HomeMy WebLinkAboutOrdinance_20-15_10/08/2015 ORDINANCE NO. 20 -15
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, EXHIBIT B, THE PUBLIC
SAFETY OFFICERS' PENSION TRUST FUND, TO ADOPT REVISIONS
REQUIRED BY THE TERMS OF IRS FAVORABLE DETERMINATION
LETTER DATED MAY 11, 2015, KNOWN AS " EGTRRA" REVISIONS;
FURTHER CLARIFYING LANGUAGE REGARDING VESTING OF
BENEFITS; 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 public
safety officers' pension trust fund pursuant to IRS Favorable Determination Letter dated May 11,
2015 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 Village Council of the Village of Tequesta further desires to clarify
existing language regarding the vesting of benefits; 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 public safety
officers' pension trust fund are in the best interests of the Village of Tequesta and the public
safety officers' 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:
1
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 B, the Public Safety Officers' Pension Trust
Fund, to adopt revisions required by the terms of IRS favorable determination letter dated May
11, 2015, known as "EGTRRA" revisions; providing that Exhibit B, attached hereto shall read as
attached:
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
ORDINANCE
20 -15
Upon Second Readin
MOTION SECOND
Council Member Steve Okun Council Member Frank D'Ambra
VOTE
FOR AGAINST ABSENT
ADOPTION ADOPTION
Mayor Abby Brennan ❑✓ ❑ ❑
Vice -Mayor Vince Arena ❑✓ ❑
Council Member Steve Okun 0 ❑ ❑
Council Member Tom Paterno ❑ ❑
Council Member Frank D'Ambra a ❑
The Mayor thereupon declared the Ordinance duly passed and adopted this 8- Oct -2015
MAYOR OF TEQUESTA
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EXHIBIT "B"
VILLAGE OF TEQUESTA
PUBLIC SAFETY OFFICERS' PENSION TRUST FUND
Section 1. Creation of Pension Trust Fund.
The Village of Tequesta hereby creates and continues the Village of Tequesta
Public Safety Officers' Pension Trust Fund for the purpose of providing retirement, death
and disability benefits to Police Officers and Firefighters who are Members of this Fund,
certain formerVillage Police Officers and Firefighters and survivor benefits to beneficiaries.
Effective February 1, 2013, the plan is closed to new Police Officer members. All Police
Officers hired after February 1, 2013 shall be offered the opportunity to participate in the
Village's new defined contribution program. There is no change to the pension benefits
for Police Officers hired before February 1, 2013. Additionally, the plan for the Firefighters
remains unchanged in any way. Firefighters hired after February 1, 2013 will continue to
be mandatory participants in this defined benefit plan.
This System is intended to be a tax qualified plan under Code Section 401(a) and
meet the requirements of a governmental plan as defined by 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 the
1983 Group Annuity mortality table, and an 8% rate of interest. For distributions after
December 31, 1995 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 -6.
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 Firefighter or Police Officer,
whichever is greater. A year shall be twelve (12) consecutive months.
Beneficiary 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
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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 mean the Public Safety Board of Trustees, which shall
administer and manage the System herein provided and serve as Trustees of the Fund for
the benefit of Village Police Officers and Firefighters and their beneficiaries.
Chapter means Chapter 175 of the Florida Statutes as amended from time to time.
Code means the Internal Revenue Code of 1986, as amended from time to time.
Credited Service means the total number of years and fractional parts of years of
service as a Police Officer, or Firefighter who makes member contributions to the Plan,
omitting intervening years or fractional parts of years when such Police Officer or
Firefighter may not have been 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 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 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 be subsequently 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.
The years or fractional parts of years that a Firefighter, or Police Officer serves in
the military service of the Armed Forces of the United States or the United States Merchant
Marine, voluntarily, upon being granted leave by the Village of Tequesta and separation
from employment as a Village of Tequesta plan member, shall be added to his /her years
of credited service for all purposes including vesting, provided that:
A. The Firefighter or Police Officer must return to his /her full time employment
with the Fire Department or Police Department within one (1) year from the
date of his /her military discharge in compliance with Code Section 414(u),
effective December 12, 1994. Effective January 1, 2007, members who die
or become disabled while serving on active duty military service which
intervenes the member's employment shall be entitled to the rights of this
section even though such member was not re- employed by the Village.
Members who die or become disabled while on active duty military service
shall be treated as though re- employed the day before the Member became
disabled or died, was credited with the service they would have been entitled
to under this section, and then either died a non -duty death while employed
or became disabled from a non -duty disability.
B. The maximum credit for military service shall be five (5) years.
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Effective Date means the date on which this Ordinance becomes effective.
Fire Department means the Tequesta Fire Department.
Firefighter means an actively employed full -time person employed by the Fire
Department, including his /her initial probationary employment period, who is certified or
required to be certified as a Firefighter as a condition of employment in accordance with
the provisions of 633.35 Florida Statutes, including paramedic, and whose duty is to
extinguish fires, to protect life and to protect property. The term Firefighter includes all
certified, supervisory, and command personnel whose duties include, in whole or in part,
the supervision, training, guidance, and management responsibilities of full -time
firefighters, part-time firefighters, or auxiliary firefighters but does not include part-time
firefighters or auxiliary firefighters.
Fund or Pension Fund means the Trust Fund established herein as part of the
System.
Member means an actively employed Firefighter that fulfills the applicable
prescribed membership requirements and means an actively employed Police Officer hired
before February 1, 2013 that fulfilled the applicable prescribed membership requirements.
Plan Year means the 12 month period beginning October 1 of each year and ending
the following September 30.
Police Department means the Tequesta Police Department.
Police Officer means any person who is elected, appointed, or employed full time
by the Village before February 1, 2013, who is certified or required to be certified as a law
enforcement officer in compliance with Florida Statute 943.1395, who is vested with
authority to bear arms and make arrests, and whose primary responsibility is the prevention
and detection of crime or the enforcement of the penal, criminal, traffic or highway laws of
the state. This definition includes all certified supervisory and command personnel whose
duties include, in whole or in part, the supervision, training, guidance, and management
responsibilities of full -time law enforcement officers, part -time law enforcement officers or
auxiliary law enforcement officers as the same are defined in F.S. 943.10(6) and (8)
respectively. Police Officer also shall include a public safety officer who is responsible for
performing both police and fire services. Police Officer as used in this Plan does not
include any Police Officer hired on or after February 1, 2013.
Public Safety Board means the Public Safety Board of Trustees provided hereunder
to administer and manage Funds for the benefit of Public Safety Officers.
