HomeMy WebLinkAboutOrdinance_18-17_10/12/2017 ORDINANCE NO. 18-17
AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF
TEQUESTA, FLORIDA, AMENDING THE VILLAGE CODE OF
ORDINANCES AT CHAPTER 2. ADMINISTRATION. BY AMENDING
SECTION 2-61. PENSION TRUST FUNDS, EXHIBIT A, THE GENERAL
EMPLOYEES' PENSION TRUST FUND, TO ADOPT REVISIONS
REQUIRED BY THE TERMS OF THE IRS FAVORABLE
DETERMINATION LETTER DATED MARCH 30, 2017; PROVIDING
THAT EACH AND EVERY OTHER SECTION AND SUBSECTION OF
CHAPTER 2. SHALL REMAIN IN FULL FORCE AND EFFECT AS
PREVIOUSLY ENACTED; PROVIDING A CONFLICTS CLAUSE, A
SEVERABILITY CLAUSE AND AUTHORITY TO CODIFY;
PROVIDING AN EFFECTIVE DATE; AND FOR OTHER PURPOSES.
WHEREAS, the Village Council of the Village of Tequesta desires to amend the general
employees' pension trust fund pursuant to the IRS Favorable Determination Letter dated March
30, 2017 to adopt a series of amendments required thereby; and
WHEREAS, said amendments have been approved by the Board of Trustees; and
WHEREAS, the pension trust fund actuary has reviewed the proposed amendments and
has made a determination that said amendments have no actuarial impact on the cost of the
pension fund; and
WHEREAS, the Village Council believes that these revisions to the general employees'
pension trust fund are in the best interests of the Village of Tequesta and the general employees'
pension trust fund beneficiaries; and will promote the public health, safety and welfare.
NOW,THEREFORE, BE IT ORDAINED BY THE VILLAGE COUNCIL OF THE
VILLAGE OF TEQUESTA, PALM BEACH COUNTY, FLORIDA,AS FOLLOWS:
Section 1: Chapter 2 of the Code of Ordinances of the Village of Tequesta is hereby
amended at Sec. 2-61 Pension Trust Funds, Exhibit A, the General Employees' Pension Trust
Fund, to adopt revisions required by the terms of the IRS favorable determination letter dated
March 30, 2017; providing that Exhibit A, attached hereto shall read as attached:
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Section 2: Each and every other section and subsection of Chapter 2. Administration.
of the code of ordinances of the Village of Tequesta shall remain in full force and effect as
previously enacted.
Section 3: All ordinances or parts of ordinances in conflict herewith be and the same
are hereby repealed.
Section 4: Should any Section or provision of this Ordinance or any portion thereof,
any paragraph, sentence or word be declared by a Court of competent jurisdiction to be invalid,
such decision shall not affect the validity of the remainder of this Ordinance.
Section 5: Specific authority is hereby granted to codify this Ordinance.
Section 6: This Ordinance shall become effective immediately upon adoption.
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EXHIBIT "A"
VILLAGE OF TEQUESTA
GENERAL EMPLOYEES' PENSION TRUST FUND
Section 1. Creation of Pension Trust Fund.
The Village of Tequesta General Employees' Pension Trust Fund for the purpose
of providing retirement, death and disability benefits to members of the Fund, certain
former general employees and survivor benefits to beneficiaries. Prior to November 9,
1999, all Village Employees were part of one Plan. Effective November 9, 1999, by
Village of Tequesta Ordinance No. 549, the Plan was separated befinreen the General
Employees and the Public Safety Employees. This System is intended to be a tax
qualified plan under Code Section 401(a) and meet the requirements of a governmental
plan as defined in Code Section 414(d).
Section 2. Definitions.
1. Statement of Definitions. As used herein, unless othen�vise defined or
required by the context, the following words and phrases shall have the meaning
indicated:
Accumulated Contributions means a Member's own contributions without
interest.
Actuarial EQuivalent means a benefit or amount of equal value, based upon 1983
Group Annuity Mortality table and an 8% rate of interest. For Plan Years beginning
after December 31, 2002 for purposes of Code Section 415(b), the mortality table is the
table used under Code Section 417(e) as prescribed by the Secretary of the Treasury in
Rev. Rul. 2001-62 95-6.
Averaqe Final Compensation shall mean one-twelfth (1/12) of the average salary
of the five (5) highest years of the last ten (10) years of credited service prior to
retirement, termination, or death, or the career average as a full time General
Employee, whichever is greater. A year shall be twelve (12) consecutive months
Beneficiary means the person or persons entitled to receive benefits hereunder
at the death of a Member who has or have been designated in writing by the Member
and filed with the Board. If no designation is in effect, or if no person so designated is
living, at the time of death of the Member, the beneficiary shall be the estate of the
Member.
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Board or Board of Trustees, means a member of the General Employee Board of
Trustees, which shall administer and manage the System herein provided and serve as
Trustees of the Fund for the benefit of beneficiaries of the general employees.
Code means the Internal Revenue Code of 1986, as amended from time to time.
Credited Service means the total number of years and fractional parts of years of
service as a General Employee who makes member contributions to the Plan, omitting
intervening years or fractional parts of yea�s when such General Employee was not
employed by the Village of Tequesta. A plan member may voluntarily leave his/her
contribution in the Fund for a period of five (5) years after leaving the employ of the
Village of Tequesta pending the possibility of being rehired in a full time position by the
Village of Tequesta without losing credit for the time of active participation as a plan
member. Should the employee not be re-employed with the Village of Tequesta in a full
time capacity within five (5) years, his/her contributions shall be returned to him/her with
three percent (3%) interest.
The years or fractional parts of years that a General Employee serves in the
military service of the Armed Forces of the United States or the United States Merchant
Marine, voluntarily or involuntarily, upon being granted leave by the Village of Tequesta
and separation from employment as a Village of Tequesta plan member, shall be added
to his/her years of credited service provided that:
A. The General Employee returns to his/her full time employment with the
Village of Tequesta within one (1) year from the date of his/her military
discharge. exceot that effective January 1. 2007. General Emolovees
who die or become disabled while servina on active dutv military
ervice shall be entitled to the riahts of this section even thouah
oartici�ant was not re-emoloved bv the Villaae as a General
Emulovee. Members who die or become disabled while on active
utv military service shall be treated as thouah re-emuloved as
General Emolovee the dav before the Member became disabled or
ied. and then either died a non-dutv death while em�loved or
came disabled from a non-dutv disabilitv. Eliaibilitv. if anv. for
benefits will then be determined under the �lan orovisions.
B. The General Employee deposits into the Fund the same sum that the
Member would have contributed if he/she had remained a General
Employee, plus an amount of interest that substantially approximates the
amount earned by the Fund from the date of return to employment to the
date of deposit in accordance with Code Section 414(u) effective
December 12, 1994.
C. The maximum credit for military service shall be five (5) years.
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Effective Date means the date on which this Ordinance becomes effective.
Fund means the Trust Fund established herein as part of the System, for the
benefit of General Employees.
General Emplovee means an actively employed full-time person employed by the
Village of Tequesta, including his/her initial probationary employment period, excluding
certified Firefighters and certified Police Officers.
General Emplovee Board means the board of trustees provided hereunder to
administer and manage the funds for the benefit of the General Employees.
Member means an actively employed General Employee that fulfills the
applicable prescribed participation requirements.
One hundred and finrentv monthlv payments quaranteed means benefits are
payable for the life of a retiree with a guarantee of 120 monthly payments. Should a
member die before 120 monthly payments (10 years) are made, then the remainder of
the 120 monthly payments will be paid to a beneficiary. Should a member receive
more than 120 monthly payments, then no benefit is payable to a beneficiary.
Plan Year means the 12 month period beginning October 1 of each year and
ending the following September 30.
