HomeMy WebLinkAboutAgenda GEPB 020909City of Palm Beach Gardens
10500 N. Military Trail
Palm Beach Gardens, FL 33410
GENERAL EMPLOYEES PENSION FUND
NOTICE OF MEETING AND AGENDA
Please take notice that the Board of Trustees of the City of Palm Beach Gardens will
conduct a meeting of the board at the above location on February 9th, 2009 at 2:OOPM in
Council Chambers.
Old Business:
New Business:
Approval of 8/25/08 minutes
Report from Rockwood
Report from Bogdahn Consulting
Report from Scott Christiansen
Re-elect Chairman and Secretary
Approval of Bills
Adjournment
DISABILITY INFORMATION
In accordance with the Disabilities Act and F.S.S.286.26, persons with disabilities
needing special accommodation to participate in this proceeding should contact the
Human Resource Department no later then seven days subsequent to the proceeding at
(561) 799 - 4223 for assistance, if hearing impaired, telephone the Florida Relay Service
Number at 800 - 955 - 8770 (VOICE) for assistance.
APPEAL NOTICE
If a person decides to appeal any decision made by the Board, with respect to any matter
considered at such meeting or hearing, he will need to ensure that a verbatim record of
the proceedings is made, which record includes the testimony and evidence upon which
the appeal is to be based.
City of Palm Beach Gardens
General Employee Pension Board
List of Bills to be Approved
Christiansen & Dehner
For: Professional Services Rendered
Date: Invoice Number:
12/31/2008 15756
10/31/2008 15429
Amount:
29.00
1,259.86
Bogdahn Group
For: Performance Evaluation and Consulting Services for 9/30/08 and 12/31/08
Date: Invoice Number:
12/29/2008 3777
9/30/2008 3401
Amount:
2,000.00
2,000.00
Sawgrass Asset Management
For: Quarterly Management Fee for 9/30/08 and 12/31/08
Date: Invoice Number: Amount:
1/7/2009 N/A
10/6/2008 N/A
Rockwood Capital Advisors
For: Quarterly Management Fee for 9/30/08 and 12/31/08
Date: Invoice Number:
12/31/2008 N/A
9/30/2008 N/A
Salem Trust Company
For: Administration for 9/30/08 and 12/31/08
Date: Invoice Number:
1/9/2009 N/A
10/9/2008 WA
662.00
632.00
Amount:
2,099.65
2,759.76
Amount:
750.00
750.00
CITY OF PALM BEACH GARDENS
GENERAL EMPLOYEE PENSION BOARD
SPECIAL MEETING
AUGUST 25,2008
The August 25, 2008 special meeting of the General Employee Pension Board of the City of
Palm Beach Gardens, Florida, was called to order at 1:05 p.m. in the Council Chambers of the
Municipal Complex, located at 10500 North Military Trail, Palm Beach Gardens, Florida by
Chair Allan Owens.
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ROLL CALL
Members Present: Allan Owens, Chair
Dindial Laljie, Secretary
Jami Smith
Kenneth Steele
Brandon Dorsey
Members Absent: None
Additional Attendees: Sarah Varga, Accountant
Chair Allan Owens welcomed Brandon Dorsey as a new Board member
APPROVAL OF MINUTES
MOTION
A motion was made hy Kenneth Steele for the approval of the February 1 I, 2008 and June
20,2008 minutes. Dindial Laljie seconded. Motion passed unanimously, 5-0
OLD BUSINESS
None.
NEW BUSINESS
Rockwood Capital Advisors, LLC, was not present. Chair Owens moved on to David
West of The Bogdahn Group.
David West introduced Senior Consultant Dan Johnson and Chief Fiduciary Officer Herb
Whitehouse of The Bogdahn Group.
David West reported on the present status of the Bogdahn investments.
Kenneth Steele asked if the asset allocation had been moved up from 70 to 75 percent as
discussed at the February 11, 2008 meeting. David West replied that he will check and
report back at the next meeting (February 9,2009).
Kenneth Steele clarified that the Board's intention is to be fully invested at 75 percent.
David West stated his understanding of the existing policy and that he would check the
hard copy for execution.
Brandon Dorsey suggested language for the policy to eliminate ambiguities.
Discussion ensued regarding equity investment limitations.
iENERAL EMPLOYEE PENSION BOARD SPECIAL MEETING
18'25.08
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Allen Owens stated he does not wish to change Ordinance language and requested that
revised policy language be brought back to the Board in writing.
Kenneth Steele clarified that Bogdahn will write a motion within the next three months
and submit it to the Board for review.
Scott Christiansen, Board Attorney, discussed Board composition as three legal City
residents who are appointed by the City Council, one is a member of the system or retiree
and a fifth selected by the other four. Chair Owens stated he will check on membership
status.
MOTION
Jami Smith made a motion reappointing Allan Owens as the fifth trustee. Brandon
Dorsey seconded. Motion was approved unanimously, 5-0.
All members have filed financial disclosure forms except Bratldon Dorsey. Chair Owens
explained that Brandon Dorsey had just been appointed to the Board on August 21,2008
and is aware of the filing requirement.
The re-election of Board officers will be an agenda item for the next meeting.
Attorney Christiansen reported on revised tax forms and the need to revise the summary
plan description for distribution to membership.
MOTION
Kenneth Steele made a motion authorizing Attorney Christiansen to update the summary
plan description. Dindial Laljie seconded. Motion was approved unanimously 5-0.
Attorney Christiansen described possible future changes to the tax laws that could impact
pension plans negatively. Mr. Slavin’s reports go back several years.
Andrew Holtgrieve of Rockwood Capital Advisors reviewed the current status of
Rockwood investments.
Dave West stated the transaction requested at the February 1 I, 2008 meeting has been
enacted.
Chair Owens stated the next regularly scheduled meetings would be on Monday,
February 9,2009 at 2:OO p.m. and Monday, August 10,2009 at 2:OO p.m.
The board reviewed the quarterly statements of fees:
Salem Trust Quarterly fee ending March 2008 $750.00
$750.00
Rockwood Capital Quarterly fee ending March 3 1,2008 $3,102.4 1
$3,205.26
Quarterly fee ending June 2008
Quarterly fee ending June 30,2008
Bogdahn Group Quarterly fee ending March 3 I, 2008 $2,000.00
Quarterly fee ending June 30,2008 $2,000.00
Christiansen & Dehner Invoice 14993, July 31,2008 $794.94
Sawgrass Asset Mgmt Quarterly fee ending March 3 1,2008 $687.00
Quarterly fee ending June 30,2008 $670.00
Invoice 14373, March 31,2008 $1,689.90
Invoice 14064, January 3 1,2008 $58.00
MOTION
A motion was made by Dindial Laljie for approval of payment of invoices as read. Jami
Smith seconded. Motion was approved unanimously, 5-0.
GENERAL EMPLOYEE PENSION BOAR0 SPECIAL MEETING
08.25.08
PAGE 2
1 V. ADJOURNMENT
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34 Municipal Services Coordinator
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A motion for adjournment was made by Jami Smith. Dindial Laljie seconded. The motion
was approved unanimously, 5-0. The meeting was adjourned at 2:35 p.m. The next regularly
scheduled meeting will be held on February 9,2009.
NOTE: These action minutes are prepared in compliance with 286.011 F.S. and are not verbatim
transcripts of the meeting; A verbatim audio record is available from the Office of the City Clerk.
All referenced attachments on file in the Office of the City Clerk.
Allan Owens, Char
Dindial Laljie, Secretary
Kenneth Steele
Jami Smith
Brandon Dorsey
GENERAL EMPLOYEE PENSION BOARD SPECIAL MEETING
08.25.08
PAGE 3
1
PALM BEACH GARDENS GENERAL EMPLOYEES' PENSION PLAN @B)
SUMMARY PLAN DESCRIPTION
February 1,2009
IS YOUR BENEFICIARY FORM CURRENT? IN THE EVENT YOU DIE, YOUR BENEFIT OR
CONTRIBUTIONS WILL BE DISTRIBUTED TO THE PERSON OR PERSONS DESIGNATED BY
NAME ON THE BENEFICIARY FORM ON FILE WITH THE PENSION PLAN. NO PROVISION IN
YOUR LAST WILL ANDTESTAMENT WILL CHANGE THIS SELECTION. PLEASE BE SURE THAT
YOUR BENEFICIARY FORM DESIGNATESTHE PERSON ORPERSONS YOU INTENDTO RECEIVE
YOUR BENEFITS AND THAT YOU REVIEW THIS CHOICE IN THE EVENT OF A MAJOR LIFE
CHANGE SUCH AS A DIVORCE OR THE DEATH OF YOUR BENEFICIARY.
I i
PALM BEACH GARDENS GENERAL EMPLOYEES' PENSION PLAN @B)
SUMMARY PLAN DESCRIPTION
INTRODUCTION
The Board of Trustees of the Palm Beach Gardens General Employees' Pension Plan (DB)
is pleased to present this booklet which briefly explains the provisions of your General Employees'
Pension Plan. As a participant in the Fund, you are included in a program of benefits to help you
meet your financial needs at retirement, or in the event of disability or death.
This booklet can assist you in preparing for your retirement and financial future. If you need
further information on any of the topics presented in this booklet, please contact any member of the
Board of Trustees. They will either answer questions you might have to help you understand your
benefits or otherwise get you an answer to your questions. We urge you to read and understand this
booklet in order to become familiar with the benefits of the plan and how they contribute to your
financial security and how they will enrich your retirement years.
The information presented is only a summary of the pension plan ("Plan") as provided in the
ordinances of the City of Palm Beach Gardens. If there are any conflicts between the information
in this booklet and the ordinances ofthe City of Palm Beach Gardens, the ordinanccs shall govern.
The provisions ofthis Summary Plan Description shall not constitute acontract between the Member
and the Board ofTrustees. The plan shall be administered in accordance with state and federal law,
notwithstanding any provisions in this booklet or ordinances to the contrary. A copy of thc
ordinance establishing the Plan can be obtained from the City Clerks office, which is located at
I0500 North Military Trail, Palm Beach Gardens, Florida 334 IO.
Board of Trustees, Palm Beach Gardens
General Employees' Pension Plan (DB)
Date
I. BOARD OF TRUSTEES AND PLAN ADMINISTRATION
A. Administration. The Palm Beach Gardens General Employees' Pension Plan
(DB) is a defined benefit pension plan administered by a Board of Trustees which acts as the
administrator of the Plan. The Board consists of 5 Trustees, 3 of whom are legal residents of the
City who are appointed by the City Council, 1 of whom is a member of the System or a retiree, or,
if a member or retiree is unwilling or unable to serve, a legal resident of the city who shall also be
appointed by the City Council, and a fifth Trustee who is chosen by a majority of the first 4 Trustees.
Each Trustee serves a three year term.
The names and addresses ofthe current Trustees are attached tothis Summary
Plan Description as Exhibit "A". The Chairman of the Board of Trustees is designated as agent for
the service of legal process.
B.
2. ELIGIBILITY FOR PLAN MEMBERSHIP
All General Employees who are Members of the System as of February 6,1997 shall
remain Members ofthe System and are therefore eligible for plan benefits as provided for in the plan
document and by applicable law. All General Employees who are not Members of the System as of February 6, 1997, and all future new General Employees shall be ineligible to become Members
of this System.
3. PLAN BENEFITS
All claims for benefits under the Plan shall be made in writing to the Board of
Normal Retirement Eligibility. You are eligible for rctirement upon the
Amount ofNorma1 Retirement Benefits. The amount ofthe normal retirement
Trustees.
A.
attainment of age 62, regardless of years of credited service.
benefit is based on your credited service and average final compensation:
"Credited Service" is generally your period of employment as a General
Employee with the City measured in years and parts of years. Creditcd service will include a break
in employment for rnilitiuy scrvice, pursuant to conditions that are required or permitted under state
or federal law, as amended from time to time, provided that you are reemployed within 1 year of
discharge under honorable conditions. Additional credited service time may also be available (See
subsection J. below).
"Average Final Compensation" is 1/12 of your average salary of the 3 best consecutive years ofthe last 5 years ofcredited service prior to your termination, retirement or death,
or your career average as a full-time General Employee, whichever is greater. A year is defined as
12 consecutive months.
"Salary" is the total compensation for services rendered to the City reportable
on your W-2 form, plus all tax deferred, tax sheltered or tax exempt items of income derived from elective employee payroll deductions or salary reductions.
The normal retirement benefit is calculated by multiplying 2.5% times years
of credited service times your average final compensation: (2.5% x CS x AFC =normal retirement
B.
benefit).
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Normal and early retirement uaments will commence on the first day of the
month following your last day of employment. Eiriy retirees may defer the commencement of
benefits. The benefit is uaid to YOU for your life. but YOU or your beneficiary shall receive at least
120 monthly benefit payinents ih any eient.
the completion of 10 years of credited service.
benefit is calculated in the same manner as for normal retirement and is available as follows:
C. Early Retirement. You are eligible for early retirement upon the of age 55 and
Amount of Early Retiremcnt Benefits. The amount of the early retirement
(1) Beginning on the date on which you would have qualified for normal retirement; or
(2) Beginning immediately u n retirement, but if beginning
for each ofthe first 5 years, and 1/30th for each of the next 5 ears by
have been your normal retirement date had you continued
employment as a General Employee.
-1. In lieu of the amount and form of retirement
income payable under normal and early retirement, you may elect to receive a retirement benefit in
a different form so long as the form you elect is of equal actuarial value as the normal benefit. The
optional forms of benefits which are availablc are:
A retirement incomc of a monthly amount payable to you for your
lifetime only.
A retirement income of a modified monthly amount, payable to you
during your lifetime and following your death, loo%, 75%, 66 U3% or 50% of such monthly amount payable to a joint pensioner for his
lifetime.
If you retire prior to the time at which social security benefits are
payable, you may elect to receive an increased retirement benefit until such time as social security benefits shall be assumed to commence
and a reduced benefit thereafter in order to provide, to as great an
extcnt as possible, a more level retirement allowance during your
entire period of retirement.
DisabilitvRetirement. You are considered disabled when you become totally
and permanently unable to perform useful and efficient service as a General Employee in your
current position or in another position that the City makes available to you. A written application
is made to the Board of Trustees for adisability pension and the Board ofTrustees receives evidence of the disability and decides whether or not the pension is to be granted. If the pension is granted,
the benefit amount shall be 2%% ofyour average final compensation multiplied by your total years of credited service.
Terminated persons, either vested or non-vested, are not cligible for disability benefits, except that those terminated by the City for medical reasons may apply for a disability
benefit within 30 days after termination.
D.
immediately, the amount of tK" e monthly benefit is reduced by 1/15th
which the commencement of benefits precedes the date whic r, would
E.
(1)
(2)
(3)
F.
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Yourdisability benefitterminatesupon theearlierofdeath, with 120payments
guaranteed, or recovery. You may, however, select a "life only" or "joint and survivor'' optional
form of benefit as described above under "Optional Forms of Retirement".
Your benefit will be reduced if you receive worker's compensation benefits,
social security benefits or any other salary continuation program provided by the City, and your
combined benefit exceeds 100% ofyour final salary. The pension benefit will be reduced so that the
total does not exceed 100%.
To receive disability benefits, you must establish to the satisfaction of the
Board, that such disability was not occasioned primarily by:
Excessive or habitual use of any drugs, intoxicants or alcohol.
Injury or disease sustained while willfully and illegally participating
in fights, riots or civil insurrections.
Injury or disease sustained while committing a crime.
Injury or disease sustained while serving in any branch of the Armed
Forces.
Injury or disease sustained after your employment as a General
Employee with the City of Palm Beach Gardens shall have
terminated.
Willful, wanton or intentional misconduct or gross negligence.
Injury or disease sustained while working for anyone other than the
City and arising out of such employment.
A condition pre-existing your membership in the system.
As a disabled pensioner, you are subject to periodic medical examinations as
directed by the Board to determine whether a disability continues. You may also be required to
submit statements from your doctor, at your expense, confirming that your disability continues.