Public Safety Officers means Firefighters and /or Police Officers as defined in this
document.
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Salary or Compensation means for Firefighters and Police Officers hired before
October 1, 2010, the total cash remuneration paid to a police officer or firefighter for
services rendered including Base Pay, Bonuses, Career Service Annual Award, Holiday
Pay, Incentives, Overtime (subject to the limitations in subsections 2 (a) and (b) below),
Sick Leave and Vacation Leave Payout on Termination (subject to the limitations in
subsections 2(a) and (b) below), Sick -Leave and Vacation Leave Buy Back (subject to the
limitations in subsections 2(a) and (b) below, and Straight Time, and effective for payments
made after 12/31/08, as provided for by Internal Revenue Code §414(u)(7), this definition
of salary shall include any differential wage payment from the employer to a member as
a result of the member's absence from employment while serving in qualified military
service. This definition excludes pay received as a CarAllowance, Clothing Allowance and
Shoe /Boot Allowance. 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 19 of this Plan.
For firefighters hired on or after October 1, 2010, the definition of salary shall mean the
fixed monthly remuneration paid to a firefighter for services rendered (including regular
earnings, vacation pay, and sick pay) but shall exclude lump sum payments, overtime,
bonuses, incentives, and longevity.
(a) For firefighters, effective October 1, 2013 overtime included in Salary is
limited to 300 hours per firefighter per year. Prior to October 1, 2013, all
overtime for firefighters hired before October 1, 2010 is included in the
definition of Salary. No hours of both unused accumulated sick leave and
unused accumulated vacation leave earned after June 29, 2015 will be
considered Salary, however, firefighters hired before October 1, 2010 may
include all hours of unused sick leave and unused vacation leave earned as
of June 29, 2015 provided that amount of hours is cashed in at retirement.
(b) For police officers, effective October 1, 2014 overtime included in Salary is
limited to 300 hours per police officer per year. Prior to October 1, 2014, for
police officers hired before October 1, 2010, all overtime is included in the
definition of Salary. No hours of both unused accumulated sick leave and
unused accumulated vacation leave earned after October 1, 2014, will be
considered Salary, however, Police Officer Members hired before October
1, 2010, may include all hours of unused sick leave and unused vacation
leave earned as of September 30, 2014 provided that amount of hours is
cashed in at retirement.
Spouse means the lawful wife or husband of a plan member at the time of
pre- retirement, death or retirement.
Statement of Investment Policy means the written investment policy adopted by the
Board pursuant to this Ordinance and F.S. 112.661, et seq., which shall apply to funds
under the control of each board.
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System means the Village of Tequesta Public Safety Officers' Pension Trust Fund
as contained herein and all amendments thereto.
Vested deferred retirement means a Member hired before August 13, 2015 who
leaves the employ of the Village with 6 or more years of credited service and who is not
eligible for any other retirement benefit. Effective on and after August 13, 2015, the term
means a Firefighter Member hired on or after August 13, 2015 who leaves the employ of
the Village with 10 or more years of credited service and who is not eligible for any other
retirement benefit. This benefit is payable at early or normal retirement.
Village 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 Eligibility
All full time Police Officers (hired before February 1, 2013) and Firefighters as of the
effective date, and all future new full time Firefighters shall become Members of this
System as a condition of employment, except that participation in this system is
optional for the Fire Chief.
2. Membership
Each full time Police Officer (hired before February 1, 2013) or Firefighter shall
complete a form prescribed by the Board which may include 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 /or psychological history.
3. Change in Designation of Beneficiary
A. 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.
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B. Any retired member may change the designated joint pensioner or
beneficiary up to twice in accordance with Florida Statutes §175.333 and
§185.341 without the approval of the board of trustees or the current joint
pensioner or beneficiary. The retired member is not required to provide proof
of the good health of the joint pensioner or beneficiary being removed, and
the joint annuitant or beneficiary being removed need not be living. Any
retired member who desires to change his or her joint pensioner or
beneficiary shall file with the board of trustees a notarized notice of such
change. Upon receipt of a completed change of joint pensioner form or such
other notice, the board of trustees shall adjust the retired member's monthly
benefit as provided for in Section 12 by the application of actuarial tables and
calculations developed to ensure that the benefit paid is the actuarial
equivalent of the present value of the member's current benefit and there is
no impact to the Plan. The joint pensioner or beneficiary being removed will
be assumed deceased by the actuary in determining the actuarially
equivalent amount of the revised monthly payment. No retired member's
current benefit shall be increased as a result of the change of joint pensioner
or beneficiary. Any costs associated with these benefit calculations shall be
borne by the retired member.
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.
A. The Public Safety Board shall consist of five (5) Trustees, two (2) of whom,
unless otherwise prohibited by law, shall be legal residents of the Village,
who shall be appointed by the Tequesta Village Council, and one (1) of
whom shall be a full -time Police Officer member of the System and one (1)
of whom shall be a full -time Firefighter member of the System. The fifth (5th)
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 separately elected by their full -time co- workers who
are members of the System in the applicable employee representative group,
e.g. Police Officer or Firefighter in which they are employed and shall be
elected by a majority of the full -time employees who are Members of the
System within the applicable employee representative group. Upon receipt
of the fifth (5th) person's name the Tequesta Village Council shall, as a
ministerial duty, appoint such person to the Public Safety Board as its fifth
(5th) Trustee. The fifth (5th) 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
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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 Police Officer or Firefighter Trustee shall serve
as Trustee for a period of two (2) years, unless he /she sooner leaves the
employment of the employee representative group he /she was elected to
represent or otherwise vacates his /her office as Trustee, whereupon a
successor shall be chosen in the manner as the departing Trustee. Each
employee representative Trustee may succeed himself or herself in office.
B. Whenever the active police officer membership falls below 10, an active
police officer member seat may be held by either a retired police officer or
an active police officer member of the plan who is elected by the active and
retired members of the plan. If there are no active or retired police officers
remaining in the plan or capable of serving, the remaining board members
may elect an individual to serve in the active police officer member seat.
Upon receipt of such person's name, the legislative body of the municipality
shall, as a ministerial duty, appoint such person to the board of trustees.
C. The Public Safety Board shall meet at least quarterly each year. Such
Boards 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. 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 services as shall be required to transact the business of the Retirement System to
administer and manage their funds and to meet the requirements of applicable law. The
compensation of all persons engaged by the Board of Trustees and all other expenses of
the Board necessary for the operation of the Retirement System shall be paid from the
Fund they administer and manage at such rates and in such amounts as the Board of
Trustees shall approve.