Salary or Compensation means base wages to include regular earnings, vacation
pay, sick pay, plus all tax deferred items of income, excluding lump sum payments,
overtime, bonuses and longevity bonus. The amount of compensation taken into
account under the System may not exceed $200,000. This amount is subject to
adjustment as provided for in Code Section 401(a)(17), Code Section 415(d) and
Section 16 of this Plan.
Beainnina with salary earned after December 31. 2008. and oursuant to
nternal Revenue Code Section 414(u)(7). the definition of salary includes
nts oaid bv the Villaae as differential waaes to members who are absen
rom emolovment while in aualified military service.
Spouse means the lawful wife or husband of a plan member at the time of pre-
retirement, death or retirement.
Statement of Investment Policv means the written investment policy adopted by
the Boards pursuant to this Ordinance and F.S. 112.661, et seq., which shall apply to
funds under the control of the board.
Svstem means the Village of Tequesta General Employees' Pension Trust Fund
as contained herein and all amendments thereto.
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Vested deferred retirement means a Member who leaves the employ of the
Village with 6 or more years of credited service and who is not eligible for any
retirement benefit. This benefit is payable at early or normal retirement.
Villaqe means the Village of Tequesta, Florida.
2. Masculine Gender. The masculine gender, where used herein, unless the
context specifically requires otherwise, shall include both the feminine and masculine
genders.
Section 3. Membershia.
1. Condition of Eliqibilitv
All full time General Employees as of the effective date, and all
future new full time General Employees shall become Members of this
System as a condition of employment.
2. Membership
Each full time General Employee shall complete a form prescribed
by the Board providing the following information:
A. Acceptance of the terms and conditions of the Retirement
System, and,
B. Designation of a beneficiary or beneficiaries, and,
C. A certified statement as to prior medical and psychological
history.
3. Chanqe in Desiqnation of Beneficiary
A member may from time to time change his/her designated
beneficiary by written notice to the Board upon forms provided by the
Board. Upon such change, the rights of all previously designated
beneficiaries to receive any benefits under the System shall cease.
Section 4. Board of Trustees.
1. The sole and exclusive administration of and responsibility for the proper
operation of the retirement system and for making effective the provisions of this
ordinance is hereby vested in a Board of Trustees. The Board shall consist of five (5)
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Trustees, two (2) of whom, unless otherwise prohibited by law, shall be legal residents
of the municipality, who shall be appointed by the Tequesta Village Council, and two (2)
of whom shall be full-time General Employee members of the System, however, in the
event that either full time General Employee position remains vacant for three months or
more, then the position can be filled by a legal resident of the Village of Tequesta
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 to again be filled by a full time General Employee. The fifth (5th) Trustee
shall be selected by a majority vote of the other four (4) Trustees.
Each person seeking to fill a designated employee representative Board member
seat shall be elected by the full-time General Employee Members of the System. Upon
receipt of the fifth (5th) person's name the Tequesta General Council shall, as a
ministerial duty, appoint such person to the General Employee Board as its fifth (5tn)
Trustee. The fifth (5th) Trustee shall have the same rights as each of the other Trustees
appointed or elected as herein provided and shall serve a two (2) year term unless the
office is sooner vacated and may succeed himself or herself in office. Each resident
Trustee shall serve as Trustee for a period of two (2) years unless sooner replaced by
the Tequesta Village Council at whose pleasure the Trustee shall serve, and may
succeed himself or herself as a Trustee. Each General Employee Trustee shall serve
as Trustee for a period of two (2) years, unless he/she sooner leave the employment of
the Village or otherwise vacates his/her office as Trustee, whereupon a successor shall
be chosen in the manner as the departing Trustee. Each employee representative
Trustee may succeed himself or herself in office. The General Employee Board shall
meet at least quarterly each year. The Board shall be a legal entity with, in addition to
other powers and responsibilities contained herein, the power to bring and defend
lawsuits of every kind, nature, and description.
2. The Board shall, by majority vote, elect a chairman and secretary. The
secretary of the Board shall keep, or cause to be kept, a complete minute book of the
actions, proceedings, or hearings of the Board and shall preside over Board meetings in
the absence of the Chairman. The Trustees shall not receive any compensation as
such, but may receive expenses and per diem as provided by law.
3. Each Trustee shall be entitled to one vote on the Board. Three (3)
affirmative votes shall be necessary for any decision by the Trustees at any meeting of
the Board. A Trustee shall have the right to abstain from voting as the result of a
conflict of interest provided that Trustee states in writing the nature of the conflict
complies with the provisions of Section 112.3143, Florida Statutes.
4. The Board of Trustees shall engage such actuarial, accounting, legal, and
other services as shall be required to transact the business of the Retirement System to
administer and manage the fund and to meet the requirements of applicable law. The
compensation of all persons engaged by the Board of Trustees and all other expenses
00091912.DOC;1
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of the Board necessary for the operation of the Retirement System shall be paid from
the Fund at such rates and in such amounts as the Board of Trustees shall approve.
5. The duties and responsibilities of the Board of Trustees shall include, but
not necessarily be limited to, the following:
A. To construe the provisions of the System and determine all
questions arising thereunder.
B. To determine all questions relating to eligibility and participation.
C. To determine and certify the amount of all retirement allowances or
other benefits hereunder.
D. To establish uniform rules and procedures to be followed for
administrative purposes, benefit applications and all matters
required to administer the System.
E. To distribute to Members, at regular intervals, information
concerning the System.
F. To receive and process all applications for participation and
benefits.
G. To authorize all payments whatsoever from the Fund, and to
notify the disbursing agent in writing of approved pension payments
and other expenditures arising th�ough operation of the System and
the Fund.
H. To have performed actuarial studies in accordance with
Florida Statute 112.63 providing a copy of the same to the Division
of Retirement, and with at least biennial valuations, and make
recommendations regarding and all changes in the provisions of
the System.
I. Ensure compliance with Article X, Section 14, of the Florida
Constitution, requiring that any increase in benefits be funded on an
actuarially sound basis.
J. Ensure the completion of an actuarial impact statement prior
to the adoption of a change in the plan's retirement benefits, a copy
of which must be provided to the Division of Retirement.
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K. To ensure the funds and assets for the benefit of the
employee groups they serve are segregated and separated from
the funds and assets under the control of the Board.
L. To perform such other duties as are specified in this
Ordinance.
M. To adopt and be guided by Statements of Investment Policy
applicable to all funds under the control of the General Employee
Board of Trustees as required from time to time by F.S. 112.661, et
seq., and/or its successor statutes.
6. In all cases, the Trustees will carry out these duties consistent with the
provisions of Florida Statute §112.656 which provides that the Trustees discharge
his or her duties solely in the interest of the participants and beneficiaries for the
exclusive purpose of providing benefits to participants and their beneficiaries
and defraying reasonable expenses of administering the plan.
Section 5. Finance And Fund Manaqement.
Establishment and Operation of Fund.
1. As part of the System, there is hereby established a Fund, into which shall be
deposited all of the contributions and assets whatsoever attributable to the System, for
the benefit of General Employees.
2. The actual custody and supervision of the Fund (and assets thereofl shall be
vested in the Board of Trustees. Payment of benefits and disbursements from the Fund
shall be made by the Village on the Board's agreement, but only upon written
authorization from the Board.
3. All funds and securities of the Fund may be deposited by the Board of
Trustees with the Treasurer of the municipality, acting in a ministerial capacity only, who
shall be liable in the same manner and to the same extent that as he is liable for the
safekeeping of funds for the municipality. However, any funds and securities so
deposited with the Treasurer of the municipality shall be kept in separate funds by the
Treasurer or clearly identified as such funds and securities of the General Employee
Trust Fund. In lieu thereof, the Board of Trustees shall deposit the funds and securities
of the Fund in a qualified public depository or depositories as defined in Section 280.02,
Florida Statutes, which depository or depositories with regard to such funds and
securities shall conform to and be bound by all of the provisions of Chapter 280, Florida
Statutes. In order to fulfill its investment responsibilities as set forth herein, the Board
may retain the services of a custodian bank or banks, an investment advisor or advisors
registered under Investment Advisors Act of 1940, registered broker dealer or otherwise
00091912.DOC;1
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exempt from such required registration, an insurance company, or a combination of
these, for the purposes of investment decisions and management. Such investment
manager or managers shall have discretion, subject to any guidelines as prescribed by
the Board, in the investment of all fund assets.