Death Before Retirement. If you die prior to retirement from the City, your
beneficiary shall receive the following benefit:
(1) Prior to Vestine or Eliaibilitv for Retirement. Ifyou die and were not receiving benefits or were not yet vested or eligible for early or normal retirement, your beneficiary shall receive a refund of 100% of
your accumulated contributions, with interest.
Deceased Members Vested or Eliaible for Retirement. If you die, and
at the date of your death were vested or eligible for early or normal retirement, your beneficiary shall be entitled to a benefit as follows:
(a) If you were vested, but not eligible for normal or early retirement, your beneficiary shall receive a benefit payable for
10 years, beginning on the date that you would have been
eligible for early or normal retirement, at the option of your beneficiary. The benefit shall be calculated as for normal
retirement based on your vested percentage, credited service
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G.
(2)
and average final compensation as of the date of your death
and reduced as for early retirement, if applicable. Your
beneficiary may also elect to receive an immediate benefit,
payable for 10 years, which is actuarially reduced to reflect
the commencement of benefits prior to your early retirement
date.
If you were eligible for normal or early retirement, your
beneficiary shall receive a benefit payable for IO years,
beginning on the first day of the month following your death
or at your otherwise normal or early retiremeni date, a! the
option of your beneficiary. The benefit shall be calculated as
for normal retirement based on your credited service and
average final compensation as of the date of your death and
reduced as for early retirement, if applicable.
Your beneficiary may elect an optional form of benefit and
the board may elect to make a lump sum payment pursuant to
Section 10 of the plan document.
Your beneficiary may, in lieu of any benefit provided for in
(a) or (b) above, elect to receive a refund ofyour accumulated
contributions, with interest.
Termination of Emnlovment and Vesting. Ifyour employment is terminated,
(I) If you have less than 5 years of credited service upon termination, you shall be entitled to a refund of the money you have contributed, with interest, or you may leave it deposited with the Fund.
If you have attained your normal retirement date, you shall be fully
vested in your accrued retirement benefit regardless of your years of
credited service. If you are not otherwise fully vcsted, you shall have
a minimum vested interest in the amount of your accrued benefit
equal to the percentage thereof, as hereinafter indicated, applicable to the number of your years of Credited Service:
(b)
(c)
(d)
H.
either voluntarily or involuntarily, the folfowing benefits are payable:
(2)
Years of
Credited Service
0-4
5
6
7
8
9
10
Vested Interest
in Accrued Benefit
0%
25%
40%
55%
70%
85%
100%
(3) You shall at all times and in all events have a fully vested interest in
your accumulated contributions. Your vested interest may not be
reduced as a result of any amendment to this section; however, any increase in your vested interest will be determined by the vesting
schedule in effect at the time of your separation from service.
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(4) If you have 5 or more years of credited service upon termination, you
shall be entitled to a monthly retirement benefit, payable to you
commencing at your otherwise normal or early retirement date,
provided you do not elect to withdraw your accumulated
contributions and provided you survive to your otherwise normal or
early retirement date. If you do not withdraw his accumulated
contributions and do not survive to your otherwise normal or early
retirement date, your designated benefici or your spouse at the
a deceased Member under Death Before Retirement.
time ofyour death shall be entitled to a bene 7 it as provided herein for
The Internal Revenue Code provides that certain eligible lump sum
distributions from the pension system may be directly rolled over into qualified individual retirement
accounts, annuities or certain other pension plans. A 20% withholding shall be required on taxable portions of such lump sum distributions not
If you retire under normal or early
retirement and wish to be reemployed by the city, you should be aware that your ability to continue
to receive your pension benefit'upon reemployment may be restricted.
in the employment of the City, you may also receive credited service as follows:
transferred to a new custodian.
I. Reemoloment After Retirement.
J. Additional Credited Service. In addition to credited service actually earned
(1) Familv and Medical Leave Act. If you are absent on unpaid leave
under the Family & Medical Leave Act, you may purchase lost
credited service by making an actuarially determined contribution to
the Plan, such that there is no cost to the Plan in allowing such
credited service, within strict time periods provided for in the plan
document.
Military Service Prior To Emoloment. The years or fractional parts
of years that you serve or have served on active duty in the active
military service of the Armed Forces ofthe United States, the United
States Merchant Marine or the United States Coast Guard, voluntarily
or involuntarily, honorably or under honorable conditions, prior to
first and initial employment with the City shall be added to your years
of credited service provided that:
(a)
(2)
You contribute to the Fund a sum equal to:
(i) the amount that you would have contributed to the
plan, based on your salary and the member
contribution rate in effect at the time that the credited
service is requested, had you been a member of the
system for the years or fractional parts of years for
which you are requesting credit, Dlus
an additional amount to be determined by the Board's
actuary so that there is no cost to the plan in giving you the additional years of credited service, &
(iii) the amount charged by the actuary for determining the amount you must contribute.
Multiple requests to purchase credited service may be made
at any time prior to retirement.
(ii)
(b)
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(c) Payment of the required amount shall be made within 6
months of your request for credit, but not later than your
retirement date, and shall be made in one lump sum payment
upon receipt of which credited service shall be given.
(d) The maximum credit under this subsection shall be 5 years.
(e) Credited service purchased pursuant to this subsection shall not count toward vesting.
-e. The years or fractional parts of years that you were previously a member but terminated
employment and are not otherwise entitled to credited service for such previous period of employment as a general employee, or the
years or fractional parts of years that you serve or have served as an
employee for any government agency in the United States, including
but not limited to federal, state or local government service, and for
which you do not otherwise qualify for and receive credit under this
system, shall be added to your years ofcredited service provided that:
(3)
You contribute to the Fund a sum equal to:
(i) the amount that you would have contributed to the
plan, based on your salary and the member
contribution rate in effect at the time that the credited
service is requested, had you been a member of the system for the years or fractional parts of years for
which you are requesting credit, &
amounts actuarially determined such that the crediting
of service does not result in any cost to the Fund, &
payment of costs for all professional services rendered
to the Board in connection with the purchase of years
of credited service.
(ii)
(iii)
Multiple requests to purchase credited service pursuant to this
subsection may be made at any time prior to retircment.
Payment of the required amount shall be made within 6
months of your request for credit, but not later than your
retirement date, and shall be made in one lump sum payment
upon receipt of which credited service shall be given.
There shall be no maximum purchase of credited service
pursuant to this subsection and credited service purchased
shall count for all purposes, including vesting, except that
credited service purchased for prior government service other
than with the City of Palm Beach Gardens shall not count toward vesting.
In no event may credited service be purchased pursuant to this
subsection for prior service with any other governmental
agency, if such prior service forms or will form the basis of a
retirement benefit or pension from a different employer's
retirement system or plan.
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(4) Rolloversor Transfers ofFunds to Purchasc Service. In theevent you
are cliaible to purchase additional credited service as Drovided above.
you may be kligible to rollover or transfer fundi from anothe;
retirement program in which you participate (traditional IRA,
deferred compensation plan maintained by a government employer (457 plan), 401k plan, profit sharing plan, defined benefit plan,
money purchase plan, annuity plan or tax sheltered annuity) in order
to pay all or part of the cost of purchasing such additional credited
service.
Contributions and Funding. The City is paying the portion of the cost of the
pension plan over and above your contributions. You contribute 6% of your salary to the Plan. Your
contribution will be excluded from your gross income for withholding purposes so you will realize
income tax benefits.
Maximum Benefits. In no event will the annual benefits paid from this Plan
exceed $1 85,000 annually, subject to certain cost of living adjustments and actuarial reductions for retirement prior to age 62 as set forth in Section 415 of the Internal Revenue Code.
If you began participation for the first time on and after January 1, 1980, you
cannot receive a benefit in excess of 100% of your average final compensation.
Forfeiture of Pension. If you are convicted of the certain crimes listed in the Plan, or if your employment is terminated by reason of your admitted commission, aid or abetment
of these crimes, you shall forfeit all rights and benefits under the Plan, except for the return of your
contributions as of the date of your termination.
K.
L.
M.
N. Claims Procedure Before the Board. You may request, in writing, that the Board review any claim for benefits under the Plan. The Board will review the case and enter a
decision as it deems proper within not more than 180 days from the date of the receipt of such
written request, or in the case of a disability claim, from receipt of a medical release and completed
interrogatories. The time period may be extended if you agree to the extension.
The Board's decision on your claim will be contained in an order which will
be in writing and will include:
(I)
(2)
(3)
The specific reasons for the Board's action;
A description of any additional information that the Board feels is
necessary for you to perfect your claim;
An cxplanation of the review procedure next open to you which includes a formal evidentiary hearing.
4. NON-FORFEITURE OF PENSION BENEFITS
A. Liauidation of Pension Fund Assets. In the event ofrepeal, or ifcontributions to the Fund are discontinued by the City, there will be a full vesting of benefits accrued to datc of repeal.
Interest of Members in Pension Fund. At no time prior to the satisfaction of all liabilities under the Plan shall any assets of the Plan be used for any purpose other than for the
General Employees' exclusive benefit. In any event, your contributions to the Plan are non-
forfeitable.
B.
5. VESTING OF BENEFITS
Your retirement benefits are fully vested after IO years of credited service.
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6. APPLICABLE LAW
The Plan is governed by certain federal, state and local laws, including, but not
A.
B.
limited to the following:
Internal Revenue Code and amendments thereto
Part VIII, Chapter 1 12, Florida Statutes, "Actuarial Soundness ofRetirement
Systems".
Ordinances of the City of Palm Beach Gardens.
Administrative rules and regulations adopted by the Board of Trustees.
C.
D.
7. PLANYEARAND PLAN RECORDS
The Plan year begins on October 1 of each year and ends on September 30 of the
following year. All records of the Plan are maintained on the basis of the Plan year.
8. APPLICABLE PROVISIONS OF COLLECTIVE BARGAINING
AGREEMENTS
There is no collective bargaining agreement between the General Employees and thc
City.
9. FINANCIAL AND ACTUARIAL INFORMATION
A report ofpertinent financial and actuarial information on the solvency and actuarial
soundness of the Plan has been prepared by the Pension Plan's actuary, Foster & Foster, Inc., and is
attached as Exhibit "B".
10. DIVORCE OR DISSOLUTION OF MARRIAGE
Federal and state law provides certain restrictions regarding the payment of your
pension benefits in the event of your divorce or dissolution of marriage. Immediately upon your
involvement in such a legal proceeding, you should provide a member of the Board with the name
and address ofyour attorney or your name and address ifyou have no attorney. The Board's attorney
will then provide you or your attorney with information concerning the legal restrictions regarding
your pension benefits.
dm/pbg/ged09- 12-08.spd
-8-
EXHIBIT "A"
BOARD OF TRUSTEES
The names and addresses of the members of the Board of Trustees are:
Chairman:
Secretary:
Member:
Member:
Member:
Allan Owens 10500 North Military Trail
Palm Beach Gardens, Florida 33410
Dindial Laljie
10500 North Military Trail
Palm Beach Gardens, Florida 33410
Brandon Dorsey
10500 North Military Trail
Palm Beach Gardens, Florida 33410
Kenneth Steele
10500 North Military Trail
Palm Beach Gardens, Florida 33410
Jami Smith
10500 North Military Trail Palm Beach Gardens, Florida 33410
-9-
CITY OF PALM BEACH GARDENS
RETIREMENT PIAN FOR EMPLOYEES
EXHIBIT "B
10/1/2007 10/1/2006
A. Participant Data
Number Included
Actives
Service Retirees
Beneficiaries
Terminated Vested
Disability Retirees
Total
Total Annual Payroll
Payroll Under Assumed Ret. Age
Annual Rate of Payments to:
Service Retirees
Beneficiaries
Terminated Vested
Disability Retirees
B. Assets
Actuarial Value
Market Value
C. Liabilities
Present Value of Benefits
Active Members
Retirement Benefits
Disability Benefits
Death Benefits
Vested Benefits
Refund of Contributions
Service Retirees
Beneficiaries
Terminated Vested
Disability Retirees
Total
2
10
L L 3 1
18
$130,793
130,793
269,581
20,033
31,392
6,873
2,761,142
3,089,245
5
20
$273,962
273,962
198,286
20,033
29,817
6.873
2,665,022
2,827,567
375,286 1,089,081
15,214 17,123
10,361 15.779
115,168 161,028
0 0
2,484,829 1,759,817
199,933 203,325
77,778 68,594
70,015 71,116
3,348,584 3,385,863
,
C. Liabilities - (Continued)
Present Value of Future Salaries
Present Value of Future
Member Contributions
EAN Normal Cost (Retirement)
EAN Normal Cost (Disability)
EAN Normal Cost (Death)
EAN Normal Cost (Vesting)
EAN Normal Cost (Refunds)
Total Normal Cost (Entry Age Method)
Present Value of Future
Normal Costs (Entry Age)
Accrued Liability (Retirement)
Accrued Liability (Disability)
Accrued Liability (Death)
Accrued Liability (vesting)
Accrued Liability (Refunds)
Accrued Liability (Inactives)
Total Actuarial Accrued Liability
Unfunded Actuarial Accrued
Liability (UAAL)
D. Actuarial Present Value of Accrued Benefits
Vested Accrued Benefits
Inactives
Actives
Member Contributions
Total
Non-vested Accrued Benefits
Total Present Value Accrued
Increase (Decrease) in Present Value of
Accrued Benefits Attributable to:
Benefits
Plan Amendments
Assumption Changes
New Accrued Benefits
Benefits Paid
Interest
Other
Total:
1011 12007
1,390,428
83,426
7.818
435
333
1,904
0
10,490
106,517
298,044
10.728 ~,___
7,078
93,662
10/1/2006
1,510,451
90,627
N/A
N/A
N/A
N/A
NIA
35,382
103,675
N/A
N/A
N/A
N/A
0 N/A
2,832,555 N/A
81 $0
480,926 617,167
2,832,555 2,102,852
57,028 555,320
69,369 209,892
2,958,952 2,868,064
0 0
2,958,952 2,868,064
0
0
1 19,856
(248,474)
219.506
90,888
Valuation Date
Applicable to Fiscal Year Ending
E. Pension Cost
Normal Cost (with interest)
% of Projected Annual Payroll"
Administrative Expenses (with int.)
% of Projected Annual Payroll'
Payment Required to Amortize
Unfunded Actuarial Accrued
Liability over 30 years
(as of 10/1/07)
Total Required Contribution
Expected Member Contributions
Expected City Contrib.
% of Projected Annual Payroll'
% of Projected Annual Payroll"
% of Projected Annual Payroll'
% of Projected Annual Payroll'
F. Past Contributions
Plan Years Ending:
Total Required Contribution
City Requirement
Actual Contributions Made:
Members
City
Total
G. Net Actuarial Gain (Loss)
1 OllM007
9/30/2009
$11,619
8.1
12,110
8.4
45,398
31.6
69,128
48.1
8,625
6.0
60,503
42.1
9/30/2007
107,247
90,703
14,257
90,703
104,960
124,544
1011/2006
913Ol2008
$39,189
13.0
13,128
4.4
57,237
19.0
109,554
36.4
18,066
6.0
91,488
30.4
Contributions developed as of 10/1/07 are expressed as a percentage of projected
annual payroll at 04/1/09 of $143,750.
i- Law Offices
r i
CWistiansen & Dehner, B.A.
63 Sarasota Center Blvd. Suite 107 Sarasota, Florida 34240 941~377~2200 0 Fax 941-3774848
February 2,2009
Ms. Sara Varga
Palm Beach Gardens General Employees' Pension Plan
10500 North Military Trail
Palm Beach Gardens, Florida 33410
Re:
Dear Sara:
City ofPalm Beach Gardens General Employees' Pension Plan - Proposed Ordinance
Enclosed please find a proposed ordinance amending the City of Palm Beach Gardens
General Employees' Pension Plan, which is recommended for approval by the Board and adoption
by the City Council. With the adoption of the Pension Protection Act of 2006 and subsequent
regulations and guidance from the Internal Revenue Service, as well as other changes to the Internal
Revenue Code and Regulations and changes to State law, the following amendments to the pension
plan are proposed:
1. Section 3-126, Definitions, is being amended for Internal Revenue Code (IRC)
changes and changes to the Uniformed Services Employment and Reemployment
Rights Act (USERRA), to amend the definitions oE
a. Actuarial Equivalent - IRC
b. Credited Service - USERRA
c. Salary-IRC
Section 3-130, Contributions, is being amended for clarification of language to
satisfy the requirements of State Actuary, Charles Slavin.