5. The duties and responsibilities of the Board of Trustees shall include, but not
necessarily be limited to, the following:
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A. To construe the provisions of the System and determine all questions arising
thereunder.
B. 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 concerning the
System.
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 comply with the Chapters.
L. 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.
M. To perform such other duties as are specified in this Ordinance and generally
do all acts which the Trustees may deem necessary or desirable for the
protection of the Trust Fund.
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N. To adopt and be guided by Statements of Investment Policy applicable to all
funds under the control the Public Safety Board of Trustees as required from
time to time by F.S. 112.661, et seq., and /or its successor statutes.
O. To sue or be sued.
P. To settle, compromise or submit to arbitration (at the sole discretion of the
Trustees) any claims, debts or damages due or owing to or from the Fund.
Section 5. Finance And Fund Management.
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 Public Safety Officers to be administered and managed by the Public Safety
Board.
2. The actual custody and supervision of the Fund (and assets thereof) shall be
vested in the Board of Trustees. Payment of benefits and disbursements from the Fund
shall be made by the Village as the Board's agent, but only upon written authorization from
the Board. Such written authorization shall require the signature of two of the Trustees or
other Board authorized fiduciary.
3. All funds and securities of the Fund may be deposited by the Board of
Trustees with the Treasurer of the Village, 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 Village. However, any funds and securities so deposited with
the Treasurer of the Village shall be kept in separate funds by the Treasurer or clearly
identified as such funds and securities of the Public Safety Officer 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.
4. In order to fulfill its investment responsibilities as set forth herein, the Boards
may retain the services of a custodian bank or banks, an investment advisor or advisors
registered under Investment Advisors Act of 1940 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.
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5. All funds and securities of the System shall be accounted for separately
based upon the two (2) applicable employee classes within the Fund namely, the Police
Officers and Firefighters in the Public Safety Officers Trust Fund. Accurate records shall
be maintained at all times reflecting the financial composition of the Fund and of the
accounts in place to segregate the assets of the employee classes covered by the System,
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.
G. Such other entries as required by the Chapters.
6. 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. 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.
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B. All moneys paid into or to be held 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 government of the United States.
(4) Bonds, stocks, commingled or other pooled funds, which may include
mutual funds or exchange- traded funds or trusts, except as provided in
paragraph M below, or evidences of indebtedness issued or guaranteed by
a corporation organized under the laws of the United States, 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 held in a pooled fund
then the rating of each issue in the pooled fund shall hold a rating within the
top four (4) rating classifications of a major rating service, except that 5% of
the total market value of the portfolio may be invested in securities that are
below these rating guidelines and all securities must maintain at least a "B"
rating at the time of purchase by a nationally recognized rating organization.
(5) Real estate.
(6) Up to 25% of Plan assets may be invested in foreign securities.
Additionally, the value of bonds denominated in US dollars that are issued
by a foreign bank or corporation (Yankee Bonds) shall not exceed 5% of the
total fund.
(7) 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 accordance with an established investment
policy adopted by the Board of Trustees.
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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 market exceed seventy percent (70 %) of the assets of the Fund.
Additionally, the value of bonds issued by any single corporation shall not
exceed 5% of the total fund.
D. The Board of Trustees may retain in cash and keep unproductive of income
such amount of the Fund as it 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 attorney with or without power of substitution; to participate in
mergers, reorganizations, recapitalization, consolidations and similar
transactions with respect to such securities; to deposit such stock or other
securities in any voting trust or any protective or like committee with the
Trustees or with depositories 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 responsibility may be delegated to an Agent for the Board.
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 the 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
00062299. W PD;2 -12-
Department or any other entity, of specific information, certification, direction
or instructions, the Board shall be free of liability in failing to take such action
or perform such duty or function until such information, certification, direction
or instruction has been received by it.
J. Any overpayments or underpayments from a Fund to a Member or
beneficiary caused by errors of computation shall be adjusted with interest
at a rate per annum approved by the Board. Overpayment shall be charged
against member's payments next succeeding the correction.
Underpayments shall be made up from the Trust Fund.
K. The 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 reposed in the Board 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 the 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 real estate investment in a
closed -ended limited partnership or a closed -ended trust. In addition, any
investments in real estate in open ended limited partnerships or open ended
trusts are limited to those open ended core real estate products which meet
the criteria for the NCREIF ODCE.
N. The Village shall maintain Fiduciary Liability insurance to coverthe members
of the Board of Trustees.
O. With respect to any investment, the Trustees may consent or object to any
action or non - action of any corporation or of the directors, officers or
stockholders of any corporation.
P. Notwithstanding anything else in this subsection and as provided in Florida
Statutes §215.473, the board of trustees must identify and publicly report any
direct or indirect holdings it may have in any scrutinized company, as defined
in that section. Beginning January 1, 2010, the Board must proceed to sell,
redeem, divest, or withdraw all publicly traded securities it may have directly
in that company. The divesture of any such security must be completed by
September 10, 2010. The board and its named officers or investment
advisors may not be deemed to have breached their fiduciary duty in any
action taken to dispose of any such security, and the board shall have
satisfactorily discharged the fiduciary duties of loyalty, prudence, and sole
and exclusive benefit to the participants of the pension fund and their
00062299. W PD -13-
beneficiaries if the actions it takes are consistent with the duties imposed by
Florida Statutes §215.473, as provided for in Florida Statutes 185.06(7) /
175.071(8) and the manner of the disposition, if any, is reasonable as to the
means chosen. For purposes of determining which companies are
scrutinized companies, the Board may utilize the list of scrutinized
companies as developed by the Florida State Board of Administration. No
person may bring any civil, criminal, or administrative action against the
board of trustees or any employee, officer, director, or advisor of such
pension fund based upon the divesture of any security pursuant to this
subsection.
Section 6. Contributions.
1. Member Contributions
A. Amount
Firefighters Members:
Effective with the payroll period that includes October 1, 2016, the
Firefighter Members shall be required to make regular contributions to the
Fund in the amount of five and one -half (5.5) percent.
Effective with the payroll period including October 1, 2017, the
Firefighter Members shall be required to make regular contributions to the
Fund in the amount of six (6) percent.
For the period between October 9, 2008 and the payroll period that
includes October 1, 2016, the Firefighter Member contributions were five (5)
percent. During the period between June 8, 2005 and October 9, 2008, the
Firefighter Member contribution was six and one tenth (6.1) percent and the
funding for the difference between the previously required contribution of
6.1 % and the now required 5% shall be made up from the monies received
from the State pursuant to Chapter 175, F.S. Should the Chapter 175
money ever become insufficient to make up the difference, the contribution
rate for Firefighter Members shall automatically revert to 6.1 %.