4. Accurate records shall be maintained at all times reflecting the market
valuations of funds and assets of the Fund, including accurate current accounts and
entries as regards the following:
A. Current amounts of Accumulated Contributions of Members
on both an individual and aggregate account basis, and
B. Receipts and disbursements, and
C. Benefit payments, and
D. Current amounts clearly reflecting all moneys, funds and
assets whatsoever attributable to contributions and deposits from
the Village, County or State, and
E. All interest, dividends and gains (or losses) whatsoever, and
F. Such other entries as may be properly required so as to
reflect a clear and complete financial report of the Fund.
5. An independent audit shall be performed annually by a certified public
accountant for the most recent fiscal year of the Village showing a detailed listing of
assets and a statement of all income and disbursements during the year for each Fund.
Such income and disbursements must be reconciled with the assets at the beginning
and end of the year. Such report shall reflect complete evaluations of assets on both a
cost and market basis, as well as other items normally included in a certified audit.
6. The Board of Trustees shall have the following investment powers and
authority:
A. The Board of Trustees shall be vested with full legal title to
the Fund, subject, however, and in any event to the authority and
power of the Tequesta Village Council to amend or terminate this
Trust, provided that no amendment or Fund termination shall ever
result in the use of any assets of the Fund except for the payment
of regular expenses and benefits under this System. All
contributions from time to time paid into the Fund, and the income
thereof, without distinction befinreen principal and income, shall be
held in the Fund and administered by the Board or its Agents.
00091912.DOC;1
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B. All moneys paid into or to be held by the Fund shall be
invested and reinvested by the Board and the investment of all or
any part of such funds shall be limited to:
(1) Annuity and life insurance contracts of life
insurance companies in amounts sufficient to provide, in
whole or in part, the benefits to which all of the participants
in the Fund shall be entitled under the provisions of the Plan
and pay the initial and subsequent premium thereon.
(2) Time or savings accounts of a national bank, a state
bank insured by the Bank Insurance Fund, or a savings and
loan association insured by the Savings Association
Insurance Fund which is administered by the Federal
Deposit Insurance Corporation or a state or federal
chartered credit union whose share accounts are insured by
the National Credit Union Share Insurance Fund.
(3) Obligations of the United States or obligations
guaranteed as to principal and interest by the government of
the United States.
(4) Bonds, stocks, commingled funds administered by
National or State Banks or evidences of indebtedness issued
or guaranteed by a corporation organized under the laws of
the United States, or registered investment company
pursuant to the Investment Advisors Act of 1940, any state
or organized territory of the United States, or the District of
Columbia, provided that the corporation is traded on a
nationally recognized Exchange and in the case of bonds
only holds a rating in one of the four highest classifications
by a major rating service, except that 5% of the total market
value of the portfolio may be invested in securities that fall
below these rating guidelines.
(5) Real estate.
(6) All monies paid into or held in the Pension Fund shall
be invested and reinvested by the Board of Trustees and the
investment of all or any part of such funds shall be invested
in accordance with an established investment policy adopted
by the Board of Trustees.
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(7) Up to 10% of the Plan assets may be invested in
foreign securities.
C. The Board of Trustees shall not invest more than five
percent (5%) of its assets in the common stock or capital stock of
any one issuing company, nor shall the aggregate investment in
any one issuing company exceed five percent (5%) of the
outstanding capital stock of that company; nor shall the aggregate
of its investments in common stock, capital stock and convertible
bonds at cost exceed sixty percent (60%) of the assets of the Fund.
D. The Board of Trustees may retain in cash and keep
unproductive of income such amount of the Fund as they may
deem advisable, having regard for the cash requirements of the
System.
E. No person or entity shall be liable for the making, retention
or sale of any investment or reinvestment made as herein provided,
nor for any loss or diminishment of the Fund, except that due to
his/her or its own negligence, willful misconduct or lack of good
faith.
F. The Board may cause any investment in securities held to
be registered in or transferred into their name as Trustee or into the
name of such nominee as they may direct, or they may retain them
unregistered and in form permitting transferability, but the books
and records shall at all times show that all investments are part of
the Trust Fund.
G. The Board is empowered to vote upon any stocks, bonds or
securities of any corporation, association, or trust and to give
general or specific proxies or powers of attorney with or without
power of substitution; to participate in mergers, reorganizations,
recapitalization, consolidations and similar transactions with respect
to such securities; to deposit such stock or other securities in any
voting trust or any protective or like committee with the Trustees or
with depositories designated thereby; to amortize or fail to amortize
any part of all of the premium or discount resulting from the
acquisition or disposition of assets; and generally to exercise any of
the powers of an owner with respect to stocks, bonds, or other
investments comprising the Fund which it may deem to be the best
interest of the Fund to exercise. This power may be delegated to
an agent by the Board of Trustees.
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H. The Board shall not be required to make any inventory or
appraisal or report to any court, nor secure any order of court for
the exercise of any power contained herein.
I. Where any action which a Board is required to take on any
duty or function which it is required to perform either under the
terms herein or under the general law applicable to it as Trustee
under this Ordinance, can reasonably be taken or performed only
after receipt by it from a Member, the Village, the Department or
any other entity, of specific information, certification, direction or
instructions, the Board shall be free of liability in failing to take such
action or perform such duty or function until such information,
certification, direction or instruction has been received by it.
J. Any overpayments or underpayments from a Fund to a
Member or beneficiary caused by errors of computation shall be
adjusted with interest at a rate per annum approved by the Board.
Overpayment shall be charged against membe�'s payments next
succeeding the correction. Underpayments shall be made up from
the Trust Fund.
K. A Board shall sustain no liability whatsoever for the
sufficiency of a Fund to meet the payments and benefits herein
provided.
L. Any of the foregoing powers and functions may be
performed or carried out by the Board through duly authorized
Agents, provided that the Board at all times maintains continuous
supervision over the acts of any such Agent; provided further, that
legal title to a Fund shall always remain in the Board of Trustees.
M. A Board shall not invest more than ten percent (10%) at cost
of its assets in real property or real estate and there shall be no real
estate investment in a closed-ended limited partnership or a closed-
ended trust. In addition, any investments in real estate in open
ended limited partnerships or open ended trusts are limited to those
open ended core real estate products which meet the criteria for the
NCREIF ODCE.
N. The Village shall maintain Fiduciary Liability insurance to
cover the�members of the Board of Trustees.
Section 6. Contributions.
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1. Member Contributions
A. Amount. Members of the Retirement System shall be
required to make regular contributions to the Fund in the amount of
five percent (5%) of his/her salary. Member contributions withheld
by the Village on behalf of the Member shall be deposited with the
Board of Trustees immediately after the withholding of such
contributions. The contributions made by each Member to the
Fund shall be designed as employer contributions pursuant to
Section 414(h)(2) of the Code. Such designation is contingent
upon the contributions being excluded from the Members' gross
income for Federal Income Tax purposes. For all other purposes of
the Plan, such contributions shall be considered to be Member
contributions. For limitation years prior to July 1, 2007, any excess
annual additions shall be place in an unallocated suspense
account.
B. Method. Such contributions shall be made by payroll
deduction.
2. Villaqe Contributions
So long as this System is in effect, the Village shall make contributions at
least quarterly to the Trust Fund in an amount equal to the normal cost and the amount
required to fund any actuarial deficiency shown by an actuarial valuation as provided in
Part VII of Chapter 112, Florida Statutes.
