Ord No 08-10-2033ORDINANCE NO. 08 -10 -2033
An ordinance of the Mayor and City Commission of the
City of South Miami, Florida amending the South Miami
pension plan, providing for compliance with Chapter
2009 -97, Laws of Florida; providing for a reduction in
certain employee contributions for one fiscal year;
providing for severability; providing for codification;
and providing for an effective date.
WHEREAS, the 2009 Florida Legislature enacted Chapter 2009 -97, Law of
Florida, which mandates certain amendments to the South Miami Pension Plan; and
WHEREAS, recent changes to State statutes require several amendments to the
Plan in order to maintain eligibility for receipt of state premium tax revenues; and
WHEREAS, the City Administration has entered agreements with certain
employee groups to provide a one year reduction in required employee contributions,
WHEREAS, an amendment to the City code is necessary to permit such new
obligations and conditions; and
WHEREAS, the trustees of the South Miami Pension Plan have requested and
approved the amendments provided herein as being in the best interests of the
participants and beneficiaries and improving the administration of the plan, and
WHEREAS, the City Mayor and City Commission has received and reviewed an
actuarial impact statement related to this change and attached as such; and
WHEREAS, the City Commission deems it to be in the public interest to provide
this change to the pension plan for its police officer employees;
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, THAT:
Ord. No. 08 -10 -2033
Section 1. Section 16- 14(f)(1)(b) of the Code of Ordinances of the City of
South Miami, Florida, is hereby amended as follows:
(f) Optional forms of payment.
(1) A participant entitled to a normal or early service retirement
benefit shall have the right at any time prior to the date upon which the
first payment is received to elect to have the benefit payable under one of
the options provided in this section. The participant shall be permitted to
revoke any such election and to elect a new option at any time prior to the
receipt of the first payment. Election of the retirement option shall be on a
form prescribed by the board of trustees.
a. Life annuity. A police officer Participant may elect to receive an
annuity payable for life. This shall be the normal form of retirement.
There shall be no guaranteed payment in excess of the
accumulated contributions of the Participant, which contributions
shall be paid to the Participant's estate or designated Beneficiary
should the Participant die prior to receiving payments equal to said
contributions.
b. Joint and last survivor option. A participant may elect to receive
a reduced benefit for life and to have the same benefit (or a
designated fraction of the benefit) continued after the participant's
death and during the lifetime of a designated joint pensioner. The
participant shall have the option of electing to receive the payment
of a benefit of seventy -five (75) percent, sixty -six and two- thirds (66
2/3) percent, or fifty (50) percent of the participant's monthly
retirement allowance to be paid at the participant's death to a joint
pensioner designated by the participant at the time of or prior to
retirement, such benefit to be payable during the lifetime of the joint
pensioner. The reduced retirement benefit shall be the actuarial
equivalent of the amount of the retirement compensation otherwise
payable to the participant. A designated joint pensioner may be any
natural person, but need not be the spouse of the participant. In the
event that the designated joint pensioner dies, before the
participant's benefit payments begin, this option shall be canceled
automatically and a retirement income shall be payable to the
member in the form of a life annuity as if the election had never
been made. nhenoe his or her ioin+
PenGiGReF up tG two times without the appreval of the Beard Gr thee
The retiree member need net provide PreGf
Gf the -wed health of the ioint PeRSAGRer beinq removed, and the
hein remover) need net he livin Anv
Page 2 of 9
Ord. No. 08 -10 -2033
c. Other options. The pension board may, approve any other
optional form of substantially equal payments, which are the
actuarial equivalent of any other form provided for in this plan, or
which optional form of payment is cost neutral to the plan.
Section 2. Section 16 -19 of the Code of Ordinances of the City of South
Miami, Florida is hereby amended as follows:
Sec. 16 -19. Contributions.
(a) Each participant shall contribute in each calendar year towards the
cost of the participant's pension an amount equal to three (3) percent of
the participant's earnings. With the exception of police officer participants,
no participant shall make any contributions toward the cost of any past
service pension to which the participant is entitled under this plan. The
employer shall contribute the balance of the cost, actuarially determined,
of providing the benefits of the plan. The employer's contributions shall be
deposited into the pension plan on at least a quarterly basis. Effective
October 1, 1995, the pension contribution for all general employee
participants, including those general employees that are now members of
the retirement system, shall be increased from three (3) percent to five (5)
percent of earnings. Effective October 1, 2001, the pension contribution
for all general employee participants, including those general employees
that are now members of the plan, shall be increased from five (5) percent
to seven (7) percent of earnings. Police officer participant including
bargaining unit employees, that are now members of the plan and any
police officers who join the plan in the future shall, effective October 1,
1993, have their contribution increased from three (3) percent to five (5)
percent of earnings. Effective October 1, 2001, police officer participants
shall contribute 7.5 percent of earnings.
(1) General employee participants. Should the employer's annual
contribution be actuarially determined to exceed twelve (12)
percent, both the employer and the participants shall share equally
the amount in excess of twelve (12) percent for that fiscal year.
Effective October 1, 2005 should the total participant and
employer's annual contribution be actuarially determined to exceed
fourteen (14) percent, both the employer and the general employee
participants shall share equally the amount in excess of fourteen
(14) percent for that fiscal year.
Page 3 of 9
Ord. No. 08 -10 -2033
(2) Police officer participants. Effective October 1, 2004 if the
total police officer participants contributions and employer
contribution exceeds fifteen (15) percent of covered police payroll
for any fiscal year, the excess over fifteen (15) percent shall be
shared equally by the employer and police officer participants.
Police officer participant contributions shall be deposited in the plan
immediately after each pay period. Effective October 1, 2001, an
amount actuarially determined, to provide for certain minimum
benefits required by Chapter 185, F.S. shall be paid from the South
Miami Police Officers Retirement Trust Fund to the Plan each year,
regardless of the growth or diminution in future Chapter 185, F.S.
funds.