If, after October 1, 2016, the Village determines to opt out of
participation in the distribution of the Chapter 175 money or acts to cause the
State of Florida to stop issuing the Chapter 175 money to the Fund, then the
employee contribution rate will immediately decrease to five (5) percent.
Police Officer Members:
Police Officer Members of the Retirement System shall be required
to make regular contributions to the Fund in the amount of five percent (5 %)
of his /her salary
00062299. W PD -14-
Member contributions withheld by the Village on behalf of the Member shall
be deposited with the Board of Trustees immediately after the withholding of
such contributions. The contributions made by each Member to the Fund
shall be designed as employer contributions pursuant to Section 414(h) 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.
B. Method. Such contributions shall be made by payroll deduction.
C. For limitation years prior to July 1.2007, anv excess annual additions
shall be placed in an unallocated suspense account.
2. State Contributions
Any monies received or receivable by reason of laws of the State of Florida, for the
express purpose of funding and paying for retirement benefits for Police Officers or
Firefighters shall be deposited with the applicable segregated account in the Trust Fund
comprising part of this System immediately and under no circumstances more than five (5)
days after receipt by the Village.
3. Village Contributions
So long as this System is in effect, the Village shall make 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. Effective for the Chapter Funds received beginning in
calendar year 2015, by mutual consent, all of the Chapter 175 money will be used to
reduce the Village's required contributions to the Fund. Additionally, all of the accumulated
reserved Chapter 175 money as of August 13, 2015 shall be used to offset the Village's
contribution. The Village may determine to use this offset in either the 2014 -2015 or 2015-
2016 fiscal years.
4. 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 of Trustees when specifically provided for by this plan document, and may not
be used to reduce what would have otherwise been required by Village contributions.
00062299. W PD -15-
Section 7. Benefit Amounts and Eligibility.
1. Normal Retirement Date
A. Members hired before August 13, 2015
A Member's normal retirement date shall be the first day of the month
coincident with, or the next following the earlier of:
(1) attainment of age fifty -five (55) and the completion of six (6) years of
credited service, or
(2) attainment of age fifty -two (52) and the completion of twenty -five (25)
years of credited service.
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 Police Officer or Firefighter on or after the normal retirement
date.
B. Members hired on and after August 13, 2015
A Member's normal retirement date shall be the first day of the month
coincident with, or the next following the earlier of:
(1) attainment of age fifty -five (55) and the completion of ten (10) years
of credited service, or
(2) attainment of age fifty -two (52) and the completion of twenty -five (25)
years of credited service.
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 Firefighter on or after the normal retirement date.
2. Normal Retirement Benefit
Member hired before October 1, 2010
A Member who was hired before October 1, 2010, and who is 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
00062299. W PD -16-
lifetime, ceasing upon death, but with one hundred twenty (120) monthly payments
guaranteed in any event. The retirement benefit multiplierfor credited service up to August
13, 2015 shall equal:
3.0% for the first 6 years of service
3.5% for the next 4 years of service
4.0% for the next 5 years of service
3.0% for the next 6 years of service
2.0% for the next 4 years of service
3.0% for all years after 25 years
Notwithstanding the above schedule, Firefighters hired before October 1, 2010 with
credited service after August 13, 2015, shall have a 3% retirement benefit multiplier for all
future years of service beginning the first day of the first month beginning on or after
August 13, 2015.
Firefighter Members hired on and after October 1, 2010 but before August 13, 2015:
A Firefighter who was hired on and after October 1, 2010 but before August 13,
2015 and who is 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. The retirement benefit multiplier for
service rendered up to August 13, 2015 shall equal:
2.0% for the first 6 years of service
2.5% for all years after 6 years
Notwithstanding the above schedule, Firefighters hired on and after October 1, 2010
but before August 13, 2015 with credited service after August 13, 2015, shall have a 3%
retirement benefit multiplier for all future years of service beginning the first day of the first
month on or after August 13, 2015.
Firefighter Member hired on and after August 13, 2015
A Firefighter who was hired on and after August 13, 2015 and who is 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. The momthly retirement benefit multiplier shall equal:
2.0% for the first 10 years of service
2.5% for all years after 10 years
00062299. W PD -17-
3. Early Retirement Date
A Member hired before August 13, 2015 may retire 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.
A Firefighter Member hired on or after August 13, 2015 may retire 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 ten (10) years of credited
service. Early retirement under the Plan is retirement from employment with the Village
of Tequesta on or after the early 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. deferred monthly retirement benefit which shall commence on what would
have been his /her normal retirement date had he /she remained a Police
Officer or Firefighter and shall be continued on the first day of each month
thereafter. The amount of each such deferred monthly retirement benefit
shall be determined in the same manner as for retirement as his /her normal
retirement date except that credited service and average final compensation
shall be determined as of his /her early retirement date; or
B. 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 three percent
(3 %) for each year by which the commencement of benefits precedes the
Member's normal retirement date.
Section 8. Pre - retirement Death.
If a plan member dies prior to retirement from the Village of Tequesta his /her
beneficiary shall receive a benefit as follows:
00062299. W PD;2 -18-
A. Line -of -Duty- Death - Benefit is a pension to the spouse (or children) for life in
the amount of 50% of Average Final Compensation.
B. Non - Line -of -Duty- Death - Benefit the spouse of a member hired before
August 13, 2015 with 6 years of credited service will receive the actuarial
equivalent of the accrued normal retirement benefit. If the Firefighter
Member was hired after August 13, 2015, then in order for the spouse to
receive the actuarial equivalent of the accrued normal retirement benefit the
Firefighter Member will need to have ten (10) years of credited service.
C. In lieu of the benefits provided in A or B above, the beneficiary of a police
officer or firefighter hired before August 13, 2015, with 6 or more years of
service who dies prior to retirement, may receive the benefits otherwise
payable to the police officer /firefighter at what would have been his /her early
or normal retirement date.
D. In lieu of the benefits provided in A or B above, the beneficiary of a
firefighter hired after August 13, 2015, with 10 or more years of service who
dies prior to retirement, may receive the benefits otherwise payable to the
firefighter at what would have been his /her early or normal retirement date.
Section 9. Disability.
1. Disability Benefits On -Duty
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 Police Officer or
Firefighter, as was provided by the employee in their classification (Police Officer or
Firefighter) prior to the alleged impairment, which disability was directly caused by the
performance of his /her duty as a Police Officer or Firefighter shall upon establishing the
same to the satisfaction of the Board, be entitled to:
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) the accrued Normal Retirement Benefit.