3. Other
Private donations, gifts and contributions may be deposited to the Fund,
but such deposits must be kept separately and kept on a segregated bookkeeping
basis. Funds arising from these sources shall be reserved exclusively for additional
benefits for Members, and shall be reserved to be spent for the additional benefits as
determined by the Board when specifically provided for by this plan document, and may
not be used to reduce what would have otherwise been required by Village
contributions.
Section 7. Benefit Amounts and Eliqibilitv.
1. Normal Retirement Date.
A Member's normal retirement date shall be the first day of the month
coincident with, or next following the earlier of:
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a) attainment of age sixty-two (62) regardless of years of
credited service, or
b) attainment of thirty (30) years of credited service regardless
of age.
A Member may retire on his/her normal retirement date or on the
first day of any month thereafter, and each Member shall become 100%
vested in his/her accrued benefit on the Member's normal retirement date.
Normal retirement under the Plan is retirement from employment with the
Village of Tequesta as a General Employee, on or after the normal
retirement date.
2. Normal Retirement Benefit.
A Member retiring hereunder on or after his/her normal retirement date
shall receive a monthly benefit which shall commence on his/her Retirement Date and
be continued thereafter during the Member's lifetime, ceasing upon death, but with one
hundred finrenty (120) monthly payments guaranteed in any event. Benefits are payable
for the life of a retiree with a guarantee of 120 monthly payments. Should a member die
before 120 monthly payments (10 years) are made, then the remainder of the 120
monthly payments will be paid to a beneficiary. Should a member receive more than
120 monthly payments, then no benefit is payable to a beneficiary. The monthly
retirement benefit shall equal two percent (2%) of average final compensation, for each
year of credited service (2% x average final compensation x years of credited service).
3. Early Retirement Date
A Member may retire on his/her early retirement date which shall be the
first day of any month coincident with or next following the later of the attainment of age
fifty (50) and the completion of six (6) years of credited service. Early retirement under
the Plan is retirement from employment with the Village of Tequesta on or after the early
retirement date and prior to the normal retirement date.
4. E_arly Retirement Benefit
A Member retiring hereunder on his/her early retirement date may receive
either a deferred or an immediate monthly retirement benefit payable for life, but with
one hundred twenty (120) monthly payments guaranteed in any event, as follows:
A. A deferred monthly retirement benefit which shall commence
on what would have been his/her normal retirement date had
he/she remained a General Employee and shall be continued on
the first day of each month thereafter. The amount of each such
00091912.DOC;1
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deferred monthly retirement benefit shall be determined in the
same manner as for retirement as his/her normal retirement date
except that credited service and average final compensation shall
be determined as of his/her early retirement date; or
B. An immediate monthly retirement benefit which shall
commence on his/her early retirement date and shall be continued
on the first day of each month thereafter. The benefit payable shall
be as determined in paragraph A above, which is actuarially
reduced from the amount to which he/she would have been entitled
had he/she retired on his/her normal retirement date and with the
same number of years of credited service as at the time his/her
benefit commence and based on his/her average final
compensation at that date. In no event shall the early retirement
reduction exceed five percent (5%) each year by which the
commencement of benefits precedes the Member's normal
retirement date.
Section 8. Pre-retirement Death.
Upon the death of any vested member, whether or not still in active employment,
a survivor benefit is payable to the beneficiary starting when the member would have
reached retirement age. The benefit is equal to the vested pension benefit.
Section 9. Disabilitv.
1. Disabilitv Benefits On-Dutv
Each full time employee who is a participant in the Pension Fund System and
who becomes totally and permanently disabled while an active employee of the Village
of Tequesta to the extent that he/she is unable, by reason of a medically determinable
physical or mental impairment, to render useful and efficient service as a General
Employee, which disability was directly caused by the performance of his/her duty as a
General Employee shall upon establishing the same to the satisfaction of the Board, be
entitled to the greater of A or B:
A. If the injury or disease is service connected, the employee
shall be entitled to the greater of(1) or (2):
(1) a monthly pension equal to 42% of his/her average
monthly compensation as of his/her disability retirement
date, or
00091912.DOC;1
14
(2) an amount equal to the number of years of his/her
credited service multiplied by 2% of his/her average monthly
salary based upon his/her final 5 years of service.
2. Disabilitv Benefits Off-Dutv
Every General Employee who has six years of credited service, is a
participant in the Pension Fund System and who shall have become totally and
permanently disabled to the extent that he/she is unable, by reason of a medically
determinable physical or mental impairment, to render useful and efficient service as a
General Employee which disability is not directly caused by the performance of his/her
duties as a General Employee shall be entitled to the greater of A or B:
A. a monthly pension equal to 25°/a of his/her average
monthly compensation based upon his/her final 5 years of
service, or
B. An amount equal to the number of years of his/her
credited service multiplied by 2% of his/her average monthly
salary based upon his/her final 5 years of service.
3. Conditions Disqualifyinq Disability Benefits
Each General Employee who is claiming disability benefits shall
establish, to the satisfaction of the Board, that such disability was not occasioned
primarily by:
A. Excessive or habitual use of any drugs, intoxicants or
alcohol.
B. Injury or disease sustained while willfully and illegally
participating in fights, riots or civil insurrections.
C. Injury or disease sustained while committing a crime.
D. Injury or disease sustained while serving in any branch of
the Armed Forces. This exclusion does not affect members
who have become disabled as a result of intervenina military
service under the federal Heroes Earninas Assistance and
Relief Tax Act of 2008 (H.R. 6081: P.L. 110-2451:
E. Injury or disease sustained after his/her employment shall
have terminated as a General Employee with the Village of
Tequesta.
00091912.DOC;1
15
F. Willful, wanton or gross negligence of the Member.
G. Injury or disease sustained by General Employee while
working for anyone other than the Village of Tequesta and arising
out of such employment.
H. Injury or disease sustained by the member before
employment with the Village begins. This subparagraph applies
only in the event of a duty injury or disease.
4. Phvsical Examination ReQuirement
An employee shall not become eligible for disability benefits until and
unless he/she undergoes a physical examination by a qualified physician or physicians
and/or surgeons, who shall be selected by the Board for that purpose.
Any person receiving disability benefit under provisions of this Ordinance
may be periodically re-examined by a qualified physician or physicians and/or surgeon
or surgeons who shall be selected by the Board, to determine if such disability has
ceased to exist. If the Board finds that the retiree is no longer permanently and totally
disabled to the extent that he/she is unable to render useful and efficient service as a
General Employee the Board shall recommend to the Village that the retiree be returned
to their previous performance of duty as a General Employee, and the retiree so
returned shall enjoy the same rights that Member had at the time he/she was placed
upon pension. In the event the retiree is so ordered to return shall refuse to comply with
the order within thirty (30) days from the issuance thereof, Member shall forfeit the right
to his/her pension.
The cost of the physical examination and/or re-examination of the
employee or retiree claiming and/or receiving disability benefits shall be borne by the
Board of this Pension Fund System. All other reasonable costs as determined by the
Board incident to the physical examination, such as, but not limited to, transportation,
meals and hotel accommodations, shall be borne by the Board.
If the retiree recovers from disability and reenters his/her former service
with the Village of Tequesta held prior to disability retirement, his/her service will be
deemed to have been continuous, but the period beginning with the first month for
which he/she received a disability retirement income payment and ending with the date
he/she reentered the service of the Village will not be considered as credited service for
the purposes of the Plan.
The Board shall have the power and authority to make the final decision
regarding all disability claims.
