation of Beneficiary
A member may from time to time change his/her designated beneficiary by
written notice to the Board upon forms provided by the Board. Upon such
change, the rights of all previously designated beneficiaries to receive any
benefits under the System shall cease.
Section 4. Board of Trustees.
1. The sole and exclusive administration of and responsibility for the proper
operation of the retirement system and for making effective the provisions of this ordinance
is hereby vested in a Board of Trustees. The Board shall consist of five (5) Trustees, two
(2) of whom, unless otherwise prohibited by law, shall be legal residents of the municipality,
who shall be appointed by the Tequesta Village Council, and two (2) of whom shall be full-
time General Employee members of the System, however, in the event that eitherfull time
General Employee position remains vacant forthree months or more, then the position can
be filled by a legal resident of the Village of Tequesta elected by the General Employee
Members of the System in accordance with the election rules established by the Board for
one term. At the end of the term the position will be posted to again be filled by a full time
General Employee. The fifth (5�') Trustee shall be selected by a majority vote of the other
four (4) Trustees.
Each person seeking to fill a designated employee representative Board member
seat shall be elected by the full-time General Employee Members of the System. Upon
receipt of the fifth (5 person's name the Tequesta General Council shall, as a ministerial
duty, appoint such person to the General Employee Board as its fifth (5 Trustee. The
fifth (5 Trustee shall have the same rights as each of the other Trustees appointed or
elected as herein provided and shall serve a two (2) year term unless the office is sooner
vacated and may succeed himself or herself in office. Each resident Trustee shall serve
as Trustee for a period of two (2) years unless sooner replaced by the Tequesta Village
Council at whose pleasure the Trustee shall serve, and may succeed himself or herself as
a Trustee. Each General Employee Trustee shall serve as Trustee for a period of two (2)
4
years, unless he/she sooner leave the employment of the Village or othervvise vacates
his/her office as Trustee, whereupon a successor shall be chosen in the manner as the
departing Trustee. Each employee representative Trustee may succeed himself or herself
in office. The General Employee Board shall meet at least quarterly each year. The Board
shall be a legal entity with, in addition to other powers and responsibilities contained
herein, the power to bring and defend lawsuits of every kind, nature, and description.
2. The Board shall, by majority vote, elect a chairman and secretary. The
secretary of the Board shall keep, or cause to be kept, a complete minute book of the
actions, proceedings, or hearings of the Board and shall preside over Board meetings in
the absence of the Chairman. The Trustees shall not receive any compensation as such,
but may receive expenses and per diem as provided by law.
3. Each Trustee shall be entitled to one vote on the Board. Three (3) affirmative
votes shall be necessary for any decision by the Trustees at any meeting of the Board. A
Trustee shall have the right to abstain from voting as the result of a conflict of interest
provided that Trustee states in writing the nature of the conflict complies with the provisions
of Section 112.3143, Florida Statutes.
4. The Board of Trustees shall engage such actuarial, accounting, legal, and
other senrices as shall be required to transact the business of the Retirement System to
administer and manage the fund and to meet the requirements of applicable law. The
compensation of all persons engaged by the Board of Trustees and all other expenses of
the Board necessary for the operation of the Retirement System shall be paid from the
Fund at such rates and in such amounts as the Board of Trustees shall approve.
5. The duties and responsibilities of the Board of Trustees shall include, but not
necessarily be limited to, the following:
A. To construe the provisions of the System and determine all questions
arising thereunder.
Be To determine all questions relating to eligibility and participation.
C. To determine and certify the amount of all retirement allowances or
other benefits hereunder.
D. To establish uniform rules and procedures to be followed for
administrative purposes, benefit applications and all matters required
to administer the System.
E. To distribute to Members, at regular intervals, information conceming
the System.
5
F. To receive and process all applications for participation and benefits.
G. To authorize all payments whatsoever from the Fund, and to notify the
disbursing agent in writing of approved pension payments and other
expenditures arising through operation of the System and the Fund.
H. To have perFormed actuarial studies in accordance with Florida
Statute 112.63 providing a copy of the same to the Division of
Retirement, and with at least biennial valuations, and make
recommendations regarding and all changes in the provisions of the
System.
I. Ensure compliance with Article X, Section 14, of the Florida
Constitution, requiring that any increase in benefits be funded on an
actuarially sound basis.
J. Ensure the completion of an actuarial impact statement prior to the
adoption of a change in the plan's retirement benefits, a copy of which
must be provided to the Division of Retirement.
K. To ensure the funds and assets for the benefit of the employee
groups they serve are segregated and separated from the funds and
assets under the control of the Board.
L. To perform such other duties as are specified in this Ordinance.
M. To adopt and be guided by Statements of Investment Policy
applicable to all funds under the control of the General Employee
Board of Trustees as required from time to time by F.S. 112.661, et
seq., and/or its successor statutes.
Section 5. Finance And Fund ManaQement.
Establishment and Operation of Fund.
1. As part of the System, there is hereby established a Fund, into which shall be
deposited all of the contributions and assets whatsoever attributable to the System, for the
benefit of General Employees.
2. The actual custody and supervision of the Fund (and assets thereofl shall be
vested in the Board of Trustees. Payment of benefits and disbursements from the Fund
shall be made by the Village on the Board's agreement, but only upon written authorization
from the Board.
6
3. All funds and securities of the Fund may be deposited by the Board of Trustees
with the Treasurer of the municipality, acting in a ministerial capacity only, who shall be
liable in the same manner and to the same extent that as he is liable for the safekeeping
of funds for the municipality. However, any funds and securities so deposited with the
Treasurer of the municipality shall be kept in separate funds by the Treasurer or clearly
identified as such funds and securities of the General Employee Trust Fund. In lieu
thereof, the Board of Trustees shall deposit the funds and securities of the Fund in a
qualified public depository or depositories as defined in Section 280.02, Florida Statutes,
which depository or depositories with regard to such funds and securities shall conform to
and be bound by all of the provisions of Chapter 280, Florida Statutes. In order to fulfill its
investment responsibilities as set forth herein, the Board may retain the services of a
custodian bank or banks, an investment advisor or advisors registered under Investment
Advisors Act of 1940, registered broker dealer or otherwise exempt from such required
registration, an insurance company, or a combination of these, for the purposes of
investment decisions and management. Such investment manager or managers shall
have discretion, subject to any guidelines as prescribed by the Board, in the investment of
all fund assets.