Section 3-13 1, Benefit amounts and eligibility, is being amended to add subsection
(e), Required Distribution Date. - IRC
2.
3.
4. Section 3-132, €'re-Retirement Death, is being amended tocomply with IRC changes
regarding non-spouse beneficiaries.
Section 3-133, Disability, is being amended to clarify the conditions under which a
disabled retiree may be recalled to duty.
5.
Ms. Sara Varga c-
' February2,2009
f
Page 2
6.
7.
8.
9.
IO.
11.
12.
13.
14.
15.
Section 3-135, Optional Forms of Benefits, has been amended to:
a
b.
c.
Section 3-139, Maximum Pension, has been totally re-written to comply with IRC
changes.
Section 3-140, Minimum Distribution of Benefits, is being amended for IRC
changes.
Section 3-141, Miscellaneous provisions, is being amended for changes to the IRC
and USERRA.
Section 3-142, Repeal or Termination of System, is being amended for IRC changes
to eliminate outdated language.
Section 3-143, Exemption hm Execution, non-assignability, is being amended to
add the requirement that members who are involved in a divorce will provide a copy
of the proposed court order to the Board for review prior to submitting it to the Court.
This review will avoid the entry of an order requiring the plan to make payments to
an ex-spouse which are not legally permissible and avoid possible expenses to the
Board in seeking the repeal of any such orders. This amendment also allows aretiree
to direct retirement benefit deductions for payments to the City or to insurance
companies for benefits such as health. This is a non-mandatory, no-cost
recommended amendment.
Section 3-145, Forfeiture of Pension, is being amended to include a recent
amendment to Section 112.3 173, Florida Statutes, which is applicable to all Florida
pension plans.
Section 3-147, Direct Transfers of Eligible Rollover Distributions; Elimination of
Mandatory Distributions, is being amended to comply with IRC changes.
Section3-150, Separation from Employment for Military Service, is being removed
in its entirety, as new revised language has been added to the definition of Credited
Service.
Cite an appropriate Treasury Regulation - IRC
Add a new subsection (e)@) - IRC
Amend subsection (g) - RC
A new Section 3-1 50, Reemployment after Retirement, is being added to set forth the
provisions for reemployment after retirement to comply with required Internal
Revenue Service guidelines.
i
Ms. Sara Varga
Page 3
* February2,2009
By copy of this letter to the Boards actuary, Foster & Foster, Inc., I am requesting that they
provide you with a letter indicating the cost, if any, associated with the adoption of this ordinance.
If you have any questions with regard to this ordinance, please feel free to give me a call.
Scott R. Christiansen
SRC/dm
enclosure
cc: Brad Heinrichs, with enclosure
City of Palm Beach Gardens
General Employees’ Retirement System
Investment Policy Statement
I. PURPOSE OF INVESTMENT POLICY STATEMENT
The Pension Board of Trustees maintains that an important determinant of future
investment returns is the expression and periodic review of the Fund’s investment objectives.
To that end, the Trustees have adopted this statement of Investment Policy.
In fulfilling their fiduciary responsibility, the Trustees recognize that the retirement
system is an essential vehicle for providing income benefits to retired participants or their
beneficiaries. The Board also recognizes that the obligations of the Fund are long-term and
that investment policy should be made with a view toward performance and return over a
number of years. The gened investment objective, then, is to obtain a reasonable total rate
of return - defmed as interest and dividend income plus realized and unrealized capital gains
or losses - commensurate with the Prudent Investor Rule and any other applicable statute.
Reasonable consi&cy of return and protection of assets against the inroads of
inflation are paramount. However, the volatility of interest rates and securities markets make
it necessary to judge results within the context of several years rather than over short periods
of two years or less.
The Pension Board of Trustees will employ professional Investment Management
firms to invest the assets of the fund. Within the parameters allowed in this IPS, the asset
allocation of the fund is solely at each Investment Manager’s discretion, including sector
weightings, security selection and investment style.
The Trustees, in performing their investment duties shall comply with the fiduciary
standards set forth in Employee Retirement Income Security Act of 1974 (ERISA) at 29
U.S.C. s. 1104(a) (1) (A) - (C). In case of conflict with other provisions of law authorizing
investments, the investment and fiduciary standards set forth in this section shall prevail.
II. MVESTMENT PERFORMANCE OBJECTIVES
The below listed performance measures will be used as objective criteria for
evaluating effectiveness of the investment manager.
A. Total Fund Performance
1. The performance of the total Fund will be measured for rolling three
and five year periods. These periods are considered sufficient to
accommodate the market cycles experienced with investments. The
performance of this portfolio will be compand to the return of a
portfolio comprised of 65% Standard & Poor's 500 Stock Index and 5%
MSCI EAFE, 30% Barclays Aggregate Bond Index.
On a relative basis, it is expected that the money manager's
performance with regard to the total return of combined equity, fixed
income, and cash portfolio, will be in the top W? an appropriate
Universe over trailing three to five-year periods.
On an absolute basis, it is expected that total retum of the combined
equity, fixed income, and cash portfolio, will equal or exceed the
actuarial earnings assumption @Om), and equal or exceed the
Consumer Price Index plus 4% over three to five-year periods.
2.
3.
B. huitv performance
The equity portion of the portfolio, defined as common stocks and convertible
bonds, is expected to perform at a rate at least equal to the 93% S&P 500 Index
and 7% MSCI EAFE index and be in the top 40% of the Appropriate Universe
over trailing three to five-year periods.
C. Fixed Income Performance
The overall objective of the fixed income portion of the portfolio is to add
stability, consistency and safety to the total fund. The fixed income portion of
the portfolio, defined as fixed income and preferred stocks, is expected to
perform at a rate at least equal to the Barclays Aggregate Bond Index, and in
the top 40% of the-mjxiata Universe over trailing three to five-year
periods.
In. INVESTMENT GUIDELINES
A. Authorized Investments
All investments made or held in the fund shall be limited to:
1. Time, savings, and money market deposit accounts of a national
bank, a state bank or a savings and loan institution, insured by the
Federal Deposit Insurance Corporation, provided the amount
deposited does not exceed the insured amount.
2. Obligations issued by the United States Government or obligations
guaranteed as to principal and interest by the United States
Government or by an agency of the United States Government.
3. Stocks, commingled funds administered by national or state banks,
mutual funds and bonds or other evidences of indebtedness, issued
or guaranteed by a corporation organized under the laws of the
United States, any state or organized territory of the United States
or the City of Columbia, provided:
a. The securities meet the following ranking criteria:
1. Fixed Income: Standard & Poor's Investment Grade
or Moody's Investment Grade. .. 11. Equities: No requirements.
iii. Money Market: Standard & Poor's AI or Moody's PI.
6. Not more than 5% of the Fund's assets shall be invested in the
common stock or capital stock of any one issuing company, nor
shall the aggregate investment in any one issuing company
exceed 5% of the outstanding capital stock of the company.
c. The value of bonds issued by any single corporation shall not
exceed IO?? of the total fund.
Commingled stock, bond or money market funds whose investments
are restricted to securities meeting the above criteria.
4.
5. Foreign securities.
B. Limitations
1. Investments in corporate common stock and convertible bonds shall not
exceed 65% of the Fund assets at cost or 75% of the fund assets at
market value.
Investments in corporate common stock and convertible bonds shall
compose at least 55% of the fund assets at market value, however
section B-1. above shall prevail.
2.
3. Foreign securities shall not exceed 1O?h of the value at market of the
fund.
C. Absolute Restrictions
There will be no investment activity in the following:
I.
2.
3.
4.
5.
6.
7.
8.
9.
Short sales, margin purchases, or borrowing.
Private placement or other restricted securities (not freely marketable).
Direct Commodities.
Warrants or other options, except as part of purchase of another security.
Repurchase Agreements
Venture capital.
Illiquid investments, as described in Chapter 215.47, Florida Statutes
Any investment prohibited by State or Federal Law.
Any investment not specifically allowed as part of this policy.
D. Tradine Parameters
When feasible and appropriate, all securities shall be competitively bid. Except as
otherwise required by law, the most economically advantageous bid shall be selected.
Commissions paid for purchase of securities must meet the prevailing best-execution
rates, pursuant to ERISA Technical Release 86-1. When feasible and consistent with
best execution, the trustees wish to recapture commission dollars.
IV. COMMUNICATIONS
A. On a monthly basis, the custodian shall supply an accounting statement that will
include a summary of all receipts and disbursements and the cost and the market value
of all assets. On a quarterly basis, the investment manager shall provide a written
report affirming compliance with the security restrictions of Section 111 above and a
summary of common stock diversification and attendant schedules. In addition, the
investment manager shall deliver each quarter a report detailing the Fund's
performance, adherence to the investment policy, forecast of the market and economy,
portfolio analysis and current assets of the Trust. Written reports shall be delivered to
the Trustees within 60 days of the end of the quarter. A copy of the written report shall
be submitted to the person designated by the City, and shall be available for public
inspection. The investment manager will provide immediate written and telephone
notice to the Trustees of any significant market related or non-market related event,
specifically including, but not limited to, any deviation hm the standards set forth in
Section 111 above.
The investment manager will disclose any securities that do not comply with section
111 in each quarterly report.
If the Fund owns investments, that complied with section I11 at the time of purchase,
which subsequently exceed the applicable limit or do not satisfy the applicable
investment standard, such excess or noncompliant investments may be continued until
it is economically feasible to dispose of such investment in accordance with the
B.
C.
prudent man standard of care, but no additional investment may be made unless
authorized by law or ordinance.
D. The Trustees shall retain a monitoring service to evaluate and report on a quarterly
basis the rate of return and relative performance of the Fund.
The Trustees will meet quarterly to review the monitoring service's Performance
Evaluation Report. The Trustees will also meet with the investment manager and
appropriate outside consultants to discuss performance results, economic outlook,
investment strategy and tactics and other pertinent matters affecting the Fund on a
periodic basis.
At least annually, the Trustees shall provide the investment manager with projected
disbursement needs of the plan, so that the investment portfolio can be structured in
such manner as to provide sufficient liquidity to pay obligations as they come due. To
this end, the investment manager should, to the extent possible, attempt to match
investment maturities with known cash needs and anticipated cash-flow requirements.
E.
F.
V. COMPLIANCE
A. It is the direction of the Trustees that the plan assets are held by a third party
custodian, and that all securities purchased by, and all collateral obtained by, the plan
shall be properly designated as plan assets. No withdrawal of assets, in whole or in
part, shall be made from safekeeping except by an authorized member of the board of
Trustees or their designee. Securities transactions between a brokerdealer and the
custodian involving purchase or sale of securities by transfer of money or securities
must be made on a "delivery vs. payment" basis to insure that the custodian will have
the security or money in hand at conclusion of the transaction.
At the direction of the Trustees, operations of the fund shall be reviewed by
independent certified public accountants, as part of any financial audit periodically
required. Compliance with the Trustees' internal controls shall be verified. These
controls have been designed to prevent losses of funds that might arise from Fraud,
error, or misrepmntation by third parties or imprudent actions by the Board or
employees of the plan sponsor, to the extent psible.
Each member of the Board of Trustees shall participate in a continuing education
program relating to investments and the Trustee's responsibilities to the fund. It is
highly suggested that this education process begin during the Trustees' first term.
With each actuarial valuation, the Board of Trustees shall determine the total expected
annual rate of return for the cumnt year, for each of the next several years and for the
long term thereafter. This determination shall be filed promptly with the Department
of Management Services, the plan's sponsor and the consulting actuary.
B.
C.
D.
VI. CRITERIA FOR INVESTMENT MANAGER REVIEW
The Board wishes to adopt standards by which judgments of the ongoing performance
of a portfolio manager may be made. If, at any time, any one of the following is breached, the
portfolio manager will be warned of the Board's serious concern for the Fund's continued
safety and performance.
A. Four consecutive quarters of total Fund performance below the 50th percentile in manager
performance rankings.
Three-year trailing standard deviation for the Fund in excess of 120% of the policy.
Three-year trailing standard deviation for the Equity portfolio in excess of 150% of the S&P.
Loss by the manager of any senior investment personnel.
Any change in basic investment philosophy by the manager.
Failure to observe the security quality restrictions of section Ill.
€3.
C.
D.
E.
F.
Nothing in this section shall limit or diminish the Trustees' right to terminate the manager at any
time for any reason.
VII. FLORIDA STATUTES 112 AND APPLICABLE CITY ORDINANCES
If, at any time, this document is found to be in conflict with Chapter 112, Florida Statutes, or
the applicable City ordinances, the Statutes and Ordinances shall prevail.
VIII. REVIEW AM) AMENDMENTS
It is the Trustees intention to review this document periodically and to amend this statement
to reflect any changes in philosophy, objectives, or guidelines. In this regard, the money manager's
interest in consistency in these matters is recognized and will be taken into account when changes
are being considered. If, at any time, the investment manager feels that the specific objectives
defined herein cannot be met, or the guidelines constrict performance, the Trustees should be
notified in writing. By initial and continuing acceptance of this Investment Policy Statement, the
investment manager concurs with the provisions of this document.
ROCKWOOD CAPITAL ADVISORS CITY OF PALM BEACH GARDENS
GENERAL EMPLOYEES' RETIREMENT
SYSTEM
By :
As:
SAWGRASS ASSET MANAGEMENT
By :
Chairman, Board of Trustees
As:
City of Palm Beach Gardens
General Employees’ Retirement System
Investment Policy Statement
I. PURPOSE OF INVESTMENT POLICY STATEMENT
The Pension Board of Trustees maintains that an important determinant of future
investment returns is the expression and periodic review of the Fund’s investment objectives.
To that end, the Trustees have adopted this statement of Investment Policy.
In fulfilling their fiduciary responsibility, the Trustees recognize that the retirement
system is an essential vehicle for providing income benefits to retired participants or their
beneficiaries. The Board also recognizes that the obligations of the Fund are long-term and
that investment policy should be made with a view toward performance and return over a
number of years. The general investment objective, then, is to obtain a reasonable total rate
of return - defined as interest and dividend income plus realized and unrealized capital gains
or losses - commensurate with the Prudent Investor Rule and any other applicable statute.
Reasonable consistency of return and protection of assets against the inroads of
inflation are paramount. However, the volatility of interest rates and securities markets make
it necessary to judge results within the context of several years rather than over short periods
of two years or less.
The Pension Board of Trustees will employ professional Investment Management
fms to invest the assets of the fund. Within the parameters allowed in this IPS, the asset
allocation of the find is solely at each Investment Manager’s discretion, including sector
weightings, security selection and investment style.
The Trustees, in performing their investment duties shall comply with the fiduciary
standards set forth in Employee Retirement Income Security Act of 1974 (ERISA) at 29
U.S.C. s. 1104(a) (1) (A) - (C). In case of conflict with other provisions of law authorizing
investments, the investment and fiduciary standards set forth in this section shall prevail.
11. INVESTMENT PERFORMANCE OBJECTIVES
The below listed performance measures will be used as objective criteria for
evaluating effectiveness of the investment manager.
A. Total Fund Performance
1. The performance of the total Fund will be measured for rolling three
and five year periods. These periods are considered sufficient to
accommodate the market cycles experienced with investments. The
performance of this portfolio will be compared to the return of a
portfolio comprised of 65% Standard & Poor's 500 Stock Index and 5%
MSCI EAFE, 30% Lehman Brothers Aggregate Bond Index.
On a relative basis, it is expected that the money manager's
performance with regard to the total return of combined equity, fixed
income, and cash portfolio, will be in the top 40% of the Mobius
Universe over trailing three to five-year periods.
On an absolute basis, it is expected that total retum of the combined
equity, fixed income, and cash portfolio, will equal or exceed the
actuarial earnings assumption (8%), and equal or exceed the
Consumer Price Index plus 4% over three to five-year periods.
2.
3.
