HomeMy WebLinkAboutPension General_Documentation_Tab 13_02/05/2007
Memo
To: General Pension Board, Village of Tequesta
From: Merlene Reid, HR Manager
Date: January 19, 2007
Re: Robert Garlo & Russell White
The FRS formally advised the Village that Robert Garlo and Russell White had not
properly terminated their employment with the Village, as they had not severed
employment for a full calendar month (email attached). They were therefore
ineligible to join the Village's General Pension plan, as they were still members of the
FRS. Based on the calculations of the Finance department (spread-sheet attached),
the board is being asked to approve:
1. Refund of employee pension contribution to Russell White in the amount of
$2,377.63
2. Refund of employer pension contribution to the Village of Tequesta in the
amount of $19,378.26.
Merlene Reid
From: Snuggs, Andy [Andy.Snuggs@dms.myflorida.com]
nt: Tuesday, November 28, 2006 11:06 AM
Merlene Reid
Subject: RE: TEQUESTA RETIREES -WHITE, MORRILL & GARLO
Dear Ms. Reid:
This is in reference our phone conversation regarding the three
employees
(Robert Garlo, Michael Morril, and Russell White) of the Village of
Tequesta who commenced receiving Florida Retirement System benefits
without terminating their employment.
To receive retirement benefits under the Florida Retirement System (FRS)
a member must be terminated from all FRS employment for a full calendar
month. If a member returns to work for any FRS employer in any capacity
during the first calendar month of retirement, a member will not be
considered to have retired. The member's application will be voided and
the member must repay all retirement benefits received by the member.
After reviewing the facts of this situation, the Division of Retirement
has determined that these members may enroll in DROP retroactive to
their initial retirement dates. To accomplish this the Division will
require the Village submit a Form DP-ELE for each member. These forms
should be faxed to Doug Cherry at 850-410-2072. In addition the Village
will need to submit monthly payroll adjustments under retirement plan
code DP for each individual. If you have any questions regarding the
submission of these adjustments, please contact the Retirement
~ntributions Section at 877-377-1266.
e members will not be required to return any retirement benefits
received through November 30, 2006. Once the members terminate
employment, they will be eligible to commence receiving their FRS
benefits plus any benefits in their DROP accounts. If any of the members
involved in this situation terminate 11/30/2006 and remain off all FRS
employment through December 31, 2006, the members will be eligible to
receive a December retirement check and any benefits in the DROP
account. These members can participate in DROP for up to 60 months form
their initial retirement date.
If you have any questions, please call me at 850-414-7055.
-----Original Message-----
From: Merlene Reid (mailto:mreid@tequesta.orgJ
Sent: Tuesday, November 07, 2006 2:10 PM
To: Snuggs, Andy
Subject: TEQUESTA RETIREES - WHITE, MORRILL & GARLO
Dear Mr. Snuggs:
It seems that we keep missing each other. I was trying to get an update
on
your division's determination in respect of the above-named employees.
Please advise on any additional information that you have since we last
spoke.
~ncerely,
rlene Reid
Human Resources Manager
Village of Tequesta
250 'Tequesta Dr, St. 300
Tequesta, FL 33469
Tel (561)575-6200
Fax (561)575-6203
•
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Lori McWilliams
• From: Merlene Reid [mreid@tequesta.org]
Sent: Friday, January 05, 2007 8:57 AM
To: Couzzo, Michael
Cc: Russo, Robbie; Gload, Michelle; Forsythe, JoAnn; Laur, Betty; McWilliams, Lori
Subject: FW: TEQUESTA RETIREES -WHITE, MORRILL & GARLO
Mike:
You asked me for an update to this issue and what needs to be done to bring it to a closure.
To bring everything to a closure we have 3 steps left:
1. Payroll needs to submit to the FRS, monthly adjustment forms along with contributions for
the wages of the 3 individuals, retroactive to each individual's initial date in the FRS DROP
plan. (instructions from FRS)
2. Payroll needs to determine the amount of over contribution by the Village for each individual,
develop that amount as an over-contribution reserve and offset the Village's contribution in the
current year. (recommendation from Bonnie Jensen)
3. HR needs to request a refund of Russell White's contribution to the General Fund and have
• this ratified at the next Pension Board meeting.
