Ord No 32-11-2105ORDINANCE NO. 32 -11 -2105
An Ordinance amending the City of South Miami Pension
Plan, providing for an amendment to Section 16 -21 Purchase
of credited service, to provide an incentive for retirement for
qualified police officer employees of the City of South Miami
by including an additional eight (8) months of prior credited
service, within a specified period of time,
WHEREAS, the City of South Miami desires to provide a retirement incentive for
qualified police officers; and
WHEREAS, the City recognizes that such retirement incentive will actuarially impact
the Pension Plan and shall be at the option of certain police officers; and
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY
OF SOUTH MIAMI, FLORIDA, THAT:
Section 2: That Chapter 16 Article II, Section 16 -21, " "Purchase of credited service"
of the City of South Miami Code of Ordinances is hereby amended as follows:
(c) Any participant classified as a police officer who retires between November 1,
2011, and before November 15, 2011, shall be eligible for a retirement incentive, which shall be
equal to normal retirement provided:
The City of South Miami will }may for the full actuarial cost, no later than
the earlier of benefit commencement or December 1, 2011, of up to eight
(8) additional months of any prior Credited Service earned by the electing
participant police officer before he or she became a participant in the
South Miami Pension Plan.
Section 2: Should any section or provision of this Ordinance or portion hereof, any
paragraph, any sentence, or word, be declared by a court of competent jurisdiction to be invalid,
such decision shall not affect the validity of the remainder of this ordinance.
Section 3: Authority is hereby granted to codify this Ordinance.
Section 4: This Ordinance shall become effective upon adoption.
PASSED AND ENACTED on this 1 st day of November , 2011.
ATTEST: APPROVED:
Ord. No, 32 -11 -2105
I" Reading - 10/18/11
COMMISSION VOTE: 5 -0
Mayor Stoddard: Yea
Vice Mayor Newman: Yea
Commissioner Palmer: Yea
Commissioner Beasley: Yea
Commissioner Harris: Yea
To:
From:
Date:
CITY OF SOUTH MIAMI
OFFICE OF THE CITY MANAGER
INTER - OFFICE MEMORANDUM
The Honorable Mayor & Members of the City Commission
Hector Mirabile, Ph.D., City Manager
October 31, 2011
Agenda Item No: 1
Subject: An Ordinance amending the City of South Miami Pension Plan, providing for an
amendment to Section I6 -21 Purchase of credited service, to provide an incentive for
retirement for qualified police officer employees of the City of South Miami by including
an additional eight (8) months of prior credited service, within a specified period of time.
ACTUARIAL IMPACT STUDY BY GABRIEL ROEDER SMITH & COMPANY
BACKGROUND: Attached please find the Actuarial Impact Statement, providing the financial
impact associated with the proposed changes in the Pension Ordinance,
incorporating the changes required to provide an incentive for retirement for
qualified Police Officer employees retiring between November I, 2011 and
November 15, 2011 by including an additional eight (8) months of prior credited
service, within a specified period of time.
COST: The proposed Ordinance provides for the City to pay the full actuarial cost due
to the increase in credited service. The full actuarial cost assuming payment on or
before the earlier of benefit commencement date or December I, 2011 is
$17,012.
The calculation is based upon the actuarial assumptions, Plan provisions and
census data utilized in the October I, 2010 Actuarial Valuation and assumes one
electing Police Officer. GRS calculated the cost for this service purchase assuming
a 2% multiplier for the service purchased (multiplier in effect when service was
rendered).
The City of South Miami estimates a base salary savings of $19,714 in FY 2012
and a continuous annual savings of $36,726 thereafter, assuming pay steps remain
idle and the actuary's assumption that one eligible officer elects to retire.