(3) Effective October 1 2009 and for one fiscal year thereafter
participant contributions for the following employee designations
shall be reduced from the above calculated percentages by two (2)
percentage points:
(a) Non bargaining unit employees
(b) Members of the AFSME bargaining unit
(c) Members of the Police Lieutenants and Captains
bargaining unit
Section 3. Section 16 -20 of the Code of Ordinances of the City of South
Miami, Florida is hereby amended as follows:
Sec. 16 -20. Board of trustees.
(a) The board of trustees shall be comprised of seven (7)
members consisting of the two (2) active employees of the city
elected by participants of the plan, two (2) citizen of the city, two (2)
individuals with financial backgrounds and the appointment of one
(1) active employee of the city designated by the city manager, all
to be appointed by the mayor with the advice and consent of the
city commission. No board of trustee member shall receive any
compensation or emolument for services on the pension board. The
board members shall each serve for a period of two (2) years, or
until their successors are appointed, which appointment shall be
evidenced by an acceptance in writing of such appointment. A
member of the pension board may resign by delivering a written
resignation to the city clerk, and such resignation shall become
effective upon its delivery or at a later date specified therein. If, at
any time there shall be a vacancy in the membership of the board,
provided there are not less than five (5) members, the board shall
continue to act until such vacancy is filled as provided above.
Page 4 of 9
Ord. No. 08 -10 -2033
(b) The board shall hold meetings upon such notice, at city hall,
and at such times as its members may from time to time determine.
A majority of the members of the board at the time in office shall
constitute a quorum for the transaction of business. All action taken
by the board at any meeting shall be by vote of the majority of its
members present at such meeting; provided, however, the board
may act without a meeting by unanimous action of its members
evidenced by a resolution signed by all such members.
(c) Subject to the terms of this plan, the pension board may from
time to time adopt bylaws, rules and regulations for the
administration of the plan and the conduct and transaction of its
business and affairs.
(d) The pension board shall have such powers as may be
necessary to discharge its duties hereunder; including but not
limited to, the power to interpret and construe the plan, to
determine all questions of eligibility for benefits, duration of
employment, computation of benefits, value of benefits and
similarly related matters for the purposes of the plan, and the
pension board's determination of all questions arising under this
plan shall be conclusive and binding upon all Employees, retired
Employees, Participants and all other persons.
(e) No member of the pension board shall be precluded from
becoming a Participant under this plan if otherwise eligible.
(f) The board shall keep accurate records and minutes of its
proceedings and actions. The pension board shall prepare annually
a report showing in reasonable detail an account of the operations
for the preceding year, and shall deliver a copy within sixty (60)
days thereof to the city commission. The pension board shall also
file with the appropriate governmental bodies all necessary forms
and documents that must be furnished in accordance with
applicable law.
(g) The board shall, from time to time, issue written instructions to
the insurance company with respect to the pensions and other
benefits to be provided pursuant to this plan.
(h) The board may authorize one (1) or more of its members to
sign on its behalf any document relating to the administration of this
plan.
Page 5 of 9
IV'Ci oatMO I%Bto] KIIV
(i) Except for gross negligence or willful breach of the terms of this
plan, no member of the pension board shall incur any individual
liability for any action or failure to act pursuant to the terms of this
plan. No member of the pension board shall be liable for the acts of
any other member of the pension board. The members of the
pension board may engage agents to assist them in their duties
and may consult with counsel who may be of counsel to the
Employer. The members of the pension board shall be relieved of
all responsibility whatsoever for anything done or not done upon the
written advice of counsel.
0) The members of the pension board may inspect the records of
the Employer whenever such inspection shall be reasonably
necessary in order to determine any fact pertinent to the
performance of their duties under this plan. The members of the
pension board, however, shall not be required to make such
inspection, but in good faith may rely on any statement of the
Employer or any of its officials or authorized Employees.
(k) The board shall identify and publicly report any direct or
indirect holdings it may have in anv scrutinized company, as
defined in Florida Statutes, Section 215.473, and proceed to sell,
thereafter be prohibited from purchasing or holdinq such securities.
Florida, no person may bring any civil, criminal, or administrative
action against the board or anv employee, officer, director, or
advisor of such board based upon the divestiture of any security
pursuant to this paragraph.
Section 4. Section 16 -22 of the Code of Ordinances of the City of South
Miami, Florida, is hereby amended as follows:
Sec. 16 -22. Amendment and termination of the pension plan.
(a) The employer may amend the provisions of this pension plan at any
time and from time to time by enacting such amendments in a public
meeting provided that:
(1) No amendment shall increase the duties or liabilities of the
board of trustees.
Page 6 of 9
Ord. No. 08 -10 -2033
(2) No amendment shall provide for the use of funds or assets
held under this plan other than for the benefit of employees and no
contributions paid by the employer shall ever revert to or be used or
enjoyed by the employer, except as provided in subsection (b).
(b) The employer may terminate this pension plan at any time by
repealing the provisions of this article in a public meeting. In such event
the board of trustees shall take the necessary steps to have all the funds
held by the plan applied to the purchase of immediate or deferred
annuities, as the case may be, in the following order of priority and in
accordance with the provisions of section 16 -23, if applicable:
(1) An immediate annuity on the normal forms of pension for each
employee participant who has retired or has attained normal
retirement date but who has not retired, in an amount equal to the
amount of basic benefit to which the participant is entitled or would
have been entitled if the participant had retired immediately prior to
such termination.
(2) A deferred annuity on a full cash refund form of pension
commencing at normal retirement date for each participant who has
not reached normal retirement date, for each disabled participant,
and for each former employee who is a terminated participant and
has not elected a cash payment as provided in Option 1 of section
16 -17; in an amount of the participant's contributions paid to and
received by the plan, with credited interest of three (3) percent per
annum from the end of the year in which contributions were
received to the date basic benefits commence.
(3) A temporary annuity ending on normal retirement date for each
disabled participant in an amount equal to the basic benefits being
received under section 16 -15.
(4) A deferred annuity on the life annuity form commencing at
normal retirement date for each terminated participant as defined in
section 16 -17 in an amount equal to the amount the participant is
entitled to under section 16 -17 and deferred annuity commencing at
normal retirement date for each disabled participant and each
participant in an amount equal to the amount the participant would
be entitled to under section 16 -17 if the date of termination of
employment less the amount of benefit applicable to him in
subsection (b) above.