4. Accurate records shall be maintained at all times reflecting the market valuations
of funds and assets of the Fund, including accurate current accounts and entries as
regards the following:
A. Current amounts of Accumulated Contributions of Members on both
an individual and aggregate account basis, and
B. Receipts and disbursements, and
C. Benefit payments, and
D. Current amounts clearly reflecting all moneys, funds and assets
whatsoever attributable to contributions and deposits from the Village,
County or State, and
E. All interest, dividends and gains (or losses) whatsoever, and
F. Such other entries as may be properly required so as to reflect a clear
and complete financial report of the Fund.
5. An independent audit shall be performed annually by a certified public
accountant for the most recent fiscal year of the Village showing a detailed listing of assets
and a statement of all income and disbursements during the year for each Fund. Such
income and disbursements must be reconciled with the assets at the beginning and end
of the year. Such report shall reflect complete evaluations of assets on both a cost and
market basis, as well as other items normally included in a certified audit.
7
6. The Board of Trustees shall have the following investment powers and authority:
A. The Board of Trustees shall be vested with full legal title to the Fund,
subject, however, and in any event to the authority and power of the
Tequesta Village Council to amend or terminate this Trust, provided
that no amendment or Fund termination shall ever result in the use of
any assets of the Fund except for the payment of regular expenses
and benefits under this System. All contributions from time to time
paid into the Fund, and the income thereof, without distinction
between principal and income, shall be held in the Fund and
administered by the Board or its Agents.
B. All moneys paid into or to be held by the Fund shall be invested and
reinvested by the Board and the investment of all or any part of such
funds shall be limited to:
(1) Annuity and life insurance contracts of life insurance
companies in amounts sufficient to provide, in whole or in part,
the benefits to which all of the participants in the Fund shall be
entitled under the provisions of the Plan and pay the initial and
subsequent premium thereon.
(2) Time or savings accounts of a national bank, a state bank
insured by the Bank Insurance Fund, or a savings and loan
association insured by the Savings Association Insurance
Fund which is administered by the Federal Deposit Insurance
Corporation or a state or federal chartered credit union whose
share accounts are insured by the National Credit Union Share
Insurance Fund.
(3) Obligations of the United States or obligations guaranteed as
to principal and interest by the govemment of the United
States.
(4) Bonds, stocks, commingled funds administered by National or
State Banks or evidences of indebtedness issued or
guaranteed by a corporation organized under the laws of the
United States, or registered investment company pursuant to
the Investment Advisors Act of 1940, any state or organized
territory of the United States, or the District of Columbia,
provided that the corporation is traded on a nationally
recognized Exchange and in the case of bonds only holds a
rating in one of the four highest classifications by a major
rating service, and if such investments are made in a pooled
fund administered by a state or national bank, then the rating
8
of each issue in the pooled fund shall hold a rating within the
top three (3) rating classifications of a major rating senrice.
(5) Real estate.
(6) All monies paid into or held in the Pension Fund shall be
invested and reinvested by the Board of Trustees and the
investment of all or any part of such funds shall be invested in
ac�ordance with an established investment policy adopted by
the Board of Trustees.
(7) Up to 10% of the Plan assets may be invested in foreign
securities.
C. The Board of Trustees shall not invest more than five percent (5%) of
its assets in the common stock or capital stock of any one issuing
company, nor shall the aggregate investment in any one issuing
company exceed five percent (5%) of the outstanding capital stock of
that company; nor shall the aggregate of its investments in common
stock, capital stock and convertible bonds at cost exceed sixty percent
(60%) of the assets of the Fund.
D. The Board of Trustees may retain in cash and keep unproductive of
income such amount of the Fund as they may deem advisable, having
regard for the cash requirements of the System.
E. No person or entity shall be liable for the making, retention or sale of
any investment or reinvestment made as herein provided, nor for any
loss or diminishment of the Fund, except that due to his/her or its own
negligence, willful misconduct or lack of good faith.
F. The Board may cause any investment in securities held to be
registered in or transferred into their name as Trustee or into the
name of such nominee as they may direct, or they may retain them
unregistered and in form permitting transferability, but the books and
records shall at all times show that all investments are part of the
Trust Fund.
G. The Board is empowered to vote upon any stocks, bonds or securities
of any corporation, association, or trust and to give general or specific
proxies or powers of attomey with or writhout power of substitution; to
participate in mergers, reorganizations, recapitalization,
consolidations and similartransactions 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
9
designated thereby; to amortize or fail to amortize any part of all of the
premium or discount resulting from the acquisition or disposition of
assets; and generally to exercise any of the powers of an owner with
respect to stocks, bonds, or other investments comprising the Fund
which it may deem to be the best interest of the Fund to exercise.
This power may be delegated to an agent by the Board of Trustees.
H. The Board shall not be required to make any inventory or appraisal or
report to any court, nor secure any order of court for the exercise of
any power contained herein.
I. Where any action which a Board is required to take on any duty or
function which it is required to perform either under the terms herein
or under the general law applicable to it as Trustee under this
Ordinance, can reasonably be taken or performed only after receipt
by it from a Member, the Village, the Department or any other entity,
of specfic information, certification, direction or instructions, the Board
shall be free of liability in failing to take such action or perform such
duty or function until such information, certification, direction or
instruction has been received by it.
J. Any overpayments or underpayments from a Fund to a Member or
beneficiary caused by errors of computation shall be adjusted with
interest at a rate per annum approved by the Board. Overpayment
shall be charged against member's payments next succeeding the
correction. Underpayments shall be made up from the Trust Fund.
K. A Board shall sustain no liability whatsoever for the sufficiency of a
Fund to meet the payments and benefits herein provided.
