HomeMy WebLinkAboutDocumentation_Pension General_Tab 9.11a_05/04/2015VILLAGE OF TEQUESTA
11 GENERAL EMPLOYEES PENSION TRUST FUND 11
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TATEMENT OF POLICY REGARDING INTEREST ON
REFUNDS OF CONTRIBUTIONS
WHEREAS, Ordinance 10-08 of the Code of Ordinances of the Village of Tequesta
added a provision to the plan to allow interest to be paid on refunds of contributions; and
WHEREAS, the Board of Trustees ("Trustees") of the Village of Tequesta General
Employees Pension Trust Fund ("Fund") desire to adopt a Statement of Policy Regarding
Calculation of Interest for Non -Vested Refunds of Contributions;
NOW, THEREFORE, it is hereby resolved that the following Statement of Policy
Regarding Calculation of Interestfor Refunds of Contributions, ("Policy") is hereby adopted,
1. Interest on refunds of contributions will be paid at 3% simple interest.
2. Interest is calculated based on the total amount of contributions before taxes
or withholding.
3. Distributions will be made within 30 days of the Fund providing the Special
Tax Notice to the member, or sooner if the Special Tax Notice is signed by
the member and returned to the Pension Coordinator.
The process for applying for a Refund of Contributions is as follows:
0 All applications for Refunds of Contributions shall be submitted to the
Pension Administrator for review.
The Pension Administrator shall review the Application for Refund of
Contributions for eligibility or disqualification.
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• The Pension Administrator shall provide any questionable applications to the
Fund's legal counsel for review for disqualification from a refund of
contributions.
• Applications submitted, that meet all criteria outlined in the plan document,
shall be disbursed immediately on the signature of a Trustee and ratified at
the next meeting of the Board of Trustees.
THIS STATEMENT OF POLICYJ(&Ae-
ON CALCULATIONS OF REFUNDS OF
CONTRIBUTIONS is adopted effective 0 by the Trustees
of the Village of Tequesta General Employees Pension Trust Fund on this day of
/' 1 lJ� U� S"I , 20%
;USTEES
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Witnessed by:
BSJladt
HATequesta GE 1012TOLICIESIInt on Ref of Conidb.wpd
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Field Code Changed
BOARD OF TRUSTEES OF THE
VILLAGE OF TEQUESTA
GENERAL EMPLOYEES' PENSION TRUST FUND
ADMINISTRATIVE RULES
February 2015
TABLE OF CONTENTS
PART 1 - GENERAL PROVISIONS.................................................................................................................. i
1.1 PURPOSE...................................................................................................................................................1
1.2 DEFINITIONS......................................................................................................................................................1
PensionBoard..........................................................................................................................................................1
PensionCode...........................................................................................................................................................1
PensionFund............................................................................................................................................................1
Munianalitv................................................................................................................................................................1
Definitionsof the Ordinance..................................................................................................................................1
PART 2 - ADMINISTRATION............................................................................................................................ 2
2.1 BOARD CREATION...........................................................................................................................................2
2.2 TERMS OF OFFICE............................................................................................................................................2
2.3 ELECTION PROCEDURE....................................................................................................................................2
Setting Date for Election of Employee-Trustees...............................................................:............................... 2
Six& &01 Day Notice of Vacanc......................................................................................................................... z
EmWee -Trustees; ........................................................................................................................................................2
VillageTrustee................................................................................................................................................................3
Fifth Trustee......--............................................................................................................................ .......3
......................
Election of Employee Trustees............................................................................................................................. 3
Noticeof Candidacy.......................................................................................................................................................3
Certified Ligt of Eligible Candidates.............................................................................................................................3
ElectionJudges...............................................................................................................................................................3
ElectionProcedure.........................................................................................................................................................3
ElectionResults..............................................................................................................................................................4
Run-off Election........... .......................................... ............ --- .......... .............. ......................... 4
Election Challenaes--....................................................................................... 4
.......................................................
Certifcabon of Election Results....................................................................................................................................4
Mid -Term Vacancies............................................................................................................................................... 4
DedadnoVacancy.........................................................................................................................................................4
Fillingof Vacandes........................................................................................................................................................4
Employee-Trustee..................................................................................................................................................... 4
Village-Trustees......................................................................................................................................................... 5
CalendarDays.......................................—.............................--........................ ............. 5
.........................................
PART 3 - COMPENSATION AND EXPENSES............................................................................................... 6
3_1 COMPENSATION AND REIMBURSEMENT OF EXPENSES................................................................................6
3.2 REIMBURSEMENT OF E%PENsrs.....................................................................................................................6
3.3 REFUND OF EMPLOYEE CONTRIBUTIONS.......................................................................................................6
3.4 PAYMENT PRACTICES......................................................................................................................................6
PART4 - MEETINGS......................................................................................................................................... 7
4.1 MEETINGS.........................................................................................................................................................7
4.2 EMERGENCY MEETINGS..................................................................................................................................7
4.3 LOCATION OF MEETINGS.................................................................................................................................7
4.4 TIME OF MEETINGS.......................................................................................................................................... 7
4.5 NOTICE OF MEETINGS......................................................................................................................................8
4.6 OPEN MEETINGS: EXCEPTIONS......................................................................................................................8
4.7 ORDER OF BUSINESS.......................................................................................................................................8
4_8 MINUTES............................................................................................................................................................8
4_9 QUORUM ............................................................................................................................................................8
PART 5 - PENSION BOARD OFFICERS AND EMPLOYEES....................................................................... 9
$_1 OFFICERS.......................................................................................................................................................... 9
5_2 EMPLOYEES......................................................................................................................................................9
5_3 DUTIES OF THE CHAIRPERSON........................................................................................................................9
5.4 DUTIES OF THE SECRETARY .......................................................................................................................9
RECORD KEEPING AND REEPPORTIING REQUIREMENTS.........................................................10
6_1 MINUTES OF MEETINGS.................................................................................................................................10
6�2 CORRESPONDENCE FILE...............................................................................................................................10
6`3 INVESTMENT FILE............................................................. .................... ...................... ........................... _...... 10
6_4 LITIGATION FILE..............................................................................................................................................10
6_5 ANNUAL REPORT BY THE PENSION BOARD.................................................................................................10
6_6 RECORD KEEPING AS TO EMPLOYEE PARTICIPANTS..................................................................................10
6_7 RECORD KEEPING AS TO RETIREES..............................................................................................................11
B_8 RECORD KEEPING AS TO SEPARATED MEMBERS........................................................................................12
6_9 CONFIDENTIALITY...........................................................................................................................................13
6.10 FLORIDA PUBLIC RECORDS LAW OR FREEDOM OF INFORMATION ACT REQUESTS................................13
PART 7 - ADJUDICATION RETIREMENT PENSION CLAIMS....................................................................14
7_1 APPEAL PROCEDURES.................................................................... __............................................... All
7_2 SUBPOENAS .................. ................................................ .......___ ..................................... __............... ............ 15
PART 8 - INVESTMENT POLICIES.................................................................................................................16
8_1 PURPOSE ....... ..................................... _........................................................................ ................................... 16
PART 9 - INCOME DEDUCTION ORDERS....................................................................................................17
9_..1 INCOME DEDUCTION ORDERS.......................................................................................................................17
Assignment of Benefits Upon Divorce ...............................................................................................................17
Filingof Claims-.....................................................................................................................................................17
Definitions............................................................................... .............17
AlternatePayee....................................................................___..................................................................................17
IncomeDeduction Order.............................................................................................................................................17
Designationof Representative.............................................__..........................................................................17
Payment of Benefits Pending Trustees' Decision .................................... ...................................................... 17
PART10 - COMMUNICATIONS......................................................................................................................18
ADMINISTRATIVE RULES -SIGNATURE PAGE.........................................................................................19
Exhibits:
Exhibit "A"
Expense Policy
Exhibit "B"
Travel Expense Reimbursement Voucher
Exhibit "C"
Application for Membership
Exhibit "D"
Application for Retirement Benefits
Exhibit "E"
Application for Vested Deferred Retirement Employee
Exhibit "F"
Investment Policy Statement
PART 1 - GENERAL_ PROVISIONS
1.1 Purpose. The purpose of these rules is to establish uniform procedures for
the implementation of Ordinance No. 585, sir A of the Village of Tequesta
and applicable provisions of Chapter 112 of the Florida Statutes and the
administration of the Village of Tequesta General Employees Retirement Plan.