B. Equity Performance
The equity portion of the portfolio, defmed as common stocks and convertible
bonds, is expected to perform at a rate at least equal to the 93% S&P 500 Index
and 7% MSCI EAFE index and be in the top 40% of the Mobius Universe over
trailing three to five-year periods.
C. Fixed Income Performance
The overall objective of the fixed income portion of the portfolio is to add
stability, consistency and safety to the total fund. The fixed income portion of
the portfolio, defined as fixed income and preferred stocks, is expected to
perform at a rate at least equal to the Lehman Brothers Aggregate Bond Index,
and in the top 40% of the Mobius Universe over trailing three to five-year
periods.
111. INVESTMENT GUIDELINES
A. Authorized Investments
All investments made or held in the fund shall be limited to:
1. Time, savings, and money market deposit accounts of a national
bank, a state bank or a savings and loan institution, insured by the
Federal Deposit Insurance Corporation, provided the amount
deposited does not exceed the insured amount.
2. Obligations issued by the United States Government or obligations
guaranteed as to principal and interest by the United States
Government or by an agency of the United States Government.
3. Stocks, commingled funds administered by national or state banks,
mutual funds and bonds or other evidences of indebtedness, issued
or guaranteed by a corporation organized under the laws of the
United States, any state or organized tenitory of the United States
or the City of Columbia, provided
a. The securities meet the following ranking criteria:
i. Fixed Income: Standard & Poor's Investment Grade
or Moody's Investment Grade.
ii. Equities: No requirements.
111. Money Market: Standard & Poor's AI or Moody's PI.
b. Not more than 5% of the Fund's assets shall be invested in the
common stock or capital stock of any one issuing company, nor
shall the aggregate investment in any one issuing company
exceed 5% of the outstanding capital stock of the company.
c. The value of bonds issued by any single corporation shall not
exceed 10% of the total fund.
...
4. Commingled stock, bond or money market fimds whose investments
are restricted to securities meeting the above criteria.
5. Foreign securities.
B. Limitations
1. Investments in corporate common stock and convertible bonds shall not
exceed 65% of the Fund assets at cost or 75% of the fund assets at
market value.
Investments in corporate common stock and convertible bonds shall
compose at least 55% of the fund assets at market value.
Foreign securities shall not exceed 10% ofthe value at cost of the fimd.
2.
3.
C. Absolute Restrictions
There will be no investment activity in the following:
1.
2.
3.
4.
5.
6.
7.
8.
9.
Short sales, margin purchases, or borrowing.
Private placement or other restricted securities (not freely marketable).
Direct Commodities.
Warrants or other options, except as part of purchase of another security.
Repurchase Agreements
Venture capital.
Illiquid investments, as described in Chapter 21 5.47, Florida Statutes
Any investment prohibited by State or Federal Law.
Any investment not specifically allowed as part of this policy.
D. Trading Parameters
When feasible and appropriate, all securities shall be competitively bid. Except as
otherwise required by law, the most economically advantageous bid shall be selected.
Commissions paid for purchase of securities must meet the prevailing best-execution
rates, pursuant to ERISA Technical Release 86-1. When feasible and consistent with
best execution, the trustees wish to recapture commission dollars.
IV. COMMUNICATIONS
A. On a monthly basis, the custodian shall supply an accounting statement that will
include a summary of all receipts and disbursements and the cost and the market value
of all assets. On a quarterly basis, the investment manager shall provide a written
report affirming compliance with the security restrictions of Section Ill above and a
summary of common stock diversification and attendant schedules. In addition, the
investment manager shall deliver each quarter a report detailing the Fund's
performance, adherence to the investment policy, forecast of the market and economy,
portfolio analysis and current assets of the Trust. Written reports shall be delivered to
the Trustees within 60 days of the end of the quarter. A copy of the written report shall
be submitted to the person designated by the City, and shall be available for public
inspection. The investment manager will provide immediate written and telephone
notice to the Trustees of any significant market related or non-market related event,
specifically including, but not limited to, any deviation from the standards set forth in
Section 111 above.
The investment manager will disclose any securities that do not comply with section
111 in each quarterly report.
If the Fund owns investments, that complied with section I11 at the time of purchase,
which subsequently exceed the applicable limit or do not satisfy the applicable
investment standard, such excess or noncompliant investments may be continued until
it is economically feasible to dispose of such investment in accordance with the
prudent man standard of care, but no additional investment may be made unless
authorized by law or ordinance.
B.
C.
D.
E.
F.
V.
A.
B.
C.
D.
The Trustees shall retain a monitoring service to evaluate and report on a quarterly
basis the rate of return and relative performance of the Fund.
The Trustees will meet quarterly to review the monitoring service's Performance
Evaluation Report. The Trustees will also meet with the investment manager and
appropriate outside consultants to discuss performance results, economic outlook,
investment strategy and tactics and other pertinent matters affecting the Fund on a
periodic basis.
At least annually, the Trustees shall provide the investment manager with projected
disbursement needs of the plan, so that the investment portfolio can be structured in
such manner as to provide sufficient liquidity to pay obligations as they come due. To
this end, the investment manager should, to the extent possible, attempt to match
investment maturities with known cash needs and anticipated cash-flow requirements.
COMPLIANCE
It is the direction of the Trustees that the plan assets are held by a third party
custodian, and that all securities purchased by, and all collateral obtained by, the plan
shall be properly designated as plan assets. No withdrawal of assets, in whole or in
part, shall be made from safekeeping except by an authorized member of the board of
Trustees or their designee. Securities transactions between a broker-dealer and the
custodian involving purchase or sale of securities by transfer of money or securities
must be made on a "delivery vs. payment" basis to insure that the custodian will have
the security or money in hand at conclusion of the transaction.
At the direction of the Trustees, operations of the fund shall be reviewed by
independent certified public accountants, as part of any financial audit periodically
required. Compliance with the Trustees' internal controls shall be verified. These
controls have been designed to prevent losses of funds that might arise from fraud,
error, or misrepresentation by third parties or imprudent actions by the Board or
employees of the plan sponsor, to the extent possible.
Each member of the Board of Trustees shall participate in a continuing education
program relating to investments and the Trustee's responsibilities to the fund. It is
highly suggested that this education process begin during the Trustees' first term.
With each actuarial valuation, the Board of Trustees shall determine the total expected
annual rate of return for the current year, for each of the next several years and for the
long term thereafter. This determination shall be filed promptly with the Department
of Management Services, the plan's sponsor and the consulting actuary.
.
VI. CRITERIA FOR INVESTMENT MANAGER REVIEW
The Board wishes to adopt standards by which judgments of the ongoing performance
of a portfolio manager may be made. If, at any time, any one of the following is breached, the
portfolio manager will he warned of the Board’s serious concern for the Fund’s continued
safety and performance.
Four consecutive quarters of total Fund performance below the 50th percentile in manager
performance rankings.
Three-year trailing standard deviation for the Fund in excess of 120% of the policy.
Three-year trailing standard deviation for the Equity portfolio in excess of 150% of the S&P.
Loss by the manager of any senior investment personnel.
Any change in basic investment philosophy by the manager.
Failure to observe the security quality restrictions of section 111.
A.
B.
C.
D.
E.
F.
Nothing in this section shall limit or diminish the Trustees’ right to terminate the manager at any
time for any reason.
VII. FLORIDA STATUTES 112 AND APPLICABLE CITY ORDINANCES
If, at any time, this document is found to be in conflict with Chapter 112, Florida Statutes, or
the applicable City Ordinances, the Statutes and Ordinances shall prevail.
VIII. REVIEW AND AMENDMENTS
It is the Trustees intention to review this document periodically and to amend this statement
to reflect any changes in philosophy, objectives, or guidelines. In this regard, the money manager’s
interest in consistency in these matters is recognized and will be taken into account when changes
are being considered. If, at any time, the investment manager feels that the specific objectives
defined herein cannot be met, or the guidelines constrict performance, the Trustees should be
notified in writing. By initial and continuing acceptance of this Investment Policy Statement, the
investment manager concurs with the provisions of this document.
Date: 11 February, 2008
ROCKWOOD CAPITAL ADVISORS CITY OF PALM BEACH GARDENS
GENERAL EMPLOYEES’ RETIREMENT
SYSTEM
By: By:
As: Chairman, Board of Trustees
SAWGRASS ASSET MANAGEMENT
As:
Date Prepared: ,2009
1 ORDINANCE -, 2009 2
3
4 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM
5 BEACH GARDENS, FLORIDA RELATING TO THE GENERAL
6 EMPLOYEES PENSION PLAN; AMENDING ARTICLE XI1 OF
7 CHAPTER 3, CODE OF ORDINANCES ENTITLED “GENERAL
8 EMPLOYEES’ PENSION PLAN”; AMENDING SECTION 3-126,
9 DEFINITIONS; AMENDING SECTION 3-130, CONTRIBUTIONS;
10 AMENDING SECTION 3-131, BENEFIT AMOUNTS AND
11 ELIGIBILITY; AMENDING SECTION 3-1 32, PRE-RETIREMENT
12 DEATH; AMENDING SECTION 2-1 33, DISABILITY; AMENDING
13 SECTION 3-1 35, OPTIONAL FORMS OF BENEFITS; AMENDING
14 SECTION 3-139, MAXIMUM PENSION; AMENDING SECTION 3-
16 SECTION 3-142, REPEAL OR TERMINATION OF SYSTEM;
17 AMENDING SECTION 3-143, EXEMPTION FROM EXECUTION,
18 NON-ASSIGNABILITY; AMENDING SECTION 3-1 45, FORFEITURE
19 OF PENSION; AMENDING SECTION 3-147, DIRECT TRANSFERS
21 MANDATORY DISTRIBUTIONS; DELETING SECTION 3-1 50,
23 ADDING A NEW SECTION 3-150, REEMPLOYMENT AFTER
15 140, MINIMUM DISTRIBUTION OF BENEFITS; AMENDING
20 OF ELIGIBLE ROLLOVER DISTRIBUTIONS, ELIMINATION OF
22 SEPARATION FROM EMPLOYMENT FOR MILITARY SERVICE;
24 RETIREMENT; PROVIDING FOR CODIFICATION; PROVIDING
25 FOR SEVERABILITY OF PROVISIONS; REPEALING ALL
26 ORDINANCES IN CONFLICT HEREWITH AND PROVIDING AN
27 EFFECTIVE DATE.
28
29
30 BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PALM BEACH
31 GARDENS, FLORIDA that:
32
33 SECTION 1. Chapter 3, Personnel Program, Article XII, General Employees’
34 Pension Plan (DB), of the Code of Ordinances of the City of Palm Beach Gardens, is
35 amended by amending Section 3-126, Definitions, to amend the definitions of “Actuarial
36 equivalent”, “Credited service”and “Salary”, to read as follows:
37
38
39
40
41 such that benefit calculations are not subiect to city discretion.
42
43
44 Credited service means the total number of years and fractional parts of years of
45 service as a general employee with member contributions, when required, omitting
46 intervening years or completed months when such member was not employed by the city
47 as a general employee. A member may voluntarily leave his accumulated contributions
48 in the fund for a period of five years after leaving the employ of the city pending the
49 possibility of being rehired, and remaining employed for a period of not less than three
50 years, without losing credit for the time that he was a member of the system. If a member
51 who is not vested does not remain employed for a period of three years upon
52 reemploymentwithin five years, then his accumulated contributions, if one-thousand dollars
53 ($1,000.00) or less, will be returned. If a member who is not vested is not reemployed
54 within five (5) years, his accumulated contributions, if more than one-thousand dollars
Actuarial equivalent means a benefit or amount of equal value,
t*t**
I
Date Prepared:
1 ($l,OOO.OO), will be returned only upon the written request of the member and upon
2 completion of a written election to receive a cash lump sum or to rollover the lump sum
3 amount on forms designated by the board. If a vested Member leaves the employ of the
4 city, his accumulated contributions will be returned only upon his written request. Upon
5 return of his accumulated contributions, all of his rights and benefits under the system are
6 forfeited and terminated.
The years or parts of a year that a member performs "Qualified Military Service"
9 consistinq of voluntary or involuntarv "service in the uniformed services'' as defined in the
10 Uniformed Services tmplovment and Reemployment Rights Act (USERRA) (P.L.103-353),
11 after separation from employment as a general employee to perform training or service
12 shall be added to his years of credited service for all purposes, including vesting, provided
13 thatl .. 14
15 The member is entitled to reemployment under the provisions of USERRA.
16
17 The member returns to his employment as a general employee within one
18 71) year following the earlier of the date of his military discharqe or his
19 release from service, unless otherwise required bv USERRA.
20
21 The member deposits into the fund the same sum that the member would
22 have contributed, if any, if he had remained a general employee during his
23 absence. The maximum credit for military service pursuant to this
24 subdivision shall be five years. The member must deposit all missed
25 contributions within a period equal to three times the period of military
26 service, but not more than five years, following re-employment or he will
27 forfeit the right to receive credited service for his military service pursuant to
28 this paragraph.
fl
121
70 A,
30
31
32
33 shall apply.
plJ This paragraph is intended to satisfythe minimum requirements of USERRA.
To the extent that this paragraph does not meet the minimum standards of UStKRA, as it may be amended from time to time, the minimum standards
34
35 In the event a member dies on or after January 1,2007, while performing USERRA
36 Qualified Military Service, the beneficiaries of the member are entitled to any benefits
37 [other than benefit accruals relating to the period of qualified militaw service) as if the
38 member had resumed employment and then died while employed.
39
40
41
42
43 44
45
46
41
48
49
50
51
52
53
54
*tt*t
Salary means the total compensation for services rendered to the city, reportable on the member's W-2 form, plus all tax deferred, tax sheltered or tax exempt items of
income derived from elective employee payroll deductions or salary reductions. Compensation in excess of limitations set forth in Section 401 (a)(17) of the Code stdl-be dmegsd& as of the first day of the plan year shall be disregarded for any purpose,
including employee contributions or any benefit calculations. The annual compensation
of each member taken into account in determining benefits or employee contributions for any plan year beginning on or after January 1, 2002, may not exceed $20 0.000, as
adiusted for cost-of-living increases in accordance with Internal Revenue Code Section 401 (a)(17)(B). Compensation means compensation during the fiscal year. The cost-of-
living adiustment in effect for a calendar year applies to annual compensation for the
determination period that begins with or within such calendar year. If the determination
2
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
Date Prepared:
account heieuhder as in effect on July 1, 1993. "Eligible employee" is an individual who
was a member before the first plan year beginning after December 31, 1995.
*****
SECTION 2. Chapter 3, Personnel Program, Article XII, General Employees'
Pension Plan (DB), of the Code of Ordinances of the City of Palm Beach Gardens, is
amended by amending Section 3-130, Contributions, subsection (b), Citycontributions, to
read as follows:
(b) City contributions. So long as this system is in effect, the city shall make
quarterly contributions to the fund in an amount equal to the
year required city c6;triLktion. as shown by the e applicable actuarial valuation
of the system. The total cost for any year shall be defined as the total normal cost PIUS the
additiorial amount sufficient to amorke the unfunded past service liability as provided in
Part VII, F.S. ch. 112.
SECTION 3. Chapter 3, Personnel Program, Article XII, General Employees'
Pension Plan (DB), of the Code of Ordinances of the City of Palm Beach Gardens, is amended by amending Section 3-1 31, Benefit amounts and eligibility. by adding subsection
(e), Required distribution date, to read as follows:
Rewired distribution date. The member's benefit under this section must @) begin tTbe distributed to the member no later than April 1 of the calendar vearfollowin
the later of the calendar year in which the member attains age seventy and one-half (70' 2
or the calendar year in which the member terminates employment with the city.
SECTION 4. Chapter 3, Personnel Program, Article XII, General Employees'
Pension Plan (DB), of the Code of Ordinances of the City of Palm Beach Gardens, is
amended by amending Section 3-132, Pre-retirement death, to read as follows:
Sec. 3-132. Pre-retirement death.
Prior to vesting or eligibility for retirement. The beneficiary of a deceased,
actively employed memberwho was not receiving benefits or was not yet vested or eligible
for early or normal retirement shall receive a refund of 100 percent of the member's
accumulated contributions.
