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Village of Tequesta
General Employees Pension Trust Fund
Summary Plan Description
August February 2015
Introduction
As a Member in the Village of Tequesta General Employees Pension Trust Fund,
you are included in a program of benefits to help you meet your financial needs in
retirement, or in the event of disability or death. The purpose of this booklet isto give you
a brief description of benefits available to you under your pension plan.
Planning for retirement begins now. This booklet can be a valuable tool in preparing
for your retirement and financial future. If you need any further information on any of the
topics presented in this booklet, please contact the Plan Administrator or the Board of
Trustees. They will answer any questions to help you better understand your benefits.
The information presented is a summary of the pension plan as provided in the
Village of Tequesta Code which governs your Pension Fund. The legal citation for your
Plan is Ordinance 24-14, Exhibit A (December 11, 2014), Village of Tequesta Code.
Any
discrepancies between information in this booklet and the Plan will be governed by
. A copy of the Plan can be obtained from the Plan Administrator, whose address
the Plan
is:
Village of Tequesta General Employees Pension Trust Fund
Resource Centers, LLC
j
4360 Northlake Boulevard, Suite 206
Palm Beach Gardens, Florida 33410
Telephone: (561) 624-3277
Fax Number: (561) 624-3278
Dixie@ResourceCenters.com
Kerry@ResourceCenters.com
Board of Trustees
Village of Tequesta
General Employees Pension Trust Fund
Michael Rhodes, Chairman
Carl Hansen, Secretary
Michelle Gload
Cary Levine
John Kuper
TABLE OF CONTENTS
DEFINITIONS........................................................1
PARTICIPATION IN THE PENSION FUND.................................2
ELIGIBILITY FOR NORMAL RETIREMENT................................2
AMOUNT OF A NORMAL RETIREMENT PENSION..........................2
Sample Pension Calculation.......................................3
EARLY RETIREMENT PENSION........................................3
FORMS OF PAYMENT OF A PENSION...................................4
Normal Form...................................................4
Optional Forms of Payment........................................4
SURVIVOR BENEFITS - DEATH BEFORE RETIREMENT ....................5
DISABILITY RETIREMENT.............................................6
Duty Disability Retirement.........................................6
Non-Duty Disability Retirement.....................................6
ENDING EMPLOYMENT BEFORE RETIREMENT...........................7
FILING FOR RETIREMENT.............................................7
TRUSTEE TO TRUSTEE TRANSFER ....................................7
FORFEITURE OF PENSION............................................8
CLAIMS REVIEW PROCEDURE.........................................8
COST OF THE PENSION FUND.........................................9
ADMINISTRATION OF THE PENSION FUND...............................9
INVESTMENTS.....................................................10
ACTUARIAL SOUNDNESS............................................10
AGENT FOR SERVICE OF LEGAL PROCESS.............................10
PLAN YEAR........................................................10
ACTUARIAL DATA...................................................11
DEFINITIONS
- a Members own contributions.
Accumulated contributions
- one-twelfth of the average salary paid during the
Average Final Compensation
best five years of the last ten years of employment.
- an individual, such as a spouse, child or dependent parent, who is
Beneficiary
receiving a survivor benefit from the Pension Fund following thedeath of a Member.
- the Board of Trustees which administers, manages and operates the
Board
Pension Fund.
- A Member's years and fractional parts of years of service as a
Credited service
General Employee in the Village of Tequesta, which may include military time
purchased in this plan.
- a Village of Tequesta General Employee participating in the Pension
Member
Fund.
- Base compensation including regular earnings, vacation pay, sick pay, and
Salary
amounts paid on a pretax basis for employee benefits, excluding lump sum
payments, overtime, bonuses and longevity bonus.
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PARTICIPATION IN THE PENSION FUND
Each General Employee employed in the Village of Tequesta General Employees
Department is a Pension Fund Member. A General Employee is a regular
employee who works full time for the Village and who is not a police officer or a
firefighter.
ELIGIBILITY FOR NORMAL RETIREMENT
A Member who either has 30 or more years of credited service or is age 62
regardless of years of service is eligible for normal retirement. An application for
normal retirement must be filed with the Plan Administrator and approved by the
Board of Trustees.
AMOUNT OF A NORMAL RETIREMENT PENSION
The amount of a normal retirement pension is based on a Member's credited
service, average final compensation and pension multiplier.