(5) A deferred annuity on the life annuity form commencing at
normal retirement date for each participant who has not reached
normal retirement date in an amount equal to the amount of basic
Page 7 of 9
Ord. No. 08 -10 -2033
benefit the participant would be entitled to if the participant's normal
retirement date were the date of termination of this plan less the
amount of benefit applicable in subsections (2), (3) and (4) above.
Provided, however, that if there are insufficient funds to provide any
category of such annuities, the amount of annuity to be provided for each
participant in that category shall be reduced by a uniform percentage. If by
reason of actuarial error the purchase of such annuities as is provided for
in subsections (1), (2), (3), (4) and (5) above does not exhaust the funds,
any excess shall be paid to such employer.
For Police Officer participants all benefits shall be fully funded in
accordance with the provisions of Chapter 185, Florida Statutes upon
such termination of this plan. The Board shall determine the date of
distribution and the asset value required to fund all of the nonforfeitable
police officer benefits. The Board shall inform the City, if additional assets
are required in which event the City shall continue to financially support
the Retirement Plan until all nonforfeitable police officer benefits have
been fully funded.
Section 5. Section 16 -24(e) of the Code of Ordinances of the City of South
Miami, Florida is hereby amended as follows:
(e) Alienation of proceeds, levy, etc.; prohibited. No participant shall
have any right to assign, alienate, anticipate or commute any payments
hereunder; and, except as otherwise prescribed by law, no payment shall
be subject to the debts, contracts or engagements of any payee, nor to a
judicial process to levy upon or attach the same for the payment thereof;
except the recipient of any monthly benefit may authorize the board of
trustees to withhold from the monthly benefit those funds necessary to pay
for the benefits being received through the city, to pay the certified
bargaining agent of the city, and-to make any payments for child support
or alimony, and to pay for accident, health, and long -term care insurance
premiums for the recipient, the recipient's spouse and the recipient's
dependents. The Pension Fund shall not incur any liability for making or
failing to make such withholdings if its action is taken in good faith.
Section 6: 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.
9--
Ord. No. 08 -10 -2033
Section 7: Authority is hereby granted to codify this Ordinance.
Section 8: This Ordinance shall become effective upon adoption.
PASSED AND ADOPTED this 6th day of April
ATTEST: APPROVED:
a�- , (2% r`e `ccy ,
tM CLERK ®y
1St Reading— x/,•16/10
2nd Reading— 4/6%10
RE=;;; M
'MiTy ATTORNEY
r
S
MAY R
• T, • >, •
2010.
Mayor Stoddard
Yea
Vice Mayor Newman
Yea
Commissioner Palmer
Yea
Commissioner Beasley
Yea
Commissioner Harris:
Yea
WAMy Documents \resolutions \Ordinance Pension Amendment Chp 2009 -97 (12Mar2010).doc
Page 9 of 9
South Miami
AA•AmefiUM
CITY OF SOUTH MIAMI 1
OFFICE OF THE CITY MANAGER
INTER - OFFICE MEMORANDUM 2001
To: The Honorable Mayor & Members of the Ci Co ission
From: Roger M. Carlton, Acting City Manager
Date: April 6; 2010 Agenda Item No.:
Subject: An Ordinance of the Mayor and City Commission of the
City of South Miami, Florida Amending the South Miami
Pension Plan, providing for compliance with Chapter 2009 -97,
Laws of Florida; providing for a reduction in certain employee
contributions for one fiscal year; providing for severability;
providing for codification; and providing for an effective date.
Request: Approve the Ordinance on second reading and accept the Actuarial Impact
Study by Gabriel Roeden Smith and Company.
Reason/Need: To allow implementation of union contracts with the PBA (tipper) and
AFSCMEand to provide the same pension deduction adjustment for the non-
bargaining unit employees.
City employees are represented by two Police Unions, the PBA Lieutenants and Captains and the PEA
Sergeants and Officers, and the American Federation of State, County and Municipal Employees
(AFSCME). The City Commission has approved agreements with the unions representing Lieutenant's
and Captains and AFSCME which represents a number of employees predominantly in the Public Works
and Park and Recreation Departments. In addition, the City Commission has approved the same
retirement payroll deduction adjustment for non bargaining unit employees as has been approved for the
two unions which have new contracts.
In order to implement the two (2) percentage point reduced payroll deduction for the two unions and the
non - bargaining unit employees an amendment to the City Pension Ordinance is required. That
amendment to the City Pension Ordinance is incorporated in Sec. 2 (a) 3 in the attached Ordinance.
Further, there are four (4) amendments which are necessary to implement changes in State law that are
required of all municipal pension plans. These changes can be found in Sec. I (f) 16, Sec. 3 (k), Sec. 4 b
and Section 5 of the attached ordinance.
The proposed amendments have been reviewed by Pension attorney James W. Linn (recently brought on
board with approval of the City Commission), Labor Counsel James Crossland, the City Pension Board
and the Ad Hoc Pension Advisory Committee. After much discussion, the Ad Hoc Pension Advisory
Committee approved amending the Pension Ordinance only in relation to the State mandates and the
language necessary to implement the pension salary reduction. The Pension Board wanted an additional
item which would have extended the members term to four (4) years from the current two (2) years. The
Administration has not included this change in the proposed Ordinance because this change should be
reviewed in the more global context of pension reform.
The Administration strongly recommends approval of these changes which have been reviewed and
discussed by the Ad Hoc Pension Advisory Committee, the Pension Board and our legal counsels. It is
critical that we move forward on this second reading Ordinance so that we show good faith to the
bargaining units and the money be paid retroactively to October 1, 2009 to our employees who have
concluded bargaining as well as the non bargaining unit employees. It is required that the Pension Board
Actuary review the financial implication of the amendments and conduct an actuarial impact study which
is attached. The April 1, 2010 Updated Actuarial Impact Statement is attached for your review: Based on
the outcome of good faith bargaining and substantial legal review as well, City Commission approval of
this Ordinance on second reading is recommended.