These rules are also promulgated for the benefit of and to provide guidance to
retirement plan members, participants and beneficiaries and are available for
inspection at the office of the Retirement Plan.
1.2 Definitions. As used in these rules, the terms set forth below shall have the
following definitions and meanings, except when the context of the rule specifies
and requires a different meaning.
1) Pension Board. "Pension Board" shall mean the Board of Trustees of the
Village of Tequesta General Employees Retirement Plan as established
under Village Ordinance No. 585 Exhibit A.
2) Pension Code. "Pension Code" means the provisions contained in Village
Ordinance No. 585o�o Exhibit A_
3) Pension Fund. "Pension Fund" shall mean the pension fund established
pursuant to Village Ordinance No_ 686Emit-A for the benefit of the
participants and beneficiaries of the Fund.
4) Municipality. "Municipality" shall mean the Village of Tequesta, Florida.
5) Definitions of the Ordinance. The definitions contained in Village
Ordinance No. 585 Exhibit A shall be deemed to be the definitions
incorporated in these Rules.
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PART 2 - ADMINISTRATION
2.1 Board Creation. The Village of Tequesta General Employees Retirement
Plan is created pursuant to Village Ordinance No. 5°,Exhibit es. The
composition of the Pension Board is to be governed by the provisions of the
ordinance.
2.2 Terms of Office.
a) Each employee trustee of the Village of Tequesta General Employees
Retirement Plan shall serve a two year term of office,
b) The resident members appointed by the Village Council shall serve a two
year term at the pleasure of the Council so long as the trustee remains a
resident of the Village.
C) The fifth trustee shall serve a two year term of office,
,2.3 Election Procedure. Following? Is this the only document that outlines this Formatted: Hgnu9i,t
---- --
process? - - -- -- T.
a) Setting Date for Election of Employee -Trustees. At least sixty (60) days
before the end of the term of each Employee -Trustee, the Board of
Trustees should set the date, for an election to be held, if possible, thirty
(30) days before the term expires. At the same time, the Board of
Trustees should set the date, for a run-off election to be held, if possible,
ten (10) days before the term expires.
b) Sixty (60) Day Notice of Vacancy. At least sixty (60) days before the end
of each Trustee's term, the administrative
Pension Administrator for the plan should take the following action:
1) Employee -Trustees. Notice of the election and run-off election
should be given by posting a Notice on all bulletin boards in the
department where notices to employees are posted, and by_ .: - Formatted:Highllght
requesting the department to publish the notice in any newsletter
delivered to employees. The Notice shall include: ?
A) The date the Employee -Trustee's term expires;
B) A declaration that the expiring position is for an
employee Trustee;
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C) A request for candidates to submit a written
notice of their candidacy to the Board of
Trustees by a date certain (no later than forty-
five (45) days before the Employee -Trustee's
term expires); and
D) The date, of the election and, if necessary, the
run-off election.
2) Village Trustee. Notice shall be given in writing to the Mayor and
Village Clerk. The Notice shall include:
A) The date the Village Trustee's term expires;
B) A request for the Village to appoint a Trustee
before the Village Trustee's term expires.
3) Fifth Trustee. Notice shall be posted in writing. The Notice shall
include:
A) The date the Fifth Trustee's term expires;
B) A request for the remaining four (4) trustees to select by
majority vote a fifth (5"') Trustee.
c) Election of Employee Trustees
1) Notice of Candidacy. Each prospective candidate must submit his
or her name to the Board of Trustees in writing no later than forty-
five (45) days before the date of the election, or by such other time
as set by the Board of Trustees.
2) Certified List of Eligible Candidates. Before the election, the Board
of Trustees shall certify those candidates who are full-time
employees who are eligible to be elected as an Employee -Trustee.
These are the only candidates eligible for election, there shall be no
write-in candidates. If only one candidate is certified, the election
will not be held and the certified candidate will be deemed elected.
3) Election Judges. The Administrator shall provide for the -Election
Judges from their employees as assisted by the Village.
4) Election Procedure. Election for Employee -Trustees shall be by
secret ma+ -ballot. Each official ballot shall be embossed with the
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stamp of the Board of Trustees and the election shall be conducted
as an in-person election. Polls shall be open during hours as
determined by the Board, which hours will be posted at the time the
election is set. The ballot box shall be manned at all times by the
election judges. Ballots not clearly marked and any ballots with
more votes than vacant positions shall not be counted, but shall be
kept separately. If more than one trustee position is vacant, then
each employee shall vote for two trustees. All ballots shall be
turned over to the Board of Trustees by the judges with a tally of
the election results.
5) Election Results. The top vote getter shall fill the vacant Employee -
Trustee position. In the event there are 2 vacant Trustee positions,
the top two vote getters shall fill the vacant positions.
6) Run-off Election. In the event of a tie which will affect the outcome
of the election, then the 2 candidates who are tied shall be in the
run-off election.
7) Election Challenges. Any challenge to an election must be given in
writing to the Board of Trustees within five (5) days of the date of
the election, or run-off election, as applicable. A challenge shall not
stop a run-off election from being held.
8) Certification of Election Results.
A) The Board of Trustees shall certify the election
results.
B) The Board of Trustees shall resolve all challenges to
an election and may schedule a new election, if
deemed appropriate, or take other action to resolve
any challenges.
d) Mid -Term Vacancies.
1) Declaring Vacancy. If a Trustees resigns, is removed or becomes
ineligible to serve, the Board of Trustees shall declare, py _ Formatted: Highlight
resolution, the office of the Trustee vacated. Do we do this?
2) Filling of Vacancies.
A) Employee -Trustee. If the vacancy occurs less than
ninety (90) days before the Trustee's term was due to
expire, the vacancy shall be filled at the next regular
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election as provided in these Rules and Regulations.
Otherwise, the vacancy shall be filled for the
unexpired portion of the term by a new election as
provided in these Rules and Regulations. The Board
of Trustees may reduce the time required for notice of
the election, notice of candidacy, or any other time
limits to expedite a new election.
B) Village -Trustees. The Board of Trustees shall notify
the Mayor and Village Clerk in writing of the vacancy
and request the appointment of a Successor Trustee.
e) Calendar Das All days are calendar days.? _ - rormatted: Highlight
Forma txd: Highlight
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PART 3 - COMPENSATION AND EXPENSES
3.1 Compensation and Reimbursement of Expenses. Pension Board Trustees
are not entitled to receive any compensation for service performed as trustees.
3.2 Reimbursement of Expenses. A Trustee shall be reimbursed only for expenses
properly and actually incurred in the performance of his or her duties with the
Pian in accordance with the Village of Tequesta General Employees Retirement
Fund Statement of Policy for Trustee Expenses, attached as Exhibit "A"
Reimbursement shall be requested by completing the report of travel expenses
form attached as Exhibit "B".
3.3 Refund of Employee Contributions.
a) Members who are eligible for a refund of contributions in lieu of any
benefit under the plan shall submit the application for the refund. Upon
the €+nanee ^epartme^+ Pension Administrator receiving and verifying all
the required data,- refunds shall be made between meetings and ratified at
the following meeting.
b) Interest on Refunds.
Effective with refunds paid after June 12, 2008, interest on refunds
of contributions will be paid at 3% per annum. For-pededs of less
than ORe year a + will he nredited for a paFtial year based u menths simple interest.
Interest is calculated based on total amount of contributions before
taxes or withholding.