L. Any of the foregoing powers and functions may be perFormed or
carried out by the Board through duly authorized Agents, provided
that the Board at all times maintains continuous supervision over the
acts of any such Agent; provided further, that legal title to a Fund shall
always remain in the Board of Trustees.
M. A Board shall not invest more than ten percent (10%) at cost of its
assets in real property or real estate and there shall be no investment
in a limited partnership or trust.
N. The Village shall maintain Fiduciary Liability insurance to cover the
members of the Board of Trustees.
10
Section 6. Contributions.
1. Member Contributions
A. Amount. Members of the Retirement System shall be required to
make regular contributions to the Fund in the amount of five percent
(5°/a) of his/her salary. Member contributions withheld by the Village
on behalf of the Member shall be deposited with the Board of
Trustees immediately afterthe withholding of such contributions. The
contributions made by each Memberto the Fund shall be designed as
employer contributions pursuant to Section 414(h)(2) of the Code.
Such designation is contingent upon the contributions being excluded
from the Members' gross income for Federal Income Tax purposes.
For all other purposes of the Plan, such contributions shall be
considered to be Member contributions. For limitation vears arior
to Julv 1. 2007. anv�r�rp excess annual additions shall be place in an
unallocated suspense account.
B. Method. Such contributions shall be made by payroll deduction.
2. Villaqe Contributions
So long as this System is in effect, the Village shall make contributions at
least quarterly to the Trust Fund in an amount equal to the normal cost and the amount
required to fund any actuarial deficiency shown by an actuarial valuation as provided in
Part VII of Chapter 112, Florida Statutes.
3. Other
Private donations, gifts and contributions may be deposited to the Fund, but
such deposits must be kept separately and kept on a segregated bookkeeping basis.
Funds arising from these sources shall be reserved exclusively for additional benefits for
Members, and shall be reserved to be spent for the additional benefits as determined by
the Board when specifically provided for by this plan document, and may not be used to
reduce what would have otherwise been required by Village contributions.
Section 7. Benefit Amounts and Eligibili .
1. Normal Retirement Date
A Member's normal retirement date shall be the first day of the month
coincident with, or next following the earlier of:
11
a) attainment of age sixty-two (62) regardless of years of credited
service, or
b) attainment of thirty (30) years of credited service regardless of age.
A Member may retire on his/her normal retirement date or on the first day of
any month thereafter, and each Member shall become 100% vested in
his/her accrued benefit on the Member's normal retirement date. Normal
retirement under the Plan is retirement from employment with the Village of
Tequesta as a General Employee, on or after the normal retirement date.
2. Normal Retirement Benefit
A Member retiring hereunder on or after his/her normal retirement date shall
receive a monthly benefit which shall commence on his/her Retirement Date and be
continued thereafter during the Member's lifetime, ceasing upon death, but with one
hundred twenty (120) monthly payments guaranteed in any event. Benefits are payable
for the life of a retiree with a guarantee of 120 monthly payments. Should a member die
before 120 monthly payments (10 years) are made, then the remainder of the 120 monthly
payments will be paid to a beneficiary. Should a member receive more than 120 monthly
payments, then no benefit is payable to a beneficiary. The monthly retirement benefit shall
equal finro percent (2%) of average final compensation, for each year of credited service
(2% x average final compensation x years of credited service).
3. Early Retirement Date
A Member may refire on his/her early retirement date which shall be the first
day of any month coincident with or next following the later of the attainment of age fifty
(50) and the completion of six (6) years of credited service. Early retirement under the
Plan is retirement from employment with the Village of Tequesta on or after the early
retirement date and prior to the normal retirement date.
4. Early Retirement Benefit
A Member retiring hereunder on his/her early retirement date may receive
either a deferred or an immediate monthly retirement benefit payable for life, but with one
hundred twenty (120) monthly payments guaranteed in any event, as follows:
A. A deferred monthly retirement benefit which shall commence on what
would have been his/her normal retirement date had he/she remained
a General Employee and shall be continued on the first day of each
month thereafter. The amount of each such deferred monthly
retirement benefit shall be determined in the same manner as for
retirement as his/her normal retirement date except that credited
12
service and average final compensation shall be determined as of
his/her early retirement date; or
B. An immediate monthly retirement benefit which shall commence on
his/her early retirement date and shall be continued on the first day of
each month thereafter. The benefit payable shall be as determined
in paragraph A above, which is actuarially reduced from the amount
to which he/she would have been entitled had he/she retired on
his/her normal retirement date and with the same number of years of
credited service as at the time his/her benefit commence and based
on his/her average final compensation at that date. In no event shall
the early retirement reduction exceed five percent (5%) each year by
which the commencement of benefits precedes the Membe�'s normal
retirement date.
Section 8. Pre-retirement Death.
Upon the death of any vested member, whether or not still in active employment,
a survivor benefit is payable to the beneficiary starting when the member would have
reached retirement age. The benefit is equal to the vested pension benefit.
Section 9. Disability.
1. Disability Benefits On-Dutv
Each full time employee who is a participant in the Pension Fund System and who
becomes totally and permanently disabled while an active employee of the Village of
Tequesta to the extent that he/she is unable, by reason of a medically determinable
physical or mental impairment, to render useful and efficient service as a General
Employee, which disability was directly caused by the performance of his/her duty as a
General Employee shall upon establishing the same to the satisfaction of the Board, be
entitled to the greater of A or B:
A. If the injury or disease is service connected, the employee shall be
entitled to the greater of (1) or (2):
(1) a monthly pension equal to 42% of his/her average monthly
compensation as of his/her disability retirement date, or
(2) an amount equal to the number of years of his/her credited
service multiplied by 2% of his/her average monthly salary
based upon his/her final 5 years of service.
2. Disability Benefits Off-Dutv
13
Every General Employee who has six years of credited senrice, is a
participant in the Pension Fund System and who shall have become totally and
permanently disabled to the extent that he/she is unable, by reason of a medically
determinable physical or mental impairment, to render useful and efficient service as a
General Employee which disability is not directly caused by the performance of his/her
duties as a General Employee shall be entitled to the greater of A or B:
A. a monthly pension equal to 25°/a of his/her average monthly
compensation based upon his/her final 5 years of service, or
B. An amount equal to the number of years of his/her credited
service multiplied by 2% of his/her average monthly salary
based upon his/her final 5 years of service.