Average final compensation is one-twelfth of the average salary paid during the best
five years of the last ten years of employment. Salary is base compensation
including regular earnings, vacation pay, sick pay, plus all tax deferred items of
income, excluding lump sum payments, overtime, bonuses and longevity bonus.
.
Credited service is generally a Member's period of employment as a General
Employee with the Village of Tequesta, measured in years and completed months
of a year.
The pension multiplier is 2%.
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Sample Pension Calculation
The following example illustrates how average final compensation is calculated.
Thisisan example for planningpurposes onlyand does not indicate the actual
benefit for any Member.
Year BeforeSample Salary
Retirement for Year
5th 21,000
4th 21,000
3rd 22,000
2nd 23,000
1st 24,000
To calculate final average salary, total the last five years salary and divide by 60:
$21,000 + $21,000 + $22,000 + $23,000 + $24,000
= $1,850.00
60
The monthly normal retirement pension is calculated as follows:
2.00% (.02) of average final compensation multiplied by credited service.
The following is an illustration of a normal retirement pension calculation. This is
an example for planning purposes only and does not indicate the actual benefit for
any Member.
(1) Total credited service30.0 yrs.
(2) Average final compensation$1,850
(3)2.00% of line (1)60%
.02 x 30
(4)Line (3) times line (2)$1,110.00
60% x 1,850
EARLY RETIREMENT PENSION
A General Employee who is age 50 and has 6 years of service is eligible for early
retirement. The early retirement benefits that are payable to a General Employee
are determined in the same manner as the normal retirement benefit payable at the
normal retirement date or payable immediately, but reduced by 5% for each year
that early retirement precedes normal retirement.
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FORMS OF PAYMENT OF A PENSION
Normal Form
The standard form of payment for the pension described above is a benefit payable
forlife with10yearscertain, in other words, youare guaranteed 120 monthly
payments.
A Member who dies without receiving 120 payments may designate a beneficiary
to receive the remainder of the 120 benefit payments, (if any remain), upon the
death of the retired Member.
When there is no beneficiary named, the benefit will be paid to the spouse,
dependent children, or dependent living parents of the deceased General
Employee, or if there is no such survivor, then to the deceased General Employees
estate. Pension payments will continue to the retired Member's beneficiary until a
total of 120 payments have been made to the retired Member and beneficiary
combined.
IT IS IMPORTANT TO KEEP YOUR
BENEFICIARY DESIGNATION
UP TO DATE
Optional Forms of Payment
Optional forms of payment are available in lieu of the normal form described above.
The amount of pension under each optional form has the same actuarial value as
the normal form of payment (lifetime payments with 120 payments guaranteed).
The joint and 100% survivor form of
Option I -Joint and 100% Survivor -
C
payment pays the retired Member a reduced monthly pension for life. Upon
the retired Member's death, the beneficiary designated when the form of
payment was elected will be paid 100% of the reduced monthly pension for
life.
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· The joint and 76% survivor form of
Option II -Joint and76% Survivor -
C
payment pays the retired Member a reduced monthly pension while the
retired Member is alive. The reduction is not as great as under Option I.
Upon the retired Member's death, the beneficiary will be paid 76% of the
reduced monthly pension for life.
The joint and 66-2/3% survivor
Option III - Joint and 66-2/3% Survivor -
C
form of payment pays the retired Member a reduced monthly pension while
the retired Member is alive. The reduction is not as great as under Option
II. Upon the retired Member's death the beneficiary will be paid 66-2/3% of
the reduced monthly pension for life.
The joint and 50% survivor form of
Option IV - Joint and 50% Survivor -
C
payment pays the retired Member a reduced monthly pension while the
retired Member is alive. The reduction is not as great as under Option III.
Upon the retired Member's death, the beneficiary will be paid 50% of the
reduced monthly pension for life.
The straight life form of payment pays the retired
Option V - Life Annuity -
Member an increased monthly pension for life. The amount of this benefit
is more than the normal form and other optional forms. No monthly pension
is ever paida spouse, child, dependent parent or other beneficiary under this
form of payment.
In lieu of the other optional forms, benefits may be paid
Option VI - Other -
C
in any form approved by the Board so long as it is the actuarial equivalent of
the benefits otherwise payable.
The Plan Administrator can give you an estimate of the amount of your pension
under any of the optional forms of payment. A request for an optional form of
payment must be submitted in writing to the Board before the effective date of
retirement. An optional form of payment cannot be changed after the first pension
check is cashed. The election of Options I, II, III and IV shall be null and void if the
designated beneficiary dies before the members payments commence, and the
Member will be paid in accordance with the normal form.