3. pistdbutions will be made within 30 days of the Fund_providing the - Formatted: Highlight
Special Tax Notice to the member, or sooner if the Special Tax
Notice is signed by the member and returned to the Board of
Trustees.
3.4 Payment practices.
a) No payments shall be made without the approval of the Board of Trustees, -Formatted. Highlight
except refunds of employee contributions in accordance with the above. _ _ - Formatted: Highlight
b) Two signatures are required for all disbursements. Following? - Formatted: Highlight
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PART 4 - MEETINGS
4.1 Meetings.
a) The Pension Board shall hold quarterly meetings in February, May,
August and November of each year. These meetings will be held on the
first Monday of the designated month. In the event that the regular
meetings cannot proceed on the first Monday of the designated month, the
meeting will be re -scheduled at the earliest possible date convenient to all
of the Pension Board Trustees.
b) The Pension Board may agree to meet more than four times a year. The
Pension Board may agree to meet either monthly or bi-monthly if, in the
Pension Board's determination, such meetings are necessary for the
prudent and efficient administration of the affairs and activities of the
Pension Fund.
4.2 E_memency Meetings.
a) The Chairperson of the Village of Tequesta General Employees
Retirement Plan may call special meetings in emergency or „nf�,„ seen
unforeseen situations, upon reasonable notice to all of the Pension
Board's trustees, The reasons for such emergency meetings shall include
but not be limited to:
1) discussion of pending or threatened litigation;
2) discussion of investment activity;
3) discussion of pension fund applications;
4) discussion of retirement pension requests.
b) Any Pension Board trustee may request an emergency meeting by serving
written notice upon all other trustees at least seven (7) days prior to the
date of the emergency meeting.
4.3 Location of Meetings.
Unless otherwise specified, all meetings of the Village of Tequesta General
Employees Retirement Plan will be held at the Village Hall in the Council
Chambers. Changes in the location of the meeting will be posted at least 7 days
prior to the meeting.
4.4 Time of Meetings. The meeting time will be rotated with the Public Safety Board
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meetings. Beginning with the November 2009 meeting, the General Employees'
Board will meet at 8:00 a.m. and the Public Safety Board will meet at 1:00 p.m.
The Boards will alternate times with each quarterly meeting. The next quarterly
meeting of the General Employees' Board, will be scheduled for February 2009
at 1:00 p.m. with the Public Safety Board meeting at 8:00 a.m. This time rotation
will continue until further notice by the Boards.
4.5 Notice of Meetings.
a) Notice of all regularly scheduled meetings shall be posted at least 7 days
prior to the meeting.
b) Notice of any emergency meetings will be posted as far in advance of the
meeting as is reasonably practicable under the circumstances.
4.6 Open Meetings, Exceptions. All Pension Board meetings are open to the
public except for discussion of those matters which are the subject of statutory
exceptions to §286.011(8), Florida Statutes, the "Florida Sunshine Law'.
4.7 Order of Business.
a) All meetings of the Village of Tequesta General Employees Retirement
Plan shall be conducted under an agenda.
b) The rules of procedure to be followed at such meetings will be Robert's
Rules of Order, unless Robert's Rules of Order conflict with the Pension
Code or the Rules of the Village of Tequesta General Employees
Retirement Plan.
4.8 Minutes. Minutes of all Retirement Plan Board meetings shall be kept in
accordance with the record keeping provisions set forth in Part 6 of these
Rules. As a cross check on the coml2lleftn ottask from thirnfifit[m
_
minutes will be prepared within two (2) weeks ikfter the moolng.
4.9 Quorum.
a) A quorum of the Village of Tequesta General Employees Retirement Plan
shall consist of at least three trustees. The approval of any and all
Pension Board business shall require the affirmative vote of three (3)
trustees at any given meeting.
b) Each trustee in attendance at a meeting shall be entitled to one (1) vote
per item requiring a vote.
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PART 5 - PENSION BOARD OFFICERS AND EMPLOYEES
5.1 Officers. The officers of the Village of Tequesta General Employees
Retirement Plan shall be: the chairperson and secretary. Pension Board may
elect other officers as deemed necessary. The officers shall be elected annually
at the October meeting of the Board or the next meeting immediately following
October, if there is no October meeting.
5.2 Employees. The Pension Board may, in its discretion, hire employees to carry
out certain duties and functions of the Pension Board. The duties of any such
employees and compensation will be specified in the minutes of the Pension
Board meeting establishing the employment relationship. The Board may also
retain the services of an Administrator, Legal Counsel, Consultant, Actuary.
Investment Manager and other service providers pursuant to an agreement
under terms acceptable to the Board.
5.3 Duties of the Chairperson. The Chairperson shall preside over all functions and
duties of the Pension Board, unless such functions or duties are specifically
delegated to other trustees, employees or agents of the Pension Board. The
Chairperson shall preside over all meetings of the Pension Board and execute all
orders, certifications and other documents necessary to carry out the affairs and
activities of the Pension Board.
5A Duties of the Secretary. The Secretary shall be responsible for the
performance of the following duties and functions:
a) Preside over any and all meetings in the absence of the Chairperson;
b) jExecute_any_and all documents -on -behalf of the Pension Board; see below.
c) Certify the authenticity of all resolutions or documents of the Pension Board;
d) Maintain the financial records of the Fund in the Finance Department;
e) Be the custodian of all Pension Board records, minutes of meetings and
documentation;
f) Record and transcribe the minutes of all regular, special and emergency
meetings of the Pension Board;
g) Perform all other duties necessary to the administration of the Pension Board, at
the direction of the Pension Board.
h) The duties contained in items c -g may be delegated to a pension coordinator as
selected by the Board. bTg?
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_ _Formatted: Highlight
Formatted: Highlight
PART 6 -RECORD KEEPING AND REPORTING REQUIREMENTS Followinq? - -_ - - j Formatted: Highlight
6.1 Minutes of Meetings. The Secretary shall keep and maintain minutes of all
public meetings and shall keep and maintain separate minutes of matters heard
in closed session.
6.2 Correspondence File. The Pension Board shall maintain a general
correspondence file with copies of all correspondence sent or received by the
Pension Board, including contracts entered into by the Board with legal counsel,
investment managers and other persons employed or retained by the Pension
Board.
6.3 Investment File. The Pension Board shall maintain on an annual basis, an
investment file containing all documentation and correspondence relating to
investment activity each year.
6.4 Litigation File. The Pension Board shall maintain a separate file as to all
matters in litigation. If the litigation involves the denial of retirement pension, the
litigation may be maintained as a part of the applicant's file.
6.5 Annual Report by the Pension Board.
a) The Pension Board shall also submit an annual report to the Municipality
as to the general condition of the Pension Fund.
b) The annual report shall contain the following information!
1. The assets of the Pension Fund
2. The estimated receipts during the next succeeding calendar year
from the deductions of the salaries of employees and all other
sources;
3. The estimated amount required during the next calendar year to
pay all pensions and other obligations of the Pension Fund and to
meet the annual requirements of the Pension Fund for the Village's
portion or the financing of the Pension Fund.
c) The Actuarial Valuation may serve as this annual report.
6.6 Record keeping as to Employee Participants.
a)—A file shall be maintained on each active employee who is a participant-- - - Formatted. Indent: Cert: a', fist line: o°
and member of the Pension Fund. Records shall be maintained On the F'nanGe
DepaFtment as a part of his or her PeFSennei file by the Pension Administrator.
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Formatted: Indent Left: 0.75", First line: 0"
Each active member's file should contain, if available, the following
documentation:
1. Application for Membership (attached as Exhibit Appendix 'C");
2. A_record of theparticipant's contributions and service credits on an _ - Formatted: Highlight
annual basis; What is this?
3. Yearly creditable service a
_ce reports received from the Village (if anyl;
_ - Formatted: Highlight
G R S Statements?
4. Copies of any orders and decisions of the Pension Board arantina
denying a retirement pension filed by the participant;
5. Designation of beneficiary form;
6. All correspondence from the participant and a copy of any
correspondence to the participant.
b) Each participant shall be required to complete a Designation of
Beneficiary Form.