See below for complete email from Bonnie Jensen in response to the questions that I posed to
her.
Merlene
-----Original Message-----
From: Bonni S. Jensen [g"3:~iw~~o:f_~:~~E~~~,~~ E~~~-r_,~E~~,~~~f. ~~c~~~~j
Sent: Monday, December 04, 2006 11:38 AM
To: Merlene Reid
Cc: Karen Amenita; Betty Laur; Bob Garlo; Joann Forsythe; Steve
Palmquist
Subject: Re: TEQUESTA RETIREES -WHITE, MORRILL & GARLO
Merlene,
In answer to your questions:
pV L{. {( { fi Fv F^~ ;i s'E !R^ F-+. e^f~_s. ~ `~' ly9 ~~"~ ~~^;" 4.~ {~i f j{Y
~. ~~c:fi ~ E~ ~,.. 1 Cgs ~ ;:~aE€E .;c.aemC°>>@.~~ ~?~-. kRQtixC-'C, l~c~~ s G`~, ~.:°~ k- i tJi~°i !"i~~ °c 9'~C~ 1E~r`~f .
`e~~l<~, I!+_'~. ~i;~°~°`~ Ct` I;J{g~ <~?~ ,v3~`C~t~C..'±l l~i.~~, i. ~i..~'~~ {[~ ~€s~~ur~
"i ~~'~C-+i~t 'tJ,~ 7~J1 G~ tl:~ L i •J~t. § ~ d'\.. ~;Y.e 14j ~C~ { ` ~..o J ~~lt ~( L`I. 'd..A'~..}Gii"t..A ~'iE' ~i6 `. 'il
•
Ans. 1 believe that the General Employees fund makes refunds of contributions based upon
1 /24/2007
rage ~ of ~
the Village's records and then ratifies the
refunds at the following meeting. Betty and/or Patrice should be able to tell you the specific
• policy of the Board.
._,.. ._:.~ :~ 4.._, €.)€tv .i..~..,t... i...:.1..... t....._ ._~~.. il.~ .i..i~,~E:.~,. _ _ ..'':~.. v~-. i.+r,~ --.i:G:~ ~; l~..MCtrs.f,.~~.s';.-tf _.., ..G'_Lt°.::
Ans. The Village should request that the Board either:
a. Account for the over-contributions in the normal course of the Fund's actuarial
valuations. The removal of liability for the
participants should result in an actuarial gain to the pension funds. This gain can then be part
of the next actuarial valuation which can be
used to offset losses in the fund or will reduce the Village's contribution.
b. Determine the amount of over contribution for each employee, develop that amount
as an over-contribution reserve and offset
the Village's contribution in the current year. The IRS has a procedure for the "refund for
contributions made by mistake," however, that procedure does not apply to this situation.
3. Ef1.r~'~i€Jt' `~`t14c ~e._.r~~"1€~~~'t~h~ c: era.:^€~:.i €~;"'sC,~~ii~{ ~` ~i7U [_~. ~,.~ r. ,..~,~1.~~. s€ i~Su ~.~~° ~~C'
~','E'~~~'c :~~€,.. ~ilr~:?~~:~, 6~~~€€iP~ t:~! €YkSkEi~ _kiv1. ~ ...nr~~C~.r:Ct E~E4:~~;~.±. L`~`+
I`G~C"EE:\~~I~E`:"s~~: ~:i~C-: rC7E"k~:€'&E~r_E~PGE^tS E."i t~€°•.^,~~GE" ~:t. = l:~c~~f ~'{!G l~t~,~.;
• Ans. I would recommend setting a special meeting, if the Village wants to have action by
the Board of Trustees before February.
~. ;'--~ d .Ri'~;', g~ ~~f , ~^C_¢ ~~-c~~~ ~~`I s:~ 6 Ec c t. ;!C;• °~' ~r~~~~ , ~ ~,~3-F ?~'sCE~ ~s1 j~ c<~:`tC~€ i I'r-~x::~ `~ ~C~ ~:~~ ~.c.g'~"il
;fir :,~~ Fy;fti`,-€riE €~ ~ ~>, t~~a`~ €'l €"P~~C-'^€. ~~k~~ ~6"+^cS~ r~fl~~€'`~ fi4 ee~i
I~:~.~F~ c:~€`~~~~: t~ li~l~f, al,~~c;i~ic~ll;! `<~ ee. €~~uicKiCS tc ~~E~ ;:~~~€~b~i~:zf~ i~sl~;€~~.