5. Disability Pavments
00091912.DOC;1
16
The monthly benefit to which a Member is entitled in the event of
the
Member's disability retirement shall be payable on the first day of the first month after
the Board of Trustees determines such entitlement. However, the monthly retirement
income shall be payable as of the date the Board determined such entitlement, and any
portion due for a partial month shall be p�id together with the first payment. The last
payment will be:
A. If the plan member recovers from the disability or attains
his/her normal retirement date, the payment due next preceding the
date of such recovery, or
B. If the plan member dies without recovering from the disability
prior to his/her normal retirement date while still disabled, the
payment due next preceding his/her death or the 120th monthly
payment, whichever is later.
Section 10. Vestin4.
If a Member terminates his/her employment with the Village of Tequesta, either
voluntarily or by discharge, and is not eligible for any other benefits under this System,
the Member shall be entitled to the following:
1. If the Member has less than six (6) years credited service and has not
attained the age of sixty-finro (62) upon termination, the Member shall be entitled to a
refund of accumulated contribution plus three percent (3%) interest or the Member may
leave it deposited with the Fund, in accordance with the definition of credited service.
2. If the Member has six (6) or more years of credited service upon termination,
or alternatively, the Member has attained the age of sixty-finro (62), regardless of
credited years of service, the Member shall be entitled to a monthly retirement benefit
that is the actuarial equivalent of the amount of such retirement income otherwise
payable to him/her commencing at the Member's otherwise normal or early retirement
date, provided he/she does not elect to withdraw his/her accumulated contributions plus
three percent (3%) interest and provided the Member survives to his/her normal or early
retirement date.
3. Any plan member of the System whose position is terminated, for whatever
reason, but who is employed by the Village in some capacity, shall have all retirement
benefits accrued up to the date of such termination under this System preserved,
provided he does not elect to withdraw his/her accumulated contributions plus three
percent (3%) interest from this System. Such Accrued retirement benefits shall be
payable at his/her otherwise normal retirement date hereunder, or later, in accordance
with the provisions of this System.
00091912.DOC;1
17
Section 11. Optional Forms of Benefits.
1. In lieu of the amount and form of retirement income payable in the event of
normal or early retirement as specified herein, a plan member, upon written request to
the Board of Trustees and submission of evidence of good health (except that such
evidence will not be required if such request is made at least three (3) years prior to the
date of commencement of retirement income or if such request is made within six (6)
months following the effective date of the Plan, if later), and subject to the approval of
the Board of Trustees, may elect to receive a retirement income or benefit of equivalent
actuarial valuation payable in accordance with one of the following options:
A. A retirement income of a larger monthly amount, payable to
the Member for his/her lifetime only.
B. A retirement income of a modified monthly amount, payable
to the Member during the joint lifetime of the Member and a
dependent joint pensioner designated by the Member and following
the death of either of them, 100%, 76%, 66-2/3%, or 50% of such
monthly amounts payable to the survivor for the lifetime of the
survivor:
2. The Member, upon electing any option of this section, will designate the joint
pensioner or beneficiary (or beneficiaries) to receive the benefit, if any, payable under
the Plan in the event of the Member's death, and will have the power to change such
designation from time to time, but any such change shall be deemed a new election and
will be subject to approval by the Board of Trustees. Such designation will name a joint
pensioner or one or more primary beneficiaries where applicable. If a Member has
elected an option with joint pensioner or beneficiary and the Member's retirement
income benefits have commenced, the Member may thereafter change his/her
designated joint pensioner or beneficiary, but only if the Board of Trustees consents to
change and if the joint pensioner or beneficiary, but only if the Board of Trustees
consents to change and if the joint pensioner last previously designated by the Member
is alive when he/she files with the Board of Trustees the request for such change.
3. The consent of joint pensioner or beneficiary to any such change shall not be
required.
4. The Board of Trustees may request such evidence of the good health of joint
pensioner that is being removed as it may require and the amount of the retirement
income payable to the Retiree upon designation of a new joint pensioner shall be
actuarially redetermined taking into account the age and sex of the former joint
pensioner, the new joint pensioner, and the Retiree. Each such designation will be
made in writing on a form prepared by the Board of Trustees and on completion will be
filed with the Board of Trustees.
00091912.DOC;1
Ig
In the event that no designated beneficiary survives the Member, such benefits
as are payable in the event of the death of the Member subsequent to his/her retirement
shall be paid as provided in Section 12.
5. Retirement income payments shall be made under the option elected in
accordance with the provisions of this section and shall be subject to the following
limitations:
A. If a Member dies prior to his/her normal retirement date or early
retirement date, whichever occurs, no retirement
benefit will be payable under the option to any pe�son, but the
benefits, if any, will be determined under Section 8.
B. If the designated beneficiary (or beneficiaries) or joint pensioner
dies before the Member's retirement under the
Plan, the option elected will be canceled automatically and a
retirement income of the normal form and amount will be payable to
the Member upon his/her retirement as if the election had not been
made, unless a new election is made in accordance with the
provisions of this section or a new beneficiary is designated by the
Member prior to his/her retirement and within ninety (90) days after
the death of the beneficiary.
C. If both the retired Member and the beneficiary (or beneficiaries)
designated by the Member die before the full payment
has been effected under any option providing for payments for a
period certain and life thereafter, made pursuant to the provisions
of subsection 1, the Board of Trustees may in its discretion, direct
that the computed value of the remaining payments be paid in a
lump sum and in accordance with Section 12.
D. If a Member continues beyond his/her normal retirement date
pursuant to the provisions of Section 7,
subsection 1, and dies prior to his/her actual retirement and while
an option made pursuant to the provisions of this section is in
effect, monthly retirement income payments will be made, or a
retirement benefit will be paid, under the option to a beneficiary (or
beneficiaries) designated by the Member in the amount or amounts
computed as if the Member had retired under the option on the date
on which his/her death occurred.
6. The Member may not change his/her retirement option after the date of
cashing or depositing his/her first retirement check.
00091912.DOC;1
19
Section 12. Beneficiaries.
1. Each Member may, on a form provided for that purpose, signed and filed with
the Board of Trustees, designate a beneficiary (or beneficiaries) to receive the benefit, if
any, which may be payable in the event of his/her death; and each designation may be
revoked by such Member by signing and filing with the Board of Trustees a new
designation-of-beneficiary form.
2. If a deceased Member fails to name a beneficiary in the manner prescribed in
subsection 1, or if the beneficiary (or beneficiaries) named by a deceased Member
predeceases the Member, the death benefit, if any, which may be payable under the
Plan with respect to such deceased Member shall be paid, in the discretion of the Board
of Trustees, either to:
A. The wife or dependent children of the Member;
B. The dependent living parents of the Member; or
C. Estate of the Member.
Section 13. Claims Procedures Before the Board Decision.
1. If any Member of the System has been:
A. Placed on pension under the terms and provisions of this
ordinance for disability, or
B. Placed on pension because the Member has served the required
number of years to entitle him to a pension, or
C. Refused benefits under this Plan, and is dissatisfied with the
amount of pension the Member is receiving, or believes that he
should be entitled to benefits under the Plan, the Member may, in
writing, request the Board to review his/her case. The Board shall
review the case and enter such order thereon as it deems right and
proper within sixty (60) days from receipt of such written request
and the receipt by the Board of a written medical release
authorization and a list of names and addresses of all treating
health care providers for such review of disability claims; provided,
that the Board may extend the time for entering such order by an
additional forty-five (45) days if it determines such time is
necessary for discovery in full and adequate review.
00091912.DOC;1
2�
2. In the event that the order from the Board denies the claim for a change in
such benefits or denies the claim for benefits, the order of the Board shall
be put in writing. Such written order shall include:
A. The specific reasons for the denial, including specific
references to pertinent provisions of the retirement system on
which such denial is based;
B. A description of any additional material or information that
the Board feels is necessary for the Member to perfect his/her
claim, together with an explanation of why such material or
information is necessary; and
C. An explanation of the review procedure next open to the
Member.