6.7 Record keeping as to Retirees.
a) Retiree. A file shall be maintained on all retired members of the Pension
Fund. Each retired member's file should contain the following
documentation.
1. Application for retirement benefits (attached as Exhibit Appendix
"D�);
2. Documentation as to Benefit Computations
a. Date of Birth;
b. Date of Hire;
C, Date of Retirement-,
d. Creditable Service Records;
e. Applicable Pension Rates;
f. Salary attached to the job held by the pension applicant;
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g. All documents previously maintained pursuant to 6.6 above;
h. Certificate of marriage, if applicable, and personal
information on spouse.
b) Vested Deferred Retiree. A file shall be maintained on all vested deferred
retirees of the Pension Fund. Each file should contain the following
documentation.
1. Application for vested deferred retirement (attached as Exhibi
AppeRdix E");
2. Documentation as to Benefit Computations
a. Date of Birth;
b. Date of Hire;
c. Date of Retirement;
d. Creditable Service Records;
e. Applicable Pension Rates;
f. Salary attached to the job held by the pension applicant;
g. All documents previously maintained pursuant to 6.6 above;
h. Certificate of marriage, if applicable, and personal
information on spouse.
Upon reaching normal or early retirement, the member will need to complete an
Application for retirement benefits (attached as E hi i AppeRdix D") to initiate
the payment of benefits.
6.8 Record keeping as to Separated Members. A file shall be maintained on each
participant and Pension Fund member who withdraws from the Pension Fund.
Each file should contain the following documentation:
a) Written application withdrawing from the Pension Fund and requesting a refund
of contributions;
b) Service date documentation;
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c) Documentation as to how refund was computed;
d) Copy of canceled check or other documentation indicating payment of refund;
e) All documents previously maintained pursuant to 6.7 above.
6.9 _Confidentiality. To the extent permitted by law, all records of the Pension Board
shall be considered confidential and not subject to disclosure to the general
public.
6.10 Florida Public Records Law or Freedom of Information Act Requests. Any
request for information or to review documentation made pursuant to the Florida
Public Records Law or the Freedom of Information Act shall be handled by the
Pension Board's legal counsel. A copy of the request for information should be
immediately sent to the Pension Board's legal counsel.
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PART 7 - ADJUDICATION RETIREMENT PENSION CLAIMS Accurate? _ Formatted: Hghkght
7.1 Appeal procedures.
a) The applicant for benefits under these Rules and Regulations may, within
twenty (20) days after being informed of the denial of his request for
pension benefits, appeal said denial by filing a reply to the proposed order
with the pension's coordinator. If no appeal is filed within the time period,
then the proposed order shall be final.
b) The board of trustees shall hold a hearing within forty-five (45) days of the
receipt of the appeal. Written notice of said hearing shall be sent by
certified mail to the applicant at the address listed on his application ten
(10) days prior to the hearing.
c) The procedures at the hearing shall be as follows:
1) All parties shall have an opportunity to respond, to present physical
and testimonial evidence and argument on all issues involved, to
conduct cross-examination, submit rebuttal evidence, and to be
represented by counsel. Medical reports and depositions may be
accepted in lieu of live testimony, at the board's discretion.
2) All witnesses shall be sworn.
3) The applicant and the board shall have an opportunity to question
all witnesses.
4) Formal rules of evidence and formal rules of civil procedure shall
not apply. The proceedings shall comply with the essential
requirements of due process and law.
5) The record in a case governed by this subsection shall consist only
of:
A) A tape recording of the hearing, to be taped
and maintained as part of the official files of the
board of trustees, by the pension's secretary.
B) Evidence received or considered.
C) All notices, pleadings, motions and
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intermediate rulings.
D) Any decisions, opinions, proposed or recommended
orders or reports by the board of trustees.
d) Within thirty (30) days after the hearing, the board shall take one of the
following actions:
1) Grant the pension benefits by overturning the proposed order by
majority vote.
2) Deny the benefits and approve the proposed order as a final order,
after making any changes in the order that the board feels is
necessary.
A) Findings of fact by the board shall be based on competent,
substantial evidence on the record.
B) Within twenty (20) calendar days after rendering its order,
the board of trustees shall send by certified mail a copy of
said order to the applicant.
C) The applicant may seek review of the order of the board of
trustees by filing a petition for writ of certiorari with the circuit
court within thirty (30) days.
7.2 Subpoenas.
a) The Pension Board has the power to subpoena witnesses or
documentation in all proceedings under these rules and regulations. The
Pension Board shall retain a copy of each subpoena that is issued. The
Pension Board will also issue a check with each subpoena for mileage or
witness fees as provided by law on any subpoena that the Pension Board
initiates on its own behalf.
b) At the request of any applicant in a retirement pension proceeding, the
Pension Board will execute and issue subpoenas. The subpoena shall be
prepared on a form acceptable to the Pension Board. The Pension Board
will not be responsible for the payment of any mileage or witness fees as
required by law. Such fees that be the responsibility of the person
requesting the subpoena.
Page 15 of 19
PART 8 - INVESTMENT POLICIES
8.1 Purpose. The Board of Trustees ("Trustees") of the Village of Tequesta
General Employees Retirement Plan ("Fund") has the power and authority to
invest and reinvest the moneys of the fund, and to hold, purchase, sell, assign,
transfer, and dispose of any securities and investments held in the fund,
including the power and authority to employ counseling or investment
management services. Attached as Exhibit "F" is a copy of the Investment Policy
Statement of the Board.
Page 16 of 19
PART 9 - INCOME DEDUCTION ORDERS
9.1 Income Deduction Orders.
a) Assignment of Benefits Upon Divorce The prohibition against
attachments, garnishment, execution or any other legal process shall also
apply to a domestic relations order, unless such order is determined to be
an income deduction order as defined by Florida Statutes §§61.1301,
61.046(4) and 61.076, and such benefit is only for purposes of alimony
and/or child support.
b) Filing of Claims All claims for benefits under an income deduction order
shall be filed, in writing, with the Board of Trustees along with a copy of
the income deduction order.
c) Definitions
1) Altemate Payee - The term "alternate payee" means any spouse,
former spouse, child or other dependent of a Participant who is
recognized by a domestic relations order as having a right to all, or
a portion of, the benefit payable under the Plan with respect to the
Participant.
2) Income Deduction Order - The term "income deduction order"
means any judgment, decree or order which relates to child support
or alimony payments to a spouse (or former spouse), child, or other
dependent of a Participant, made pursuant to a state domestic
relations law.
d) Designation of Representative. The Participant and the alternate payee(s)
may designate an attorney or other representative to receive notices and
communications from the Trust Fund instead of the Participant or the
alternate payee. This designation must be in writing and must be signed
by the Participant or by the alternate payee.
e) Payment of Benefits Pending Trustees' Decision. Pending a decision by
the Board of Trustees whether an income deduction order should be
honored, any amount which would be payable to the aitemate payee(s) if
the income deduction order was honored shall be accounted for
separately.
Page 17 of 19
PART 10 - COMMUNICATIONS
112.1 Custodian
Communications with the Custodian reg re ding letters of instruction for the
disposition of assets is to follow the below protocol:
al All emails must be from the Plan Administrators office. No emails
ontaininu letters of instruction will be sent to the Custodian directly
from a Trustee.
b All letters of instruction will require two (2) signatures.
Q When a letter of instruction is sent to Salem Trust it will be - ro t a: HOlOt
immediately followed up with a telephone call to the Custodian to
confirm receipt. Who makes this call?
d) As a cross check on the completion of task from the meetinctt
minutes will be prepared within two (2) weeks after the meeting.
