HomeMy WebLinkAboutDocumentation_Pension Public Safety_Tab 20_02/05/2007Page 1 of 5
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Lori McWilliams
From: Merlene Reid [mreid@tequesta.org]
Sent: Friday, January 05, 2007 8:57 AM
To: Couzzo, Michael
Cc: Russo, Robbie; Gload, Michelle; Forsythe, JoAnn; Laur, Betty; McWilliams, Lori
Subject: FW: TEQUESTA RETIREES -WHITE, MORRILL & GARLO
Mike:
You asked me for an update to this issue and what needs to be done to bring it to a closure.
To bring everything to a closure we have 3 steps left:
1. Payroll needs to submit to the FRS, monthly adjustment forms along with contributions for
the wages of the 3 individuals, retroactive to each individual's initial date in the FRS DROP
plan. (instructions from FRS)
2. Payroll needs to determine the amount of over contribution by the Village for each individual,
develop that amount as an over-contribution reserve and offset the Village's contribution in the
current year. (recommendation from Bonnie Jensen)
3. HR needs to request a refund of Russell White's contribution to the General Fund and have
this ratified at the next Pension Board meeting.
See below for complete email from Bonnie Jensen in response to the questions that I posed to
her.
Merlene
-----Original Message-----
From: Bonni S. Jensen [mailto:bsjensen@hpjlaw.com]
Sent: Monday, December 04, 2006 11:38 AM
To: Merlene Reid
Cc: Karen Amenita; Betty Laur; Bob Garlo; Joann Forsythe; Steve
Palmquist
Subject: Re: TEQUESTA RETIREES -WHITE, MORRILL & GARLO
Merlene,
In answer to your questions:
1. Can Russell White's contributions be refunded based on a memo from me stating that he
was not eligible to join the General plan, or does he have
to wait until the next meeting in Feb 2007 for board approval?
Ans. I believe that the General Employees fund makes refunds of contributions based upon
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the Village's records and then ratifies the
refunds at the following meeting. Betty and/or Patrice should be able to tell you the specific
policy of the Board.
2. What's the procedure recommended to request credit for the Village's contribution to date
in these pension plans for these individuals?
Ans. The Village should request that the Board either:
a. Account for the over-contributions in the normal course of the Fund's actuarial
valuations. The removal of liability for the
participants should result in an actuarial gain to the pension funds. This gain can then be part
of the next actuarial valuation which can be
used to offset losses in the fund or will reduce the Village's contribution.
b. Determine the amount of over contribution for each employee, develop that amount
as an over-contribution reserve and offset
the Village's contribution in the current year. The iRS has a procedure for the "refund for
contributions made by mistake," however, that procedure does not apply to this situation.
3. Would you recommend a special meeting of the board to resolve all issues associated
with this matter, bearing in mind that Tequesta needs to
retrieve/offset the contributions in order to pay the FRS?
Ans. I would recommend setting a special meeting, if the Village wants to have action by
the Board of Trustees before February.
4. Finally, Betty suggested that I also ask your advice whether any action needs to be taken
by the Council members in respect of these errors that
have come to light, specifically as it relates to the pension plans.
Ans. From the PEnsion Fund perspective there is no action that the Village Council needs
to address. However, the Board of Trustees may
want to consider some procedures to consider "new" participants to the Fund -specifically to
determine whether they are eligible to
participate.
If you have any questions or concerns, please contact me.
On Thu, 30 Nov 2006 12:21:40 -0500
"Merlene Reid" <mreid@tequesta.org> wrote:
> Hi Bonnie:
> Thanks for the information on the FRS contribution rates. See official email below from the
FRS re the 3 employees involved.
> As discussed, the situation facing the Village is that we have 3 employees who were not
properly terminated from the FRS pension plan and were not
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> eligible to join the General and the Public Safety Pension plans. Two have resigned
effective 11/27 (Bob Garlo -General Pension and Mike Morrill -
> Public Safety Pension) and will automatically have their contributions refunded to them in
the normal way. I will also stop all future
> contributions by Russell White who is currently in the General Pension plan.