(b) Deceased members vested or eligible for retirement with spou_se as
(a)
beneficiarv. This subsection (b) applies only when the member's spouse is the sole
designated beneficiaw. The spouse beneficiary of any member who dies while actively
employed and who, at the dateof his death was vested or eligible for early or normal retirement, shall be entitled to a benefit as follows:
3
Date Prepared:
I
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
If the member was vested, but not eligible for normal or early retirement, the s ouse beneficiary shall receive a benefit payable for ten years, beginning
&date that the deceased member would have been eligible for earl or
be calculated as for normal retirement based on the deceased member's vested percentage, credited service and average final compensation as of
the date of his death and reduced as for early retirement, if applicable. The
s ouse beneficiary may also elect to receive an immediate benefit, payable
hyears, which is actuarially reduced to reflect the commencement of
benefits prior to the early retirement date.
The deceased member was eligible for normal or early retirement, the
s ouse beneficiary shall receive a benefit payable for ten years, beginning
&first day of the month following the member's death or at the
deceased member's otherwise normal or early retirement date, at the option
of the spouse beneficiary. The benefit shall be calculated as for normal
retirement based on the deceased member's credited service and average
final compensation as of the date of his death and reduced as for early
retirement, if applicable.
A spouse beneficiary may elect an optional form of benefit as provided for
in section 3-135 and the board may elect to make a lump sum payment
pursuant to section 3-135, subsection (9).
A spouse beneficiary may, in lieu of any benefit provided for in (1) or (2)
above, elect to receive a refund of the deceased member's accumulated
contributions.
normal retirement, at the option of the spouse beneficiary. The benefits L all
Notwithstanding anything contained in this section to the contrary. in an
event, distributions to the spouse beneficiaw will begin by December 31 o
he calendar year immediately following the calendar year in which the
member died, or by a date selected pursuant to the above provisions in this
section that must be on or before December 31 of the calendar year in which
the member would have attained 70%.
If the surviving spouse beneficiary commences receiving a benefit under
subsection (1) or (2) above, but dies before all payments are made, the
actuarial value of the remaining benefit will be paid to the spouse
beneficiary's estate in a lump sum.
41 Deceased Members Vested or Eliqible for Relirement wilh Non-Spouse
42 Beneficraw. This subsection applies only when the member's spouse is not the beneficiaw
43 or is not the sole designated beneficiary, but there is a surviving beneficiary. The
44 beneficiary of any member who dies and who, at the date of his death was vested or
45 eligible for early or normal retirement, shall be entitled to a benefit as follows:
46
@J
.-
47
48
49
50
51
52
53
54
If the member was vested, but not eligible for normal or early retirement, the beneficiary will receive a benefit payable for ten (IO) y ears. The benefit will
begin by December 31 of the calendar year immediately following the
calendar year in which the member died. The benefit will be calculated as
for normal retirement based on the deceased member's credited service and
average final compensation and actuarially reduced to reflect the
commencement of benefits prior to the normal retirement date.
4
Date Prepared:
1 121 2
3
4
5
6
7
9 8 i3l
10
11
13 12 M
14
15 m 16
17
18
19
20 f!2 21
22
23 24
26
27
28
25 111
If the deceased member was eligible for normal or early retirement, the
beneficiary will receive a benefit payable for ten (IO) years, beginning on the
first day of the month following the member's death. The benefit will be
calculated as for normal retirement based on the deceased rnemher'c
!d service and averaqe final compensation as of the c
j reduced for early retirement, if applicable.
-- - - . . . -. . . - - . -
late of his death
A beneficiary may not elect an optional form of benefit, however the board
may elect to make a lump sum payment pursuant to Sec. 3-135, subsection
A beneficiary, may, in lieu of any benefit provided for in (1) or (2) above, elect
to receive a refund of the deceased member's accumulated contributions.
If a surviving beneficiarv commences receiving a benefit under subsection
(1) or (2) above, but dies before all payments are made, the actuarial value
of the remaininq benefit wi,l be paid to the survivina beneficiarv's estate by
December 31 of the calendar year of the beneficiarv's death in a lump sum.
If there is no surviving beneficiary as of the member's death, and the estate
is to receive the benefits, the actuarial eqdvalent of the member's entire
interest must be distributed bv December 31 of the calendar year containinq
the fifth anniversarv of the member's death.
The Uniform Lifetime Table in Treasury Regulations tj 1.401(a)(9)-9 shall
determine the payment period for the calendar year benefits commence, if
necessary to satisfy the regulations.
29
30 SECTION 5. Chapter 3, Personnel Program, Article XII, General Employees'
31 Pension Plan (DB), of the Code of Ordinances of the City of Palm Beach Gardens, is
32 amended by amending Section 3-1 33, Disability, subsection (d), Disability payments, to
33 read as follows:
34
35 Disabilitypayments. The monthly benefit to which a member is entitled in the
36 event of the member's disability retirement shall be payable on the first day of the first
37 month after the board determines such entitlement. However, the monthly retirement
38 income shall be payable as of the date the board determined such entitlement, and any
39 portion due for a partial month shall be paid together with the first payment. The last
40 payment will be:
41
42 (1) If the retiree recovers from the disability p,
43 the payment due next preceding the date of such recovery, or
44
If the retiree dies without recovering from disability 45
46 l, the payment due next preceding his
47 death or the 120th monthly payment, whichever is later.
48
49 Provided, however, the disability retiree may select, at any time prior to the 50 date on which benefit payments begin, an optional form of benefit payment as described
51 in section 3-135, subsection (a)(l) or (a)(2), which shall be the actuarial equivalent of the
52 normal form of benefit.
53
54
(d)
(2) ..
5
Date Prepared:
1 SECTION 6. Chapter 3, Personnel Program, Article XII, General Employees'
2 Pension Plan DB , of the Code of Ordinances of the City of Palm Beach Gardens, is
3 amended by arfieniing Section 3-135, Optional forms of benefits, by amending subsection
4 (a)(2), by adding subsection (e)(5), and amending subsection (g), to read as follows: < _I
6
7
8
9
10
I1
12
13
14
15
16
17
1Q
****.(
(a)(2) A retirement income of a modified monthly amount, payable to the member
during the lifetime of the member and following the death of the member,
loo%, 75%, 66 2/3% or 50% of such monthly amount payable to a joint
pensioner for his lifetime. Except where the retiree's joint pensioner is his
spouse, the payments to the joint pensioner as a percentage of the
payments to the retiree shall not exceed the applicable percentage provided
for in the applicable table in the Treasury regulations. (See Q & A-2 of
1.401 (aM91-6)
***** . <,
19
20
21
23
(elm The member's benefit under this section must begin to be distributed to the
member no later than April 1 of the calendar year following the later of the^
calendar year in which the member attains age seventy and one-half (70%)
22 2
34 -. ***** 25
26
27
28
29
30
31
32
33
34
35
36
71
(9) Notwithstanding anything herein to the contrary, the board in its discretion,
may elect to make a lump sum payment to a member or a member's beneficiary in the
total
event that the
dollars ($1,000) . Any such payment made to any person pursuant to the power and
discretion conferred upon the board by the preceding sentence shall operate as a complete
discharge of all obligations under the system with regard to such member and shall not be
subject to review by anyone, but shall be final, binding and conclusive on all persons.
.. {usand -
38 SECTION 7. Chapter 3, Personnel Program, Article XII, General Employees'
39 Pension Plan (DB), of the Code of Ordinances of the City of Palm Beach Gardens, is
40 amended by amending Section 3-139, Maximum pension, to read as follows:
41
42 Sec. 3-139. Maximum pension.
43
I"\ 44 u,
45 4 .. .
47 ;
49 e. T", 8
46 p. Tw
48 1
50 P
51
52 53
54
..
6
Date Prepared:
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
7
Date Prepared:
..
1m ..
27 ..
3e ..
4; .. 57
8 "V 7 ..
9; .. 10 7
6-
1
I"\ en .. .. .
11
12
13
14
15
17
18
19
20
21
22
23 (L1
24
25
26
21
28
29
.. .. .
1, 16 \ '/
-.
30
31
32
33
34
35
36
31
38
39
40
@J Basic limitation. Notwithstandinq any other provisions of this system to the
contrary7the member contributionspaid to, and retiremenefits paidfrom, the system
shall be limited to such extent as may be necessary to conform to the requirements of
fr
may not receive an annual benefit that exceeds the limits specified in Code Section 415(b),
subiect to the applicable adiustments in that section. On and after January 1, 1995, a plan
member may not receive an annual benefit that exceeds the dollar amount specified in
Code Section 41 5(b)(l)(A) ($1 60,000), subiect to the applicable adjustments in Code
Section 415(b) and subiect to any additional limits that may be specified in this System
For purposes of this section, "limitation year" shall be the calendar year.
41 (bJ Adjustments to Basic Limitation for Form of Benefit. If the form of benefit
42 without regard to any benefit increase feature is not a straight life annuity, then the Code
43 Section 415(b) limit applicable at the annuitv starting date is reduced to an actuarially
44 equivalent amount (determined using the assumptions specified in Treasury Regulation
45 Section 1.415(b)-l(c)(2)(ii)) that takes into account the death benefits under the form of
46 honofit
..
48
49 benefits shall not be taken into account in applying these limits: so
Benefits Not Taken into Account. For purposes of this Section, the following
..
51
52 benefits;
53
(IJ Any ancillary benefit which is not directly related to retirement income
8
Date Prepared:
1 Any other benefit not required under541 5(b)(2) of the Code and Regulations
2 thereunder to be taken into account for purposes of the limitation of Code
3 Section 415(b)(l). 4
5 @J COLA Effect. Effective on and after Januarv 1, 2003, for purposes of
6 applying the limits under Code Section 415(b) (the "Limit"), the following will apply:
I
121
8
9
10
11
(lJ A member's applicable limit will be applied to the member's annual benefit
in the member's first calendar year of benefit payments without regard to any
automatic cost of livinq adiustments;
..
12
13
14
15
16 thereunder; but
pJ thereafter, in any subsequent calendar year, a member's annual benefit,
including any automatic cost of living increases, shall be tested under the
then applicable benefit limit including any adiustment to the Code Section
415(b)(l)(A) dollar limit under Code Section 415(d), and the regulations
17 ..
18
19
20
21 requlations thereunder.
22
u in no event shall a member's benefit payable under the system in any
calendar year be greater than the limit applicable at the annuity startinq date,
as increased in subsequent years pursuant to Cooe Section 415(d) and the
~~
23 Unless otherwise specified in the system, for purposes of applying the limits
24 under Code Section 415(b), a Member's applicable limit will be applied taking into
25 consideration cost of livina increases as required by Section 41 5(b) of the Internal Revenue
26 Code and applicable Treasury Requlations.
21
28 M
30 CU 29
31
32
33
34
35
36
37
39
40
41
43 44
45
38 121
42 u
46 M 47
48
49
50
51
52
53
54
Other Adjustments in Limitations.
In the event the member's retirement benefits become payable before aqe
sixty-two (62), the limit prescribed by this section shall be reduced in
accordance with regulations issued by the Secretary of the Treasu ursuant to the provisions of Code Section 415(b) of the Code, so that suc?
imit (as so reduced) equals an annual straight life benefit (when such
retirement income benefit begins) which is equivalent to a one hundred six
thousand dollar ($1 60,000) annual benefit beginning at age sixty-two (62F
In the event the member's benefit is based on at .east fifteen (15) years of
credited service as a full-time employee of the fire or police department of
the City, the adiustments provided for in (e)(l) above shall not apply.
The reductions provided for in (e)(l) above shall not be applicable to
disability benefits pursuant to Sec. 3-1 33, or pre-retirement death benefits
paid pursuant to Sec. 3-132.
In the event the member's retirement benefit becomes payable after age
sixty-five (65), for purposes of determining whether this benefit meets the
limit set forth in subsection (a) herein, such benefit shall be adiusted so that
it is actuarially equivalent to the benefit beginninq at age sixty-five (65). This
adiustment shall be made in accordance with regulations promulgated by the
Secretarv of the Treasury or his delegate.
9
Date Prepared:
1 (fl Less than Ten (70) Years of Service. The maximum retirement benefits
2 payable under this section to any member who has completed less than ten (IO) years of
3 credited service with the City shall be the amount determined under subsection (a) of this
4 section multiplied by a fraction, the numerator of which is the number of the member's
5 years of credited service and the denominator of which is ten (IO). The reduction provided
6 by this subsection cannot reduce the maximum benefit below 10%. The reduction
7 provided for in this subsection shall not be applicable to disability benefits paid pursuant
8 to Sec. 3-133, or pre-retirement death benefits paid pursuant to Sec. 3-132.
n 7
10 Parficioation in Other Defined Benefit Plans. The limit of this section with
11 respect to any member who at any time has been a member in any other defined benefit
12 plan as defined in Code Section 414(i) maintained by the Citv shall apply as if the total
13 benefits payable under all Citv defined benefit plans in which the member has been a
14 member were payable from one plan.
1c IJ
16 Ten Thousand Dollar ($70,000) Limit. Notwithstandinq the foreqoinq. the
17 retirement benefit payable with respect to a member shall be deemed not to exceed the
18 limit set forth in this section if the benefits payable, with respect to such member under this
19 system and under all other qualified defined benefit pension plans to which the Ci
20 contributes, do not exceed ten thousand dollars ($10,000) for the applicable plan year a
21 for any prior plan Year and the City has not any time maintained a qualified defined
22 contribution plan in which the member participated.
37 Service Credit Purchase Limits.
2Q .,y
39
40
41
42
43
Effective for permissive service credit contributions made in limitation years
beginning after December 31, 1997, if a member makes one or more
contributions to purchase permissive service credit under the system. as
allowed in Sections 3-148 and 3-151, then the requirements of this section
will be treated as met only if
M ..
45
46
47
48
49
50
51
52
53
54
55
- a. the requirements of Code Section 415(b) are met, determined b
treating the accrued benefit derived from all such contributions as ai
annual benefit for purposes of Code Section 41 5(b), or
- b. the requirements of Code Section 415(c) are met, determined b
treating all such contributions as annual additions for purposes o Code Section 415(c).
- C. For purposes of applying subparagraph (i)(l)a.., the System will not
fail to meet the reduced limit under Code Section 415(b)(2)(C) solely
by reason of this subparagraph c., and for purposes of applyinq
10
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
21
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
41
48
49
50
51
52
53
54
55
Date Prepared:
subparagraph (i)(l)b. the System will not fail to meet the percentage
limitation under Section 41 5(c)(l)(B) of the Internal Revenue Code
solely by reason of this subparagraph c.
For purposes of this subsection the term "permissive service credit" means
service credit-
- a. recognized by the system for purposes of calculating a member's benefit under the plan,
- b. which such member has not received under the plan, and
- c. which such member may receive only by making a volunta additional contribution, in an amount determined under the systez
which does not exceed the amount necessary to fund the benefit
attributable to such service credit.
Effective for Permissive service credit contributions made in limitation
ears beqinninq after December 31, 1997, such term may, if
Yothenvise provided by the system, include service credit for periods
for which there is no performance of service, and, notwithstandin.
clause (i)(2)b., may include service credited in order to provide a:
increased benefit for service credit which a member is receivinq under
the system.
- a. However, for calendar years beginning after December 31. 1997,
would otherwise be
3 Sections
- b. For limitation years beginning on and after JanLary 1, 2007,
compensation for the calendar year will also include compensation
paid by the later of 2% months after an employee's severance from
employment or the end of the calendar year that inc,udes the date of
the employee's severance from employment if:
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the payment is regular compensation for services during the
employee's regular working hours, or compensation for
services outside the employee's regular working hours (such
as overtime or shift differential), commissions, bonuses or
other similar payments, and, absent a severance from
employment, the payments would have been paid to the
employee while the employee continued in employment with
the employer; or
- 2. the payment is for unused accrued bona fide sick, vacation or
other leave that the employee would have been able to use if
employment had continued.