Base Salary Calculations
From To Increase
Lt. Promotion (Step 3)
Sgt. Promotion (Step 2)
Master Sgt. (Step 3)
New Officer (Step 1)
Total
Current Lt. Salary (Step 6)
Annual Savings
Actuary Payment for FY 2012
FY 2012 Savings
$84,600 $89,232
$60,101 $63,039
$61,271 $64335
$45,722
SUPPORT: Gabriel Roeder Smith & Company (GRS)
Actuarial Impact Statement
$4,632
$2,938
$3,064
X45.722
$56,356
$93,082
$36,726
- 17,012
19,714
Gabriel Roeder Smith & Company One Bast Broward Blvd. 9.54.527 1616 phone
GRS Consultants & Actuaries �Uitc SOS 9.54,575 008:3 fax
Ft. t.audCrdale, Ft, 33307 . -1804 wvaw ggbrielroedencom.
October 31, 2011
Mr. Alfredo Riverol
Finance Director
City Ball, lst Floor
6130 Sunset Drive
South Miami, Florida 33143
Re: South Miami Pension Plan
Actuarial Impact Statement
Dear Alfredo:
As requested, we have performed an actuarial review of the attached proposed Ordinance.
Based upon our review, we understand the proposed Ordinance:
1. Provides an incentive for retirement for qualified Police Officer employees retiring
between November 1, 2011 and November 15, 2011 by including an additional
eight (8) months of prior credited service, within a specified period of time.
2. Provides for severability.
3. Provides for codification.
4. Provides for an effective date.
The proposed Ordinance provides for the City to pay the full actuarial cost due to the
increase in credited service. The full actuarial cost assuming payment on or before the
earlier of benefit commencement date or December 1, 2011 is $17,012.
Our calculations are based upon the actuarial assumptions, Plan provisions and census data
utilized in the October 1, 2010 Actuarial Valuation and assumes one electing Police
Officer. We have calculated the cost for this service purchase assuming a 2% multiplier
for the service purchased (multiplier in effect when service was rendered).
Please forward a copy of the Ordinance upon passage at second reading to update our
records.
Mr. Alfredo Riverol
October 31, 2011
Page Two
If you should have any question concerning the above or if we may be of further assistance
with this matter, please do not hesitate to contact us.
Sincerest regards,
C
Lawrence F. Wilson, A.S.A.
Senior Consultant and Actuary
Enclosures
cc: Javier Banos, Esq.
Ronald Cohen, Esq.
Ms. Dixie Martinez
Gabriel Roeder Smith & Company
CITY OF SOUTH MIAMI
OFFICE OF THE CITY MANAGER
INTER - OFFICE MEMORANDUM
To: The Honorable Mayor & Members of the City Commission
From: Hector Mirabile, PhD, City Manager �
Date: October 13, 2011 f Agenda Item No.: L2
An Ordinance amending the City of South Miami Pension Plan, providing for an
amendment to Section 16 -21 Purchase of credited service, to provide an incentive
Subject: for retirement for qualified police officer employees of the City of South Miami by
including an additional eight (8) months of prior credited service, within a
specified period of time.
The City of South Miami desires to provide a retirement incentive for qualified
police officers; and recognizes that such retirement incentive will actuarially
impact the Pension Plan and shall be at the option of qualified police officers.
Chapter 16 Article 11, Section I6 -21, " "Purchase of credited service" of the City
of South Miami Code of Ordinances is hereby amended as follows:
(s�j Any pa icipant classified as a12olice officer who retires between November I
Background:
jl} The City of South Miami will pay for the full actuarial cost, no later than the
earlier of benefit commencement or December 1. 2011, of up to eight f8}
Based on the attached list of Police Officers under the South Miami Pension Plan
who were active as of October 1, 2010 and who entered the Plan after their
initial date of eligibility, the City anticipates a cost of $17,000. The City anticipates
an overall annual savings of over $30,000. Prior to second reading, the actuarial
impact statement will be provided.