SURVIVOR BENEFITS - DEATH BEFORE RETIREMENT
A beneficiary of a vested Member who dies while employed with the Village of
Tequesta as a General Employee will be paid a survivor benefit of the vested
pension benefit starting when the Member would have reached normal retirement
age.
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DISABILITY RETIREMENT
A pension may be payable to a Member who becomes disabled while employed in
with the Village as a General Employee. Eligibility and the amount of the pension
are dependent on whether or not the disability occurred in the line of duty.
The disability must arise from a mental or physical illness, disease or injury which
totally and permanently prevents the Member from performing useful and efficient
service as a General Employee in the Village of Tequesta. No General Employee
shall be permitted to retire under a disability retirement until examined by a duly
qualified physician or surgeon to be selected by the Board of Trustees and the
physician or surgeon finds the Member to be disabled from performing the functions
of a General Employee. The final determination of disability is made by the Board.
If disability results from excessive and habitual use of drugs, intoxicants or
narcotics, willful and illegal participation in fights, riots or civil insurrection, while
committing a crime, injury or disease sustained while serving in the armed forces,
or working for another employer or as a result of willful, wanton or gross neglect of
the member or preexisting condition, then no disability pension can be awarded.
A Member who is retired for disability may be required to undergo periodic medical
examination under the direction of the Board of Trustees to determine if the retired
Member is capable of performing the duties of a General Employee in the Village.
Disability benefits will terminate upon death or recovery, whichever is earlier.
Duty Disability Retirement
If the Board finds the disability to have arisen out of and in the course of the
Member's performance of duty as a Village of Tequesta General Employee, the
amount of pension is equal to the greater of: 42% of the Members average monthly
compensation or the accrued pension benefit.
Non-Duty Disability Retirement
If the disability is not the result of performing duty as a Village of Tequesta General
Employee, the amount of pension is calculated the same as a normal retirement
pension based on average final compensation and credited service at the time of
disability. The minimum pension is 25% of average final compensation.
To be eligible for a non-duty disability retirement, an Employee must have six years
of credited service as a General Employee with the Village of Tequesta.
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ENDING EMPLOYMENT BEFORE RETIREMENT
A Member may voluntarily leave their contributions in the pension fund pending re-
employment by the Village for a period up to five years. If these contributions are
refunded, interest is only calculated to date of termination of employment.
If a Member with less than 6 years of credited service who is not age 62, quits or is
fired from employment as a Village of Tequesta General Employee, future rights to
a pension are forfeited. A member with less than 6 years of credit service who is
not age 62 is entitled to a refund of contribution with 3% interest.
If a Member has at least 6 years of credited service when employment as a general
employee terminates, the right to a deferred normal retirement is retained, so long
as accumulated contributions are left on deposit in the Pension Fund. If this
member takes a refund of these contribution, with interest, then benefits are
forfeited.
The amount of deferred normal retirement pension is calculated using average final
compensation and credited service at the time of termination of employment as a
general employee. The amount of pension may be subject to early retirement
reduction of 5% per year if applicable. Retirement and payment of a pension is
available upon application on or after age 50.
FILING FOR RETIREMENT
In order to ensure that you receive your pension on time, you should file your
application with the Plan Administrator at least 30 days before retirement. All forms
can be obtained from the Plan Administrator at the address on the Introduction
page. Penalties will be imposed for making a false or misleading statement to
obtain a pension benefit. It can take up to 60 days after your date of retirement
90
to receive your first pension check.
Certain circumstances can result in longer
periods for your payment to begin.
TRUSTEE TO TRUSTEE TRANSFER
To minimize the tax consequences of rolling lump sum of payment assets over to
an IRA or another qualified plan, direct trustee-to-trustee transfers are available.
Please see the Coordinator for the appropriate forms.
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FORFEITURE OF PENSION
Any Member who is convicted of any of the below offenses committed prior to
retirement shall forfeit all rights and benefits under this Fund, except for a refund of
accumulated contributions. The specified offenses are:
(1)Committing, aiding or abetting of an embezzlement of public funds;
(2) Committing, aiding orabetting of any theft by a public officer or employee
from employer;
(3) Bribery in connection with the employment of a public officer or employee;
(4) Any felony specified in Chapter 838, Florida Statutes;
(5) The committing of impeachable offense
(6) The committing ofany felony by a public officer or employee who, willfully
and with intent to defraud the public or the public agency for which the public
officer or employee acts or in which he or she is employed of the right to
receive the faithful performance of his or her duty as a public officer or
employee, realizes or obtains, or attempts to realize orobtain, a profit, gain,
or advantage for himselfor herself or for some other person through the use
or attempted use of the power, rights, privileges, duties, or position of his or
her public office or employment position.