- c. Back pay, within the meaninq of Treasury Regulations
Section 1.415(c)-2(g)(8), shall be treated as compensation for the
limitation year to which the back pay relates to the extent the back pa
represents wages and compensation that would otherwise b:
included under this definition. .,
20
21
22
(4J Notwithstanding any other provision of law to the contrary, the board ma
modify a request by a member to make a contribution to the system if thl
amount of the contribution would exceed the limits provided in Code Section
23 415 by using the followinq methods:
24 -.
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26
21
28 ?a
If the law requires a lump sum payment for the purchase of service credit, the board may establish a periodic payment deduction plan for
the member to avoid a contribution in excess of the limits under Code
Sections415(c) or415(n).
il
30 - b. If payment pursuant to subparagraph (i)(4)a. will not avoid a
31 contribution in excess of the limits imposed by Code Section 415(c),
32 the board may either reduce the member's contribution to an amount
33 within the limits of that section or refuse the member's contribution.
34
35 pJ Additional Limitation on Pension Benefits. Notwithstandinq anvthinq herein
36 to the contrary:
17 2,
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(IJ The normal retirement benefit or pension payable to a retiree who becomes
a member of the system and who has not previously participated in such
system, on or after January 1, 1980, shall not exceed one hundred percent
(100%) of his average final compensation. However, nothing contained in
this section shall apply to supplemental retirement benefits or to pension increases attributable to cost-of-livinq increases or adiustments.
Ad ..
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121 No member of the system shall be allowed to receive a retirement benefit or
pension which is in part or in whole based upon anv service with respect to
which the member is already receiving, or will receive in the future, a
retirement benefit or pension from a different employer's retirement system
or plan. This restriction does not apply to social securitv benefits or federal
benefits under Chapter 67, Title 10, US. Code.
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SECTION 8. Chapter 3, Personnel Program, Article XII, General Employees'
Pension Plan DB , of the Code of Ordinances of the City of Palm Beach Gardens, is
amended by aienhng Section 3-140, Minimum distribution of benefits, to read as follows:
Sec. 3-140. Minimum distribution of benefits.
(a) General rules
(1 1
year.
Precedence. The requirements of this section will take precedence over any
inconsistent provisions of the plan. (2)
(3)
(43) TEFRA section 242(b)(2) elections. Notwithstanding the other provisions of this section other than this subsection @jf4j m, distributions may be
made under a designation made before January 1,1984, in accordance with
section 242(b)(2) of the Tax Equity and Fiscal Responsibility Act (TEFRA)
and the provisions of the plan that related to section 242(b)(2) of TEFRA.
Time and manner of distribution.
Required beginning date. The member's entire interest will be distributed,
or begin to be distributed, to the member no later than the member's required
beginning date which shall not be later than April 1 of the calendar year
following the later of the calendar year in which the member attains age
seventv and one-half (70 %) or the calendar Year in which the member 4 terminates
employment with the city.
Death of member before distributions begin. If the member aies before
distributions begin, the membets entire interest will be distributed. or begin
to be distributed no later than as follows:
a. If the member's surviving spouse is the member's sole designated beneficiary, then distributions to the surviving spouse will begin by
December 31 of the calendar year immediately following the calendar
year in which the member died, or by a date on or before December
31 of the ca.endar year in which the member would have attained age
70 %, if later, as the surviving spouse elects.
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b. If the member's surviving spouse is not the member's sole designated
beneficiary, then, distributions to the designated beneficiary will begin
by December 31 of the calendar year immediately following the
calendar year in which the member died.
If there is no designated beneficiary as of September 30 of the year
following the year of the member's death, the member's entire interest
will be distributed by December 31 of the calendar year containing the
fifth anniversary of the member's death.
If the member's surviving spouse is the member's sole desi nated
distributions to the surviving spouse begin, this subsection (b)(2),
other than subsection (b)(2)a., will apply as if the surviving spouse
were the member.
For purposes of this subsection (b)(2) and subsection (e), distributions
are considered to begin on the member's required beginning date or,
if subsection (b)(2)d. applies, the date of distributions are required to
begin to the surviving spouse under subsection (b)(2)a. If annuity
payments irrevocablycommence to the member before the member's
required beginning date (or to the member's surviving spouse before
the date distributions are required to begin to the surviving spouse
under subsection (b)(2)a.) the date distributions are considered to
begin is the date distributions actually commence.
c.
d. beneficiary and the surviving spouse dies afler the member but % efore
(3) Death Mer Distributions Besin. If the member dies after the rewired ..
distribution of bc mefits has begun, the remaining portion of the member's
interest must be distributed at least as rapidly as under the method o?
distribution before the member's death.
(3 4) Form of distribution. Unless the member's interest is distributed in the form
of an annuity purchased from an insurance company or in a single sum on
or before the required beginning date, as of the first distribution calendar
year distributions will be made in accordance ef yitJ this section. If the member's interest i-
annuity purchased from an insurance company, distributions thereunder will
be made in accordance with the requirements of section 401 (a)(9) of the
Code and Treasury regulations. Any part of the member's interest which is
in the form of an individual account described in section 414(k) of the Code
will be distributed in a manner satisfying the requirements of section
401 (a)(9) of the Code and Treasury regulations that apply to individual
accounts.
Determination of amount to be distributed each year.
General ammty requirements. If the member's interest is paid in the form
of annuity distributions under the plan, payments under the annuity will
satisfy the following requirements:
a. The annuity distributions will be paid in periodic payments made at
intervals not longer than one year.
b.
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(2) Amount required to be distributed by required beginning date. The amount
that must be distributed on or before the member's required beginning date
(or, if the member dies before distributions begin, the date distributions are
required to begin under . Sec. 3-132) is the
payment that is requiredwhe second payment
need not be made until the end of the next payment interval even if that
payment interval-ends in the next calendar year. Payment intervals are the
periods for which payments are received, e.g., tmmmti+ , monthly&
. All of the member's benefit accruals as of the last day
mn calendar year will be included in the calculation of the
amount of the annuity payments for payment intervals ending on or after the member's required beginning date.
(3) Additional accruals after firsf distribution calendar year. Any additional
benefits accruing to the member in a calendar year after the first distribution
calendar year will be distributed beginning with the first payment interval
ending in the calendar year immediately following the calendar year in which
such amount accrues.
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General distribution rules.
The amount of an annuity paid to a member's beneficiary rnay not exceed
the maximum determined under the incidental death benefit requirement of Internal Revenue Code Section 401(a)(9)(G), and effective for any annuity
benefit rule under Treasuty Requlation Section 1.401 (a)(9)-6, Q&A-2.
Cj
The death and disability benefits provided by the plan are limited by the
incidental benefit rule set forth in Internal Revenue Code Section
successor regulation thereto. As a result, the total death or disability benefits
payable rnay not exceed 25% of the cost for ail of the members' benefits
received from the retirement system.
Definitions.
Designated beneficiary. The individual who is designated as the beneficiary
under the plan and is the designated beneficiary under section 401(a)(9) of
the Code and section 1.401(a)(9)-1, QgA-4, of the Treasury regulations.
Dislribufion calendar year. A calendar year for which a minimum distribdion
is required. For distributions beginning before the member's death, the first
distribution calendar year is the calendar year immediately preceding the
calendar year which contains the member's required beginning date. For
distributions beginning after the member's death, the first distribution
calendar year is the calendar year in which distributions are required to begin
pursuant top Sec. 3-132.
401 7 (a)(9
.. .. . 50
51
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17
Date Prepared:
1 SECTION 9. Chapter 3, Personnel Program, Article XII, General Employees'
2 Pension Plan DB) , of the Code of Ordinances of the City of Palm Beach Gardens, is
3 amended by akending Section 3-141, Miscellaneous provisions, to read as follows:
4
5 Sec. 3-141. Miscellaneous provisions.
6
7 lnterestofmembers in system. *All assets of the fund are held in trust, and
8 &t no time prior to the satisfaction of all liabilities under the system with respect to retirees
9 and members and their spouses or beneficiaries, shall any part of the corpus or income
10 of the fund be used for or diverted to any purpose other than for their exclusive benefit.
11
12 (b) No reduction of accrued benefits. No amendment or ordinance shall be
13 adopted by the city council of the city which shall have the effect of reducing the then
14 vested accrued benefits of members or a member's beneficiaries.
15 16 (c) Qualification of system. It is intended that the system will constitute a
17 qualified pension plan under the applicableprovisions of the code fora qualified plan under
18 Code Section 401 (a) and a governmental plan under Code Section 414(d), as now in effect
19 or hereafter amended. Any modification or amendment of the system may be made
20 retroactively, if necessary or appropriate, to qualify or maintain the system as a plan
21 meeting the requirements of the applicable provisions of the code as now in effect or
22 hereafter amended, or any other applicable provisions of the US. federal tax laws, as now
23 in effect or hereafter amended or adopted, and the regulations issued thereunder.
24
25 (d) Use of forfeitures. Forfeitures arising from terminations of service of
26 members shall serve only to reduce future city contributions.
(a)
17 il
28
29 engage in a transaction prohibited by Internal Revenue Code Section 503(b). @J Prohibited Transactions. Effective as of Januaw 1. 1989. a board may not
30
31 fi USERRA. Effective December 12,1994, notwithstandinq any other provision
32 of this system, contributions, benefits and service credit with respect to qualified milita
33 service are governed by Internal Revenue Code Section 414(u) and the Uniformej
34 Services tmployment and Reemployment Rights Act of 1994, as amended. To the extent
35 that the definition of "credited service" sets forth contribution requirements that are more
36 Tavorable to the member than the minimum compliance requirements, the more favorable
37 provisions shall apply.
38 39 Vestinq.
An 7"
41
42 fi Member will be 100% vested in all benefits upon attainment of the plan's age
and service requirements for the Plan's normal retirement benefit; and
A7 ._
44
45
46 employer contributions.
121 A member will be 100% vested in all accrued benefits, to the extent funded
if the plan is terminated or experiences a complete discontinuance 01
AI ..
48 Electronic Forms. In those circumstances where a written election or consent
49 is not required by the plan or the Internal Revenue Code, an oral, electronic, or telephonic
50 form in lieu of or in addition to a written form may be prescribed by the board. However,
51 where applicable, the board shall comply with Treas. Rea. 5 1.401(a)-21.
52
53
54
Date Prepared:
1 SECTION 10. Chapter 3, Personnel Program, Article XII, General Employees'
2 Pension Plan DB , of the Code of Ordinances of the City of Palm Beach Gardens, is
3 amended by aken)ding Section 3-142, Repeal or termination of system, subsection (c), to
4 read as follows:
5
6 The following shall be the order of priority for purposes of allocating the
7 assetsfjthe system as of the date of repeal of this article, or if contributions to the system
8 are discontinued with the date of such discontinuation being determined by the board.
9
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Apportionment shall first be made in respect of each retiree 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) member. and each member 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, 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.
If there be any asset value remaining after the apportionment under
paragraph (I), apportionment shall next be made in respect of each member
in the service of the city on such date who is vested and who is not entitled
to an apportionment under paragraph (I), in the amount required to provide
the actuarial equivalent of the vested portion of the accrued normal
retirement benefit (but not less than accumulated contributions), based on
the credited service and average final compensation 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 vested portion of the accrued normal
retirement benefit (but not less than accumulated contributions), provided
that, if such remaining asset value be 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.
If there be any asset value after the apportionments under paragraphs (1)
and (2), apportionment shall be made in respect of each member in the service of the city on such date who is not entitled to an apportionment under
paragraphs (1) and (2) 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.
If there be any asset value remaining after the apportionments under
paragraphs (I), (2), and (3), apportionment shall lastly be made in respect
of each member included in paragraph (3) above to the extent of the
actuarial equivalent of the non-vested accrued normal retirement benefit,
less the amount apportioned in paragraph (3), based on the credited service
and average final compensation 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.
19
Date Prepared:
1 In the event that there be asset value remaining after the full apportionment
2 specified in paragraphs (I), (2), (3), and (4), such excess shall be returned
3 to the city.
4
5 The allocation of the fund provided for in this subsection rnay, as decided by
6 the board, be carried out through the purchase of insurance company contracts to provide
7 the benefits determined in accordance with this subsection. The fund may be distributed
8 in one sum to the persons entitled to said benefits or the distribution may be carried out in
9 such other equitable manner as the board may direct. The fund may be continued in
10 existence for purposes of subsequent distributions.
11
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21
28 SECTION 11. Chapter 3, Personnel Program, Article XII, General Employees'
29 Pension Plan (DB), of the Code of Ordinances of the City of Palm Beach Gardens, is
30 amended by amending Section 3-143, Exemption from execution; non-assignability, to
3 1 read as follows:
32
??
(5)
5, Sec. 3-143. Domestic relations orders; retiree directed payments; exemption from
35 execution, non-assignability.
36 __
37 Domestic relations orders.
38
39
40
41
42
43 order.
(lJ Prior to the entry of any domestic relations order which affects or purports to
affect the system's responsibility in connection with the payment of benefits
of a retiree, the member or retiree shall submit the proposed order to the
board for review to determine whether the system rnay legally honor the
44
45
46
41
48
49 <n
a If a domestic relations order is not submitted to the board for review prior to
entry of the order, and the system is ordered to take action that it may not legally take, and the system expends administrative or legal fees in resolvin
the matter, the member or retiree who submits such an orderwill be require to reimburse the system for its expenses in connection with the order.
_"
51 Retiree directedpavmenfs. The board may, upon written reauest by a retiree
52 or by a dependent, when authorized by a retiree or the retiree's beneficiary, authorize the
53 system to withhold from the monthly retirement payment those funds that are necessary
54 to pay for the benefits being received through the City, to pay the certified bargaining aqent
(bJ
20
Date Prepared:
I of the City, to make payment to insurance companies for insurance premiums and to make
2 any payments for child support or alimony.
3 - Exemption from execution, mon-assiqnability. Except as otherwise provided
5 by law, Y' t e pensions, annuities, or any other benefits accrued or accruing to any person 4
6 under the provisions of this article and the accumulated contributions and the cash
7 securities in the fund created under this article are hereby exempted from any state, county
8 or municipal tax and shall not be subject to execution, attachment, garnishment or any
9 legal process whatsoever and shall be unassignable.
10
11
12 SECTION 12. Chapter 3, Personnel Program, Article XII, General Employees'
13 Pension Plan (DB), of the Code of Ordinances of the City of Palm Beach Gardens, is
14 amended by amending Section 3-145, Forfeiture of pension, subsection (a), to read as
15 follows:
16
17 Any member who is convicted of the following offenses committed prior to
18 retirement, or whose employment is terminated by reason of his admitted commission, aid
19 or abetment of the following specified offenses, shall forfeit all rights and benefits under
20 this system, except for the return of his accumulated contributions, but without interest, as
21 of the date of termination. Specified offenses are as follows:
22
(a)
28 (3)
30 (4)
29
31
32 (5)
34 (6)
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42 m
The committing, aiding or abetting of an embezzlement of public funds:
The committing, aiding or abetting of any theft by a public officer or
employee from employer:
Bribery in connection with the of a public officer or employee;
Any felony specified in F.S., Chapter 838.
The committing of an impeachable offense.
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 he acts or in
which he is employed, of the right to receive the faithful performance of his
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 the
use or attempted use of the power, rights, privileges, duties or position of his
public office or position.
The committing on or after October 1,2008, of any felony defined in Section 800.04, Florida Statutes, against a victim younqer than sixteen (16) years of
age, or any felony defined in Chapter 794, Florida Statutes, against a victim
younger than eighteen (18) y ears of aqe, by a public officer or employee
through the use or attempted use of power, rights, privileges, duties, or
position of his or her public office or employment position.
***e*
21
Date Prepared:
1 SECTION 13. Chapter 3, Personnel Program, Article XII, General Employees'
2 Pension Plan (DB), of the Code of Ordinances of the City of Palm Beach Gardens, is
3 amended by amending Section 3-147, Direct transfers of eligible rollover distributions;
4 elimination of mandatory distributions, to read as follows:
5
6 Sec. 3-147. Direct transfers of eligible rollover distributions; elimination of
7 mandatory distributions.
8
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(a) Rollover distributions.
