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HomeMy WebLinkAboutDocumentation_Regular_Tab 06_03/01/2018 Village of T'equesta 345 Tequesta Drive 561-768-0700 Tequesta, FL 33469 www.tequesta.org � �. t Village Clerk's Office Memorandum TO: Michael R. Couzzo,Jr. Mayor Abby Brennan, Council Members Vince Arena, Okun and Paterno FROM: Vice-Mayor Frank D'Ambra DATE: 23/1/18 suBJECT: Council's final approval of the amended defined benefit program to include officers hired after 2/1/13 that are currently parricipating in the 401 K plan. Vice-Mayor Vince Arena Mayor Abby Brennan Council�Iember Tom Paterno Council;�lember Steve Okun Council Member Frank D'Ambra Village�Ianager;��ichael Couzzo ARTICLE 29 RETIREMENT By mutual agreement of the parties reached in February 2018, this article is amended to provide as follows: 1. The current language of this article with respect to full-time sworn police officers of the Village of Tequesta covered by the PBA contract hired on or after February 1, 2013 is replaced by the following language. 2. To be effective, this agreement for amendment must be ratified by the bargaining unit not later than March 1, 2018. 3. Upon ratification of the collective bargaining agreement by both parties,the Village will take appropriate legislative steps to amend the Village ordinance that establishes the Public Safety Officers' Pension Trust Fund to incorporate the following agreement of the parties reached in collective bargaining negotiations, to be effective June 1, 2018. 4. The member contribution for police officers who become members of the plan on or after February 1, 2013 will be six percent (6%) of salary. The defined benefit plan as currently written will remain unchanged for current participants (individuals hired by the Village as full-time sworn police officers between January 1, 1996 and a date prior to February 1, 2013). 5. The defined benefit plan will be amended to include individuals hired as permanent sworn police officers after February 1, 2013, and all individuals hired in the future as sworn police officers, subject to the following provisions (amended defined benefit plan) unique to the new group of participants. 6. The multiplier applicable to the new group of participants shall be 2%for the first 3 years of service; 2.35%for years 4—6, and 2.75%for year 7 and thereafter. 7. Solely for the purpose of determining the new participant's multiplier entry point, years of service will be credited based on the employee's date of hire as a permanent sworn police officer. E.g., a new participant hired on February 2, 2013 would begin to accrue benefits starting June 1, 2018 at a multiplier of 2.35%. The multiplier would increase to 2.75% beginning February 2, 2019 upon completion of the participant's sixth year of credited service unde�the amended defined benefit plan. However, credited years of service for retirement benefit purposes for the new group of participants shall begin upon entry into the plan, not earlier than the effective date of the amended pension ordinance. 8. The new group of participants must notify Human Resources by April 1, 2018 whether they intend to participate in the new defined benefit plan, or remain in the current 401(k) plan. If all the employees affected opt into the new defined benefit plan, the 401 (k) plan will be terminated and the funds made available for rollover into another qualified plan or retirement account. 9. Except as expressly provide above, all other plan provisions related to disability, distributions at retirement,fund management, etc. will remain as written and will be applicable to the amended defined benefit plan.