Cost:
Funding Source:
Backup Documentation:
❑ Proposed Second Reading Ordinance
17 April 1, 2010 South Miami Pension Plan Updated Actuarial Impact
Statement
Page 2 of 2
South Miami
AutimencaC4lr
CITY OF SOUTH MIAMI i r
OFFICE OF THE CITY MANAGER ! °
INTER - OFFICE MEMORANDUM zoor
To: The Honorable Mayor & Membors of the C' Co fission
From: Roger M. Carlton, Acting City Manager
Date: March 16, 2010 Agenda Item No.:
Subject; An Ordinance of the Mayor and City Commission of the
City of South Miami, Florida Amending the South Miami
Pension Plan, providing for compliance with Chapter 2009 -97,
Laws of Florida; providing for a reduction in certain employee
contributions for one fiscal year; providing for severability;
providing for codification; and providing for an effective date.
Request: Approve the Ordinance on first reading subject to completion of an actuarial
impact study prior to second reading.
Reason/Need.- Comply with State law and allow negotiated union contracts to be
implemented
City employees are represented by two Police Unions, the PEA Lieutenants and Captains and the PBA
Sergeants and Officers, and the American Federation of State, County and Municipal Employees
(AFSCME). The City Commission has approved agreements with union, the representing Lieutenant's
and Captains and AFSCME which represents a number of employees predominantly in the Public Works
and Park and Recreation Departments. In addition, the City Commission has approved the same
retirement payroll deduction adjustment for non bargaining unit employees as has been approved for the
two unions for which have new contracts and have been completed.
In order to implement the two (2) percentage point reduced payroll deduction for the two unions and the
non - bargaining unit employees an amendment to the City Pension Ordinance is required. That
amendment to the City Pension Ordinance is incorporated in Sec. 2 (a) 3 in the attached Ordinance.
Further, there are four (4) amendments which are necessary to implement changes in State law that are
required of all municipal pension plans. These changes can be found in Sec. 1 (f) 16, Sec. 3 (k), Sec. 4 b
and Section 5 of the attached ordinance.
The proposed amendments have been reviewed by Pension attorney James W. Linn (recently brought on
board with approval of the City Commission), Labor Counsel James Crossland, the City Pension Board
and the Ad Hoc Pension Advisory Committee. After much discussion, the Ad Hoc Pension Advisory
Committee approved amending the Pension Ordinance only in relation to the State mandates and the
language necessary to implement the pension salary reduction. There was a strong dissent from one of
their members. The Pension Board wanted an additional item which would have extended the members
term to four (4) years from the current two (2) years. The Administration has not included this change in
the proposed Ordinance because this change should be reviewed in the more global context of pension
reform..
Tkie Administration strongly recommends approval of these changes which have been reviewed and
discussed by the Ad Hoc Pension Advisory Committee, the Pension Board and our legal counsels. It is
critical that we move forward on this first reading Ordinance so that we show good faith to the bargaining
units and the money be paid retroactively to October 1, 2009 to our employees who have concluded
bargaining as well as the non bargaining unit employees. It is required that the Pension Board Actuary
review the financial implication of the amendments and conduct an actuarial impact study which will be
provided before the second reading. That study is already in process. Based on the substantial review
that has been completed and that will continue through second reading, the adoption of this Ordinance is
strongly recommended.
Cost:
Funding Source:
Backup Documentation:
O Proposed Ordinance
Page 2 of 2
Gabriel Roeder Smith & Company One East Froward Blvd. 954.527.1616 phone
GRS Consultants & Actuaries Suite 505 954.525.0083 fax
Fa Lauderdale, FL 33301 -1.872 www.gabrielroedeccom
April 1, 2010
Ms. Emilie Smith
Benefits USA, Inc.
3810 Inverrary Blvd., Suite 303
Lauderhill, Florida 33319
Re: South Miami Pension Plan
Actuarial Impact Statement
Dear Emilie:
As requested, we are pleased to enclose three (3) copies of the Actuarial Impact Statement
for filing the proposed Ordinance (copy attached) under the South Miami Pension Plan
with the State of Florida.
Proposed Ordinance _ The proposed Ordinance:
➢ Allows retired members to change joint annuitants two (2) times without Board
approval and without evidence of good health of the joint annuitant being replaced
- the replaced joint annuitant need not be living.
Requires the General Employee participants and the employer to share equally in
the amount of the annual contribution actuarially determined in excess of fourteen
percent (14.0 0/o), if any. Effective October 1, 2009 and for one fiscal year
thereafter, participant contributions for non bargaining unit employees, members of
the AFSME bargaining unit .... shall be reduced from the above calculated
percentages by two percent (2.0 %).
➢ Requires the Police Officer participants and the employer to share equally in the
amount of the annual contribution actuarially determined in excess of fifteen
percent (15.0 0/o), if any. Effective October 1, 2009 and for one fiscal year
thereafter, participant contributions for .... Police Lieutenant. and Captains
bargaining unit shall be reduced from the above calculated percentages by two
percent (2.0 %).
➢ Provides for the Board to identify and publicly report any holdings it may have in
any scrutinized company and the Board must complete the divestiture of any such
company by September 30, 2010.
➢ Provides for benefits for Police Officer participants to be fully funded in accordance
with the provisions of Chapter 185, Florida Statutes upon termination of the Plan.
➢ Allows the Board to withhold from monthly benefits, at the participant's direction,
funds necessary to pay for accident, health and long -term care insurance premiums
for the participant, the participant's spouse and the participant's dependents.
➢ Provides for severability.
➢ Provides for codification and
➢ Provides for an effective date.
Ms. Emilie Smith
April 1, 2010
Page 2
Results — The following sets out the increase in City minimum annual required
contribution. The figure in parentheses is the increase in City minimum annual
contribution requirement expressed as a percentage of covered annual payroll as of
October 1, 2008 ($3,346,534 for General Employees and $2,857,555 for Police Officers).