Ans. From the PEnsion Fund perspective there is no action that the Viflage Council needs
to address. However, the Board of Trustees may
want to consider some procedures to consider "new" participants to the Fund -specifically to
determine whether they are eligible to
participate.
If you have any questions or concerns, please contact me.
On Thu, 30 Nov 2006 12:21:40 -0500
"Merlene Reid" <mreid@tequesta.org> wrote:
> Hi Bonnie:
> Thanks for the information on the FRS contribution rates. See official email below from the
FRS re the 3 employees involved.
• > As discussed, the situation facing the Village is that we have 3 employees who were not
properly terminated from the FRS pension plan and were not
1 /24/2007
..5.... .,~ .,
> eligible to join the General and the Public Safety Pension plans. Two have resigned
effective 11/27 (Bob Garlo -General Pension and Mike Morrill -
• > Public Safety Pension) and will automatically have their contributions refunded to them in
the normal way. I will also stop all future
> contributions by Russell White who is currently in the General Pension plan.
> I spoke to Steven Palmquist who does not anticipate any complications from his end and
expects the next valuation to reflect the associated costs.
> However, I stilt have a few questions for you:
> 1. Can Russell White's contributions be refunded based on a memo from me > stating that
he was not eligible to join the General plan, or does he have
> to wait until the next meeting in Feb 2007 for board approval?
> 2. What's the procedure recommended to request credit for the Village's contribution to
date in these pension plans for these individuals?
> 3. Would you recommend a special meeting of the board to resolve all issues associated
with this matter, bearing in mind that Tequesta needs to
> retrieve/offset the contributions in order to pay the FRS?
> 4. Finally, Betty suggested that I also ask your advice whether any action needs to be
taken by the Council members in respect of these errors that
> have come to light, specifically as it relates to the pension plans.
> I am also welcoming any further suggestions that you may have in this matter.
> Merlene Reid
> Human Resources Manager
> Village of Tequesta
> 345 Tequesta Drive
> Tequesta, FL 33469
> Tel (561)575-6200
> Fax (561)575-6203
> -----Original Message-----
> tkid:€4!l'.!'~Gl.~'•1~. ~f4. gt ;Lt -. 4.~f.,+F E~~. tit d4 ri EF.%v,. E~i1t ¢~~
From: Snuggs, Andy ( ;. C~~
> Sent: Tuesday, November 28, 2006 11:06 AM
> To: Merlene Reid
> Subject: RE: TEQUESTA RETIREES -WHITE, MORRILL 8~ GARLO
> Dear Ms. Reid:
> This is in reference our phone conversation regarding the three
> employees
> (Robert Garlo, Michael Morril, and Russell White) of the Village of
> Tequesta who commenced receiving Florida Retirement System benefits
> without terminating their employment.
> To receive retirement benefits under the Florida Retirement System (FRS)
• > a member must be terminated from all FRS employment for a full calendar
> month. If a member returns to work for any FRS employer in any capacity
> during the first calendar month of retirement, a member wilt not be
1 /24/2007
> considered to have retired. The member's application will be voided and
> the member must repay all retirement benefits received by the member.
> After reviewing the facts of this situation, the Division of Retirement
> has determined that these members may enroll in DROP retroactive to
> their initial retirement dates. To accomplish this the Division will
> require the Village submit a Form DP-ELE for each member. These forms
> should be faxed to Doug Cherry at 850-410-2072. In addition the Village
> will need to submit monthly payroll adjustments under retirement plan
> code DP for each individual. If you have any questions regarding the
> submission of these adjustments, please contact the Retirement
> Contributions Section at 877-377-1266.
