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HomeMy WebLinkAboutDocumentation_Pension Public Safety_Tab 06_04/18/2006Gwen Carlisle To: esabin@3implant.com; Geraldine A. Genco; rgiblin~tequesta.org; kennielson~aolcom c; Robert Garlo; bsjensen~hpjlaw.com; Betty Laur ~ubject: Re: Alex Nathanson -Pension Board Funds This is for information purposes only. I called (PSO) Pension Board Attorney Bonni Jenson yesterday (March 16, 2006) to let her know the two weeks were up for Mr. Nathanson response based on the return certified receipt dated March 2, 2006. She suggested I notify (as Pension Board Coordinator) Alex Nathanson and let him know that today, March 17, 2006 the Village will start processing his Pension Payment Authorization form, as voted on and directed by the Public Safety Officers Pension Board of Trustees at their February 2006 Quarterly Meeting*. I called Mr. Nathanson at 2:31 P.M. yesterday (March 16, 2006) and spoke directly to him. I asked him if he still wanted to come in and sign the form for rollover or distribution. He told me he would not sign the form and to go ahead and send him the check, and he would take it up with his attorney. I told him the approximate amount (minus 20~ withholding taxes), per Finance, and he felt that was low. He said he had a call into Bob Garlo to talk to him about this issue, but never received a call back. I explained to him about the Board's decision and that the Attorney (Jenson) asked me to call him and give him one last chance to come in and sign the form. * The PSO Board had Bonni Jenson write him a letter regarding the payout. Mr. Nathanson received the notice on March 2, 2006. The Board's motion was to give Mr. Nathanson 2 weeks ~rom the date of notification, and the Village would automatically process the request as distribution, with or without a signature, since the Village could not rollover the funds. Ms. Jenson asked that I write down this conversation for documentation purposes. • 1 BOARD OF TRUSTEES TEQUESrA PUBLIC SAFETY OFFICERS PENSION TRUST FUND MEETING MINUTES February 14, 2006 PAGE i4 not have to come before this board. Boazdmember Nielson stated he would like to leave the selection up to the Village Council to make the decision. Chair Sabin expressed his opinion that this board should make a recommendation. Boazdmember Genco advised that to date the Village Council did not interview-they left it up to the boazd and if the boazd was happy the Council voted for the applicant. Since the boazd had to work with that person she thought it was important that the boazd pick the applicant they could best communicate with. Boazdmember Genco stated she would withdraw her motion; Chair Sabin stated he withdrew his second. Consensus was to table this matter to the next meeting. Ms. Cazlisle commented it would be nice to have the May pension board meeting before the Village Council meeting. Boardmember Genco commented that under Any Other Matters the boazd would have her resignation. 21. Payout of contributions to Alen Nathanson Risk Manager Dan Gallagher explained that after five years the trustees had a right to • mail funds that were on deposit in the plan to the participant, and the 5 years were up for Alex Nathanson. Robbie Russo, HR representative, had contacted Mr. Nathanson and he had not yet made a decision to roll over or get cash less the Federal withholding. Bob Gazlo had set up a meeting with Mr. Nathanson, there had been previous correspondence with Mr. Nathanson, and he had met with Village Manager Couzzo. It was reported that Mr. Nathanson felt he had been told if there was a change in the plan that he would benefit by the change in plan. About a year ago, Attorney Jensen had sent him a letter explaining the situation and that he was not entitled to changes made in the pension plan after he left the Village; however, he had not accepted that. Mr. Gallagher explained that Mr. Nathanson had a brain tumor and sometimes was always with it. Boazdmember Genco asked if the boazd had the option to send the payout or to leave it in the fund. Mr. Gallagher responded it could not be left after five years. Mr. Gallagher advised that Mr. Nathanson had been contacted with the option of rolling over the funds or taking a check. Discussion ensued during which Boazdmember Genco reported she had been issued the full amount she had had in pension funds twice. Attorney Jensen advised that pension rules required 20% for withholding must be taken out up front. Boazdmember Genco asked if Mr. Nathanson had understood from the letter that he could designate an institute without the 20% withholding. Attorney Jensen recommended documenting that. Boazdmember Genco requested it be documented by stating he had two alternatives, (A) or (B}-that he had "X" number of days; if not we are going to do (A) which is 20% withholding and send him a check. It was noted it should be sent • certified. Pension Coordinator Cazlisle asked, if Mr. Nathanson passed away before BOARD OF TRUSTEES • TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND MEETING MIrTUTFS February i4, 2006 PAGE ~5 he was paid out if the Village would be paying his beneficiary for the rest of their life. Attorney Jensen responded he would still get the money less 20% because he had not been vested. Boazdmember Genco explained that the 5-yeaz limit had been done deliberately in the hopes if someone wanted to come back they could still be in. the plan. MOTION: Boardmember Genco made a motion to write a letter giving Mr. Nathanson option (A) 20% withholding and the money paid to him, or option (B) a check made out to a financial institution without the withholding to be deposited into a qualified plan, and that we give him two calendar weeks to respond, with the attorney to write the letter and that it be sent out certified. The letter should say that if after two calendar weeks there was no response that the funds would be distributed with 20% withheld. Chair Sabin seconded the motion, which Mr. Gallagher asked for clarification regarding the meeting with Bob Garlo, to which Boardmember Genco responded she did not want to involve the Village • further and to leave the