Tequesta Council Adopts Pension Amendment Requiring Applicants to Cover Actuarial Costs

The Village Council voted to adopt Ordinance 01-26, an amendment to the general-employee pension trust fund, preserving the original language requiring applicants who purchase military-service credit to bear the actuarial and administrative costs.

Staff presented two versions of the ordinance at second reading: the original draft (applicant pays actuarial costs) and a revised draft (village/pension plan pays administrative/actuarial costs) that reflected a prior motion at first reading. Council members discussed consistency with other municipal pension plans, the potential equity issue of charging other members for a single applicant’s cost, and prior practices in the public-safety pension.

Several councilmembers said they preferred consistency with other pension plans and did not favor the village or fund absorbing costs for a benefit that only some members would use. After public comment (Marsha/Marcia Nielsen indicated concurrence with the applicant-pay approach), a motion to approve the original version passed by voice vote (recorded as "I" in the transcript).

Why it matters: The ordinance affects the process and cost for employees seeking to buy credited military service time into the village pension plan; placing the actuarial cost on the individual keeps the fund from absorbing one-off administrative expenses and preserves parity with the village’s other pension arrangements.

Next steps: The ordinance will be codified and implemented per the pension fund’s administrative processes; affected employees will be advised of the requirement and the application steps.