Page 18 of 19
Village of Tequesta General Employees'
Pension Trust Fund
ADMINISTRATIVE RULES - SIGNATURE PAGE
Chairman Secretary
Trustee Trustee
Trustee
Witnessed by:
B&Mg
Revised: November 2012
February 2015
H:6equesta GE 10121PIan Docs & Rules'ADMIN RLILESQ015W5 Administrative Rules (DraR).wpd
Page 19 of 19
Exhibit "A"
Expense Policy
VILLAGE OF TEQUESTA
GENERAL EMPLOYEES' PENSION FUND
STATEMENT OF POLICY FOR TRUSTEE EXPENSES
WHEREAS, the Trustees of the Village of Tequesta General Employees' Pension
Fund ("Trustees") attend conferences, seminars, and meetings ("conferences") and
otherwise engage in services necessary to perform their duties for the Village of Tequesta
General Employees' Pension Fund ("Fund"); and
WHEREAS, the Trustees desire to adopt a Statement of Policy regarding Trustee
conference expenses consistent with their fiduciary duties, the provisions of Section
112.061, Florida Statutes, Village of Personnel Policy and all other applicable laws;
NOW, THEREFORE, it is hereby resolved that the following Statement of Policy
Regarding Trustee Expenses is hereby adopted.
1. GENERAL CONSIDERATIONS
A. A Trustee shall be reimbursed only for expenses properly and actually
incurred in the performance of his or her duties with the Fund.
B. A Trustee shall not be reimbursed for any expenses for which he or she had
been paid or is due payment from any other source. A Trustee shall not be
reimbursed for any expenses which would result in double payment.
C. Trustee expenses shall be reasonable in amount and necessarily incurred,
taking into account the area of the country where the expense is incurred
and the standards for business expenses allowable by Florida Statutes and
the Internal Revenue Service.
HANSON, PERRY & JENSEN, P.A.
West Palm Beach, Florida
Page 1 of 5
D. The Board of Trustees shall approve all reimbursements for expenses in
accordance with this Statement of Policy.
41. TRAVEL EXPENSES
Trustees are entitled to payment for the actual costs incurred for:
A. Air: Tourist Class (most economical) airfare.
B. Car: The IRS standard mileage rate, subject to the maximum payable if
the Trustee could have traveled by air. If more than one Trustee travels in
the same car, reimbursement shall be made to the Trustee who incurs the
expense.
C. Other Means of Travel: Actual cost incurred on a common carrier, subject
to the maximum payable if the Trustee could have traveled by air.
No travel expenses shall be allowed if the Trustee is transported without charge.
III. LODGING EXPENSES
Trustees are entitled to reimbursement for actual costs incurred for lodging based
on a single occupancy rate.
IV. FOOD EXPENSE
Trustees are entitled to reimbursementfor actual costs incurred subject to the
maximum allowable of $42.00 per day. A nioLU'kL ?
V. OTHER EXPENSES
Trustees are entitled to reimbursement for actual costs incurred for taxi, ferryfares,
bridge, road and tunnel tolls, storage or parking fees and communication expense.
HANSON, PERRY & JENSEN, P.A.
West Palm Beach, Florida
Page 2 of 5
VI. PER DIEM
In lieu of all other payment for subsistence (including Lodging, Food and Other
Expenses), a Trustee traveling overnight shall be entitled to receive $50.00 per
diem, plus Travel and Conference Expenses. If travel is overnight but less than 24
hours, then $12.50 shall be paid for each six (6) hours, or fraction thereof, of the
day, measured from midnight to midnight.
VII. CONFERENCE EXPENSES
Convention registration fees and other actual and necessary fees for attending
events which are not included in a basic registration fee, such as banquets are
reimbursable. if meals or lodging are included in the registration fee, the Trustee
will not be entitled to be reimbursed for such expenses separately, and the per diem
shall be reduced.
VIII. DAYS FOR WHICH REIMBURSEMENT IS PAYABLE
A. A Trustee shall be entitled to reimbursement while attending any conference
and for direct travel to and from the point of origin and the point of
destination, not to exceed one day of travel each way before and after the
conference, unless it is not practical to complete the travel in one day.
B. A Trustee shall not be entitled to any expense incurred as a result of any
trips or personal expenditures outside the scope of his or her direct travel
route on behalf of the Plan.
HANSON, PERRY & JENSEN, P.A.
West Palm Beach, Rorida
Page 3 of 5
IX. ACCOUNTING FOR EXPENSES
A. A Trustee must submit an expense voucher for all expenses incurred,
including per diem, within thirty (30) days after incurring the expense, on a
form approved by the Board of Trustees. The approved Trustee Expense
Voucher form is attached hereto. A copy of the Program or Agenda of the
conference must be attached to the completed Trustee Expenses Voucher.
B. Except for reimbursement for per diem, a Trustee must attach invoices,
receipts or other written documentation to the completed Trustee Expense
Voucher. Receipts are required for each expense ' If
any receipt includes amounts not subject to reimbursement (e.g., for a
Trustee's spouse), the receipt should so indicate and be reduced
accordingly.
C. For any conference where a certificate of attendance is issued, a Trustee
must earn such a certificate in order to be reimbursed for expenses, unless
the Trustee's absence is the result of illness or other good cause.
D. The Certified Public Accountant for the Plan shall audit all Trustees
expenses on an annual basis. The Certified Public Accountant shall notify
the Board of Trustees if any expenses for Trustees do not comply with this
Statement of Policy regarding Trustee Expenses.
HANSON, PERRY & JENSEN, P.A.
West Palm Beach, Florida
Page 4 of 5
X. ADVANCES
A. A Trustee may receive an advance to cover the expenses to be properly and
actually incurred in the immediate future. However, a copy of the Program
or Agenda for the conference must be provided before the advance is paid,
itemizing the registration fee and any meals or lodging included in the
registration fee.
B. A Trustee shall promptly return to the Pian any amount advanced which
exceeds the expenses incurred.
C. A Trustee shall be entitled to reimbursement for expenses incurred in excess
of the advance, but consistent with this Statement of Policy, and subject to
approval by the Trustees.
THIS STATEMENT OF POLICY REGARDING TRUSTEE EXPENSES is adopted
by the Board of Trustees of the VILLAGE OF TEQUESTA GENERAL EMPLOYEES'
PENSION FUND this day oflf��` 2007 to be effective on the
day of N)ye rn b-cr- , 20 V
TRUSTEES
B By:
As Chairman As Secretary
--6Witnessed by: /
BSJIka - February 1, 2007
RJequesta GE 1012TOLICIES & Forms12007 GE -revised EXP POLICY,wpd
HANSON, PERRY & JENSEN, P.A.
West Palm Beach, Florida
Page 5 of 5
Exhibit "B"
Travel Expense Reimbursement Voucher
TEQUESTA GENERAL EMPLOYEES` PENSION TRUST FUND
Travel Expense Reimbursement Form
Department Name: Travel Dates:
Employee Name: Mileage Rate: IRS Current
uetaitea t_xuenses:
Transportation Sun Mon Tue Wed Thu Fri Sat Totals
Odometer Readings 0
Miles Driven 0
Reimbursement $
Parking and Tolls $ -
[Auto Rental $ -
Taxi/Limo $ -
Fuel $ -
Airfare $ -
Other $ -
Totals 01
Lodging Sun Mon Tue Wed Thu Fri Sat Totals
Lodging $
Other $
Totals $
Food
Sun Mon Tue Wed Thu Fri Sat Totals
Breakfast
$ -
Lunch
$ -
Dinner
$ -
Other
$ -
Totals
$
Miscellaneous Sun Mon Tue Wed Thu Fri Sat Totals
Supplies! Equipment $
Phone,Fax $
Other $
Totals $
Conference/Seminar/Meeting
Date Place Name & Location Business Purpose Registration Amount
Totals
Summary of Funansas
Total Expenses
$
Less Cash Advance
$
Less Company Charges
$
Amount Due to Employee
$
Amount Due to Village
$
Account #
Account #
Prepared By: Date:
Signature
Approved By: Date:
Signature
Exhibit "C"
Application for Membership
VILLAGE OF TEQUESTA
GENERAL EMPLOYEES' PENSION TRUST FUND
ENROLLMENT AND BENEFICIARY DESIGNATION FORM
I, , do hereby request to participate in the General Employees' Pension Trust Fund
of the Village of Tequesta on the date as of which I am eligible to begin participation under the terms of the Plan. I
understand the conditions of the Plan as provided to me and agree to the terms and conditions of the Plan.