Village out of it. Motion carried by unanimous 4-0 vote. Boardmember Nielson asked Attorney Jensen if she put into her letter that the individual might want to consult his taz advisor. Boardmember Genco amended the motion to include that language in the letter; Chair Sabin seconded the amended motion. Motion carried by unanimous 4-0 vote. 22. Consideration of sending a member of the board to Trustee School Pension Coordinator Gwen Cazlisle commented this was a standard item on the agenda. Boardmember Genco stated she would like to make it a rule that if someone attended school and did not stay on the boazd a year they must reimburse the cost, since in the last two years, two people resigned 60 days after attending trustee school. Boazdmember Genco stated she wanted a commitment to stay on the boazd for a year. Boardmember Nielson expressed his opinion that was a good idea. Boazdmember Genco commented, just let them know, as a policy to put people on notice so they would think about it. Chair Sabin noted that was done in the business world, requiring a yeaz's employment for relocation, etc. Chair Sabin commented for clarification that Boazdmember Nielson just attended trustee school, and Secretary Giblin was scheduled to go at some point when his schedule allowed. The intent was to have at least one member attend each year. Chair Sabin indicated he felt it would be helpful to keep this item on the agenda. • Pension Coordinator Cazlisle reported that she had been unaware that annual Dan Gall her F om: Karen Amenita (karena~hpjlaw.com] ~t; Friday, February 18, 2005 10:08 AM Gwen Carlisle Cc: Dan Gallagher; Bonni S.Jensen Subject: Alex Nathanson Nathanson.pdf Hi Gwen, Bonni sent the attached letter to Alex Nathanson. I am sending a "blind copy" to Dan Gallagher, as Mr. Nathanson has been communicating with Dan regarding this matter. Karen Amenita <karena@hpjlaw.com> Legal Assistant to Bonni S. Jensen Hanson Perry & Jensen, PA 400 Executive Center Drive, Suite 207 West Palm Beach, FL 33401-2922 561-686-6550 (Phone) 561-686-2802 (Fax) • • i HANSON, PERRY SZ JENSEN, P.A. 40O EXECUTIVE CENTER DRIVE, Surd 207 -WEST Pu-e BEacH, FLORIDA 33401-2922 JILL HANSON* mjhanson Q hpjlaw com NN H. PERRY Perry@hpJlew.com BONN1. SPATARA JENSEN bsJensenBhpJlaw.com 'N_so Aaurt&o N N.Y. Alex Nathanson 97 S.W. Cassine Court Palm City, FL 34990 Dear Mr. Nathanson: TE>J~ONE (561) 686-6550 FACSIMaE (581) 68B-2802 February 17, 2005 Re: Tequesta Public Safety Officers Pension Trust Fund Alex Nathanson Our File No.: 1011.1007 This office is the legal counsel forthe Tequesta Public Safety Officers Pension Trust Fund. Your questions regarding the Pension Plan have been referred to me for review and response. • The Pension Fund records show that you were hired by the City on August 2, 1993 and terminated employment on January 3, 2001. This means that you were employed by the Village for 7 years, 5 months and 1 day. To determine the benefits which are available to you, I looked at the Plan document in effect when you were an active employee and therefore a member of the Pension Plan. Under the Plan that was in effect on the day that you terminated, you were not vested in any benefits under the Plan. See attached Plan Document. Vesting under that Plan was 10 years of service. Section 9 of the Plan provided that "if a Member [Police or Firefighter] has less than ten (10) years credited service upon termination, the Member shall be entitled to a refund of his accumulated contribution or Member may leave it deposited with the Fund." The definition of credited service describes what happens if a Member leaves the accumulated contributions on deposit with the Fund as follows: 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 Village 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 • ,~ • Alex Nathanson February 17, 2005 Page 2 Tequesta in a full time capacity within five (5) years, his/her contributions shall be returned to him/her without interest. Should a Police Officer or Firefighter besubsequently re-employed as such, he or she may re-purchase his or her years of credit or fractional parts of years of credit by reimbursing such returned contribution to the Fund with interest. • In 2003, the Plan was amended to reduce the years required for vesting to 6 years. This amendment was applicable to active full time police officers and firefighters on the effective date. The 2003 amendment to the Plan was effective December 11, 2003, well after you had terminated your employment with the Village. There was no provision to make the vesting retroactive or to include former employees. You were not an active employee in December of 2003 and you were not included in the changes by some other means, therefore, you are not eligible for the reduction investing which occurred after you left the employ of the Village. The benefit to which you are entitled under the plan provisions is a refund of your contributions without interest. You may take a refund now or leave your contributions in the Plan through January 3, 2006, pending the possibility of being re-hired in a full time position with the fire or police department. If you are not re-hired by that date, your contributions shall be returned to you. If you have any questions on this matter, please contact me. • Sincerely yours, Bonni S. Jen en Copy to: Chariman and Secretary Gwen Carlisle ~'`"`-' H:1Tequesta P51U111Par+iclpantslNathanson.wpd Pension Contribution Report Village of Tequesta Date: 03/20/2006 Time: 08:32:27 • Retirement Code: PENS Interest Rate: 0.0000 Employee Name - Employee ID Soc Sec Number Pension Gross FYTD Pension Bal Beg of FY Interest Beg of FY Cun'.Year Contrib. Total Contrib. NATHANSON, ALEX S 1955 $0.00 $0.00 $0.00 $0.00 $0.00 Total Employees: 1 $0.00 $0.00 $0.00 $0.00 $0.00 Retirement Code: PENS1 Interest Rate: 0.0000 Employee Name Employee ID Soc Sec Number Pension Gross FYTD Pension Bal Beg of FY Interest Beg of FY Curr.Year Contrib. Total Contrib. NATHANSON, ALEX S 1955 $0.00 $17,948.17 $0.00 $0.00 $17,948.17 Total Employees: 1 $0.00 $17,948.17 $0.00 $0.00 $17,948.17 Total Retirement Codes: 2 $0.00 $17,948.17 $0.00 $0.00 $17,948.17 • C7 Page 1