3. Conditions Disqualifying Disabilitv Benefits
Each General Employee who is claiming disability benefits shall establish, to
the satisfaction of the Board, that such disability was not occasioned primarily by:
A. Excessive or habitual use of any drugs, intoxicants or alcohol.
B. Injury or disease sustained while willfully and illegally participating in
fights, riots or civil insurrections.
C. Injury or disease sustained while committing a crime.
D. Injury or disease sustained while serving in any branch of the Armed
Forces.
E. Injury or disease sustained after his/her employment shall have
terminated as a General Employee with the Village of Tequesta.
F. Willful, wanton or gross negligence of the Member.
G. Injury or disease sustained by General Employee while working for
anyone other than the Village of Tequesta and arising out of such
employment.
H. Injury or disease sustained by the member before employment with
the Village begins. This subparagraph applies only in the event of a
duty injury or disease.
4. Physical Examination Requirement
14
An employee shall not become eligible for disability benefits until and unless
he/she undergoes a physical examination by a qualified physician or physicians and/or
surgeons, who shall be selected by the Board for that purpose.
Any person receiving disability benefit under provisions ofthis Ordinance may
be periodically re-examined by a qualified physician or physicians and/or surgeon or
surgeons who shall be selected by the Board, to determine if such disability has ceased
to exist. If the Board finds that the retiree is no longer permanently and totally disabled to
the extent that he/she is unable to render useful and efficient service as a General
Employee the Board shall recommend to the Village that the retiree be returned to their
previous perFormance of duty as a General Employee, and the retiree so retumed shall
enjoy the same rights that Member had at the time he/she was placed upon pension. In
the event the retiree is so ordered to retum shall refuse to comply with the order within
thirty (30) days from the issuance thereof, Member shall forfeit the right to his/her pension.
The cost of the physical examination and/or re-examination of the employee
or retiree claiming and/or receiving disability benefits shall be borne by the Board of this
Pension Fund System. All other reasonable costs as determined by the Board incident to
the physical examination, such as, but not limited to, transportation, meals and hotel
accommodations, shall be borr�e by the Board.
If the retiree recovers from disability and reenters his/her former service with
the Village of Tequesta held prior to disability retirement, his/her senrice will be deemed
to have been continuous, but the period beginning with the first month for which he/she
received a disability retirement income payment and ending with the date he/she reentered
the service of the Village will not be considered as credited service for the purposes of the
Plan.
The Board shall have the power and authority to make the final decision
regarding all disability claims.
5. Disability Payments
The monthly benefit to which a Member is entitled in the event of the
Member's disability retirement shall be payable on the first day of the first month after the
Board of Trustees determines such entitlement. However, the monthly retirement income
shall be payable as of the date the Board determined such entitlement, and any portion
due for a partial month shall be paid together with the first payment. The last payment will
be:
A. If the plan member recovers from the disability or attains his/her
normal retirement date, the payment due next preceding the date of
such recovery, or
15
B. If the plan member dies without recovering from the disability prior to
his/her normal retirement date while still disabled, the payment due
next preceding his/herdeath orthe 120 monthly payment, whichever
is later.
Section 10. Vesting.
If a Member terminates his/her employment with the Village of Tequesta, either
voluntarily or by discharge, and is not eligible for any other benefits under this System, the
Member shall be entitled to the following:
1. If the Member has less than six (6) years credited service and has not attained
the age of sixiy-two (62) upon termination, the Member shall be entitled to a refund of
accumulated contribution plus three percent (3%) interest or the Member may leave it
deposited with the Fund, in accordance with the deflnition of credited service.
2. If the Member has six (6) or more years of credited service upon termination, or
altematively, the Member has attained the age of sixiy-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 othervvise payable to him/her
commencing at the Member's othervvise normal or early retirement date, provided he/she
does not elect to withdraw his/her accumulated contributions plus three percent (3%)
interest and provided the Member survives to his/her normal or early retirement date.
3. Any plan member of the System whose position is terminated, for whatever
reason, but who is employed by the Village in some capacity, shall have all retirement
benefits accrued up to the date of such termination under this System preserved, provided
he does not elect to withdraw his/her accumulated contributions plus three percent (3%)
interest from this System. Such Accrued retirement benefits shall be payable at his/her
otherwise normal retirement date hereunder, or later, in accordance with the provisions of
this System.
Section 11. Optional Forms of Benefits.
1. In lieu of the amount and form of retirement income payable in the event of
normal or early retirement as specified herein, a plan member, upon written request to the
Board of Trustees and submission of evidence of good health (except that such evidence
will not be required if such request is made at least three (3) years prior to the date of
commencement of retirement income or if such request is made within six (6) months
following the effective date of the Plan, if later), and subject to the approval of the Board
of Trustees, may elect to receive a retirement income or beneflt of equivalent actuarial
valuation payable in accordance with one of the following options:
A. A retirement income of a larger monthly amount, payable to the
Member for his/her lifetime only.
16
B. A retirement income of a modified monthly amount, payable to the
Member during the joint lifetime of the Member and a dependent joint
pensioner designated by the Member and following the death of either
of them, 100%, 76%, 66-2/3%, or 50% of such monthly amounts
payable to the survivor for the lifetime of the survivor.
2. The Member, upon electing any option of this section, will designate the joint
pensioner or beneficiary (or beneficiaries) to receive the benefit, if any, payable under the
Plan in the event of the Member's death, and will have the power to change such
designation from time to time, but any such change shall be deemed a new election and
will be subject to approval by the Board of Trustees. Such designation will name a joint
pensioner or one or more primary beneficiaries where applicable. If a Member has elected
an option with joint pensioner or beneficiary and the Member's retirement income benefits
have commenced, the Member may thereafter change his/her designated joint pensioner
or beneficiary, but only if the Board of Trustees consents to change and if the joint
pensioner or beneficiary, but only if the Board of Trustees consents to change and if the
joint pensioner last previously designated by the Member is alive when he/she files with the
Board of Trustees the request for such change.