Group Inerwisein Citv Annual Cost
General Employees $ 66,621
(2.0 %)
Police Officers $ 12,054
(0.4 %)
Totals $ 78,675
1.3%
Filing Requirements — We have prepared the Actuarial Impact Statement for filing with
the State of Florida. Please note that this Statement must be signed and dated on behalf of
the Board of Trustees. Copies of the proposed Ordinance upon passage at first reading
along with the signed and dated Actuarial Impact Statement should be filed with the State
at the following addresses:
Mr. Douglas E. Beckendorf, A.S.A.
Ms. Patricia Shoemaker
Division of Retirement
Division of Retirement
Building B
Building B
1317 Winewood Blvd
1317 Winewood Blvd
Tallahassee, Florida 32399
Tallahassee, Florida 32399
We understand the State requires funding no later than the fiscal year next following the
effective date of the increases in costs resulting from the proposed Ordinance. Please
forward a copy of the Ordinance upon passage at second reading to update our files.
Other Considerations — Allowing members to change joint annuitants without providing
evidence of good health may result in what is referred to as anti - selection. For example, if
theyetiree's joint annuitant becomes terminally ill, the retiree could make a change to
name a healthy joint annuitant. This change would increase the liability of the.Plan unless
the shorter expected lifetime of the joint annuitant being replaced is taken into account
when calculating the monthly amount of adjusted joint and survivor pension.
We note, while the change of joint annuitants can be made without providing proof of
health, under State statute the actuarial equivalence calculation of the adjusted monthly
benefit amount may reflect the health of the joint annuitant being replaced.
Gabriel Roeder Smith 8r Company
Ms. Emilie Smith
April 1, 2010
Page 3
If the cost is to be handled at the retiree level, we recommend the procedure be described
in the Ordinance. One approach would be to assume, for actuarial equivalence purposes,
both the retiree and the joint annuitant are five (5) years older than their actual ages, unless
one or both provide evidence to the Board establishing good health.
If there is no provision in the Ordinance that passing the cost along to the retiree, the cost
of the Plan would be expected to increase. An actuarial assumption should be included to
anticipate the cost of anti - selection. The actual cost should then be tracked if possible so
the assumption can be revised accordingly.
We recommend the Board discuss this matter with legal counsel. When this Plan provision
is included in the Ordinance, we would expect the impact statement to show no cost if the
anticipated anti - selection cost is being passed along to the retiree through recognition of
health status. Otherwise we would expect an actuarial cost due to anti - selection to. be
associated with making this change.
For purposes of this Actuarial Impact Statement, we have assumed the Board will adopt a
policy to pass this cost along to the retiree through recognition of health status.
Actuarial Assutnytions and Methods Financial Data, Plan Provisions and Member
Census Data — The actuarial assumptions and methods and financial data utilized in this
Actuarial Impact Statement are the same actuarial assumptions and methods and financial
data utilized in the October 1, 2008 Actuarial Valuation.
The Member census data utilized in this Actuarial Impact Statement is the same Member
census data utilized in the October 1, 2008 Actuarial Valuation with the addition of the
employee designations provided March 25, 2010.
The Plan provisions considered in this Actuarial impact Statement are the same Plan
provisions considered in the October 1, 2008 Actuarial Valuation with the exception of the
proposed amendments described above.
This Actuarial Impact Statement describes the financial effect of the proposed changes on
the Plan, from a neutral perspective.
These calculations are based upon assumptions regarding future events. However, the
Plan's long term costs will be determined by actual future events, which may differ
materially from the assumptions made. These calculations are also based upon present and
proposed Pension Plan provisions that are outlined or referenced in this Actuarial Impact
Statement. If you have reason to believe the assumptions used are unreasonable, the Plan
provisions are incorrectly described or referenced, important Plan provisions relevant to
this proposed Ordinance are not described or that conditions have changed since the
Gabriel Roeder Smith & Company
Ms. Emilie Smith,
April 1, 2010
Page 4
calculations were made, you should contact the undersigned prior to relying on information
in this Actuarial Impact Statement.
If you have reason to believe that the information provided in this Actuarial Impact
Statement is inaccurate, or is in any way incomplete, or if you need further information in
order to make an informed decision on the subject matter of this report, please contact the
undersigned prior to making such decision.
The undersigned are Members of the American Academy of Actuaries and meet the
Qualification Standards of the American Academy of Actuaries to render the actuarial
opinion contained herein.
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,
Lawrence F. Wilson, A.S.A.
Senior Consultant and Actuary
Peter N. Strong, A.S.A
Consultant and Actuary
Enclosures
cc: Javier Banos, Esq.
Mr. Roger Carlton
Ken Harrison, Esq.
Gabriel Roeder Smith & Company
South Miami Pension Plan
Actuarial Impact Statement as of October 1, 2008
General Emyloyees
A. Participant Data
1. Active participants
2, Retired participants and beneficiaries receiving benefits
3. Disabled participants receiving benefits
4. Terminated vested participants
5. Annual "payroll of active participants
6. Annual benefits payable to those currently receiving benefits
B. Assets
1. Actuarial value of assets
2. Market value of assets
C. Liabilities
1. Actuarial present value of future expected benefit payments
for active members
a. Retirement benefits
b, Vesting benefits
c. Death benefits
d. Disability benefits
e. Refunds
f. Total
Actuarial
Total actuarial present value of future expected benefit payments
Proposed
Valuation
5.
Ordinance
73
11,331,288
73
15
$
15
0
0
0
0
$ 3,346,534
$
3,346,534
$ 294,650
$
294,650
$ 9,237,641
$
9,237,641
$ 7,935,262
$
7,935,262
$ 12,703,423
317,467
87,864.
761,975
128,598
$ 13,999,327
2. Actuarial present value of fixture expected benefit payments
for terminated vested members $ 0
3. Actuarial present value of future expected benefit payments
for those currently receiving benefits
a, Service retired $ 2,762,508
b. Disability retired 0
c. Beneficiaries 0
d. Miscellaneous 66,085
e. Total $ 2,828,593
4.
Total actuarial present value of future expected benefit payments
$
16,827,920
5.
Actuarial accrued liabilities
$
11,331,288
6.