(7)The committing onor 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.
Any Member who has received benefits from the Plan in excess of his accumulated
contributions shall be required to repay the Fund. The Board may implement legal
action necessary to recover such funds.
Additionally, a Member who makes a false or misleading statement to obtain
retirement benefits shall commit a misdemeanor of the first degree and if convicted,
the Member shall forfeit his/her benefit.
CLAIMS REVIEW PROCEDURE
All claims for benefits should begin with the Plan Administrator. It is the responsibil-
ity of the Plan Administrator to help you (or your beneficiary) in completing the
required forms. If you are unable to visit the Plan Administrator, you may write or
telephone for assistance. The Plan Administrator will explain how to proceed with
a claim for benefits.
All claims for benefits are placed on the agenda, usually of a regularly scheduled
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meeting of the Board of Trustees. No benefits can be paid without Board approval.
The Board announces all meetings in advance and Members have the right to
attend all Board Meetings. However, a Member is not required to attend the Board
meeting where the Members claim is being heard.
Any member, former member, or beneficiary who has been denied a benefit by a
decision of the Board shall be entitled to request in writing that the Board give
further consideration to the claim. The Board shall review the case and issue an
order within 60 days after receipt of the written request.
Within 90 days after receipt of the order of the Board, the Member may request in
writing, a hearing. The Board shall then conduct a hearing within the next 90 days.
The claimant may be represented at the hearing by an attorney or other representa-
tive of his/her choosing. During the hearing the claimant shall have the opportunity
to submit written and oral evidence and arguments in support of his/her claim. The
claimant shall also have the opportunity to review the Boards file at or prior to the
hearing. Either the claimant of the Board may request that a court reporter record
the proceedings. In this event a complete written transcript of the proceedings shall
be furnished to both parties at the expense of the party requesting the attendance
of the court reporter.
A final written decision shall be made by the Board within 30 days of such hearing.
The written decision shall include the reasons for such decision, and such decision
shall be final.
COST OF THE PENSION FUND
Members are required to contribute 5.00% of covered salary. Contributions are
deducted from each paycheck and credited to the Member's Pension Fund account.
The Village of Tequesta also contributes to the Pension Fund. The amount of
Village contribution is mathematically determined in accordance with State statutes
to finance Pension Fund benefits as they are earned.
ADMINISTRATION OF THE PENSION FUND
The Pension Fund is administered by a Board of Trustees which is responsible for
overseeing the investment of Pension Fund assets and application of the provisions
of the Village Code. The Board has authorityover distribution of all pensions and
makes final decisions on claims and appeals. Five trustees comprise the Board:
two legal residents of the Village appointed by the Village Council, two full-time
General Employees elected by Pension Fund Members and a trustee chosen by the
majority of the other four trustees. However, if either of the two (2) general
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employee positions remains vacant for three months or more, then the position can
be filled by a legal resident of the Village, elected by the General Employee
Members of the System in accordance with the election rules established by the
Board, for one term. At the end of the term the position will be posted again to be
filled by a full time general employee.
Pension Fund assets are maintained and invested entirely separate from Village
assets and cannot be used for any purpose other than those specified in the Village
Code.
INVESTMENTS
The assets of the Plan are presently invested by Investment Managers hired by the
Board of Trustees and mutual fund investments, both are managed in accordance
with investment guidelines adopted by the Board of Trustees in consultation with
their investment advisors. The current Investment Managers are:
- Dana Balanced Portfolio
- Dana International Equity
- EuroPacific Growth Fund R6 (RERGX)
- Templeton Global Total Return R6 (FTTRX)
ACTUARIAL SOUNDNESS
The actuary for the Plan has determined that the Plan is actuarially sound and can
adequately fund the benefits based upon projected contributions to the Plan and
investment earnings.
AGENT FOR SERVICE OF LEGAL PROCESS
Board of Trustees
Bonni S. Jensen
j
Klausner, Kaufman, Jensen & Levinson
400 Executive Center Drive, Suite 207
West Palm Beach, Florida 33401-2922
PLAN YEAR
The plan year is the twelve month period beginning each October 1. Records are
kept on a fiscal year basis.
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ACTUARIAL DATA
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