3. The consent of joint pensioner or beneficiary to any such change shall not be
required.
4. The Board of Trustees may request such evidence of the good health of joint
pensioner that is being removed as it may require and the amount of the retirement income
payable to the Retiree upon designation of a new joint pensioner shall be actuarially
redetermined taking into account the age and sex of the former joint pensioner, the new
joint pensioner, and the Retiree. Each such designation will be made in writing on a form
prepared by the Board of Trustees and on completion will be filed with the Board of
Trustees.
In the event that no designated beneficiary survives the Member, such benefits as
are payable in the event of the death of the Member subsequent to his/her retirement shall
be paid as provided in Section 12.
5. Retirement income payments shall be made under the option elected in
accordance with the provisions of this section and shall be subject to the following
limitations:
A. If a Member dies prior to his/her normal retirement date or early
retirement date, whichever occurs, no retirement benefit will be
payable under the option to any person, but the benefits, if any, will
be determined under Section 8.
B. If the designated beneficiary (or beneficiaries) or joint pensioner dies
before the Member's retirement underthe Plan, the option elected will
17
be canceled automatically and a retirement income of the normal form
and amountwill be payable to the Member upon his/her retirement as
if the election had not been made, unless a new election is made in
accordance with the provisions of this section or a new beneficiary is
designated by the Member prior to his/her retirement and within ninety
(90) days after the death of the beneficiary.
C. If both the retired Member and the beneficiary (or beneficiaries)
designated by the Member die before the full payment has been
effected under any option providing for payments for a period certain
and life thereafter, made pursuant to the provisions of subsection 1,
the Board of Trustees may in its discretion, direct that the computed
value of the remaining payments be paid in a lump sum and in
accordance with Section 12.
D. Ifa Membercontinues beyond his/hernormal retirementdate pursuant
to the provisions of Section 7, subsection 1, and dies prior to his/her
actual retirement and while an option made pursuant to the provisions
of this section is in effect, monthly retirement income payments will be
made, or a retirement benefit will be paid, under the option to a
beneficiary (or beneficiaries) designated bythe Member in the amount
or amounts computed as if the Member had retired under the option
on the date on which his/her death occurred.
6. The Member may not change his/her retirement option after the date of cashing
or depositing his/her first retirement check.
Section 12. Beneficiaries.
1. Each Member may, on a form provided for that purpose, signed and filed with
the Board of Trustees, designate a beneficiary (or beneficiaries) to receive the benefit, if
any, which may be payable in the event of his/her death; and each designation may be
revoked by such Member by signing and filing with the Board of Trustees a new
designation-of-beneficiary form.
2. If a deceased Member fails to name a beneficiary in the manner prescribed in
subsection 1, or if the beneficiary (or beneficiaries) named by a deceased Member
predeceases the Member, the death benefit, if any, which may be payable under the Plan
with respect to such deceased Member shall be paid, in the discretion of the Board of
Trustees, either to:
A. The wife or dependent children of the Member;
B. The dependent living parents of the Member; or
18
C. Estate of the Member.
Section 13. Claims Procedures Before the Board Decision.
1. If any Member of the System has been:
A. Placed on pension under the terms and provisions of this ordinance
for disability, or
B. Placed on pension because the Member has served the required
number of years to entitle him to a pension, or
C. Refused benefits under this Plan, and is dissatisfied with the amount
of pension the Member is receiving, or believes that he should be
entitled to benefits under the Plan, the Member may, in writing,
request the Board to review his/her case. The Board shall review the
case and enter such order thereon as it deems right and proper within
sixty (60) days from receipt of such written request and the receipt by
the Board of a written medical release authorization and a list of
names and addresses of all treating health care providers for such
review of disability claims; provided, that the Board may extend the
time for entering such order by an additional forty-five (45) days if it
determines such time is necessary for discovery in full and adequate
review.
2. In the event that the order from the Board denies the claim for a change in
such benefits or denies the claim for benefits, the order of the Board shall be
put in writing. Such written order shall include:
A. The specific reasons for the denial, including specific references to
pertinent provisions of the retirement system on which such denial is
based;
B. A description of any additional material or information that the Board
feels is necessary for the Member to perFect his/her claim, together
with an explanation of why such material or information is necessary;
and
C. An explanation of the review procedure next open to the Member.
Such review procedure shall provide that:
(1) Prior to such review, the Member or his/her duly authorized
representative may review any pertinent documents including Plan
provisions, minutes of the meeting of the Board in which denial fo the
19
claim was originally recommended, and anyotherdocuments material
to the case;
(2) After such review, the Member and/or his/her duly authorized
representative shall submit their case in writing to the Board and
request a hearing. Such submission shall be filed with the Board no
later than ninety (90) days after the receipt of the order of the Board.
Upon receipt of the written submission by the Member, the Board
shall schedule an opportunity for a full and fair hearing of the issue
within the next ninety (90) days, and such scheduled hearing shall be
communicated in writing to the Member. The Member and/or his/her
duly authorized representative may then appear at such scheduled
hearing to present their case. The Board shall consider the facts
presented at the scheduled hearing and shall, within thirty (30) days
after such hearing, make a final ruling in writing on the request of the
Member. The written decision shall include the reasons for such
decision and, such decision shall be final.
(a) The Chairman shall preside over the hearing and shall
rule on all evidentiary and other legal questions that
arise during the hearing.
(b) Either party, the claimant or the Board, may file
pleadings within the time limits set herein. Procedural
motions are to be determined by the Chairman of the
Board at any time. All parties are to fumish copies of all
pleadings to the opposing parties and exchange lists
with names and addresses of witnesses expected to be
called to testify at the hearing, as well as the list of
exhibits that are intended to be introduced, at least
forty-five (45) days prior to the hearing. Testimony of
witnesses shall be under oath or affirmation.
Depositions or affidavits shall not be admissible unless
upon stipulation by all parties. The Chairman, any
Member of the Board, the 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 parly.