Any condition or impairment of health of Police Officer or Firefighter caused
by tuberculosis, hypertension hepatitis, meningococcal meningitis or heart
00062299. W PD -19-
disease shall be presumed to have been suffered in the line of duty unless
the contrary is shown by competent evidence, provided that such Police
Officer or Firefighter shall have successfully passed a physical examination
upon entering into such service, including cardiogram, which examination
failed to reveal any evidence of such condition; and provided further, that
such presumption shall not apply to benefits payable or granted in a policy
of life insurance or disability insurance. In order to be entitled to the
presumption in the case of hepatitis, meningococcal meningitis, or
tuberculosis the member must meet the requirements of Section 112.181,
Florida Statutes by verifying by written affidavit that, to the best of his or her
knowledge and belief:
(1) In the case of a medical condition caused by or derived from
hepatitis, he or she has not:
(a) Been exposed, through transfer of bodily fluids, to any
person known to have sickness or medical conditions
derived from hepatitis, outside the scope of his or her
employment;
(b) Had a transfusion of blood or blood components, other
than a transfusion arising out of an accident or injury
happening in connection with his or her present
employment, or received any blood products for the
treatment of a coagulation disorder since last
undergoing medical tests for hepatitis, which tests failed
to indicate the presence of hepatitis;
(c) Engaged in unsafe sexual practices or other high -risk
behavior, as identified by the Centers for Disease
Control and Prevention or the Surgeon General of the
United States, or had sexual relations with a person
known to him or her to have engaged in such unsafe
sexual practices or other high -risk behavior; or
(d) Used intravenous drugs not prescribed by a physician.
(2) In the case of meningococcal meningitis, in the 10 days
immediately preceding diagnosis he or she was not exposed,
outside the scope of his or her employment, to any person
known to have meningococcal meningitis or known to be an
asymptomatic carrier of the disease.
(3) In the case of tuberculosis, in the period of time since the
worker's last negative tuberculosis skin test, he or she has not
been exposed, outside the scope of his or her employment, to
any person known by him or her to have tuberculosis.
00062299. W PD;2 -20-
(4) Whenever any standard, medically recognized vaccine or other
form of immunization or prophylaxis exists for the prevention
of a communicable disease for which a presumption is granted
under this section, if medically indicated in the given
circumstances pursuant to immunization policies established
by the Advisory Committee on Immunization Practices of the
United States Public Health Service, a Member may be
required by his or her employer to undergo the immunization
or prophylaxis unless the worker's physician determines in
writing that the immunization or other prophylaxis would pose
a significant risk to the worker's health. Absent such written
declaration, failure or refusal by a Member to undergo such
immunization or prophylaxis disqualifies the Member from the
benefits of the presumption.
2. Disability Benefits Off-Duty
Every Police Officer or Firefighter who is a participant in the Pension Fund System
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 Police Officer or Firefighter which disability is not directly
caused by the performance of his /her duties as a Police Officer or Firefighter shall be
entitled the greater of A. or B.:
A. A monthly pension equal to 25% of his /her average monthly compensation
as of his /her disability retirement date, or
B. The accrued Normal Retirement Benefit.
3. Conditions Disqualifying Disability Benefits
Each Police Officer or Firefighter 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.
This exclusion does not affect members who have become disabled as a
result of intervening military service under the federal Heroes Earnings
Assistance and Relief Tax Act of 2008 (H. R. 6081; P. L. 110 -245).
00062299. W PD;2 -21-
E. Injury or disease sustained after his /her employment shall have terminated
as a Police Officer with the Tequesta Police Department or a Firefighter with
the Tequesta Fire Department.
F. Injury or disease sustained by a Police Officer, while working for anyone
other than the Tequesta Police Department and arising out of such
employment.
G. 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
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 of this 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 Police Officer or a
Firefighter, the Board shall recommend to the Village that the retiree be returned to their
previous performance of duty as a Police Officer or Firefighter, and the retiree so returned
shall enjoy the same rights that Member had at the time he /she was placed upon pension.
In the event the retiree is so ordered to return 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. 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 borne 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 service 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.
00062299. W PD;2 -22-
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
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 /her death or the 120th monthly payment, whichever is later.
Section 10. Monthly Supplemental Benefits.
1. Effective upon passage of this Ordinance, any retiree or beneficiary receiving
pension benefits is entitled to a monthly supplemental pension benefit of $20
per year of service, up to a maximum benefit of $600.00.
2. This benefit shall be payable monthly as a part of the regular monthly
pension benefit. The benefit shall be payable to the retiree and any
beneficiary. The benefit shall cease upon the death of the member or
beneficiary, if applicable.
Section 11. 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:
A. If the Member has less than six (6) years of credited service upon
termination, the Member shall be entitled to a refund of his /her accumulated
contribution or the Member may leave it deposited with the Fund for up to
five (5) years.
B. If the Member has six (6) or more years of credited service upon
termination, the Member shall be entitled to a monthly retirement
benefit that is the actuarial equivalent of the amount of such
retirement income otherwise payable to him commencing at the
00062299. W PD;2 -23-
Member's otherwise normal or early retirement date, provided he
does not elect to withdraw his /her accumulated contributions and
provided the Member survives to his /her normal or early retirement
date.
C. Members are always 100% vested in their accumulated contributions.
In order to be entitled to a benefit, which is in part also based on
employer contributions, the Member must have six (6) years of
service and be otherwise entitled to normal or early retirement.
2. Firefighter Members hired after August 13, 2015:
A. If the Member has less than ten (10) years of credited service upon
termination, the Member shall be entitled to a refund of his /her
accumulated contribution or the Member may leave it deposited with
the Fund for up to five (5) years.
B. If the Member has ten (10) or more years of credited service upon
termination, the Member shall be entitled to a monthly retirement
benefit that is the actuarial equivalent of the amount of such
retirement income otherwise payable to him commencing at the
Member's otherwise normal or early retirement date, provided he
does not elect to withdraw his /her accumulated contributions and
provided the Member survives to his /her normal or early retirement
date.
C. Members are always 100% vested in their accumulated contributions.
In order to be entitled to a benefit, which is in part also based on
employer contributions, the Member must have ten (10) years of
service and be otherwise entitled to normal or early retirement.
Section 12. Optional Forms of Benefits.
1. In lieu of the amount and form of retirement income payable in the event of
normal, early, or disability retirement as specified herein, a plan member, upon written
request to the Board of Trustees, and subject to the approval of the Board of Trustees,
may elect to receive a retirement income or benefit 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.