> I spoke to Steven Palmquist who does not anticipate any complications from his end and
expects the next valuation to reflect the associated costs.
> However, I still have a few questions for you:
> 1. Can Russell White's contributions be refunded based on a memo from me > stating that
he was not eligible to join the General plan, or does he have
> to wait until the next meeting in Feb 2007 for board approval?
> 2. What's the procedure recommended to request credit for the Village's contribution to
date in these pension plans for these individuals?
> 3. Would you recommend a special meeting of the board to resolve all issues associated
with this matter, bearing in mind that Tequesta needs to
> retrieve/offset the contributions in order to pay the FRS?
> 4. Finally, Betty suggested that 1 also ask your advice whether any action needs to be
taken by the Council members in respect of these errors that
> have come to light, specifically as it relates to the pension plans.
> I am also welcoming any further suggestions that you may have in this matter.
> Merlene Reid
> Human Resources Manager
> Village of Tequesta
> 345 Tequesta Drive
> Tequesta, FL 33469
> Tel (561)575-6200
> Fax (561)575-6203
> -----Original Message-----
> From: Snuggs, Andy [mailto:Andy.Snuggs@dms.myflorida.com]
> Sent: Tuesday, November 28, 2006 11:06 AM
> To: Merlene Reid
> Subject: RE: TEQUESTA RETIREES -WHITE, MORRILL & GARLO
> Dear Ms. Reid:
> This is in reference our phone conversation regarding the three
> employees
> (Robert Garlo, Michael Morril, and Russell White) of the Village of
> Tequesta who commenced receiving Florida Retirement System benefits
> without terminating their employment.
> To receive retirement benefits under the Florida Retirement System (FRS)
> a member must be terminated from all FRS employment for a full calendar
> month. If a member returns to work for any FRS employer in any capacity
> during the first calendar month of retirement, a member will not be
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> considered to have retired. The member's application will be voided and
> the member must repay all retirement benefits received by the member.
> After reviewing the facts of this situation, the Division of Retirement
> has determined that these members may enroll in DROP retroactive to
> their initial retirement dates. To accomplish this the Division will
> require the Village submit a Form DP-ELE for each member. These forms
> should be faxed to Doug Cherry at 850-410-2072. In addition the Village
> will need to submit monthly payroll adjustments under retirement plan
> code DP for each individual. If you have any questions regarding the
> submission of these adjustments, please contact the Retirement
> Contributions Section at 877-377-1266.
> The members will not be required to return any retirement benefits
> received through November 30, 2006. Once the members terminate
> employment, they will be eligible to commence receiving their FRS
> benefits plus any benefits in their DROP accounts. If any of the members
> involved in this situation terminate 11/30/2006 and remain off all FRS
> employment through December 31, 2006, the members will be eligible to
> receive a December retirement check and any benefits in the DROP
> account. These members can participate in DROP for up to 60 months form
> their initial retirement date.
> If you have any questions, please call me at 850-414-7055.
> -----Original Message-----
> From: Merlene Reid [mailto:mreid@tequesta.org]
> Sent: Tuesday, November 07, 2006 2:10 PM
> To: Snuggs, Andy
> Subject: TEQUESTA RETIREES -WHITE, MORRILL & GARLO
> Dear Mr. Snuggs:
> It seems that we keep missing each other. I was trying to get an update
> on
> your division's determination in respect of the above-named employees.
> Please advise on any additional information that you have since we fast
> spoke.
> Sincerely,
> Merlene Reid
> Human Resources Manager
> Village of Tequesta
> 250 Tequesta Dr, St. 300
> Tequesta, FL 33469
> Tel (561)575-6200
> Fax (561)575-6203
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Bonni S. Jensen <bsjensen@hpjlaw.com>
Hanson, Perry & Jensen, P.A.
400 Executive Center Drive, Suite 207
West Palm Beach, Florida 33401
Telephone: (561)686-6550
Facsimile: (561)6$6-2802
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