Each party shall have the right to present any opening
and closing arguments. Any party may secure the
services of a court reporter to record the proceedings
with the cost to be bome by the party requesting the
20
court reporter or requesting the transcription of the
proceedings.
c) In all cases, unless otherwise provided in this section,
the burden of proof shall be on the claimant who seeks
to draw his/her entitlement to a pension, disability
pension, or increased pension benefits.
3. In all proceedings under subsections 1 or 2 hereof, the Board shall have the
power to subpoena and require the attendance of witnesses and the
production of documents for discovery prior to and at the proceedings
provided for in each paragraph. A reasonable fee may be charged for the
issuance of any subpoenas not to exceed the fees set forth in Florida
Statutes.
Section 14. Roster of Retirees.
The Secretary of the Board shall keep a record of all persons enjoying a pension
under the provisions of this Ordinance in which it shall be noted the time when the pension
is allowed and when the same shall cease to be paid. Additionally, the Secretary shall
keep a record of all General Employees employed by the Municipality who are Members
of the plan in such a manner as to show the name, address, date of employment and date
such employment is terminated.
Section 15. Board Attorney and Professionals.
The Board may employ independent legal counsel at the Pension Fund's expense
forthe purposes contained herein, togetherwith such other professional, technical, orother
advisors as the Board deems necessary.
Section 16. Maximum Pension.
1. 415(b) Intemal Revenue Code Limits
A. Basic Limitations. Notwithstanding anything to the contrary in this
Plan, the provisions of Section 415 and its regulations are hereby
incorporated by reference into this plan. Subject to the adjustments
in Code Section 415, the maximum amount of the actual annual
retirement income paid in any year with respect to a Participant under
this Plan attributable to employer provided benefits shall not exceed
the dollar amount allowable for any calendar year pursuant to §415(b)
of the Code, as adjusted in such c�lendar year for increases in the
cost of living in accordance with Regulations issued by the Secretary
of the Treasury under §415(d) of the Code. For purposes of applying
the basic limitation, benefits payable in any form other than a straight
21
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 subsection
Article, 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 under §415(b)(2) of the Code
and Treasury Regulations thereunder to be taken into account
for purposes of the limitation of §415(b)(1) of the Code.
B. This section shall be effective for distributions after December
31, 2001.
C$- For purposes of applying the limitations of Code Section 415(b),
compensation includes those items as set forth in Reg. 1.415-2(d).
This definition specifically includes the crediting of compensation
while absent from service for military duty; such crediting shall to
exceed the compensation that would have been credited under the
System if System services had continued.
2. Additional Limitation on Pension Benefits. Notwithstanding anything herein
to the contrary:
A. The normal retirement benefit or pension to a retiree who becomes a
member of the Plan and who has not previously participated in such
Plan, on or after January 1, 1980, shall not exceed 100 percent of
his/her average final compensation. However, nothing contained in
this section shall apply to supplemental retirement benefits or to
pension increases attributable to cost-of-living increases or
adjustments. In all events, distributions shall be limited by the
applicable provisions of Code section 415(b) limits.
B. No member of the Plan who is not now a member of such Plan shall
be allowed to receive a retirement benefit or pension which is in part
or in whole based upon any service with respect to which the member
is already receiving, or will receive in the future, a retirement benefit
or pension from another retirement system or plan. This restriction
does not apply to social security benefits or federal benefits under
Chapter 67, Title 10, U.S. Code.
3. 401(a)(17) Limitation on Compensation. For any person who first becomes
a member in any plan year beginning on or after January 1, 1996, compensation for any
plan year shall not include any amounts in excess of the Internal Revenue Code s.
401(a)(17) limitation (as amended by the Omnibus Budget Reconciliation Act of 1993),
which limitation shall be adjusted as required by federal lawfor qualified govemment plans
22
and shall be further adjusted for changes in the cost of living in the manner provided by
Interr�al Revenue Code s. 415(d). For any person who first became a member prior to the
first plan year beginning on or after January 1, 1996, the limitation on compensation shall
be not less than the maximum compensation amount that was allowed to be taken into
account under the plan as in effect on July 1, 1993, which limitation shall be adjusted for
changes in the cost of living since 1989 in the manner provided by Intemal Revenue Code
s. 415(d).
Section 17. Commencement of Benefits.
1. Unless the Member otherwise elects, with such election being in writing and
to the Trustees and specifying the form of retirement income and date on which the
retirement income is to commence, the payment benefits under the Plan to the Member
shall commence not later than the 60�' day after the close of the Plan Year in which the
latest following events occur:
A. The attainment by the Member of age 65;
B. The 10 anniversary of the date on which the Member commenced
participation in the Plan; or
C. The termination of the Member's service with the Village of Tequesta
2. If the payment of a Membe�'s retirement income cannot begin on the date
required under subsection 1 of the Section because the Trustees either cannot ascertain
the amount of the Member's retirement income or cannot locate the Member after making
reasonable efforts to do so, the payment of the Member's benefit shall begin not later than
sixiy (60) days after the date on which the amount can be ascertained or the Member is
located, whichever is applicable. Any such payment shall be made retroactive to a date
which is not earlier than the date on which the payment of the Member's benefit was
scheduled to begin but which is not later than the date specified under subsection 1 of this
Section.
Section 18. Distribution of Benefits.
Notwithstanding any other provision of this Plan to the contrary, a form of retirement
income payable from this Plan after the effective date of this ordinance, shall be made in
accordance with the requirements of Code Section 401(a)(9), including the minimum
distribution incidental benefit requirements of section 1.401(a)(9)-2 Code Section
401(a)(9)(G) to satisfy the following conditions:
1. If the retirement income is payable before the Member's death,
23
A. it shall either be distributed or commence to the Member not later
than April 1 of the calendar year following the later of the calendar
year in which the Member attains age 70'/a, or the calendar year in
which the Member retires,
B. the distribution shall commence to them not later than the calendar
year defined above; and shall be paid over the life of the Member or
over the lifetimes of the Member and spouse, or dependent, or, shall
be paid over the period extending not beyond the life expectancy of
the Member and spouse, or dependent.