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
00062299.wPD;2 -24-
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, subject to the provisions below.
A. Dependent Joint Pensioner Benefit - If a Member has elected an option with
a dependent joint pensioner and the Member's retirement income benefits
have commenced, the then retired member may thereafter change his /her
designated joint pensioner up to twice in accordance with Florida Statutes
§175.333 and §185.341 without the approval of the board of trustees or the
current joint pensioner. The retired member is not required to provide proof
of the good health of the joint pensioner being removed, and the joint
pensioner being removed need not be living. Upon receipt of a completed
change of dependent joint pensioner form or such other notice, the Board of
Trustees shall adjust the retired member's monthly benefit by the application
of actuarial tables and calculations developed to ensure that the benefit paid
is the actuarial equivalent of the present value of the retired member's
current benefit and there is no impact to the Plan. The joint pensioner being
removed will be assumed deceased by the actuary in determining the
actuarially equivalent amount of the revised monthly payment. No retired
member's current benefit shall be increased as a result of the change of the
joint pensioner. The retired member shall also be responsible for the cost of
the recalculation of the benefit by the actuary.
B. Beneficiary - If a Member has elected an option with a beneficiary and the
Member's retirement income benefits have commenced, the retired member
may thereafter change his /her designated beneficiary up to twice in
accordance with Florida Statutes §175.333 and §185.341 without the
approval of the board of trustees or the current beneficiary. The retired
member is not required to provide proof of the good health of the beneficiary
being removed, and the beneficiary being removed need not be living. Upon
receipt of a completed change of beneficiary form or such other notice, the
Board of Trustees shall adjust the Retired Member's monthly benefit by the
application of actuarial tables and calculations developed to ensure that the
benefit paid is the actuarial equivalent of the present value of the retired
member's current benefit and there is no impact to the Plan. The beneficiary
being removed will be assumed deceased by the actuary in determining the
actuarially equivalent amount of the revised monthly payment. No retired
member's current benefit shall be increased as a result of the change of
beneficiary. The retired member shall also be responsible for the cost of the
recalculation of the benefit by the actuary
00062299.wPD;2 -25-
3. Thereafter the joint pensioner or beneficiary may be changed, but only if the
Board of Trustees consents to the change and if the joint pensioner or beneficiary, last
previously designated by the retired member is alive when he /she files with the Board of
Trustees the request for such change. The consent of joint pensioner or beneficiary to any
such change shall not be required.
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 Police Officer or Firefighter 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 Police Officer or Firefighter. Each such
designation will be made in writing on a form prepared by the Board of Trustees and on
completion will be filed with the Board of Trustees.
In 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.
4. 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 under the Plan, the option elected will be canceled
automatically and a retirement income of the normal form and amount will be
payable to the Member upon his /her retirement as if the election had not
been made, unless a new 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.
00062299. W PD;2 -26-
D. If a Member continues beyond his /her normal retirement date 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 by the Member in the amount or amounts
computed as if the Member had retired under the option on the date on
which his /her death occurred.
5. The Member may not change his /her retirement option after the date of
cashing or depositing his /her first retirement check.
Section 13. 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 may 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
C. Estate of the Member.
Section 14. Deferred Retirement Option Plan.
1. Eligibility to Participate in the Drop
A. Any member who is eligible to receive a normal retirement pension may
participate in the DROP. Members shall elect to participate by applying to
the Board of Trustees on a form provided for that purpose.
B. Election to participate shall be forfeited if not exercised within the first
twenty -seven (27) years of combined credited service. However,
participation in the first years of enactment will be extended to those
members with twenty -eight (28) years of service in 2003.
00062299. W PD;2 -27-
C. A member shall not participate in the DROP beyond the time of attaining 30
years of service and the total years of participation in the DROP shall not
exceed five (5) years. For example:
(1) Members with twenty -five (25) years of credited service at time of
entry shall only participate for five (5) years.
(2) Members with twenty -six (26) years of credited service at time of entry
shall only participate for four (4) years.
(3) Members with twenty -seven (27) years of credited service at time of
entry shall only participate for three (3) years.
D. Upon a member's election to participate in the DROP, he or she shall cease
to be a member and is precluded from accruing any additional benefit under
the Pension Fund. For all Fund purposes, the member becomes a retirant.
The amount of credited service and final average salary freeze as of the date
of entry into the DROP.
2. Amounts Payable upon Election to Participate in DROP
A. Monthly retirement benefits that would have been payable had the member
terminated employment with the department and elected to receive monthly
pension payments will be paid into the DROP and credited to the retirant.
Payments into the DROP will be made monthly over the period the retirant
participates in the DROP, up to a maximum of sixty (60) months.
B. Payments to the DROP earn interest using the rate of investment return
earned on Pension Fund assets during the twelve (12) month period ending
September 30th. The rate determined shall be the rate reported to the
Division of Retirement pursuant to Part VII of Chapter 112, Florida Statutes
and shall be no less than zero (0) percent and no more than seven and one -
half (7.5) percent. However, if a police officer or firefighter does not
terminate employment at the end of participation in the DROP, interest
credits shall cease on the current balance and on all future DROP deposits.
1 Interest shall be credited or debited to the member's average
daily DROP balance on a guarterly basis at the net rate
determined by the investment consultant guarterly and reported
annually to the state.
u A participant's guarterly rate of return is calculated in @_2 step
process. Step 1 is to calculate each month's rate of return using
the Modified Dietz formula. Step 2 is to link the monthly returns
together.
00062299. W PD;2 -28-
Step One (Calculate the monthly returns using the modified Dietz
Formula
R Dietz = AverageCapita.l BMV + E' TV, x E
Where:
EATV is the ending market value
BMV is the beginning market value
F is the net external inflow for the period (contributions to a
portfolio are entered as positive flows while withdrawals are
entered as negative flows). The investment manager fee is not
included in this calculation (net of fees). Other expenses
including, but not limited to investment consultant, custodial,
actuarial, administrative and legal fees are included.
n
IT',xF,_
i -1
The sum of each flow i multiplied by its weigh!_
The
weight V'i is the proportion of the time period between the point
in time when the flow Pi occurs and the end of the
er of d i can be calculated as
_ CD — Ez
' E
Where CD is the number of calendar days during the return
period being calculated, which equals end date minus start date
Iu A is the number of days from the start of the return
period until the day on which the flow Pi occurred. This assumes
that the flow happens at the end of the day. The investment
manager fee is not included in this calculation (net of fees).