Unfunded actuarial liabilities
$
2,093,647
t-
Gabriel Roeder Smith & Company
$ 12,703,423
317,467
87,864
761,975
126,618
$ 13,997,347
$ 0
$ 2,762,508
0
0
66,085
$ 2,828,593
$ 16,825,940
$ 11,329,671
$ 2,092,030
South Miami Pension Plan
Actuarial Impact Statement as of October 1, 2008
General Employees
Actuarial
D. Statement of Accumulated Plan Benefits Valuation
1. Actuarial present value of accumulated vested benefits
a. Participants currently receiving benefits
b.' Other participants
c. Total
2. Actuarial present value of accumulated non - vested plan benefits
3. Total actuarial present value of accumulated plan benefits
E. Pension Cost
1. Total normal cost
2. Payment required to amortize unfunded liability
3. Interest
4. Total required contributions
5. Item 4 as a percentage of payroll
6. Estimated employee contributions
7. Item 6 as a percentage of payroll
8. Estimated State contributions
9. Item 8 as a percentage of payroll
10. Net amount payable by City
11. Item 10 as a percentage of payroll
F. Disclosure of Following Items:
I. Actuarial present value of future salaries - attained age
2. Actuarial present value of future employee contributions
- attained age
3. Actuarial present value of future contributions from other sources
4. Amount of active members` accumulated contributions
5. Actuarial present value of future salaries and future
benefits at entry age
6. Actuarial present value of fixture employee
contributions at entry age
-2-
Gabriel Roeder Smith & Company
$ 2,762,508
4,395,749
$, 7,158,257
753,032
$ 7,911,289
$ 629,758
120,414
28,853
$ 779,025
23.3%
$ 389,513
11.6%
$ 0
0.0%
$ 389,512
11.6%
$ 33,870,077
$ 2,370,965
N/A
$ 1,788,283
Proposed
Ordinance
$ 2,762,508
4,395,749
$ 7,158,257
753,032
$ 7,911,289
$ 629,548
120,326
28,841
$ 778,715
23.3%
$ 322,582
9.6%
$ 0
0.0%
$ 456,133
13.6%
$ 33,870,077
$ 2,370,905
N/A
$ 1,788,283
Not provided by software
Not provided by software
South Miami Pension Plan
Actuarial Impact Statement as of October 1, 2008
Police Officers
A. Participant Data
1. Active participants
2. Retired participants and beneficiaries receiving benefits
3. Disabled participants receiving benefits
4. Terminated vested participants
5. Annual payroll of active participants
6. Annual benefits payable to those currently receiving benefits
B. Assets
1. Actuarial value of assets
2. Market value of assets
C. Liabilities
1. Actuarial present value of future expected benefit
payments for active members
a. Retirement benefits
b. Vesting benefits
e. Death benefits
d. Disability benefits
e. Refunds
f., Total
2. Actuarial present value of future expected benefit
payments for terminated vested members
3. Actuarial present value of future expected benefit
payments for those currently receiving benefits
a. Service retired.
b. Disability retired
c. Beneficiaries
d. Miscellaneous
e, Total
4. Total actuarial present value of future expected
benefit payments
5. Actuarial accrued liabilities
6. Unfunded actuarial liabilities
-3-
Gabriel. Roeder Smith Sc Company
Actuarial
Valuation
40
16
0
5
$ 2,857,555
$ 419,550
$ 11,047,956
$ 9,489,969
$ 11,779,129
398,644
45,405
336,112
162,466
$ 12,721,756
$ 817,363
$ 5,245,397
0
148,236
21,981
$ 5,415,614
Proposed
Ordinance
40
16
0
5
$ 2,857,555
$ 419,550
$ 11,047,956
$ 9,489,969
$ 11,779,129
398,644
45,405
336,112
162,011
$ 12,721,301
$ 817,363
$ 5,245,397
0
148,236
21,981
$ 5,415,614
$ 18,954,733
$
18,954,278
$ 14,524,122
$
14,523,882
$ 3,476,166
$
3,475,926
South Miami Pension Plan
Actuarial Impact Statement as of October 1, 2008
Police Officers
Actuarial
D. Statement of Accumulated Plan Benefits Valuation
1. Actuarial present value of accumulated vested benefits
a. Participants currently receiving benefits
b. Other participants
c. Total
2. Actuarial present value of accumulated non - vested
3. Total actuarial present value of accumulated plan benefits
E. Pension Cost
1. Total normal cost
2. Payment required to amortize unfunded liability
3. Interest
4. Total required contributions
5. Item 4. as a percentage of payroll
6. Estimated employee contributions
7. Item 6 as a percentage of payroll
S. Estimated State contributions
9. Item 8 as a percentage of payroll
10. Net amount payable by City*
11. Item 10 as a percentage of payroll
F. Disclosure of Following Items:
tems:
1. Actuarial present value of future salaries - attained age
2. Actuarial present value of future employee contributions
- attained age
3. Actuarial present value of future contributions
from other sources
4. Amount of active members' accumulated contributions
5. Actuarial present value of fixture salaries and fixture
benefits at entry age
6. Actuarial present value of future employee
contributions at entry age
$ 5,393,633
5,318,099
$ 10,711,732
329,790
$ 11,041,522
$ 591,149
203,007
31,270
$ 825,426
28.9%
$ 374,492
13.1%
$ 37,780
1.3%
$ 413,154
14.5%
$ 25,404,189
$ 1,905,314
N/A
$ 1,752,717
Proposed
Ordinance
$ 5,393,633
5,318,099
$ 10,711,732
329,790
$ 11,041,522
$
591,097
202,994
31,268
$
825,359
28.9%
$
362,371
12.7%
$
37,780
1.3%
* $
425,208
*
14.9%
$ 25,404,189
$ 1,905,314
N/A
$ 1,752,717
Not provided by software
Not provided by software
*
* The City contribution amount for Police Officers reflects an adjustment in the amount of $38,622 due to the
correction of Police Officers' date of participation as directed by the Pension Board.
-4.