Such review procedure shall provide that:
(1) Prior to such review, the Member or his/her duly
authorized representative may review any pertinent documents
including Plan provisions, minutes of the meeting of the Board in
which denial fo the claim was originally recommended, and any
other documents material to the case;
(2) After such review, the Member and/or his/her duly
authorized representative shall submit their case in writing to the
Board and request a hearing. Such submission shall be filed with
the Board no later than ninety (90) days after the receipt of the
order of the Board. Upon receipt of the written submission by the
Member, the Board shall schedule an opportunity for a full and fair
hearing of the issue within the next ninety (90) days, and such
scheduled hearing shall be communicated in writing to the Member.
The Member and/or his/her duly authorized representative may
then appear at such scheduled hearing to present their case. The
Board shall consider the facts presented at the scheduled hearing
and shall, within thirty (30) days after such hearing, make a final
ruling in writing on the request of the Member. The written decision
shall include the reasons for such decision and, such decision shall
be final.
(a) The Chairman shall preside over the hearing
and shall rule on all evidentiary and other legal
questions that arise during the hearing.
00091912.DOC;1
21
(b) Either party, the claimant or the Board, may file
pleadings within the time limits set herein. Procedural
motions are to be determined by the Chairman of the
Board at any time. All parties are to furnish copies of
all pleadings to the opposing parties and exchange
lists with names and addresses of witnesses
expected to be called to testify at the hearing, as well
as the list of exhibits that are intended to be
introduced, at least forty-five (45) days prior to the
hearing. Testimony of witnesses shall be under oath
or affirmation. Depositions or affidavits shall not be
admissible unless upon stipulation by all parties. The
Chairman, any Member of the Board, the attorney for
the Board, the claimant and the claimant's attorney,
upon recognition by the Chairman, may direct
questions to any witness during the proceedings.
Each party shall have the right to present evidence
relevant to the issues, to cross-examine witnesses, to
impeach witnesses and to respond to the evidence
presented against the party. Each party shall have
the right to present any opening and closing
arguments. Any party may secure the services of a
court reporter to record the proceedings with the cost
to be borne by the party requesting the court reporter
or requesting the transcription of the proceedings.
c) In all cases, unless otherwise provided in this
section, the burden of proof shall be on the claimant
who seeks to draw his/her entitlement to a pension,
disability pension, or increased pension benefits.
3. In all proceedings under subsections 1 or 2 hereof, the Board shall have
the power to subpoena and require the attendance of witnesses and the
production of documents for discovery prior to and at the proceedings
provided for in each paragraph. A reasonable fee may be charged for the
issuance of any subpoenas not to exceed the fees set forth in Florida
Statutes.
Section 14. Roster of Retirees.
The Secretary of the Board shall keep a record of all persons enjoying a pension
under the provisions of this Ordinance in which it shall be noted the time when the
pension is allowed and when the same shall cease to be paid. Additionally, the
Secretary shall keep a record of all General Employees employed by the Municipality
00091912.DOC;1
22
who are Members of the plan in such a manner as to show the name, address, date of
employment and date such employment is terminated.
Section 15. Board Attornev and Professionals.
The Board may employ independent legal counsel at the Pension Fund's
expense for the purposes contained herein, together with such other professional,
technical, or other advisors as the Board deems necessary.
Section 16. Maximum Pension.
1. 415(b) Internal Revenue Code Limits
A. Basic Limitations. Notwithstanding anything to the contrary in this
Plan, the provisions of Section 415 and its regulations are hereby
incorporated by reference into this plan. Subject to the adjustments
in Code Section 415, the maximum amount of the actual annual
retirement income paid in any year with respect to a Participant
under this Plan attributable to employer provided benefits shall not
exceed the dollar amount allowable for any calendar year pursuant
to §415(b) of the Code, as adjusted in such calendar year for
increases in the cost of living in accordance with Regulations
issued by the Secretary of the Treasury under§415(d) of the Code.
For purposes of applying the basic limitation, benefits payable in
any form other than a straight life annuity with no ancillary benefits
shall be adjusted, as provided by Treasury Regulations, so that
such benefits are the Actuarial Equivalent of a straight life annuity.
For purposes of this subsection Article, the following benefits shall
not be taken into account:
(1) Any ancillary benefit which is not directly related to
retirement income benefits;
(2) Any other benefit not required under§415(b)(2)
of the Code and Treasury Regulations thereunder to be
taken into account for purposes of the limitation of
§415(b)(1) of the Code.
B. This section shall be effective for distributions after December 31,
2001.
C. For purposes of applying the limitations of Code Section 415(b),
compensation includes those items as set forth in Reg. 1.415-2(d).
This definition specifically includes the crediting of compensation
while absent from service for military duty; such crediting shall to
exceed the compensation that would have been credited under the
System if System services had continued.
00091912.DOC;1
23
2. Additional Limitation on Pension Benefits. Nofinrithstanding anything
herein to the contrary:
A. The normal retirement benefit or pension to a retiree who
becomes a member of the Plan and who has not previously
participated in such Plan, on or after January 1, 1980, shall not
exceed 100 percent of his/her average final compensation.
However, nothing contained in this section shall apply to
supplemental retirement benefits or to pension increases
attributable to cost-of-living increases or adjustments. In all events,
distributions shall be limited by the applicable provisions of Code
section 415(b) limits.
B. No member of the Plan who is not now a member of such
Plan shall be allowed to receive a retirement benefit or pension
which is in part or in whole based upon any service with respect to
which the member is already receiving, or will receive in the future,
a retirement benefit or pension from another retirement system or
plan. This restriction does not apply to social security benefits or
federal benefits under Chapter 67, Title 10, U.S. Code.
3. 401(a)(17) Limitation on Compensation. For any person who first becomes
a member in any plan year beginning on or after January 1, 1996, compensation for any
plan year shall not include any amounts in excess of the Internal Revenue Code s.
401(a)(17) limitation (as amended by the Omnibus Budget Reconciliation Act of 1993),
which limitation shall be adjusted as required by federal law for qualified government
plans and shall be further adjusted for changes in the cost of living in the manner
provided by Internal Revenue Code s. 415(d). For any person who first became a
member prior to the first plan year beginning on or after January 1, 1996, the limitation
on compensation shall be not less than the maximum compensation amount that was
allowed to be taken into account under the plan as in effect on July 1, 1993, which
limitation shall be adjusted for changes in the cost of living since 1989 in the manner
provided by Internal Revenue Code s. 415(d).
Section 17. Commencement of Benefits.
1. Unless the Member otherwise elects, with such election being in writing and
to the Trustees and specifying the form of retirement income and date on which the
retirement income is to commence, the payment benefits under the Plan to the Member
shall commence not later than the 60th day after the close of the Plan Year in which the
latest following events occur:
A. The attainment by the Member of age 65;
00091912.DOC;1
24
B. The 10th anniversary of the date on which the Member
commenced participation in the Plan; or
C. The termination of the Member's service with the Village of
Tequesta
2. If the payment of a Member's retirement income cannot begin on the date
required under subsection 1 of the Section because the Trustees either cannot
ascertain the amount of the Member's retirement income or cannot locate the Member
after making reasonable efforts to do so, the payment of the Member's benefit shall
begin not later than sixty (60) days after the date on which the amount can be
ascertained or the Member is located, whichever is applicable. Any such payment shall
be made retroactive to a date which is not earlier than the date on which the payment of
the Member's benefit was scheduled to begin but which is not later than the date
specified under subsection 1 of this Section.
Section 18. Distribution of Benefits.
Nofinrithstanding any other provision of this Plan to the contrary, a form of
retirement income payable from this Plan after the effective date of this ordinance, shall
be made in accordance with the requirements of Code Section 401(a)(9), including the
minimum distribution incidental benefit requirements of section 1.401(a)(9)-2 Code
Section 401(a)(9)(G) to satisfy the following conditions:
1. If the retirement income is payable before the Member's death,
A. it shall either be distributed or commence to the Member not
later than April 1 of the calendar year following the later of the
calendar year in which the Member attains age 70'/z, or the
calendar year in which the Member retires,
B. the distribution shall commence to them not later than the
calendar year defined above; and shall be paid over the life of the
Member or over the lifetimes of the Member and spouse, or
dependent, or, shall be paid over the period extending not beyond
the life expectancy of the Member and spouse, or dependent.