In the event of my death prior to termination of employment, I hereby designate the following Beneficiary(ies) to
receive my death benefit from the Plan:
Name of Participant:
Address:
Date of Birth: Date of Employment:
Primary Beneficiary: Relationship:
Address:
Contingent Beneficiary lies):
Address:
By completion of this form, any and all previous beneficiary designations are hereby revoked.
The right is reserved to revoke this designation and subject to notice to the Trustee to designate a new beneficiary.
Signature
Social Security Number
Date Witnessed Signature of Witness or Plan Official
Exhibit "D"
Application for Retirement Benefits
TEQUESTA GENERAL EMPLOYEE PENSION FUND
APPLICATION FOR PENSION BENEFITS
PLEASE PRINT OR TYPE:
1. a. Name of Employee:
b. Social Security Number*:
*In accordance with the provisions of §119.071(5)(a)6g, Florida Statutes,
the collection and use of social security numbers is authorized for the
purpose of the administration of the pension fund.
C. Date of Birth: (Attach copy of birth certificate or other proof)
d. Home Telephone Number: (include area code)
Additional Phone Number: (Include area code)
e. Home Address:
f. Permanent mailing address to which check and correspondence should be
sent:
2. a. Are you currently married? Yes No
C.
If yes, please complete the following:
Name of Spouse:
Spouse's Social Security Number*:
*In accordance with the provisions of §119.071(5)(a)69, Florida Statutes,
the collection and use of social security numbers is authorized for the
purpose of the administration of the pension fund.
d. Spouses Date of Birth: (Attach birth certificate or other proof)
e. Date of Marriage: (Attach copy of certificate of marriage)
Tequesta General Employee Pension Plan
Pension Application
3. Names and Dates of Birth of Child(ren):
(Attach copies of birth certificate(s) or other proof for each child listed)
Name Date of Birth
4.
(Attach additional page, if needed)
Names of Your Living Parents:
a. Mother:
b. Father:
5. a. Date of hire by the Village as a General Employee:
b. Current Position within the Village:
6. 1 plan to retire on: (Date)
7. Type of retirement for which you are applying:
Normal Retirement
Deferred Retirement Option Plan
Early Retirement
Line -of -Duty Disability
Non -Line -of -Duty Disability
Page 2 of 5
Tequesta General Employee Pension Plan
Pension Application
8. If you are applying for a disability retirement, please complete the following:
a. Date disability commenced:
b. Nature and cause of disability:
C. Did your disability result from any of the following:
Yes No
(1) Use of drugs, intoxicants
or narcotics?
(2) Due to a fight, riot, civil
insurrection or crime?
(3) From an injury or disease
sustained while you were
serving in any armed forces?
(4) After your employment with
the Village terminated?
(5) While working for anyone
other than the Village and
arising out of such employment?
d. A copy of my doctor's medical
opinion is attached:
9. Pian Information: Have you purchased time under a Buyback Policy?
YES NO
If you answered yes, when did you purchase this time and how many years of
service did you purchase?
Page 3 of 5
Tequesta General Employee Pension Plan
Pension Application
NOTE: If you are applying for a disability benefit, records must be filed to show
that the disability is total and permanent. If application is made for a line -
of -duty disability, copies of workers' compensation records must also be
filed to show that the disability occurred in the line -of -duty. Also, the
Board of Trustees may require you to be examined by a doctor selected
by the Board.
I have reviewed the Designation of Beneficiary Form filed with the Board of
Trustees and I hereby certify its accuracy. If I desire to change my designated
beneficiary(ies), I will file a new Designation of Beneficiary Form with this Application.
I hereby certify that the above statements are true and correct to the best of my
knowledge. I understand that a false statement may disqualify me for benefits.
This Application revokes any prior Applications.
Page 4 of 5
Tequesta General Employee Pension Plan
Pension Application
THIS DOCUMENT MUST BE NOTARIZED WHICH REQUIRES
THAT YOU SIGN IT IN THE PRESENCE OF A NOTARY PUBLIC
WHO WILL THEN NOTARIZE THE DOCUMENT.
EMPLOYEE'S SIGNATURE
STATE OF FLORIDA
COUNTY OF
DATE
SWORN TO (or affirmed) and subscribed before me, this day of
' 2 by (Please print name of employee)
Please check one: Employee is: Personally known to me; OR
Produced Identification
Type of Identification Produced:
Notary Signature
Printed Name of Notary*
*In accordance with the provisions of Florida
Statutes, ,§117.04(4)(1), below the signature, the
name of notary must be printed, typed or stamped.
The .Notafy seal must be affixed to the side of the
signature or below the printed name.
Page 5 of 5
BsJlka
November 19, 2009
CAUserslOwnerTocumentsWJ FileslTEQlPens App.wpd
Exhibit "E"
Application for Vested Deferred Retirement Employee
VILLAGE OF TEQUESTA BENEFIT AUTHORIZATION FORM
Fl General Employees Pension Trust Fund ❑ Rollover ❑ Vested Option
❑ Public Safety Officers Pension Trust Fund ❑ Distribution ❑ Not Vested/Leaving funds in Plan
PAYEE DATA
AUTHORIZATION SIGNATURES
Please sign and date in the boxes below:
Tax Form Address ❑ (same as mailing address)
Mail check to: : Payee
Financial Institution/Direct Deposit
Check if payee is a beneficiary
Payee Name (Last. First, Middle)
Secretary Board of Trustees:
Address
Address
Board of Trustees:
City
City
Date:
Reason for separation of service/termination from plan:
Normal tennination
F Resigned
_: Nonmal retirement
Early retirement
Full-time to Part -Time status
- Death benefit from the account of:
* Social Security Number
Participant Census Information
Date of birth : Date of hire:
Date of entry: Date of separation of service:
Direct rollover
Information:
Participant has elected a direct rollover
Yes No
If yes, select from the following:
Disability retirement
__ Direct rollover to IRA
Direct rollover to qualified plan
Other
Amount of Rollover
Employer: Employee:
Total:
AUTHORIZATION SIGNATURES
Please sign and date in the boxes below:
Employee
FBO (Name of Participant)
Finance Director:
Date:
Account number:
Secretary Board of Trustees:
Date:
Address of financial institution:
Board of Trustees:
Date:
Distribution information prepared by:
Date:
Distribution Information
Benefits
Employer
Employee
Total
Taxable
Non-taxable
3% Interest (General
Employees Only)
Total gross
20% mandatory withholding
Total check amount
❑ If you have completed (6) years service and are eligible for a deferred pension but have elected a roll-over, please check this box, indicating
that you understand that you have forfeited your rights to the Village's contribution, as only your contributions are eligible for roll-over.
If you do NOT wish to have a rollover or contribution distribution, please select one of the following options:
❑ I do not wish to receive a refund of my contributions as I have completed six (6) years service and would like to receive a future, vested,
accrued benefit, the details of which will be communicated to me in writing.
I have less than six (6) years service and understand that I do not qualify for a deferred pension, but would like to leave my contributions in the
fund for five (5) years, pending the possibility of being rehired in a full-time position.
Employee Signature Date
*In accordance with the provisions of §I 19.071(5)(6)(g), Florida Statutes, the collection and use of social security numbers is authorized for the
purpose of the administration of the pension fund.
Form updated: 1114109(SS# Provision added)
I
AFFIDAVIT
(Persons withdrawing funds)
, hereby release The General Employee' Pension Trust Fund 1
The Public Safety Pension Trust Fund of the Village of Tequesta from any further liability to me for any form
of benefits under the Pension Plan.
THIS FORM MUST BE SIGNED IN THE PRESENCE OF A NOTARY PUBLIC.