Where a form of retirement income payment has commenced in accordance
with the preceding paragraphs and the Member dies before his/her entire
interest in the Plan has been distributed, the remaining portion of such
interest in the Plan shall be distributed no less rapidly than under the form of
distribution in effect at the time of the Member's death.
2. If the Member's death occurs before the distribution of his/her interest in the
Plan has commenced, the Member's entire interest in the Plan shall be distributed within
five (5) years of the Membe�'s death, unless it is to be distributed in accordance with the
following rules:
A. The Member's remaining interest in the Plan is payable to his/her
spouse or dependent;
B. The remaining interest is to be distributed over the life of the spouse,
issue or dependent or over a period not extending beyond the life
expectancy of the spouse or dependent; and
C. Such distribution begins within one yearofthe Member's death unless
the Member's spouse, issue or dependent shall receive the remaining
interest in which case the distribution need not begin before the date
on which the Member would have attained age 70'/2 and if the
spouse, issue or dependent dies before the distribution to the spouse,
issue or dependent begins, this Section shall be applied as if the
spouse, issue or dependent were the Plan Member.
Section 19. Miscellaneous Provision.
1. Interest of Members in Pension Fund. At no time prior to the satisfaction of
all liabilities under the Plan with respect to Members and their spouses or beneficiaries,
shall any part of the corpus or income of the Pension Fund be used for or diverted to any
purpose other than for their elusive benefit.
24
2. No amendment or ordinance shall be adopted by the Village Council of the
Village of Tequesta which shall have the effect of reducing the then vested accrued
benefits to Members or Members beneficiaries.
3. Rollover Distributions.
A. This subsection applies to distributions made on or after January 1,
1993. Notwithstanding any provision of the Plan to the contrary that
would otherwise limit a distributee's election under this subsection, a
distributee may elect, at the time and in the manner prescribed by the
Board of Trustees, to have any portion of an eligible rollover
distribution paid directly to an eligible retirement plan specified by the
distributee in a direct rollover.
B. Definitions.
(1) "Eligible rollover distribution" is any distribution of all or any
portion of the balance to the credit of the distributee or an
alternate payee under an income deduction order under
Florida law, except that an eligible rollover does not include
any distribution that is one of a series of substantially equal
periodic payments (not less frequently than annually) made for
the life (or life expectancy) of the distributee or the ioint lives
(or joint life expectancies) of the distributee and the
distributee's designated beneficiary, or for a specified period
of 10 years or more; any distribution to the extent such
distribution is required under section 401(a)(9) of the Code;
��
(2) "Eligible retirement plan" is an individual retirement account
described in section 408(a) of the Code, an individual
retirement annuity described in section 408(b) of the Code, a
qualified trust, an annuity plan described in section 403(a) of
the Code, an eligible deferred compensation plan
described in §457(b) which is maintained by eligible
employer described in §457(e)(1)(A) of the Code or an
annuity contract described in 403(b� of the Code, that
accepts the distributee's eliqible rollover distribution. e�r
,
,
. ,
,
25
(3) "Distributee" includes an employee or former employee. In
addition, the employee's or former employee's surviving
spouse and the employee's or former employee's spouse or
former spouse who is entitled to payment under a court
rder that complies with the provisions
of ode
Section 414(p)(1)(a)(i) are distributees with regard to the
interest of the spouse or former spouse.
(4) �Direct rollover" is a payment by the Plan to the eligible
retirement plan specified by the distributee.
Section 20. Repeal or Termination of Svstem.
1. This Ordinance establishing the System and Fund, and subsequent
Ordinances pertaining to said System and Fund, may be modified, terminated, or
amended, in whole or in part; provided that if this or any subsequent Ordinance shall be
amended or repealed in its application to any person benefitting hereunder, the amount of
benefits which are the time of any such alteration, amendment, or repeal shall have
accrued to the Member or beneficiary shall not be affected thereby, except to the extent
that the assets fo the Fund may be determined to be inadequate.
2. If this Ordinance shall be repealed, or if contributions to the System are
discontinued, the Board shall continue to administer the System in accordance with the
provisions of this Ordinance, for the sole benefit of the then Members, any beneficiaries
then receiving retirement allowances, and any future persons entitled to receive benefits
under one of the options provided for in this Ordinance who are designated by any of said
Members. In the event of repeal, Plan termination or if contributions are completely
discontinued, there shall be full vesting (100%) of benefits accrued to date of repeal and
the assets of the System shall be alloc�ted in an equitable manner to provide benefits on
a proportionate basis to the persons so entitled in accordance with the provisions thereof.
3. The following shall be the order of priority for purposes of allocating the
assets of the System as of the date of repeal of this Ordinance, or if contributions to the
System are discontinued with the date of such discontinuation being determined by the
Board.
A. Apportionment shall first be made in respect of each retired General
Employee receiving a retirement or disability benefit hereunder on
such date, each person receiving a benefit on such date on account
of a retired or disabled (but since deceased) General Employee who
has, by such date, become eligible for normal retirement but has not
yet retired, an amount which is the actuarial equivalent of such
benefit, based upon the actuarial assumptions in use for purposes of
26
the most recent actuarial valuation, provided that, if such asset value
be less than the aggregate of such amounts, such amounts shall be
proportionately reduced so that the aggregate of such reduced
amounts will be equal to such asset value.
B. If there be any asset value remaining after the apportionment under
paragraph A, apportionment shall next be made in respect of each full
time General Employee in service of the Village of Tequesta on such
date who has completed at least six (6) years of credited service and
who is not entitled to an apportionment under paragraph A, in the
amount required to provide the actuarial equivalent, as described in
A above, of the accrued normal retirement benefit based on the
credited service and average monthly eamings as of such date, and
each vested former Member then entitled to a deferred benefit who
has not by such date, begun receiving benefit payments, in the
amount required to provide said actuarial equivalent of the accrued
normal retirement benefit; provided that, ifsuch remaining assetvalue
be less than the aggregate of the amounts apportioned hereunder,
such latter amounts shall be proportionately reduced so that the
aggregate of such reduced amounts will be equal to such remaining°
asset value.