(1) General. This section applies to distributions made on or after January 1,
2002. Notwithstanding any provision of the system to the contrary that would
otherwise limit a distributee's election under this section, a distributee may
elect, at the time and in the manner prescribed by the board, to have any
portion of an eligible rollover distribution paid directly to an eligible retirement
plan specified by the distributee in a direct rollover.
(2) Definitions.
a. Eligible rollover distribution. An eligible rollover distribution is any
distribution of all or any portion of the balance to the credit of the
distributee, exceptthat an eligible rollover distribution 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 ten years or more; any
distribution to the extent such distribution is required under section
401(a)(9) of the Code: and the Dortion of any distribution that is not
account described in section 408(a); to an individual retirement
annuity described in section 408(b); er to a qualified defined
contribution plan described in section 401 (a) or403(a) that agrees to
separately account for amounts so transferred (and earnings
separately accounting for the portion of
includible in qross income and the portion of such
such
distribution which is^ ..
- P not so includible: or on or after
January 1, 2007, to a qualified defined benefit plan described in
Internal Revenue Code Section 401(a) or to an annuity contract
described in Internal Revenue Code Section 403(b), that aqrees to
separately account for amounts so transferred (and earnings
thereon), including separately accounting for the portion of the
distribution that is includible in gross income and the portion of the
distribution that is not so includible.
.. . ..
b. Eligible retirement plan. An 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;
an annuity plan described in section 403(a) of the Code; effective
January 1,2002,an eligible deferred compensation plan described in
section 457(b) of the code which is maintained by an eligible
22
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C.
d.
employer described in section 457(e)(l)(A) of the code and which
agrees to separate1 account for amounts transferred into such plan
described in section 403(b) of the code; er a qualified trust described
in section 401(a) of the Code; or effective January 1, 2008, a Roth
IRA described in Section 408A of the Code, that accepts the
distributee's eligible rollover distribution. This definition shall also
apply in the case of an eligible rollover distribution to the surviving
spouse.
Distributee. A distributee includes an employee or former employee.
It also includes .. the employee's or former employee's
surviving spouse
from this plan; e 4' ective Januan, 1, 2002, an annuity contract
Direct rollover. A direct rollover is a payment by the plan to the
eligible retirement plan specified by the distributee.
~.
26 Rollovers or transfers into the fund. On or after January 1,2002, the system
27 will accept, solely for the purpose of purchasing credited service as provided herein,
28 permissible Member requested transfers of funds from other retirement or pension plans,
29 member rollover cash contributions and/or direct cash rollovers of distributions made on
30 or after January 1, 2002, as follows:
31
32 Transfers and direct rollovers or member rollover contributions from other
33 plans. The system will accept either a direct rollover of an eligible rollover
34 distribution or a member contribution of an eligible rollover distribution from
35 a qualified plan described in section 401(a) or 403(a) of the Code, from an
36 annuity contract described in section 403(b) of the Code or from an eligible
31 plan under section 457(b) of the Code which is maintained by a state,
38 political subdivision of a state, or any agency or instrumentality of a state or
39 political subdivision of a state. The system will also accept legally
40 permissible member requested transfers of funds from other retirement or
41 pension plans.
42
43 Memberrollover contributions from IRAs. The system will accept a member
44 rollover contribution of the portion of a distribution from an individual
45 retirement account or annuity described in section 408(a) or 408(b) of the
46 Code that is eligible to be rolled over P
41 -. 48 49 (c) Elimination of mandatory distributions. Notwithstanding any other provision
50 herein to the contrary, in the event this plan provides for a mandatory (involuntary) cash
51 distribution from the plan not otherwise required by law, for an amount in excess of one-
52 thousand dollars ($l,OOO.OO), such distribution shall be made from the plan only upon
53 written request of the member and completion by the member of a written election on
54 forms designated by the board, to either receive a cash lump sum or to rollover the lump
55 sum amount.
(b)
(1)
(2)
Date Prepared:
1
L
3 SECTION 14. Chapter 3, Personnel Program, Article XII, General Employees'
4 Pension Plan (DB), of the Code of Ordinances of the Ci of Palm Beach Gardens, is
6 its entirety, as follows: I
8-
9
10
5 amended by deleting Section 3-150, Separation from emp ty oyment for military service, in
..
..
11 :
12 1 .. 13 3
14 e
15
16
17
18
19
20
21
22
23
24
25
q, TL
26
27 \.Jl
29
30
31
32
33
34
35
36
37
38 SECTION 15. Chapter 3, Personnel Program, Article XII, General Employees'
39 Pension Plan (DB) , of the Code of Ordinances of the City of Palm Beach Gardens, is
40 amended by adding a new Section 3-150, Reemployment after retirement, as follows:
41
42 Sec. 3-150. Reemployment after retirement.
43
28 m
44 (aJ Any retiree who is retired under this system, except for disability retirement
j for, may be reemployed by any pi
:t to the limitations set forth in this SI
A0 .,
50 After normal retirement. Any retiree who is retired under normal retirement
51 pursuant to this system and who is reemployed by the city in any capacity, shall upon being
52 reemployed, continue receipt of retirement benefits durinq any such employment period.
53 A retiree who returns to work under the provisions of this section shall not be eliqible for
54 membership in this system, and, therefore, shall not accumulate additional credited service
55 for subsequent periods of employment described in this section, shall not be required to
@J
24
Date Prepared:
1 make contributions to the system, nor shall he be eligible for any other benefit other than
2 the retiree’s normal retirement benefit.
3
4 @J Affer early retirement. Any retiree who is retired under early retirement
5 pursuant to this system and who subsequently becomes an employee of the city in an
6 capacity, shall discontinue receipt of benefits from the system until the earlier o
7 termination of employment or such time as the reemployed retiree reaches the date that
8 he would have been eligible for normal retirement under this system had he continued
9 employment and not elected early retirement. “Normal retirement” as used in this
10 subsection shall be the current normal retirement date provided for under this system. A
11 retiree who returns to work under the provisions of this section shall not be eligible for
12 membership in the system, and, therefore, shall not accumulate additional credited service
13 for subsequent periods of employment described in this section. shall not be required to
14 make contributions to the system, nor shall he be eligible for any other benefit other than
15 the retiree’s early retirement benefit when he again becomes eligible as provided herein.
16 Retirement pursuant to an early retirement incentive program shall be deemed earl
17 retirement for purposes of this section if the member was permitted to retire prior to th:
18 customary retirement date provided for in the system at the time of retirement.
19
20
21
22
23 SECTION 17: If any section, subsection, sentence, clause, phrase of this
24 ordinance, or the particular application thereof shall be held invalid by any court,
25 administrative agency, or other body with appropriate jurisdiction, the remaining section,
26 subsection, sentences, clauses, or phrases under application shall not be affected thereby.
27
28 SECTION 18: All Ordinances or parts of Ordinances in conflict herewith be and the
29 same are hereby repealed.
30
31 SECTION 19. This Ordinance shall become effective immediately upon adoption.
32
SECTION 16. Codification of this Ordinance is hereby authorized and directed
33
34
35
36
37
(The remainder of this page left intentionally blank)
_.
38
39
40
41
42
43
25
Date PreDared:
1
2 3 PASSED AND ADOPTED this ~ day of ,2009, upon
4 second and final reading.
5
PASSED this - day of , 2009, upon first reading.
6 7 CITY OF PALM BEACH GARDENS FOR
8
9
10 BY:
11 Eric Jablin, Mayor
12
11 '2 14 -iceMayor
15
16 17 Joe Russo, Councilmember
18
19
20 Bert Premuroso, Councilmember
21
22
23 Jody Barnett, Councilmember
24 25 ATTEST
26
27
28 29 BY:
30 Patricia Snider, Citv Clerk
31
32 APPROVED AS TO FORM AND
33 LEGAL SUFFICIENCY
34
35
?I; j? BY:
38 Max Lohman, Interim City Attorney
39
40
41
42
43
44
45
46
47 dm/pbg/gen101-30-09.ord
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I
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MSCl Emerg. MM..
sap 500
Rurwll Moo
Rurwll 1wO
RuudIMidCap
Rursell Mw
Barclay. USAgg
Barclay. US Ow.
BarclysMBSFired
BarclaysUS Credit
The Market Environment
Major Market Index Performance
Period Ended: December 31,2008
MSCIEAFE
MSCl Emerg. MM..
Rus8eII 3000
Russell HldCap
Russell 2000
Barclay. USAgg.
BarclaysUSGw.
&relay8 MBS Flaed
mrchys us credn
0.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0%
MSCIEmerg.MM..
. ..,. . . . . ... . RurseII SwO
..... .
Barclays USAgg.
Barclqs US 00".
Barclays MBSFiwd
B.~cI.~ us credn
-4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 0.0% 10.0%
Source: MSCl Capaal MaIimts. RusseH Investments, BarcrsvJ Cepital8 Bogdahn Consuling, LLC.
1 -I---.
2.1% 1
MSCl EAFE
MSCl Emerg. MM..
BarclaysUSAgg.
Barclaw USGw.
BarclaysMBSFIxed
Barclay8USCmdlt
3mm. Taiii
-75.0% -MI.0% -45.0% -30.0% -15.0% 0.0% 15.0% 30.0%
/TenYw Annuallzed Perfonname
3.6% ~
-3.0% 0.0% 3.0% 6.0% 9.0% 12.0% /c-l ? BOGDAHN
GROUP
i
1
Sma. Tail1
Long-Term Major Market Index Performance
Period Ended: December 31,2008
4MU
I Flfhn Year Annualized Performance
Barclays USAgg.
Bardays US Go".
Barclays MBSFixed
Barclays USCredlt
MSCl EAFE
MSCl Emerg. Mm.
I I
IJW
443%
1.9W.
i.WX
ITmnty Yur Annualized Performance1
3mor. T-Bill
MSCl EAFE
MSa Emerg Mkts.
,
Russell SWO
Russell loo0
Russell MIdCap
RursellZ00
Barclays USA= j-b,rA
Banlays US 00". ldoy
Barclays MBS Fixed U4X
Barclays USCredn ai%
0.00% 2.00% 4.60% 8.00% 8.00% 10.00%
1 Twonty-Flve Year Anntali2.d Performance
MSCIWE uln
MSCl Emerg. MIR.. NIA
ShP 500
Russell SWO
Russell 1WO
Russell MidCap
Russell ZWO
0.00% 2.00% 4.00% 6.00% 8.00% 10.00%
Barc!ays capdai a -dah
1
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n Consoding
SW 500
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Rmsell 1WO
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Russell 200
BInhys US Ow.
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Smos. T-Bill UIU I
0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.W%
MSCl WE
MSCl Emerg Mhth
WMO
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Russell 100
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Ruuell ZOW
0.00% 3.00% 6.00% 9.00% 12.00% 15.00%
. L1 .c.
.: > ...
THE
A, /r , BOGDAHN
%OQ %0'0 %OP %O'Z WO.0 %oz- %O.* %a9-
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The Market Environment
4th Quarter & Year-to-Date GlCS Sector Performance & (Year-End Sector Weight)
Period Ended: December 31,2008
a Enrgy(l2.lX)
Matarlals (3.4%)
industrials (11.7%)
Conrumer Disc (9.1%)
Consumer Staples (11.4%)
Health Care,(14.5%)
Financiais (14.6%)
InfoTechndogy (15.4%)
Telecom Services (3.5%)
Vtilltles (4.4%)
42.2%
Emrgy(lL8.X)
Matarlais (3.3%) ._ Y
Industrials(l1.rX) as% 1-
Jld% Consumer DISC (8.9%)
Caumer Staples (12.0%)
Healthcare (14.5%) _-
Flnancialr (13.8%) a,*%
J2zy I
.ZkJ%
42.8% I InfoTechnology (15.4%)
- -
Telecom SeMces(3.6%)
Utllitbs(4.4%)
40.0% -50.0% -40.0% -30.0% -20.0% -10.0% 0.0% -60.0% -50.0% -40.0% -30.0% -20.0% -10.0% 0.0%
EW~Y(~.~?O
Materials (5.4%)
Industrials (13.0%)
Comumar DIrc(15.4X)
COlulJ~~~~~OS (7.0%)
Health Cam (9.1%)
Financlah (18.8%)
Info Technology (12.8%)
Telecom Services (2.2%)
Utlllties(s.5%)
- I - !E---
Enrgy(4.4%)
Materials (3.1%)
industrials (16.9%)
Comumer DISC (11.0%)
Consumer Staples (3.9%)
Health Cam (15.3%)
Finamials (23.4%)
InfoTachnologn (15.8%) I - I-- -
-65.0% -55.0% -45.0% -35.0% -25.0% -15.0% -5.0% 40.0% -50.0% 40.0% -30.0% -20.0% -10.0% 0.0%
Source: Thompson Financial
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US Business Cycle Expansions and Contractions
Period Ended: December 31,2008
January 191XD I Dkemba 1914 (W I 23
I BUSINESSCYCLEREFERENCEDATES DURATION IN MONTHS BUSINESSCYCLEREFERENCEDATES DURATION IN MONTHS
Peak Trough Contaelion Expansion Cycle I Peak Trough Contraction Ezpailsion Cycle
12 35 a8 hnh 2001 (I) NWarnbr2001 (rq 8 120 128 1 28
AVERAGE, ALL CYCLES
I I 73 I Dwambsr2007 (PI) 7 7
Source: NBER
Pa*eXof?l
81
1 ME qJ BOGDAHN GROUP
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Palm Beach Gardens General Employees'
Asset Allocation
As of December 31,2008
____,___ - ."I. --"..I -"...&,"".. _.--
l.IW.801 58.72 Rockwwd Equity Portfolio 2,006.W4 64.15 1.918.129 64.22 1,772,806 65.04 1.831.571 66.98 1,576.905 65.47
Rockwwd International 135.355 4.37 131,842 4.41 136,103 4.99 136,7411 5.00 109.344 4.54 86.3112 4.22
TOW Fixed Compadk
Sawgrass Fixed I I 933543 30.13 936,240 3135 785,693 28.82 76!l$ll 28.01 722,178 29.99 156,732 37M
933.543 30.13 936.260 31.35 785.693 28.82 765,911 28.01 722.178 29.99 756,732 31.04
Receipt & Dbbanemeat Aceomat 23,143 0.7s 576 0.02 31,178 1.14 351 om ~ 306 041
Total Fund Composite 3,098,045 loo& 2986407 100.00 2,125,180 100.00 2,734379 1w.w 2m4u 100.00 2,043,142 100.80
listorical Asset Allocation By Segment
80.0 - 5
60.0
0 '5 2 s 40.0 z
20.0
0.0 - 1 1
9/08 10/08 11/08 12/08
Domestic Equity International Equity Domestic Fixd Income H Cash Equivalent
5 THE <'+ BOGDAHN GROUP Page 11 of 3 I
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Palm Beach Gardens General Employees’
Comparative Performance
As of December 31,2008
Fund (Net)
otal Fund Policy
ifference
lixed-Asset Target Alloc Moderate Funds (MF) Median
ob1 Fmnd (Grm)
mal Fund Policy
ifference
otal Equity Compmfte
otal Equity1 Policy
ifference
oclovood Equity Portfolio
kP 500
ifference
S CoreLarge Cap Equity (SA+CF) Median
ockwood International
lSCl EAFE Index
ifference
iternational Equity All (SA+CF) Median
.t.l Fixed Composite
[xed Total Polic)
ifference
S Broad Market Core Fixed Income (SA+CF) Median
awgrass Fixed
awgrass Fired Polic!
ifference
ort-2008
TO I 1 3
-14.32 (61) -14.32 (61) -25.91 (55)
1.35 1.35 0.26
-13.38 -13.38 -25.34
-1265 -12.83
-14.32 -14.32 -25.91
1.49 1.49 0.87
-2161 -2161 -36.74
-21.79 -21.79 -37.42
4.02 4.02 0.68
-21.87 (55) -21.87 (55) -36.44 (47)
-21.94 (59) -21.94 (59) -37.00 (60)
0.07 0.07 0.56
-21.72 -21.72 -36.66
-21.04 (58) -21.04 (58) -40.58 (29)
-19.90 (43) -19.90 (43) -43.06 (48)
-1.14 -1.14 2.48
-20.30 -20.30 -43.24
8.12 (2) 8.12 (2) 5.% (26)
4.58 (35) 4.58 (35) 5.24 (34)
3.54 3.54 0.72
3.62 3.62 3.30
8.12 (2) 8.12 (2) 5.96 (26)
4.58 (35) 4.58 (35) 5.24 (34)
3.54 3.54 0.72
4 S
Ye..