Gabriel Roeder Smith Sc Company
South Miami Pension Plan
Actuarial Impact Statement as of October 1, 2008
All Participants
A. Participant Data
1. Active participants
2. Retired participants and beneficiaries receiving benefits
3. Disabled participants receiving benefits
4. Terminated vested participants.
5. Annual,payroll of active participants
6. Annual benefits payable to those currently receiving benefits
B. Assets
1. Actuarial value of assets
2. Market value of assets
C. Liabilities
I. Actuarial present value of future expected benefit
payments for active members
a: Retirement benefits
b. Vesting benefits
c. Death benefits
d. Disability benefits
e. Refunds
Total
2. Actuarial present value of future expected benefit
payments for terminated vested members
3. Actuarial present value of future expected benefit
payments for those currently receiving benefits
a. Service refired
b. Disability retired
c. Beneficiaries
d. Miscellaneous
e: Total
4. Total actuarial present value of future expected
benefit payments
5. Actuarial accrued liabilities
6. Unfunded actuarial liabilities
-s-
Gabriel Roeder Smith & Company
Actuarial
Valuation
113
31
0
5
$ 6,204,089
$ 714,200
$ 20,285,597
$ 17,425,231
$ 24,482,552
716,111
133,269
1,098,087
291,064
$ 26,721,083
$ 817,363
$ 8,007,905
0
148,236
88,066
$ 8,244,207
$ 35,782,653
$ 25,855,410
$ 5,569,813
Proposed
Ordinance
113
31
0
5
$ 6,204,089
$ 714,200
$ 20,285,597
$ 17,425,231
$ 24,482,552
716,111
133,269
1,098,087
288,629
$ 26,718,648
$ 817,363
$ 8,007,905
0
148,236
88,066
$ 8,244,207
$ 35,780,218
$ 25,853,553
$ 5,567,956
South Miami Pension Plan
Actuarial Impact Statement as of October 1, 2008
All Pam
Actuarial
D. Statement of Accumulated Plan Benefits Valuation
1. Actuarial present value of accumulated vested benefits
a. Participants currently receiving benefits
b. Other participants
c., Total
2. Actuarial present value of accumulated non - vested
3. Total actuarial present value of accumulated plan benefits
E. Pension Cost
1. Total normal cost
2. Payment required to amortize unfunded liability
3. Interest
4: Total required contributions
5. Item 4 as a percentage of payroll
6. Estimated employee contributions
7. Item 6 as a percentage of payroll
8. Estimated State contributions
9. Item 8 as a percentage of payroll
10. Net amount payable by City *
11. Item 10 as a percentage of payroll
F. Disclosure of Following Items:
I . Actuarial present value of future salaries - attained age
2. Actuarial present value of future employee contributions
- attained age
3. Actuarial present value of future contributions
from other sources
4. Amount of active members' accumulated contributions
5. Actuarial present value of future salaries and future
benefits at entry age
6. Actuarial present value of future employee
contributions at entry age
$ 8,156,141
9,713,848
$ 17,869,989
1,082,822
$ 18,952,811
$ 1,220,907
323,421
60,123
$ 1,604,451
25.9%
$ 764,005
12.3%
$ 37,780
0.6%
$ 802,666
12.9%
$ 59,274,266
$ 4,276,219
N/A
$ 3,541,000
Proposed
Ordinance
$ 8,156,141
9,713,848
$ 17,869,989
1,082,822
$ 18,952,811
$
1,220,645
323,320
60,109
$
1,604,074
25.9%
$
684,953
11.0%
$
37,780
0.6%
* $
881,341
*
14.2%
$ 59,274,266
$ 4,276,219
N/A
$ 3,541,000
Not provided by software
Not provided by software
PU
* The City contribution amount for Police Officers reflects an adjustment in the amount of $38,622 due to the
correction of Police Officers' date of participation as directed by the Pension Board.
-6-
Gabriel Roeder Smith & Company
South Miami Pension Plan
Actuarial Impact Statement as of October 1, 2008
G. Amortization of Unfunded Actuarial Accrued Liability
This actuarial valuation and/or cost determination was prepared and completed by me or under my direct supervision, and I
acknowledge responsibility for the results. To the best of my knowledge, the results are complete and accurate, and in my opinion, the
techniques and assumptions used are reasonable and meet the requirements and intent of Part VII, Chapter 112, Florida Statutes. Based
upon our understanding of the plan, there is no benefit or expense to be provided by the plan and/or paid from the plan's assets for
which liabilities or current costs have not been established or other wise provided for in the valuation. All known events or trends
which may require material increase in plan costs or required contribution rates have been ttaakencinntto account in the valuation.
