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HomeMy WebLinkAboutDocumentation_Pension Public Safety_Tab 15_08/04/2008 Village of Tequesta Public Safety Officers' Pension Fund • Summary Plan Description August 2008 TABLE OF CONTENTS DEFINITIONS ........................................................ 1 PARTICIPATION IN THE PENSION FUND ................................. 2 ELIGIBILITY FOR NORMAL RETIREMENT ................................ 2 AMOUNT OF A NORMAL RETIREMENT PENSION .......................... 2 EARLY RETIREMENT PENSION ........................................ 4 FORMS OF PAYMENT OF A PENSION ................................... 4 Normal Form ................................................... 4 Optional Forms of Payment ........................................ 5 SURVIVOR BENEFITS -DEATH BEFORE RETIREMENT ..................... 6 Duty Related Deaths ............................................. 6 Non-Duty Related Deaths ......................................... 6 DISABILITY RETIREMENT ............................................. 7 Duty Disability Retirement ......................................... 7 Non-Duty Disability Retirement ..................................... 7 MONTHLY SUPPLEMENTAL BENEFITS g .................................. DEFERRED RETIREMENT OPTION PLAN (DROP) .......................... 8 ENDING EMPLOYMENT BEFORE RETIREMENT ........................... 8 FILING FOR RETIREMENT ............................................. 9 TRUSTEE TO TRUSTEE TRANSFER ..................................... 9 COST OF THE PENSION FUND ......................................... 9 ADMINISTRATION OF THE PENSION FUND .............................. 10 INVESTMENTS ..................................................... 10 ACTUARIAL SOUNDNESS ............................................ 10 AGENT FOR SERVICE OF LEGAL PROCESS ............................. 10 PLAN YEAR ........................................................ 10 PARTICIPATION IN THE PENSION FUND Each Firefighter or Police Officer employed in the Village of Village of Tequesta Public Safety Officers' Department is a Pension Fund Member. A Firefighter or Police Officer is an employee who works full time for the Village. ELIGIBILITY FOR NORMAL RETIREMENT A Member who is age 55 with 6 or more years of credited service or age 52 with 25 or more years of credited service is eligible for normal retirement. An application for normal retirement must be filed with the Fund Administrator and approved by the Board of Trustees. AMOUNT OF A NORMAL RETIREMENT PENSION The amount of a normal retirement pension is based on a Member's credited service, average final compensation and pension multiplier. Average final compensation is the one-twelfth of the average salary paid during the best five years of the last ten years of employment. Salary is total cash remuneration for services rendered as a Firefighter or Police Officer. Credited service is generally a Member's period of employment as a Firefighter or Police Officer with the Village of Tequesta, measured in years and completed months of a year. The pension multiplier is: 3.0% for the first 6 years of service 3.5% for the next 4 years of service 4.0% for the next 5 years of service 3.0% for the next 6 years of service 2.0% for the next 4 years of service 3.0% for all years after 25 years Village of Tequesta August 2008 Public Safety Officers Pension Fund Page 2 Duty Related Deaths The surviving spouse, or in certain circumstances surviving dependent children, of a participant who dies while employed in the Fire or Police Departments as a Firefighter or Police Officer will be paid a duty death pension if the Board finds the death to be the result of causes arising out of and in the course of the participant's performance of duty as a police officer. . A surviving spouse is paid a monthly pension, for life, of 50% of the participant's Average Final Compensation. The death benefit is paid to the estate if the participant leaves neither a surviving spouse nor an eligible surviving child. In any of these cases, the Board may, in its sole discretion, direct that the actuarial value of the monthly payment be paid as a lump sum. Non-Duty Related Deaths If a participant who has 6 or more years of credited service dies while employed in the Fire or Police Department as a Firefighter or Police Officer and the death is not in the line of duty, the beneficiary is paid a pension equal to the benefits otherwise payable at early or normal retirement age. If no pension is paid or will become payable on account of the death of a participant, the participant's accumulated contributions are paid to the parti- cipant's designated beneficiary or to the participant's estate if there is no designated beneficiary. Village of Tequesta August 2008 Public Safety Officers Pension Fund Page 6 MONTHLY SUPPLEMENTAL BENEFITS Each Member or Beneficiary receiving pension benefits is entitled to a monthly supplemental pension benefit. The monthly supplemental benefit is equal to $20 per year of service to a maximum of $600.00 per month. The benefit will cease upon the later of the death of the retired Member or Beneficiary. DEFERRED RETIREMENT OPTION PLAN (DROP) A participant may elect DROP participation upon eligibility for normal retirement. Eligibility to enter the DROP ends if not exercised before the 27th year of employment. DROP participation ends at the first to occur of: 1) termination of employment, 2) 30 years of credited service, or 3) 5 years of participation. Upon the effective date of DROP participation a participant's pension amount is calculated based on credited service and final average salary at that time and the amount remains permanently frozen. The participant's DROP account is M credited with monthly amounts equal to the frozen pension during the period of DROP participation. DROP accounts are credited with investment earnings and losses each September 30 during the DROP period. Members accounts receive the rate of return on the pension fund. Participant DROP accounts are subject to administrative charges. A participant may elect payment of the DROP account at any time following termination of employment but not later than age 70 '/z. Payment is available under several options. Detailed information is available from the administrator. ENDING EMPLOYMENT BEFORE RETIREMENT If a participant with less than 6 years of credited service, quits or is fired from employment as a Village of Tequesta Firefighter or Police Officer, future rights to a pension are forfeited. Participant contributions are refundable, however. Village of Tequesta August 2008 Public Safety Officers Pension Fund Page 8 A Member may voluntarily leave their contributions