-4.31 (49)
0.72
-4.38
-2.99
-4.31
1.32
4.87
-8.48
1.61
-6.87 (30)
-8.36 (65)
I .49
-7.91
N/A
-6.92 (551
N/A
-6.55
5.63 (3.)
5.51 (34)
0.12
4.80
5.63 (30)
5.51 (34)
0.12
-2.30 (51)
0.55
-2.29
-1.09
-2.30
1.21
-4Bl
-5.30
1.29
NIA
-5.21 (80)
NIA
-4.35
NIA
-2.08 (66)
NIA
-1.30
5.03 (26)
4.71 (35)
0.32
4.24
NIA
NIA
NIA
-0.27 (50)
0.46
-0.30
cn
-0.27
1.14
455
-2.26
1.31
N/A
-2.19 (81)
NIA
-1.31
NIA
2.10 (64)
N/A
2.87
4.81 (29)
4.61 (38)
0.20
4.31
NIA
NIA
NIA
Since Inceptla
lneeation Dmle
6.71 NIA
-0.71
NIA
6.n 1OBl/l))4
6.71
0.00
6.14 IMYIM
6.68
0.06
-4.59 N/A 11/01/200J
-6.84 NIA
2.25
NIA
-12.22 N/A 1110112006
-16.57 NIA
4.35
NIA
6.63 N/A 1M1/1))4
6.81 NIA
4.18
NIA
5.82 N/A 11101/200!
5.70 N/A
0.12
S Broad Market Core Fixed Income (SA+CF) Median 3.62 3.62 3.30 4.80 4.24 4.31 N/A
Rems for periods greater than one year are annualized.
Rehlrns are expressed as percentages.
ToIal Fund Policy = 65% S&P 500,5% MSCl EAFE, & 30% LB Aggregate GROUP I Page 13 of 3 I
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V/N
VjN
VIN
PI'P
81'1-
(SI 15'9
(Zl) KS
50'61
V/N
(IZ) P5'9i
VIN
68'Pl
V/N
(51 OP'CZ
VIN
PV8-
OP'PZ
%SI
965-
VE'L I
WII
OP'OI
6L9-
(El YE'LI
V/N
V!N
VIN
WE
08'0-
(29) SE'E
(fd WZ
E 1'5
VIN
#'IN
(1) ZS'Zi
66 I
VIN
(I1 18'tl
VIN
SZO
LR'tl
ZI'PI
ZP'O
196
60'01
ZOZ
10.0-
(I1 19'6
V/N
V!N
VlN
901
01'0
(61 WZ
(8) WZ
96'01
V/N
(ZJ ZE9Z
VIN
IP'P
V/N
(El 55.51
V/N
P9'0
5Z'Z I
68'71
95.0
Ot8
968
EOE
szo-
ill Ot'8
V/N
\'.N
(Z) 8L'P
LI'E
01'1
(YI LY E
(Z) LL'P
EE'PI
V/N
it1 5961
VIN
6V8
OOP
(111 6L'Ol
(1) 6171
590-
6L'OI
PI'OI
LP'O
t6'L
IV8
ZZ'O-
(11 tl'S
(E) Z6P
68's
ZZ'O-
(11 PI'S
(C) Z6P
ZI'PI
V/N
(51 XL'SZ
VIN
9E.6
16'P
(El Pb.91
(1) EE'IZ
LZ'S
89'9 I
SIZ
SL'E
OtZI
SIYI
ZL'9
OI'E
(11 OPZl
IOE-
(11 5Y.f
(EE) P90
95'0-
IOE-
(1) SYE
(ff) wo
5682-
SP'E
(YYI tl'ot-
(8Z) 8992-
8881-
91'1
(XXI 8612-
(os) 28'02-
PC I
KZZ-
SL'IE
LP'O-
tt"t.1-
WPI-
Palm Beach Gardens General Employees'
Total Fund Composite (Net)
December 31,2008
IO00
0 00
-1000 - 5 -2000 : ' -3000
40 00
-5000
Total Fund Cmpmilc (Net)
Total Fund Policy
Median
U
I (kI-2008 I 1 3
Qvlrtlr T* Ye., YCXl YU.3
-1297 (45) -1297 (45) -25 65 (131 -960 128) -3 59 136)
-1432 161) -1432 (611 -2591 IS51 -1119 1501 -431 (491
-13 38 -1338 -25 34 -1124 4 38
DW.2008
4 3
Yeam YC.m
-1 7s 139) 0 19 I391
-2 30 (51) -0 27 (SO)
.2 29 -0 30
-I 1300 0 '4
b252 4
\229 5
I500 6
9194 9/97 9100 9103 9106
-Total Fund Conprnlr INN -Total Fund Policy
7
12108
1 1 I I I
QII..tCr Qu.ne. Qu.ra. Q"..tE. *.mr
Emdins Qnmr Emling Ending Emdhg Emdinz Endiq
.%*2C48 llm-1008 M.FZOO8 On-2a0, sp2w7 Jw-2007
Total Fund Caa@te(Net) -1023 (82) 1.35 (I) -7.02 (91) -1.18 (61) 429 (I) 2.07 (87)
Total Fund Policy 4.65 (25) -2.07 (80) -5.42 (51) -1.03 158) 2.36 133) 3.91 (21)
MmxdAs%tTmgct All= M&ralc Funds (MF) Mcdian -8.04 -1.03 -5.40 -0 85 1.93 3 07
qJ 1 THE BOGDAHN
GROUP
MI ZL 0- WO w 001 WOO1 WO
288
268
126
P9Ol
(LO1
zrll
I
w I
00 0
Palm Beach Gardens General Employees'
Total Domestic Equity
December 31,2008
SJOOOl
15.00 I
o.oo~
-1500
n
-
E E -30.00 <I 4S.00
-60.00 I I I
I olczwa I 2
Qu.*r I. YClr YUn
MZWI
ToulDanrs+ncEq~iry -21.87 (JS) -21.87 (55) -36.44 (47) -15.62 (24)
SBPJOO -21.94 (59) -21.94 (19) -37.00 (60) -18.48 (64)
Media -21.71 -21.12 .36 66 -17.98
3 4 5
VU" Ye." YE."
4.87 (30) -1.01 (45) 4% (42)
-8.36 (65) .5.21 (80) -2.19 (81)
-7.91 4.35 -1.31
$4000-
$3000-
$2000-
I'
SlOO.0 . I
10.0 r
9194 9197 9100 9103 9106 12/08
-TotdDomrticEguity -S&P JOO
I 1 1 I 1 I
pol*. Qlu* Qu.*r **. Q-* Qu.r*.
E.dbl Emdime E.dhi.L Emdimg endine spmar 1llbzm M.I-Zw0 M2001 srm7 l"n.2Wl em%
Ton1 Domestic €quit?. -12.27 (a5) 431 (5) -11.10 (86) -2.66 (44) 3.01 VI 2.93 (98)
S&P sw -8.31 (40) -2.73 (82) -9.45 (48) -3.33 (66) 203 (47) 6.28 (49)
US CorcRargc Cap Equity (SACCF) Median -9.00 -113 -9.47 -2.88 1.97 6 27
Paee 17of31
1 ME <- BOGDAHN GROUP
CP tl no I 2 0- VIN 000 W00l 00 001 00 0 005 d'OS
(091
2621
LCLI
Palm Beach Gardens General Employees'
Rockwood Equity Portfolio
December 31,2008
M.rkelVmlui
As of
1U3112Wll
Roskwvood Equity Podolio 1,577 -33 4 4 -346 1.200
c.piu1
App-1 I*p- Conlributam DiatribmConr Fm EXprm 1.r.mc Net
T,.ll,las
Markel Vhr
As of
9I3mm
Rockwood Equity Portfolio 1,511 -33 -3 4 -346 1.200
40.00 1
I ol1-2W8 1 2
QU..ter TO Y". YM"
De&W8
Roe*xmdEqityPoOfolio -21.87 (55) -21.87 (IS) -36.44 (47) -15.62 (24)
0 SBP 5w -21.94 (59) -21.94 (59) -37.00 (60) 48.48 (64)
Medin -21.72 -21.12 -36.66 -11.98
I
S85.0 3 4 s
YC." YI." Ye."
4.87 (30) N/A NIA
436 (65) -5.21 (80) -2.19 (81) $10.0
12/05 9/06 6/07 3/01 12/08
-1.91 4.35 -1.31 -Rockwoad Equity Pon6iio -S&P 500
-8.37 (40)
-9.w
-2.13 (82)
-1.23
4.4s (48)
+41
-3.33 (66)
-2.88
2.03 (41)
1.91
628 (49)
ti 27
Plor 19nfll
? ME qJ BOGDAHN GROUP
00 I 9L v ViN 00 0 00 001 WOO1 00 0 005 dPS
ZLfI 1C1- m!PW -
.." g I
00 5
0051-
0001-
no I-
00 O
00 I
fO91 161-
I I I I "" c
P Otis2 t '.
(Y.) OOSdBS
, I 000
Palm Beach Gardens General Employees'
Rockwood International
December 31,2008
. €idE-
d5 00 1
dO.00
I OTrIWS I 1
Quart<. TO Ye.. Ya"
DCC-1008
Roskwmd lnloruflorul -21.04 (58) -21.04 (58) -40.38 (29) -15.92 (17)
0 MSCl EAFE llldcx -19.90 (43) -19.90 (43) -43.06 (48) -20.27 (55)
Median -20.30 -20.30 -43.24 -1993
I
N/A NIA NIA
4 92 (55) -2.08 (66) 2 10 (64)
-6 55 -1 30 2 87
SI450
51300
ILL50
5lOO.O
585.0
570.0
$55.0
2/06 6/07 12/07 6/08 12/08
-Rockwood Int~rnafiond -MSCI EAFE Index
I 1 I I I 1
Qu.nr. Qa.rto Qua.*. Q"..IC, Q".rar Qrn..IW
E.liaL Emdimg ende Ending Enddill. Ending
SeF-2aas J"UrZ.008 MsrIW8 hrlW1 se*1007 l"blMI7
Rockwood 1ntern.tional 10.01 (40) 0.49 (21) 4.38 (IS) -257 (65) 7.96 (8) 8.9 (16)
hlSCl EAFE Index -20.50 144) -1.93 (58) -8 82 (57) -1 71 (54) 2.23 (49) 667 (63)
lnlcrnrfional Equm All (SAICF) Median -21 32 -1.50 -8 52 -1 51 2.19 7 I8
, Paoe71 nfll
zoo VtN no n nonni oon
0051
t
00 8 on n
00 02
-nnsi- X
0001- 5
00s- E
P
-000
-00s
d 0001
F oosz t '.
Palm Beach Gardens General Employees'
Total Fmed Composite
December 31,2008
MnrW Vs1.r
As of
12i3llZWB
CspiW
Appre~JDepp.~. COlltlibUliolv Dknibuliaa. Fe, EXplu Income Net
T..mfm
Mnrk Vdms
A. of mnmw
Total Rxcd Compoatc ?22 -22 .I 9 48 157
Tnal Fixed Compo& 722 -22 -1 9 48 7Jl
13000
1J.00
1000-
S25J8 2197 SZJOO-
,roo 0 ~ 2 -500
5 000 :
-
-1000 'L SlSOO -15.00
1 *I-ZOOB 1 2 3 4 5
Qo.* TO Y". Y"" Y"n Ye- Ye-
b2W
Tal FixedComposiY 8.12 (2) 8.12 (2) I.% (26) 6.31 (29) 5.63 (30) 5.03 (26) 4.81 (29)
0 FuedTml Poliq 4.58 (35) 4.58 (31) 5.24 (34) 6.10 (U) 5.51 (34) 4.11 (35) 4.61 (38) SlOO.0
9194 9/91 9100 9/03 9/06 12/08
Median 3.62 3.62 3.30 4.80 4.24 4.31 -Total Fiud Coapoiilr -Fixed Told Policy
1 1 I I 1 I
Qum. Que Qurhr Qua* Qu.*. Qu.mr
Ediq E.dUZ Emding E.&g Enddi4 Emddlry
*2wS 10-2W M.l-ZOO8 I*E2001 Sep-2007 J"r.lWl
Total Fund Composite -3.11 (a) -1.11 (71) I34 (33) 2.69 (61) 2.69 (62) 4.03 (4)
Firad Total Polic) 449 (29) -1 02 (59) 217 (44) 3W (38) 284 (JI) Q 52 (52)
US Bmad Ma-kef Core Fired Inmmc (SAICF) Mcdmn -I 45 494 1% 2 89 2 8J Q JI
Page 23 of 31
?ME qJ BOGDAHN GROUP
Palm Beach Gardens General Employees'
Sawgrass Fixed
December 31,2008
MmrM Vdmr
As of
11131/ms
C.Pit.l
Appm.1 De-. Conuribotiom Diatributioms PUS Expen- 1llrOme NU
TI.arf*"
MmrW Vhr
As Of
91~ono011
Sawpsss Fixed 722 -22 -1 9 48 717
$1200-
~1150-
siion-
$1010-
s10007
8""" I .""".
5nn- - 5 000- E
2 +on-
-1000-
-1100 I 1
1 OIC2W8 1 2 3 4 S
Quantr TO Vt.. YE*., YI.n Ve.n Years
Lkr-IWII
SawprasaFixcd 8 I2 (2) 8 12 12) 5 96 (26) 637 (29) 563 (30) NIA NIA
0 Saup~sF~rcdPolwy 4 58 (31) 458 (35) 5 24 (36) 6 10 (34) 5 51 (34) NIA NIA
Medm 3 62 3 62 3 30 4 98 4 80 4 24 4 31
5950 I ,
12101 9/06 6107 3/08 izim
-Sawpss Fixed -Sawgmsr Fixed Policy
I 1 I I I I
Qumrlrr Ql.mr QU.mr Quart- Qu.rIsr QUWtC.
Eading hdioz Endhg Emding Endiq Emding
&pZW lOr.-lW8 Mw-IWS Der-IWl sep2007 Jm-2W7
Sawgrass Fixed 4.11 (821 -1.17 (71) 1.34 (33) 1.69 (61) 1.69 (67.) 4.03 14)
Sawgrass Fixcd Poiicy 4.49 (29) -1.02 (59) 2.17 (44) 3.w (38) 2.84 (51) -0 I2 (52)
US Bmad Markrf Con Firrd Inconic (SAICF) hlcdjan -1.45 -0.94 196 2.89 2.85 -0 51
Page 25 of 3 1
? ME qJ BOGDAHN GROUP
0021 0001 00 8 00 9 00 P wz
I I , 009 I . .. .. .. . . .. .. . .... .?
I r
08i
89 i
OPS
I I
I
I' I 1 000
4 I I 0001
Palm Beach Gardens General Employees'
Benchmark History
As of December 31,2008
S&P 500 Index 60.00
Barclays Capital U.S. GovernmentiCredit 40.00
Effective Date: Jan-2006
Barclays Capital Aggregate
S&P 500 Index
Effective Date: Jan-2007
S&P 500 Index
Barclays Capital Aggregate
MSCI EAFE
40.00
60.00
60.00
35.00
5.00
Effective Date: Apr-2008
S&P 500 Index 65.00
30.00
Effective Date: Oct-1994
Barclays Capital US. GovernmenVCredit
Effective Date: Jan-2006
100.00
100.00
S&P 500 Index 100.00
Effective Date: Jan-ZOO7
S&P 500 Index 95.00
MSCI EAFE 5.00
Effective Date: Apr-2008 I S&P 500 Index
MSCI EAFE
93.00
7.00
Barclays Capital U.S. GovernmenVCredit
Effective Date: Jan-2006
Barclays Capital Aggregate
100.00
100.00
Page 27 of 3 1
? THE qJ BOGDAHN
T rm