Other expenses including, but not limited to investment
consultant, custodial, actuarial, administrative and legal fees are
included.
Step Two (Link the Monthly Returns)
Link the returns geometrically in the following fashion:
Lx (1 + R,)1 -1 = Quarterly Rate of return
Where:
00062299. W PD;2 -29-
R, = Return of Month 1
R = Return of Month 2
R = Return of Month 3
3 The rate is net of the investment manager fees are paid. The
amount of the investment fees are reported monthly by the
custodian and are reported annually by the auditor. Investment
management fees are generally paid guarterly in arrears and are
accounted for on a cash, not accrual basis.
4 Statements are effective December 31s March 31s June 30 1h .
and September 30
C. No payments will be made from DROP until the member terminates
employment with the department.
D. Upon termination of employment, participants in the DROP will receive the
balance of the DROP account in accordance with the following rules:
(1) Members may elect to begin to receive payment upon termination of
employment or defer payment of DROP until the latest day as
provided under sub - subparagraph c.
(2) Payments shall be made in either:
a. Lump sum - the entire account balance will be paid to the
retirant upon approval of the Board of Trustees.
b. Installments - the account balance will be paid out to the
retirant in three equal payments paid over 3 years the first
payment to be made upon approval of the Board of Trustees.
C. Annuity - the account balance will be used to purchase an
annuity to be paid monthly, the first payment to be made upon
approval by the Board of Trustees. The annuity must be
purchased from an insurer licensed to sell such annuities in
Florida.
(3) Any form of payment selected by a police officer must comply with the
minimum distribution requirements of the IRC 401(A)(9) e.g.,
payments must commence by age 70'/2.
00062299. W PD;2 -30-
(4) The beneficiary of the DROP participant who dies before payments
from DROP begin shall have the same right as the participant in
accordance with Ordinance.
Section 15. 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
00062299.WPD -31-
provisions, minutes of the meeting of the Board in which denial fo the
claim was originally recommended, and any other documents material
to the case;
(2) After such review, the Member and /or his /her duly authorized
representative shall submit their case in writing to the Board and
request a hearing. Such submission shall be filed with the Board no
later than ninety (90) days after the receipt of 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 furnish 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 attorney
for the Board, the claimant and the claimant's attorney, upon
recognition by the Chairman, may direct questions to any
witness during the proceedings. Each party shall have the
right to present evidence relevant to the issues, to
cross - examine witnesses, to impeach witnesses and to
respond to the evidence presented against the party. Each
party shall have the right to present any opening and closing
arguments. Any party may secure the services of a court
reporter to record the proceedings with the cost to be borne by
00062299.wPD;2 -32-
the party requesting the 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 16. Reports to Division of Retirement.
Each year no later than March 15th, the Chairman of the Board shall file two (2)
separate reports with the Division of Retirement containing the following relative to the
Police Officers and Firefighters of the Plan. The Police Officer report shall be separate
from the Firefighter report.
1. Whether in fact the Village is in compliance with the provisions of Chapters
175 and 185, Florida Statutes.
2. A certified statement of accounting for the most recent fiscal year of the
Village (or an independent audit by a certified public accountant if required by the Division
of Retirement) showing a detailed listing of assets and methods used to value them and
a statement of all income and disbursements during the year by the Public Safety Board.
Such income and disbursements shall be reconciled with the assets at the beginning and
end of the year.
3. A statistical exhibit showing the number of Police Officers on the force of the
Village, the number included in the Pension Plan, the number of Police Officers ineligible,
classified according to the reasons for their being ineligible, and the number of disabled
and retired Police Officers and their beneficiaries receiving pension payments and the
amounts of annual retirement income or pension payments being received by them.
4. A statistical exhibit showing the number of Firefighters on the force of the
Village, the number included in the Pension Plan, the number of Firefighters ineligible,
classified according to the reasons for their being ineligible, and the number of disabled
and retired Firefighters and their beneficiaries receiving pension payments and the
amounts of annual retirement income or pension payments being received by them.
00062299. W PD -33-
5. A statement of the amount the Village has contributed to the Public Safety
Pension Fund for the preceding plan year and the amount the Village will contribute to the
Public Safety Pension Fund for the current plan year.
6. If any benefits are insured with a commercial insurance company, the report
shall include a statement of the relationship of the insured benefits to the benefits provided
by this Ordinance. This report shall also contain information about the insurer, basis of
premium rates, mortality table, interest rates and method used in valuating retirement
benefits.
7. An actuarial valuation of the retirement Plan for Public Safety Officers must
be made at least once every three (3) years commencing from the last actuarial report of
the Plan. Such valuation shall be prepared by an enrolled actuary who is enrolled under
Subtitle C of the Title 3 Employee Retirement Income Security Act of 1974 and who is a
Member of the Society of Actuaries or the American Academy of Actuaries.
Section 17. Roster of Retirees.
The Secretary of the Boards shall keep a record of all persons enjoying a pension
under the provisions of this Ordinance in which it shall be 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 Police Officers and Firefighters employed by the Village who are
Members of the plan their board administers in such a manner as to show the name,
address, date of employment and date such employment is terminated.
Section 18. 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 19. Maximum Pension.
1. 415(b) Internal 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
00062299. W PD -34-
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 calendar 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
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.
00062299. W PD -35-
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 law for qualified government plans and shall be further adjusted for changes in
the cost of living in the manner provided by Internal 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 Internal Revenue Code s. 415(d).
Section 20. 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 60th 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 10th 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 Member'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
sixty (60) days after the date on which the amount can be ascertained or the Member is
located, whichever is applicable. Any such payment shall be made retroactive to a date
which is not earlier than the date on which the payment of the Member's benefit was
scheduled to begin but which is not later than the date specified under subsection 1 of this
Section.
00062299. W PD -36-
Section 21. Distribution of Benefits.
1. 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:
A. � If the retirement income is payable before the Member's death, the
distribution shall commence to them not later than the calendar year defined
above; and
1DA. shall be paid over the life of the Member or over the lifetimes of the
Member and spouse or dependent, or,
B-. 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.
B 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 Member's death, unless it is to be
distributed in accordance with the following rules:
1DA. The Member's remaining interest in the Plan is payable to
his /her spouse or dependent;
2Q$- The remaining interest is to be distributed over the life of the
spouse or dependent or over a period not extending beyond
the life expectancy of the spouse or dependent; and
G. Such distribution begins within one year of the Member's death
unless the Member's spouse, issue or dependent shall receive
the remaining interest in which case the distribution need not
begin before the date on which the Member would have
attained age 70'/2 and if the spouse, issue or dependent dies
before the distribution to the spouse, issue or dependent
00062299. W PD -37-
begins, this Section shall be applied as if the spouse, issue or
dependent were the Plan Member.