Where a form of retirement income payment has commenced in
accordance with the preceding paragraphs and the Member dies before
his/her entire interest in the Plan has been distributed, the remaining
portion of such interest in the Plan shall be distributed no less rapidly than
under the form of distribution in effect at the time of the Member's death.
2. If the Member's death occurs before the distribution of his/her interest in
the Plan has commenced, the Member's entire interest in the Plan shall be distributed
00091912.DOC;1
25
within five (5) years of the Member's death, unless it is to be distributed in accordance
with the following rules:
A. The Member's remaining interest in the Plan is payable to
his/her spouse or dependent;
B. The remaining interest is to be distributed over the life of the
spouse, issue or dependent or over a period not extending beyond
the life expectancy of the spouse or dependent; and
C. Such distribution begins within one year of the Member's
death unless the Member's spouse, issue or dependent shall
receive the remaining interest in which case the distribution need
not begin before the date on which the Member would have
attained age 70'/z and if the spouse, issue or dependent dies before
the distribution to the spouse, issue or dependent begins, this
Section shall be applied as if the spouse, issue or dependent were
the Plan Member.
Section 19. Miscellaneous Provision.
1. Interest of Members in Pension Fund. At no time prior to the satisfaction
of all liabilities under the Plan with respect to Members and their spouses or
beneficiaries, shall any part of the corpus or income of the Pension Fund be used for or
diverted to any purpose other than for their elusive benefit.
2. No amendment or ordinance shall be adopted by the Village Council of
the Village of Tequesta which shall have the effect of reducing the then vested accrued
benefits to Members or Members beneficiaries.
3. Rollover Distributions.
A. This subsection applies to distributions made on or after
January 1, 1993. Notwithstanding any provision of the Plan to the
contrary that would otherwise limit a distributee's election under this
subsection, a distributee may elect, at the time and in the manner
prescribed by the Board of Trustees, to have any portion of an
eligible rollover distribution paid directly to an eligible retirement
plan specified by the distributee in a direct rollover.
B. Definitions.
(1) "Eligible rollover distribution" is any distribution of all
or any portion of the balance to the credit of the distributee
or an alternate payee under an income deduction order
00091912.DOC;1
26
under Florida law, except that an eligible rollover does not
include any distribution that is one of a series of substantially
equal periodic payments (not less frequently than annually)
made for the life (or life expectancy) of the distributee or the
joint lives (or joint life expectancies) of the distributee and
the distributee's designated beneficiary, or for a specified
period of 10 years or more; any distribution to the extent
such distribution is required under section 401(a)(9) of the
Code.
(2) "Eligible retirement plan" is an individual retirement
account described in section 408(a) of the Code, an
individual retirement annuity described in section 408(b) of
the Code, a qualified trust, an annuity plan described in
section 403(a) of the Code, an eligible deferred
compensation plan described in §457(b) which is maintained
by eligible employer described in §457(e)(1)(A) of the Code
or an annuity contract described in 403(b) of the Code, that
accepts the distributee's eligible rollover distribution.
(3) "Distributee" includes an employee or former
employee. In addition, the employee's or former employee's
surviving spouse and the employee's or former employee's
spouse or former spouse who is entitled to payment under a
court order that complies with the provisions of Code Section
414(p)(1)(a)(i) are distributees with regard to the interest of
the spouse or former spouse. Additionallv. "Distributee"
includes a non-soouse beneficiary whose rollover
outions are limited to an individual retirement annuitv.
(4) "Direct rollover" is a payment by the Plan to the
eligible retirement plan specified by the distributee.
4. In the event of a mandatory distribution if the �resent value of such
benefit is in excess of one thousand dollars ($1.000.001 a lumo sum oavment mav
e made onlv with the consent or acceotance of the �avee. The amount of anv
lumu sum �avment shall be actuariallv determined.
Section 20. Reaeal or Termination of Svstem.
1. This Ordinance establishing the System and Fund, and subsequent
Ordinances pertaining to said System and Fund, may be modified, terminated, or
amended, in whole or in part; provided that if this or any subsequent Ordinance shall be
amended or repealed in its application to any person benefitting hereunder, the amount
of benefits which are the time of any such alteration, amendment, or repeal shall have
00091912.DOC;1
2�
accrued to the Member or beneficiary shall not be affected thereby, except to the extent
that the assets fo the Fund may be determined to be inadequate.
2. If this Ordinance shall be repealed, or if contributions to the System are
discontinued, the Board shall continue to administer the System in accordance with the
provisions of this Ordinance, for the sole benefit of the then Members, any beneficiaries
then receiving retirement allowances, and any future persons entitled to receive benefits
under one of the options provided for in this Ordinance who are designated by any of
said Members. In the event of repeal, Plan termination or if contributions are completely
discontinued, there shall be full vesting (100%) of benefits accrued to date of repeal and
the assets of the System shall be allocated in an equitable manner to provide benefits
on a proportionate basis to the persons so entitled in accordance with the provisions
thereof.
3. The following shall be the order of priority for purposes of allocating the
assets of the System as of the date of repeal of this Ordinance, or if contributions to the
System are discontinued with the date of such discontinuation being determined by the
Board.
A. Apportionment shall first be made in �espect of each retired
General Employee receiving a retirement or disability benefit
hereunder on such date, each person receiving a benefit on such
date on account of a retired or disabled (but since deceased)
General Employee who has, by such date, become eligible for
normal retirement but has not yet retired, an amount which is the
actuarial equivalent of such benefit, based upon the actuarial
assumptions in use for purposes of the most recent actuarial
valuation, provided that, if such asset value be less than the
aggregate of such amounts, such amounts shall be proportionately
reduced so that the aggregate of such reduced amounts will be
equal to such asset value.
B. If there be any asset value remaining after the
apportionment under paragraph A, apportionment shall next be
made in respect of each full time General Employee in service of
the Village of Tequesta on such date who has completed at least
six (6) years of credited service and who is not entitled to an
apportionment under paragraph A, in the amount required to
provide the actuarial equivalent, as described in A above, of the
accrued normal retirement benefit based on the credited service
and average monthly earnings as of such date, and each vested
former Member then entitled to a deferred benefit who has not by
such date, begun receiving benefit payments, in the amount
required to provide said actuarial equivalent of the accrued normal
retirement benefit; provided that, if such remaining asset value be
00091912.DOC;1
2g
less than the aggregate of the amounts apportioned hereunder,
such latter amounts shall be proportionately reduced so that the
aggregate of such reduced amounts will be equal to such remaining
asset value.
C. If there be any asset value after the apportionment under
paragraph A and B, apportionment shall be made in respect of
each full time General Employee in service of the Village of
Tequesta on such date who is not entitled to an apportionment
under paragraphs A and B in the amount equal to Member's
Accumulated Contributions, provided that, if such remaining asset
value be less than the aggregate of the amounts apportioned
hereunder such latter amount shall be proportionately reduced so
that the aggregate of such reduced amounts will be equal to such
remaining asset value.
D. If there be any asset value remaining after the
apportionment's under paragraphs A, B and C, apportionment shall
lastly be made in respect of each Member included in paragraph C
above to the extent of the actuarial equivalent, as described in
paragraph A above, of the accrued normal retirement benefit, less
the amount apportioned in paragraph C, based on credited service
and average monthly earnings as of such date provided that, if
such remaining asset value be less than the aggregate of the
amounts apportioned hereunder such amounts shall be reduced so
that the aggregate of such reduced amounts will be equal to such
remaining asset value.