Expense:
001.1910.5212210 Police Pension Plan Contribution, with a current balance of $
622,292.00
® GRS list of police officers under the South Miami Pension Plan who were
Documentation: clasp active as of October I, 2010 and who entered the Plan after their initial
D
date of eligibility.
in
October 7, 2011
Ms. Dixie Martinez
The Resource Centers, LLC
4360 Northlake Boulevard, Suite 206
Palm Beach Gardens, Florida 33410
Re: South Miami Pension Plan
Police Officers
Dear Dixie:
As requested, please enclosed find a list of Police Officers under the South Miami
Pension Plan who were active as of October 1, 2010 and who entered the Plan after their
initial date of eligibility.
If you should have any questions concerning the above or if we may be of further
assistance with this chatter, please do not hesitate to contact us.
Sincerest regards,
Lawrence F. Wilson, A.S.A.
Senior Consultant and Actuary
Enclosure
cc: Javier Banos, Esq.
Ronald Cohen, Esq.
Mr. Alfredo Riverol
Gabriel Roeder Smirh & Company
One hsr Ilroward
Igvd,
954..527.1616 Elton
GRS
C;onsulmnrs & Acrunries
Suite 505
954.525.0083 fax
Fr. biuderdale, Fl.
33301 -1804
WMIMpbrielroedencom
October 7, 2011
Ms. Dixie Martinez
The Resource Centers, LLC
4360 Northlake Boulevard, Suite 206
Palm Beach Gardens, Florida 33410
Re: South Miami Pension Plan
Police Officers
Dear Dixie:
As requested, please enclosed find a list of Police Officers under the South Miami
Pension Plan who were active as of October 1, 2010 and who entered the Plan after their
initial date of eligibility.
If you should have any questions concerning the above or if we may be of further
assistance with this chatter, please do not hesitate to contact us.
Sincerest regards,
Lawrence F. Wilson, A.S.A.
Senior Consultant and Actuary
Enclosure
cc: Javier Banos, Esq.
Ronald Cohen, Esq.
Mr. Alfredo Riverol
South Miami Pension Flan
Listing of active Police Officers as of October 1, 2010
who entered the Plan after their Date of Mire
Social Security
Date of
Date of
Date of
Number
Group
Name
Sex
Birth
Hire
'Participation
XXX -XX -7755
P
Ball, Susan
F
06/18/1958
09/04/1979
10/01/1994
XXX -XX -7060
P
Corbin, Larry
M
11/17/1963
03/20/1987
04/01/1999
XXX -XX -9728
P
D'Angelo, Michael
M
09/28/1970
01/23/1991
12/01/1998
XXX -XX -5394
P
Delaespriella, Fra
M
07/23/1967
02/26/1990
10/01/1992 3
XXX -XX -9331
P
Everett, Rodgerick
M
03/16/1966
06/01/1995
06/01/1998
XXX -XX -1631
P
Griffin, Jeffrey
M
01/15/1963
09/29/1995
05/01/1998
XXX -XX -5721
P
Hechavarria, Alexa
M
06/27/1959
01/27/1987
01/01/1996
XXX -XX -2051
P
Lawson, Samuel G.
M
02/09/1950
03/01/1993
01/01/1994
XXX -XX -8564
P
Robinson, Gregory
M
04/23/1955
06/07/1982
10/01/1994
XXX -XX -7538
P
Rodriguez, Ruben
M
10/04/1962
01/22/1987
02/0111992 a
XXX -XX -8456
P
Salerno, Daniel
M
06/30/1946
03/21/1988
10/01/1989
XXX -XX -2915
P
Torres, Rita
F
07/18/1952
02/07/1994
11/01/1994 4
r A benefit calculation was processed after October 1, 2010 - this Police Officer may no longer be employed by the City.
2 Reflects 3 year service purchase (original date of participation was 10/01/1995).
3 Reflects 5 year service purchase (original date of participation was 02/01/1997).
4 Reflects 2 year service purchase (original date of participation was 11/01/1996).
Prepared: October 7, 2011 Gabriel Roeder Smith & Company Page 1
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