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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. 10 11 1. 12 13 14 15 16 17 18 19 20 21 22 23 24 II. 25 26 27 28 29 111. 30 31 32 IV. 33 34 35 36 37 38 39 40 41 42 43 44 45 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 PAGE 1 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 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 2 3 4 5 6 7 APPROVED: 8 9 IO 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 ATTEST: 30 31 32 33 Donna M. Cannon 34 Municipal Services Coordinator 35 36 37 38 39 40 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). -1- 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. -L- 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 -3- 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. -4- (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) -5- (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. -6- (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. -7- 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: I 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 1. - Date Prepared: 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 -. 25 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, 38 39 40 41 42 43 (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 .. 45 46 47 48 49 50 51 52 53 121 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. 12 Dale Prepared: 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 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. 13 Date Prepared: 1 2 3 4 5 6 I 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 31 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 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. 14 Date Prepared: 1 2 3 4 5 6 I 8 9 10 11 12 13 14 15 u. , 16 17 I. 18 19 20 21 22 23 1 24 25 26 27 28 29 30 31 32 A n rl .. .. 33 r 34 35 36 37 38 39 40 41 42 43 44 45 46 41 48 49 50 51 52 53 54 (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. 15 Date Prepared: 1- 2kfetitffe: 3 4- 5 6 7 8 9 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 17 /A\ n _. 38 1 39 40 41 42 43 44 45 46 47 48 49 50 51 53 54 16 Dale Prepared: 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 ~ .. . 4-a 5 6 7 8 9 10 -. 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 52 53 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 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 55 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 12 13 14 15 16 17 18 19 20 21 22 23 24 25 afkk 26 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) 33 35 36 31 38 39 40 41 43 44 45 46 41 48 49 50 51 52 53 54 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 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 55 (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 Date Prepared: 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 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 AGAINST ABSENT 26 600Z '60 hNqY . '81159) .. .. ~. ., .. . ** :; ; ' .. ~ i ' .7 .! hewwnc oiiomo~ (S86'SE) I I 0 I A I . .. .. 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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 12.00% n Consoding SW 500 Russell 300 Rmsell 1WO RuareIIMldCap Russell 200 BInhys US Ow. Barclays USCredlt Barclays MBS Fixed 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 Russell SWO Russell 100 Russell MidCap 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- I ~ %00 %0'5- %OOL- %OSL- WO'OZ- %O.SZ- WO'OC- WO'SE- 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 %OS1 %O'OL 960.5 x00 %o's- WO'OI- %o'sL- bOOZ- %OS? %om- %O.SC- 00.0 OO'L 00'2 OO'E nrw 1h *ob JAOI-L Jh!W JAW 000z am V W w The Market Environment 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 A 990'PL S9E'OOL 6L8'101 LII'ZES'I ( E) aniu www i A A ZPI'fPO'ZS : 800Z'IEJa9m~Wl 9ZP'80PLZS : 8002 'Or JW'JdaS 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 9w E ogre 611'PL- SZI'SZ 9SE'PS ZEL'9SL LL1'8P SS06 PZZ- zr9- ZfL'PSL LLI'OP SS0'6 PZZ- zr9- ZOE'98 901'PZ- 660'1 108'661'1 ZLsSbs- PSPP PS- Z6P- WL'Z- ZZS'IZ- 8Ll'ZZL zz8'1z- OLI'ZZL PPf'601 rLL'zE- SOb'YLS'I 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 V/N VIN VIN 15'8 PP'I- LZ) 026 lfl 9L'L 5981- VIN SZ) 9ZSI- V/N P69Z- V/N I I1 LYOZ- VlN 8E'S LP0Z- ws1- 6LZ El.6- w9- Ezbl- LO2 IZ) C1'6- 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