E. In the event that there be asset value remaining after the full
apportionmenYs specified in paragraphs A, B, C, and D, such
excess shall be returned to the Village.
The allocation of the Fund provided for in this subsection may, as decided by the .
Board be carried out through the purchase of insurance company contracts to provide
the benefits determined in accordance with this subsection. The Fund may be
distributed in one sum to the persons entitled to said benefits or the distribution may be
carried out in such other equitable manner as the Board may direct. The Trust may be
continued in existence for purposes of subsequent distributions.
4. After all the vested and accrued benefits provided hereunder have been
paid and after all other liabilities have been satisfied, then and only then shall any
remaining fund revert to the General Fund of the Village.
Section 21. Exemotion from Execution, Non-assiqnabilitv.
00091912.DOC;1
29
The pensions, annuities, or any other benefits accrued or accruing to any person
under the provisions of this Ordinance and the accumulated contributions and the cash
securities in the Fund created under this Ordinance are hereby exempted from any
state, county or municipal tax of the state and shall not be subject to execution,
attachment, garnishment or any legal process whatsoever and shall be unassignable.
However, pursuant to an income deduction order, the Trustees may direct that
retirement benefits be paid for alimony or child support in accordance with rules and
regulations adopted by the Board of Trustees.
Section 22. Pension Validitv.
The Board of Trustees shall have the power to examine into the facts upon which
any pension shall heretofore have been granted and under any prior or existing law, or
shall hereafter be granted or obtained erroneously, fraudulently or illegally for any
reasons. Said Board is empowered to purge the pension rolls of any person heretofore
granted a pension under prior or existing law or heretofore granted under this Ordinance
if the same is found to be erroneous, fraudulent or illegal for any reason, and to
reclassify any person who has heretofore under any prior or existing law been or who
shall hereafter under this Ordinance be erroneously, improperly or illegally classified.
Section 23. Forfeiture of Pension.
Any Plan Member convicted of the following offenses committed prior to
retirement, or whose employment is terminated by reason of his/her admitted
commission, aid or abatement of the following specified offenses, shall forfeit all rights
and benefits under this Pension Fund, except for the return of this accumulated
contributions as of the date of termination.
1. Specified offenses are as follows:
A. The committing, aiding or abetting of an embezzlement of
public funds;
B. The committing, aiding or abetting of any theft by a public
officer or employee from employer;
C. Bribery in connection with the employment of a public officer
or employee;
D. Any felony specified in Chapter 838, Florida Statutes;
E. The committing of an impeachable offense.
2. The committing of any felony by a public officer or employee who willfully
and with intent to defraud the public or public agency, for which he acts or in which he is
00091912.DOC;1
30
employed, of the right to receive the faithful performance of his/her duty as a public
officer or employee, realizes or obtains or attempts to obtain a profit, gain, or advantage
for himself or for some other person through use or attempted use of the power, rights,
privileges, duties or position of his/her pubtic office or employment position.
A. Conviction shall be defined as follows:
An adjudication of guilt by a court of competent jurisdiction; a
plea of guilty or nolo contendere; a jury verdict of guilty when
adjudication of guilt is withheld and the accused is placed on
probation; or a conviction by the Senate of an impeachable offense.
B. Court shall be defined as follows:
Any state or federal court of competent jurisdiction which is
exercising ju�isdiction to consider a proceeding involving the
alleged commission of a specified offense. Prior forfeiture, the
Board of Trustees shall hold a hearing on which notice shall be
given to the Member whose benefits are being considered for
forfeiture. Said Member shall be afforded the right to have an
attorney present. No formal rules of evidence shall apply, but the
Member shall be afforded a full opportunity to present his/her case
against forfeiture.
Any Member who has received benefits from the System in excess
of his/her accumulated contributions after Member's rights were forfeited
shall be required to pay back to the Fund the amount of the benefits
received in excess of his/her accumulated contributions. The Board of
Trustees may implement all legal action necessary to recover such funds.
Section 24. Military Service Prior to Emplovment.
In accordance with Code Section 415(n), the years or fractional parts of years
that a Member serves or has served in the military service of the Armed Forces of the
United States or United States Merchant Marine, voluntarily or involuntarily, prior to first
and initial employment with the Village of Tequesta shall be added to his/her years of
credited service provided that:
1. The General Employee contributes to the Fund the sum that he/she would
have contributed had he/she been a member of the Plan for the years or fractional parts
of years for which he/she is requesting credit plus amounts actuarially determined such
that the crediting of service does not result in any cost to the Fund plus payment of
costs for all professional services rendered to the Board in connection with the purchase
years of credited service.
00091912.DOC;1
31
2. The request shall be made only once and made by the Member on or
before the later of finrelve (12) months from the effective date of this Ordinance or six (6)
months from the date of his/her employment with the Village of Tequesta, whichever is
later.
3. Payment by the Member of the required amount shall be made within six
(6) months of his/her request for credit and shall be made in one lump sum payment
upon receipt of which credited service shall be given. Credited service purchased
pursuant to this section shall be counted for all purposes except toward vesting of
benefits.
4. The maximum credit under this section shall be five (5) years.
W:\Wdocs\LLP�15009TGM\00091769.WPD
00091912.DOC;1
32
� � � Retirement
Consulting P:954.527.1616 F:954.525.0083 www.grsconsulting.com
�
August 17,2017
Ms. Kerry Dutton
Resource Centers, LLC
4360 Northlake Blvd.,Suite 206
Palm Beach Gardens, FL 33410
Re: Village of Tequesta General Employees Pension Trust Fund
Dear Kerry:
We have reviewed the proposed amendment(copy attached)for the Village of Tequesta General
Employees Pension Trust Fund. This proposed amendment would amend the Plan as follows:
• Adding a provision to comply with the Uniform Services Employment and Reemployment Rights
Act (USERRA)which requires that a member who is disabled or dies while on leave for active
duty military service be treated as if they were rehired effective the day before the death or
disability.
■ Updating the definition of Salary or Compensation to include differential wages paid by the
employer to a member while on intervening military service.
■ Incorporating the provisions of Florida Statutes 112.656 which requires that Trustees discharge
their duties solely in the interest of participants and beneficiaries of the Plan.
■ Updating the Conditions Disqualifying Disability Benefits section to specify that injury or disease
sustained while serving in any branch of the Armed Forces is not excluded for members who
have become disabled as a result of intervening military service under the Heroes Earnings
Assistance and Relief Tax Act of 2008(HEART).
■ Updating the definition of Distributee for Rollover Distributions to permit a non-spouse
beneficiary to rollover assets to an individual retirement account.
■ Adding a provision to provide that a mandatory distribution without member approval can only
be made in the event that the distribution is less than$1,000.00.
Under USERRA, if a member dies or becomes disabled while in the military,the Plan would provide
certain benefits. The value of these benefits would result in an actuarial loss in the year in which the
death or disability occurred. Because of the very low probability that this provision will be utilized,we
do not feel that an estimate for advanced funding is necessary.
In our opinion,these changes will not have an actuarial impact on the cost of the Pension Fund for
prefunding purposes. Therefore, it is our opinion that a formal Actuarial Impact Statement is not
required. However,we recommend that you send a copy of this letter and the amendment to the
Bureau of Local Retirement Systems.
� €
�
Ms. Kerry Dutton
August 17, 2017
Page 2
leffrey Amrose is a member of the American Academy of Aduaries and meets the Qualification
Standards of the American Academy of Actuaries to render the aduarial opinions contained herein. The
undersigned aduary is independent of the plan sponsor.
We welcome your questions and comments.
Respectfully submitted,
/�
�����
effr Amrose, EA, MAAA
Senior Consultant&Aduary
cc: Bonni lensen
Enclosure
The above communication shall not be construed to provide tax advice, legal advice or investment advice.
G �C Retirement
, Consulting