State of FLORIDA
County of PALM BEACH
Sworn to (or affirmed) and subscribed before me this
20
, by
produced the following identification:
[Notary Seal]
day of
, who is personally known to me or who
Notary Public
Print, type or stamp name of Notary
Form updated: 1114109 (SS4 Provision added)
Exhibit T"
Investment Policy Statement
VILLAGE OF TEQUESTA
(Plan Sponsor)
GENERAL EMPLOYEES' RETIREMENT PLAN
Investment Policy Statement
I. PURPOSE OF INVESTMENT POLICY STATEMENT
The Pension Board of Trustees, as named fiduciaries, maintains that an important determinant of
future investment returns is the expression and periodic review of the Plan's investment
objectives. To that end, the Board has adopted this statement of Investment Policy and directs
that it apply to all assets under their control.
In fulfilling their fiduciary responsibility, the Board recognizes that the retirement system is an
essential vehicle for providing income benefits to retired participants or their beneficiaries. The
Board also recognizes that the obligations of the Plan are long-term and that investment policy
should be made with a view toward performance and return over a number of years. The
general investment objective, then, is to obtain a reasonable total rate of return - defined as
interest and dividend income plus realized and unrealized capital gains or losses - commensurate
with the Prudent Investor Rule and any other applicable statute.
Reasonable consistency of return and protection of assets against the inroads of inflation are
paramount. However, the volatility of interest rates and securities markets make it necessary to
judge results within the context of several years rather than over short periods of two years or
less.
The Board will employ professional Investment Management firms to invest the assets of the
Plan. Within the parameters allowed in this document, the Investment Managers shall have full
discretion, including security selection, sector weightings and investment style.
Additionally the Board will retain the services of an independent outside Investment Consultant
and Monitor Firm to assist it in the initial development of an Investment Policy Statement,
selection of qualified Investment Managers and to perform ongoing and periodic performance
evaluation and policy adherence reviews of all Investment Managers.
The Board, in performing their investment duties, shall comply with the fiduciary standards set
forth in Employee Retirement Income Security Act of 1974 (ERISA) at 29 U.S.C. S. 1104(a) (1)
(A) — (C). In case of conflict with other provisions of law authorizing investments, the
investment and fiduciary standards set forth in this section shall prevail.
August 2013 Page 1
II. TARGET ALLOCATIONS
In order to provide for a diversified portfolio, the Board has engaged Investment Managers. The
managers are responsible for the assets and allocation of their mandate only and will be provided
an addendum to this policy with their specific performance objectives and investment criteria.
A.7a7 VIA' tyx1 3 i F 1
; �5�
kt {f ,(a QQ
1 }k[tvlAJl�!• N4"R�YJ14S a46 ! ?
a
Domestic Equity
50%
40%-60%
S&P 500
International Equity
15%
10%-25%
MSCI AC World ex USA
Total Equities
65%
50%-70%
Domestic Core Fixed Income
30%
25%-40%
Barclays Intermediate Aggregate
Diversified Fixed income*
5%
0%-10%
Diversified Fixed Income Index**
Total Fixed Income
35%
30%-50%
* Benclunark will default to "domestic core fixed income" if these portfolios are not funded.
** Diversified Fixed Index: 33% JPM EMBI + 133% BC Corp HY 33% Ciligroup Non -US World Gov Bond
With the assistance of the Investment Consultant and Monitor Firm, the Trustees will monitor
the aggregate asset allocation of the portfolio, and will rebalance to the target asset allocation
based on market conditions. If at the end of any calendar quarter, the allocation of an asset class
falls outside of its allowable range, barring extenuating circumstances such as pending cash
flows or allocation levels viewed as temporary, the asset allocation will be rebalanced into the
allowable range. To the extent possible, cash contributions into and withdrawals from the
portfolio will be executed proportionally based on the most current market values available. The
Trustees do not intend to exercise short-term changes to the target allocation.
III. INVESTMENT PERFORMANCE OBJECTIVES
The following performance measures will be used as objective criteria for evaluating the
effectiveness of the Investment Managers.
A. Total Portfolio Performance
The performance of the Total Portfolio will be measured for rolling three and five year
periods. These periods are considered sufficient to accommodate the market cycles
experienced with investments. The performance of this portfolio will be compared to
the return of a portfolio comprised of 50% S&P 500, 15% MSCI AC World ex USA,
30% Barclays Capital U.S. Intermediate Aggregate Index, and 5% Diversified Fixed
Income Index**.
2. On a relative basis, it is expected that the total portfolio performance will rank in the top
401" percentile of the appropriate peer universe over three and five-year time periods.
3. On an absolute basis, it is expected that total return of the combined portfolio will equal
or exceed the applicable actuarial earnings assumption in effect (currently 7.5%), and
equal or exceed the Consumer Price Index plus 3% over three to five year periods.
August 2013
Page 2
B. Equity Performance
The combined equity portion of the portfolio, defined as common stocks and convertible
bonds, is expected to perform at a rate at least equal to the 77% S&P 500 + 23% MSCI -AC
World ex USA Stock Index, All portfolios are expected to rank in the top 401h percentile of
the appropriate peer universe over three and five-year time periods.
C. Fixed Income Performance
The overall objective of the fixed income portion of the portfolio is to add stability,
consistency and safety to the total portfolio. The fixed income portion of the portfolio is
expected to perform at a rate at least equal 86% of the Barclays Capital U.S. Intermediate
Aggregate and 14% of a Diversified Fixed Income Index**. All portfolios are expected to
rank in the top 40`' percentile of the appropriate peer universe over three and five-year time
periods.
** Diversified Fixed Index; 33% )PM EMBI + 133% BC Corp HY 133%n Citigroup Non -US World Gov Bond
IV. INVESTMENT GUIDELINES
A. Authorized Investments
Invest and reinvest the assets of the General Employees Pension Plan in 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 General Employees Pension Plan
shall be entitled under the provisions of this chapter and pay the initial and subsequent
premiums thereon.
Invest and reinvest the assets of the General Employees Pension Plan in;
{Time or savings accounts of a national bank, a state bank insured by the Bank Insurance
Fund, or a savings, building, 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.
Obligations of the United States or obligations guaranteed as to principal and interest by the
government of the United States.
Bands, stocks, commingled funds administered by National or State Banks, or other
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:
The corporation is listed on any one or more of the recognized national stock exchanges or
on the National Market System of the NASDAQ Stock Market and, in the case of bonds
only, holds a rating in one of the four highest classifications by a major rating service; and
August 2013 Page 3
Specifically:
1. Equities:
a. Traded on a national exchange.
b. Not more than 5% of the Plan's assets, at the time of purchase, shall be invested in
the common stock, capital stock or convertible bonds of any one issuing company,
nor shall the aggregate investment in any one issuing company exceed 5% of the
outstanding capital stock of the company.
2. Fixed Income:
a. All fixed income investments shall have a minimum rating in one of the four
highest classifications by a major rating service, except that no more than 5% of the
total portfolio may be invested in securities that fall below these rating guidelines.
b. The value of bonds issued by any single corporation shall not exceed 10% of the
total fund.
c. 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.
3. Money Market:
a. The money market fund or STIF provided by the Plan's custodian.
b. Government paper backed by full faith & credit of the United States Government.
4. Foreign Securities:
a. Limited to securities traded on a national exchange and fully and easily negotiable
securities.
b. Not more than 5% of the Plan's assets, at the time of purchase, shall be invested in
the common stock, capital stock or convertible bonds of any one issuing company,
nor shall the aggregate investment in any one issuing company exceed 5% of the
outstanding capital stock of the company.
c. Foreign securities (including equities and fixed income securities) shall not exceed
twenty-five percent (25%) of the value at market of the fund.