> The members will not be required to return any retirement benefits
> received through November 30, 2006. Once the members terminate
> employment, they will be eligible to commence receiving their FRS
> benefits plus any benefits in their DROP accounts. If any of the members
> involved in this situation terminate 11/30/2006 and remain off all FRS
> employment through December 31, 2006, the members will be eligible to
> receive a December retirement check and any benefits in the DROP
> account. These members can participate in DROP for up to 60 months form
> their initial retirement date.
> If you have any questions, please call me at 850-414-7055.
> -----Original Message-----
> rom: erene Reid [:;.?2~iE~`_i:4~trE=i~~~~~:~rru~~~.~~~~vl
> Sent: Tuesday, November 07, 2006 2:10 PM
> To: Snuggs, Andy
> Subject: TEQUESTA RETIREES -WHITE, MORRILL & GARLO
> Dear Mr. Snuggs:
> It seems that we keep missing each other. I was trying to get an update
> on
> your division's determination in respect of the above-named employees.
> Please advise on any additional information that you have since we last
> spoke.
> Sincerely,
> Merlene Reid
> Human Resources Manager
> Village of Tequesta
> 250 Tequesta Dr, St. 300
> Tequesta, FL 33469
> Tel (561)575-6200
• > Fax (561)575-6203
1 /24/2007
Bonni S. Jensen <bsjensen@hpjlaw.com>
Hanson, Perry & Jensen, P.A.
• 400 Executive Center Drive, Suite 207
West Palm Beach, Florida 33401
Telephone: (561)686-6550
Facsimile: (561)686-2802
CONFIDENTIALITY NOTICE: This communication is confidential, may be
privileged and is meant only for the intended recipient. If you are not
the intended recipient, please notify the sender ASAP and delete this
message from your system.
IRS CIRCULAR 230 NOTICE: To the extent that this message or any
attachment concerns tax matters, it is not intended to be used and cannot
be used by a taxpayer for the purpose of avoiding penalties that may be imposed
by taw.
•
•
1 /24/2007
From:LOCAL RET
850 414 6568
01 /29/2007 11:16 #393 P.002/002
~PJ>ARThIEN'I' ornuruc~ur~ SERVICES
Goyernor Charlie Crist Secretary Linda H. South
Imi.ioD of Retirement
:Bureau of Retirement CalculatioDS
POBox 9000
Tallahassee, FL 32315-9000
TOLL FREE TEL 888.738.2252
http://dmt;.myflorida.com
Januar
y 29,20
07
MERLENE REID
HUMAN RESOURCES
MANAGER ViILAGE OF
TEQUESTA
250 TEQUEST A DR,
ST. 300 TEOUESTA FL
33469
TEL 850.488.M91 FAX 850.4.10.2195
Dear
Ms.
Reid:
This is in reference to the three employees (Robert Garlo, Michael Morrill, and Russell
White) of the Village of Tequesta who commenced receiving Florida Retirement System
benefits without terminating their employment.
To receive retirement benefits under the Florida Retirement System (FRS) a member
must be terminated from all FRS employment for a full calendar month. If a member
returns to work for any FRS employer in any capacity during the first calendar month of
retirement, a member will not be considered to have retired. The member's application
will be voided and the member must repay all retirement benefits received by the
member.
After reviewing the facts of this situation, the Division of Retirement has determined that
these members may enroll in DROP retroactive to their initial retirement dates. To
accomplish this, the Division will require the Village submit a Form DP-ELE for each
member. These forms should be faxed to Doug Cherry at 850-410-2072. In addition the
Village will need to submit monthly payroll adjustments under retirement plan code DP
for each individual. If you have any questions regarding the submission of these
adjustments, please contact the Retirement Contributions Section at 877377.1266.
The members will not be required to return any retirement benefits received through
November 30,
2006. Once the members terminate employment, they will be eligible to commence
receiving their
FRS benefits plus any benefits in their DROP accounts. If any of the members involved
in this situation terminate 11/3012008 and remain off all FRS employment through
December 31,2006, the members will be eligible to receive a December retirement
check and any benefits in the DROP account. These members can participate in DROP
for up to 60 months from their Initial retirement date.
If you have any questions, please call me at 850-
414-7055.
d
f
w
JAN-29-2007 11:20AM FAX: 850 414 6568
ID:
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