2. Should the Participant be subject to an involuntary mandatory
distribution of a nonforfeitable account balance that is under $5,001 but is more than
$1,000, then the assets shall be rolled over to an individual retirement plan of a
designated trustee or issuer. If the present value of a vested benefit exceeds $5,000,
then the benefit may only be paid out with the Participant's consent.
Section 22. 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 exclusive benefit.
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 former spouse 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
joint lives (or joint life expectancies) of the distributee and the
distributee's designated beneficiary, or for a specified period of 10
years or more; and any distribution to the extent such distribution is
required under section 401(a)(9) of the Code, and the portion of an� F
distribution that is not
00062299. W PD;2 -38-
(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, effective January 1,
2002, an eligible deferred compensation plan described in
§457(b) which is maintained by an 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 eligible rollover distribution. However
a n the ease of a' eligoble rellever distributiom to the surviving spouse,
(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 who is entitled to payment
for alimony and child support under a domestic relations order
determined to be qualified by this Fund 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 23. Repeal or Termination of System.
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.
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 to the System are
completely discontinued, there shall be full vesting (100 %) of benefits accrued to date of
repeal. The actuarial single -sum value may not be less than the employee's accumulated
contributions to the plan, with interest if provided by the plan, less the value of any plan
benefits previously paid to the employee.
00062299. W PD -39-
3. Upon termination of the plan by the Village for any reason, or because of a
transfer, merger, or consolidation of governmental units, services, or functions as provided
in chapter 121, or upon written notice to the board of trustees by the Village that
contributions under the plan are being permanently discontinued, the rights of all
employees to benefits accrued to the date of such termination or discontinuance and the
amounts credited to the employees' accounts are nonforfeitable. The fund shall be
distributed in accordance with the following procedures:
A. The board of trustees shall determine the date of distribution and the asset
value required to fund all the nonforfeitable benefits, after taking into account
the expenses of such distribution. The board shall inform the Village if
additional assets are required, in which event the Village shall continue to
financially support the plan until all nonforfeitable benefits have been funded.
B. The board of trustees shall determine the method of distribution of the asset
value, whether distribution shall be by payment in cash, by the maintenance
of another or substituted trust fund, by the purchase of insured annuities, or
otherwise, for each police officer and firefighter entitled to benefits under the
plan, as specified in subsection C.
C. The board of trustees shall distribute the asset value as of the date of
termination in the manner set forth in this subsection, on the basis that the
amount required to provide any given retirement income is the actuarially
computed single -sum value of such retirement income, except that if the
method of distribution determined under subsection B involves the purchase
of an insured annuity, the amount required to provide the given retirement
income is the single premium payable for such annuity. The actuarial single -
sum value may not be less than the employee's accumulated contributions
to the plan, with interest if provided by the plan, less the value of any plan
benefits previously paid to the employee.
D. If there is asset value remaining after the full distribution specified in
subsection C, and after payment of any expenses incurred with such
distribution, such excess shall be returned to the Village, less return to the
state of the state's contributions, provided that, if the excess is less than the
total contributions made by the Village and the state to date of termination
of the plan, such excess shall be divided proportionately to the total
contributions made by the Village and the state.
E. The board of trustees shall distribute, in accordance with the manner of
distribution determined under subsection B, the amounts determined under
subsection C.
4. The allocation of the Fund provided for in this subsection may, as decided
by the Board be carried out through the purchase of insurance company contracts to
provide the benefits determined in accordance with this subsection. The Fund may be
00062299. W PD -40-
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.
5. 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 24. 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,
garnishment 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.
Upon written request by the retiree, the Board of Trustees may authorize the Plan
administrator to withhold from the monthly retirement payment funds necessary to:
1. pay for benefits being received through the Village;
2. pay the certified bargaining agent; or
3. to pay for premiums for accident health and long -term care insurance for the
retiree, the retiree's spouse and dependents. A retirement plan does not
incur liability for participation in this permissive program if its actions are
taken in good faith pursuant to Florida Statutes § §175.061(7) and 185.05(6).
Section 25. 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 illegallyfor 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.
00062299.WPD -41-
Section 26. Forfeiture of Pension.
Any 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 return of this accumulated contributions as of the date of
termination.
1. Specified offenses are as follows:
A. The committing, aiding or abetting of an embezzlement 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.
F. 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.
G. The committing on or after October 1, 2008, of any felony defined in
§800.04, Florida Statutes, against a victim younger than 16 years of age, or
any felony defined in Chapter 794, Florida Statutes against a victim younger
than 18 years of age, by a public officer or employee through the use or
attempted use of power, rights, privileges, duties, or position of his or her
public office or employment position.
2. Definitions
A. Conviction shall be defined as:
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.
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B. Court shall be defined as:
Any state or federal court of competent jurisdiction which is exercising
jurisdiction to consider a 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
attorney 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 Member who 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.
3. False, misleading, or fraudulent statements made to obtain public retirement
benefits is prohibited; penalty
A. It is unlawful for a person to willfully and knowingly make, or cause to be
made, or to assist, conspire with, or urge another to make, or cause to be
made, any false, fraudulent, or misleading oral or written statement or
withhold or conceal material information to obtain any benefit available under
a retirement plan receiving funding under Florida Statutes, Chapters 175 and
185.
B. A person who violates subsection (A) commits a misdemeanor of the first
degree, punishable as provided in s. 775.082 or s. 775.083, Florida Statutes.
In addition to any applicable criminal penalty, upon conviction for violation
described in subsection (A), a participant or beneficiary of a pension plan
receiving funding under Florida Statutes, Chapters 175 and 185 may, in the
discretion of the Board of Trustees, be required to forfeit the right to receive
any or all benefits to which the person would otherwise be entitled under this
Ordinance. For purposes of this paragraph, "conviction" means a
determination of guilt that is the result of a pleas or trial, regardless of
whether adjudication is withheld.
Section 27. Military Service Prior to Employment.
In accordance with Code Section 414(n), the Ti"-years or fractional parts of
years that a Member serves or has served in the military service of the Armed Forces of
the United States or United States Merchant Marine, voluntarily or involuntarily, prior to first
and initial employment with the Police Department or Fire Department shall be added to
his /her years of credited service provided that:
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1. The Police Officer or Firefighter 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 Police Department or Fire Department,
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.
BSJ
July 2015
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