5. Commingled Funds/Mutual Funds & Exchange Traded Funds:
Investments made by the Plan may include commingled funds. For purposes of this
policy such funds may include mutual fiends, commingled funds, and exchange -traded
funds.
a. Such funds may be governed by separate policy which may include investments not
expressly permitted in this Investment Policy Statement. In the event of investment
by the Plan into a fund the Board will adopt the prospectus or governing policy of
that fund as the stated addendum to this Investment Policy Statement.
b. The asset classification of the fund will be based upon its investment objective.
c. For compliance purposes, such funds will be treated as a single investment.
August 2013
Page 4
B. Trading Parameters
When feasible and appropriate, all securities shall be competitively bid. Except as otherwise
required by law, the most economically advantageous bid shall be selected. Commissions
paid for purchase of securities must meet the prevailing best -execution rates.
C. Limitations
1, Investments in corporate common stock and convertible bonds shall not exceed seventy
percent (70%) of the Fund assets at market.
2. Foreign securities (including equities and fixed income securities) shall not exceed
twenty -rive percent (25%) of the value at market of the fund.
D. Absolute Restrictions
There will be no investment activity in the following;
1. Any investment prohibited by State or Federal Law.
2. Any investment not specifically allowed as part of this policy.
3. Illiquid investments, as described in Chapter 215.47, Florida Statutes.
4. Any investment in speculative derivative instruments such as short sales, margin
purchases, borrowings, commodities, puts, calls, straddles, warrants or other options
(except those as part of an equity investment), foreign exchange hedging, private
placements, venture capital, limited partnerships, other than those defined under Section
IV.A.5 (a) of this Investment Policy Statement pertaining to investments held in
Commingled Funds/Mutual Funds & Exchange Traded Funds,
V. COMMUNICATIONS
A. On a monthly basis, the custodian shall supply an accounting statement that will include a
summary of all receipts and disbursements and the cost and the market value of all assets.
On a quarterly basis, the Investment Managers shall provide a written report affirming
compliance with the security restrictions of Section IV above and a summary of common
stock diversification and attendant schedules.
B. In addition, the Investment Managers shall deliver each quarter a report detailing the Plan's
performance, adherence to the investment policy, forecast of the market and economy,
portfolio analysis and current assets of the Plan. Written reports shall be delivered to the
Board within 30 days of the end of the quarter. A copy of the written report shall be
submitted to the person designated by the Village, and shall be available for public
inspection. The Investment Managers will provide immediate written and telephone notice
to the Board and Investment Consultant and Monitor Firm of any significant market related
or non -market related event, specifically including, but not limited to, any deviation from
the standards set forth in Section IV above.
C. The Investment Managers and Investment Consultant and Monitor Firm will disclose all
securities that do not comply with Section IV in each quarterly report.
August 2013
Page 5
D. If the Plan owns investments at the end of a calendar quarter that complied with Section IV
at the time of purchase, which do not satisfy the applicable investment standard, then such
investment shall be disposed of at the earliest economically feasible opportunity in
accordance with the prudent man standard of care and no additional investment may be
made. However an action plan outlining the disposition strategy shall be provided
immediately to the Board.
E. The Investment Consultant and Monitor Firm shall evaluate and report on a quarterly basis
the rate of return and relative performance of the Pian.
F. The Investment Consultant and Monitor Firm shall present a quarterly performance report to
the Board to quantify overall Fund performance as well as the individual performance
benchmarks of all Investment Managers. Additionally the Board and Investment Consultant
and Monitor will jointly meet with each Investment Manager to discuss performance results,
economic outlook, investment strategy and tactics and other pertinent matters affecting the
Plan on a periodic basis.
G. At least annually, the Board shall provide the Investment Managers with projected
disbursement needs of the Plan so that the investment portfolio can be structured in such a
manner as to provide sufficient liquidity to pay obligations as they come due. To this end
the Investment Managers should, to the extent possible, attempt to match investment
maturities with known cash needs and anticipated cash-flow requirements.
VI. COMPLIANCE
A. It is the direction of the Board that the plan assets are held by a third party custodian, and that
all securities purchased by, and all collateral obtained by the plan shall be properly
designated as Plan assets. No withdrawal of assets, in whole or in part, shall be made from
safekeeping except by an authorized member of the Board or their designee. Securities
transactions between a broker-dealer and the custodian involving purchase or sale of
securities by transfer of money or securities must be made on a "delivery vs. payment" basis
to insure that the custodian will have the security or money in hand at conclusion of the
transaction. Provided that all approved vendors transacting repurchase agreements perform
as stated in any Master Repurchase Agreement.
B. At the direction of the Board operations of the Plan shall be reviewed by independent
certified public accountants as part of any financial audit periodically required. Compliance
with the Board's internal controls shall be verified. These controls have been designed to
prevent losses of assets that might arise from fraud, error, or misrepresentation by third
parties or imprudent actions by the Board or employees of the plan sponsor, to the extent
possible.
C. Each member of the Board shall participate in a continuing education program relating to
investments and the Board's responsibilities to the Plan. It is highly suggested that this
education process begin during each Trustee's first term.
D. With each actuarial valuation, the Board shall determine the total expected annual rate of
return for the current year, for each of the next several years and for the long term thereafter.
This determination shall be filed promptly with the Department of Management Services, the
plan's sponsor and the consulting actuary.
August 2013
Page 6
E. The proxy votes must be exercised for the exclusive benefit of the participants of the Plan.
Each Investment Manager shall provide the Board with a copy of their proxy voting policy
for approval. On a regular basis, at least annually, each manager shall report a record of their
proxy vote,
F, Investments for which there is no generally recognized market or consistent accepted pricing
mechanism shall be valued at 50% cost. Assets without a fair market value shall be excluded
from determination of annual funding cost.
VII. CRITERIA FOR INVESTMENT MANAGER REVIEW
The Board wishes to adopt standards by which judgments of the ongoing performance of a
portfolio manager may be made. If, at any time, any three of the following is breached, the
portfolio manager will be warned of the Investment Consultant's serious concern for the Fund's
continued safety and performance. If any five of these are violated the consultant will
recommend a manager search for that mandate.
■ Four (4) consecutive quarters of relative under -performance verses the benchmark.
■ Three (3) year trailing return below the top 401h percentile within the appropriate peer
group and under performance verses the benchmark.
■ Five (5) year trailing return below the top 40111 percentile and under performance
verses the benchmark.
■ Three (3) year downside volatility greater than the index (greater than 100), as
measured by down market capture ratio.
■ Five (5) year downside volatility greater than the index (greater than 100), as
measured by down market capture ratio.
■ Style consistency or purity drift from the mandate.
■ Management turnover in portfolio team or senior management.
■ Investment process change, including varying the index or benchmark.
■ Failure to adhere to the IPS or other compliance issues.
■ Investigation of the firm by the Securities and Exchange Commission (SEC).
■ Significant asset flows into or out of the company.
■ Merger or sale of firm.
■ Fee increases outside of the competitive range.
■ Servicing issues — key personnel stop servicing the account without proper
notification.
■ Failure to attain a 60% vote of confidence by the Board.
Nothing in this section shall limit or diminish the Board's right to terminate the manager at any
time for any reason.
August 2013
Page 7
VIII. APPLICABLE VILLAGE ORDINANCES
If, at any time, this document is found to be in conflict with the Village Ordinances, the
Ordinances shall prevail.
IX. REVIEW AND AMENDMENTS
It is the Board's intention to review this document at least annually subsequent to the actuarial
report and to amend this statement to reflect any changes in philosophy, objectives, or
guidelines. In this regard, the Investment Manager's interest in consistency in these matters is
recognized and will be taken into account when changes are being considered. If, at any time,
any Investment Manager feels that the specific objectives defined herein cannot be met, or the
guidelines constrict performance, the Board should be notified in writing. By initialing and
continuing acceptance of this Investment Policy Statement, the Investment Managers concur
wltiWhe provisions of this document.
Vi h ge of Tequesta General Employees' Retirement Plan
hairman, Board of Trustees Date
J l-3
a a Investment Advisors Date
Ll
Sogdd hn Consulting Date
August 2013 Page 8