in the pension fund pending re-employment by the Village for a period up to five years. If a participant has at least 6 years of credited service when employment as a Firefighter or Police Officer terminates, the right to a deferred normal retirement is retained, so long as accumulated contributions are left on deposit in the Pension Fund. The amount of deferred normal retirement pension is calculated using average final compensation and credited service at the time of termination of employment as a Firefighter or Police Officer. The amount of pension may be subject to early retirement reduction of 3% per year if applicable. Retirement and payment of a pension is available upon application on or after age 50. FILING FOR RETIREMENT In order to ensure that you receive your pension on time, you should file your application with the Fund Administrator at least 30 days before retirement. All forms can be obtained from the Fund Administrator at the address on the Introduction page. Penalties will be imposed for making a false or misleading statement to obtain a pension benefit. It can take up to 120 days after your date . of retirement to receive your first pension check. TRUSTEE TO TRUSTEE TRANSFER To minimize the tax consequences of rolling assets over to an IRA or another qualified plan, direct trustee-to-trustee transfers are available. Please see the administrator for the appropriate forms. COST OF THE PENSION FUND Effective the first full payroll period after June 9, 2005, Police Officer Members are required to contribute 5.00% of covered salary and Firefighter Members are required to contribute 6.1 %. Contributions are deducted from each paycheck and credited to the Member's Pension Fund account. Village of Tequesta Public Safety Officers Pension Fund August 2008 Page 9 • The Village of Tequesta also contributes to the Pension Fund. The amount of Village contribution is mathematically determined in accordance with State statutes to finance Pension Fund benefits as they are earned. FORFEITURE OF PENSION Anv Member who is convicted of any of the below offenses committed prior to retirement shall forfeit all rights and benefits under this Fund, except for a refund of accumulated contributions. The specified offenses are: (1) Committing aiding or abetting of an embezzlement of public funds; (2) -- Committing, aiding or abetting o_f any theft by a public officer or employee from employer; (3) Bribery in connection__with the employment of a public officer or employee; (4) Anv felony specified in Chapter 838, Florida Statutes; (5) The committing of impeachable offense (6) The committing of any felony by a public officer or employee who, willfully and with intent to defraud the public or the public agency for which the public officer or employee acts or in which he or she is employed of the right to receive the faithful performance of his or her duty as a public officer or employee, realizes or obtains, or attempts to realize or obtain, a profit, aain, or advantage for himself or herself or for some other person through the use or attempted use of the .power, rights, privileges, duties, or position of his or her public office or employment position. _ _ Any Member who has received benefits from the Plan in excess of his accumulated contributions shall be required to repay the Fund. The Board may implement legal action necessary to recover such funds. Village of Tequesta August 2008 Public Safety Officers Pension Fund Page 10 ~~ ~J Additionally, a Member who makes a false or misleading statement to obtain retirement benefits shall commit a misdemeanor of the first degree and if convicted, the Member shall forfeit his/her benefit. CLAIMS PROCEDURES Any member, former member, or beneficiary who has been denied a benefit by a decision of the Board shall be entitled to reauest in writing that the Board give further consideration to the claim. The Board shall review the case and issue an order within 60 davs after receipt of the written reauest. Within 90 davs after receipt of the order of the Board, the Member may re uest in writing, a hearing. The Board shall then conduct a hearing within the next 90 davs. The claimant may be represented at the hearing by an attorney or other representative of his/her choosing. During the hearing the claimant shall have the opportunity to submit written and oral evidence and arguments in support of his/her claim. The claimant shall also have the opportunity to review the Board's file at or prior to the hearing. Either the claimant of the Board may request that a court reporter record the proceedings. In this event a complete written transcript of the proceedings shall be furnished to both parties at the expense of the party requesting the attendance of the court reporter. A final written decision shall be made by the Board within 30 davs of such hearing. The written decision shall include the reasons for such decision and such decision shall be final. ADMINISTRATION OF THE PENSION FUND The Pension Fund is administered by a Board of Trustees which is responsible for overseeing the investment of Pension Fund assets and application of the provisions of the Village Code. The Board has authority over distribution of all pensions and makes final decisions on claims and appeals. Five trustees comprise the Board: two legal residents of the Village appointed by the Village Commission, two full-time Public Safety Officers' elected by Pension Fund Members and a trustee chosen by the majority of the other four trustees. Village of Tequesta August 2008 Public Safety Officers Pension Fund Page 11 Pension Fund assets are maintained and invested entirely separate from Village assets and cannot be used for any purpose other than those specified in the Village Code. INVESTMENTS The assets of the Plan are presently invested by Rockwood Capital Management under investment guidelines adopted by the Board of Trustees in consultation with their investment advisors. ACTUARIAL SOUNDNESS The actuary for the Plan has determined that the Plan is actuarially sound and can adequately fund the benefits based upon projected contributions to the Plan and investment earnings. AGENT FOR SERVICE OF LEGAL PROCESS Board of Trustees Hanson, Perry & Jensen, P.A. 400 Executive Center Drive Suite 207 West Palm Beach, Florida 33401-2922 PLAN YEAR The plan year is the twelve month period beginning each October 1. Records are kept on a fiscal year basis. Village of Tequesta Public Safety Officers Pension Fund August 2008 Page 12 ACTUARIAL DATA • Village of Tequesta Public Safety Officers Pension Fund August 2008 Page 13 • INCOME AND DISBURSEMENTS • Village of Tequesta August 2008 Public Safety Officers Pension Fund Page 14 •