C. If there be any asset value after the apportionment under paragraph
A and B, apportionment shall be made in respect of each full time
General Employee in service of the Village of Tequesta on such date
who is not entitled to an apportionment under paragraphs A and B in
the amount equal to Member's Accumulated Contributions, provided
that, if such remaining asset value be less than the aggregate of the
amounts apportioned hereunder such latter amount shall be
proportionately reduced so that the aggregate of such reduced
amounts will be equal to such remaining asset value.
D. If there be any asset value remaining after the apportionment's under
paragraphs A, B and C, apportionment shall lastly be made in respect
of each Member included in paragraph C above to the extent of the
actuarial equivalent, as described in paragraph A above, of the
accrued normal retirement benefit, less the amount apportioned in
paragraph C, based on credited service and average monthly
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 reduced
amounts will be equal to such remaining asset value.
27
E. In the event that there be asset value remaining after the full
apportionment's specified in paragraphs A, B, C, and D, such excess
shall be retumed to the Village.
The alloc�tion of the Fund provided for in this subsection may, as decided by the
Board be carried out through the purchase of insurance company contracts to provide the
benefits determined in accordance with this subsection. The Fund may be distributed in
one sum to the persons entitled to said benefits or the distribution may be carried out in
such other equitable manner as the Board may direct. The Trust may be continued in
existence for purposes of subsequent distributions.
4. After all the vested and accrued benefits provided hereunder have been paid
and after all other liabilities have been satisfied, then and only then shall any remaining
fund revert to the General Fund of the Village.
Section 21. Exemption from Execution, Non-assignability.
The pensions, annuities, or any other benefits accrued or accruing to any person
under the provisions of this Ordinance and the accumulated contributions and the cash
securities in the Fund created under this Ordinance are hereby exempted from any state,
county or municipal tax of the state and shall not be subject to execution, attachment,
gamishment or any legal process whatsoever and shall be unassignable. However,
pursuant to an income deduction order, the Trustees may direct that retirement benefits
be paid for alimony or child support in accordance with rules and regulations adopted by
the Board of Trustees.
Section 22. Pension Validity.
The Board of Trustees shall have the power to examine into the facts upon which
any pension shall heretofore have been granted and under any prior or existing law, or
shall hereafter be granted or obtained erroneously, fraudulently or illegally for any reasons.
Said Board is empowered to purge the pension rolls of any person heretofore granted a
pension under prior or existing law or heretofore granted under this Ordinance if the same
is found to be erroneous, fraudulent or illegal for any reason, and to reclassify any person
who has heretofore under any prior or existing law been or who shall hereafter under this
Ordinance be erroneously, improperly or illegally classified.
Section 23. Forfeiture of Pension
Any Plan Member convicted of the following offenses committed prior to retirement,
or whose employment is terminated by reason of his/her admitted commission, aid or
abatement of the following specified offenses, shall forfeit all rights and benefits under this
Pension Fund, except for the retum of this accumulated contributions as of the date of
termination.
28
1. Specified offenses are as follows:
A. The committing, aiding or abetting of an embeulement of public
funds;
B. The committing, aiding or abetting of any theft by a public officer or
employee from employer;
C. Bribery in connection with the employment of a public officer or
employee;
D. Any felony specified in Chapter 838, Florida Statutes;
E. The committing of an impeachable offense.
2. The committing of any felony by a public officer or employee who willfully and
with intent to defraud the public or public agency, for which he acts or in which he is
employed, of the right to receive the faithful performance of his/her duty as a public officer
or employee, realizes or obtains or attempts to obtain a profit, gain, or advantage for
himself or for some other person through use or attempted use of the power, rights,
privileges, duties or position of his/her public office or employment position.
A. Conviction shall be defined as follows:
An adjudication of guilt by a court of competent jurisdiction; a plea of
guilty or nolo contendere; a jury verdict of guilty when adjudication of
guilt is withheld and the accused is placed on probation; or a
conviction by the Senate of an impeachable offense.
B. Court shall be defined as follows:
Any state or federal court of competent jurisdiction which is exercising
jurisdiction to considera proceeding involving the alleged commission
of a specified offense. Prior forfeiture, the Board of Trustees shall
hold a hearing on which notice shall be given to the Member whose
benefits are being considered for forfeiture. Said Member shall be
afforded the right to have an attomey present. No formal rules of
evidence shall apply, but the Member shall be afforded a full
opportunity to present his/her case against forFeiture.
Any Memberwho has received benefits from the System in excess of his/her
accumulated contributions after Member's rights were forfeited shall be
required to pay back to the Fund the amount of the benefits received in
excess of his/her accumulated contributions. The Board of Trustees may
implement all legal action necessary to recover such funds.
29
Section 24. Militarv Service Prior to Emplovment.
In accordance with Code Section 415(n), the �e years or ftactional parts of
years that a Member serves or has served in the military service of the Armed Forces of
the United States or United States Merchant Marine, voluntarilyor involuntarily, priorto first
and initial employment with the Village of Tequesta shall be added to his/her years of
credited service provided that:
1. The General Employee contributes to the Fund the sum that he/she would
have contributed had he/she been a member of the Plan for the years or fractional parts
of years for which he/she is requesting credit plus amounts actuarially determined such
that the crediting of service does not result in any cost to the Fund plus payment of costs
for all professional services rendered to the Board in connection with the purchase years
of credited service.
2. The request shall be made only once and made by the Member on or before
the later of twelve (12) months from the effective date of this Ordinance or six (6) months
from the date of his/her employment with the Village of Tequesta, whichever is later.
3. Payment by the Member of the required amount shall be made within six (6)
months of his/her request for credit and shall be made in one lump sum payment upon
receipt of which credited service shall be given. Credited service purchased pursuant to
this section shall be counted for all purposes except toward vesting of benefits.
4. The maximum credit under this section shall be five (5) years.
H:\Tequesta GE 1012WIan D�s & Rules�Amend12013\IRS EGTRRA amendment for determination letter.wpd
30