Enrollment Number: 08.02802
Dated: April 1, 2010 Lawrence F. Wilson, A.S.A
-7-
Gabriel Roeder Smith & Company
General
Police
General
Police
Remaining
Unfunded Actuarial
Current Unfunded
CturentUnfimded
Amortization
Amortization
Funding
Accrued Liabilities
Liabilities
Liabilities
P_aMent
Payment
Period
10/01/1990 Assumption
Method Change
$ 77,439
$ (91,469)
$ 7,875
$ (9,302)
12 years
10/01/1991 Actuarial Loss (Gain)
(98,805)
(69,277)
(9,437)
(6,617)
13 years
10/01/1992 Plan Amendment
(12,448)
(5,717)
(1,123)
(516)
14 years
10/01/1992 Actuarial Loss (Gain)
(227,065)
(152,266)
(20,490)
(13,785)
14 years
10/01/1993 Actuarial Loss (Gain)
(50,188)
(34,782)
(4,300)
(2,980)
15 years
10/01/1993 Plan Amendment
N/A
186,818
NIA
16,007
15 years
10/01/1994 Actuarial Loss (Gain)
146,720
56,420
11,988
4,610
I6 years
10/01/1994 Assumption Change
40,654
23,481
3,322
1,919
16 years
10/0111995 Actuarial Loss (Gain)
(243,727)
(161,599)
(19,063)
(12,639)
17 years
10/01 /1995 Plan Amendment
N/A
231,980
N/A
18,144
17 years
1010111996 Actuarial Loss (Gain)
(221,108)
(93,125)
(16,610)
(6,996)
NA
18 years
10/01/1996 Plan Amendment
321,879
N/A
24,179
18 years
10/01/1997 Actuarial Loss (Gain)
(244,709)
(178,653)
(17,708)
(12,928)
19 years
10/01/1997 Plan Amendment
246,133
N/A
17,811
NIA
19 years
10/01/1998 Actuarial Loss (Gain)
(227,342)
(287,388)
(15,890)
(20,087)
20 years
10/0111999 Actuarial Loss (Gain)
(44,282)
(92,541)
(2,997)
(6,262)
21 years
10/01/1999 Plan Amendment
NIA
121,925
N/A
8,251
21 years
10 /01 /2001 Actuarial Loss (Gain)
1,148,390
1,010,702
73,305
64,516
23 years
10/01/2001 Method Change
(514,705)
(508,321)
(32,855)
(32,447)
23 years
10/01/2001 Plan Amendment
443,798
795,308
28,329
50,767
23 years
10/01/2002 Actuarial loss (Gain)
654,257
764,963
40,673
47,555
24 years
10/01/2002 Plan Amendment
205,200
191,035
12,757
11,876
24 years
10/0I/2003 Actuarial Loss (Gain)
(216,482)
560,376
(13,128)
33,983
25 years
10/01/2003 Plan Amendment
N/A
236,873
N/A
14,365
25 years
10/01/2004 Actuarial Loss (Gain)
573,520
136,381
33,978
8,080
26 years
10/01/2004 Plan Amendment
NIA
212,503
N/A
12,590
26 years
10/01/2005 Actuarial Loss (Gain)
79,401
(425,255)
4,602
(24,647)
27 years
10/01/2006 Actuarial Loss (Gain)
642,417
867,512
36,470
49,248
28 years
10/01/2006 Assumption Change
112,838
368,550
6,406
20,922
28 years
10/01/2007 Actuarial Loss (Gain)
(446,835)
(351,807)
(24,876)
(19,585)
29 years
10/01/2008 Actuarial Loss (Gain)
(51,303)
164,039
(2,804)
8,965
30 years
10/01/2008 Plan Amendment
(1,617)
(Z40)
{88)
(13)
30 years
TOTAL
$ 2,092,030
$ 3,475,926
$ 120,326
$ 202,994
This actuarial valuation and/or cost determination was prepared and completed by me or under my direct supervision, and I
acknowledge responsibility for the results. To the best of my knowledge, the results are complete and accurate, and in my opinion, the
techniques and assumptions used are reasonable and meet the requirements and intent of Part VII, Chapter 112, Florida Statutes. Based
upon our understanding of the plan, there is no benefit or expense to be provided by the plan and/or paid from the plan's assets for
which liabilities or current costs have not been established or other wise provided for in the valuation. All known events or trends
which may require material increase in plan costs or required contribution rates have been ttaakencinntto account in the valuation.
Enrollment Number: 08.02802
Dated: April 1, 2010 Lawrence F. Wilson, A.S.A
-7-
Gabriel Roeder Smith & Company
South Miami Pension PIan
Outline of Principal Provisions of the Retirement Plan
A. Effective Date:
October 1, 1965. Most recent resolution / bargaining agreement was adopted January 17, 2006.
Most recently amended by Ordinance No. 24 -06 -1892, adopted November 28, 2006.
E. Eligibility Requirements:
1. General Employees
Any regular full -time employee is eligible to enter the plan following the completion of six
months of Credited Service and attainment of age 20.
2. Police Officers
Any regular full -time Police Officer is eligible to enter the plan as of date of employment.
C. Credited Service:
1. General Employees
Continuous employment. Credited service shall exclude continuous employment prior to plan
participation as follows: (1) If employed prior to October 1, 1973, credited service shall
exclude the first two years of continuous employment and any additional year of continuous
employment prior to attainment of age 25. (2) If employed on or after October 1, 1973,
credited service shall exclude the first six (6) months of continuous employment and
continuous employment prior to age 20.
2. Police Officers
Continuous employment. For Police Officers who did not participate when first eligible for
the plan, credited service shall exclude continuous employment prior to plan participation as
follows: (1) If employed prior to October 1, 1973, credited service shall exclude the first two
years of continuous employment and any additional year of continuous employment prior to
attainment of age 25. (2) If employed on or after October 1, 1973, credited service shall
exclude the first six (6) months of continuous employment and continuous employment prior
to age 20.
D. Final Monthly Compensation (FMC):
Final Monthly Compensation is 1/36x` of the final 36 consecutive months of compensation. For
Police Officers, not less than 1 /5s' of the highest five (5) years out of the last (10) ten years of
compensation. Compensation shall mean regular wages and salaries, excluding bonuses, vacation,
sick leave and other additional compensation.
-g_
Gabriel Roeder Smith & Company
South Miami Pension Plan
Outline of Principal Provisions of the Retirement Plan
E. Normal Retirement:
1. Eligibility:
a. General Employees: Attainment of age 55 and completion of ten (10) years of credited
service.
b. Police Officers: Attainment of age 60 and completion of ten (10) years of credited
service or completion of twenty -five (25) years of credited service
regardless of age.
2. Benefit:
The monthly plan benefit is the product of:
a. FMC,
b.' Credited service during the appropriate period and
c. The appropriate benefit percentage
The appropriate benefit percentages are:
a... General Employees For Credited Service Percentage
b. Police Officers
F. implemental Benefit:
Through September 30, 1999
October 1, 1999 and thereafter
For Credited Service
Through September 30, 1995
October 1, 1995 through September 30, 1996
October 1, 1996 through September 30, 1997
October 1, 1997 through September 30, 2001
October 1, 2001 through September 30, 2002
October 1, 2002 through September 30, 2003
October 1, 2003 and thereafter
2.50%
2.75%
Percentage
2.00%
2.25%
2.50%
2.75%
2.80%
2.90%
3.00%
A cost -of- living supplemental benefit based upon the consumer price index is provided upon
retirement. The annual increase is limited to 3 %.
in
Gabriel Roeder Smith & Company
South Miami Pension Plan
Outline of Principal Provisions of the Retirement Plan
G. Early Retirement:
1. Eli ibili : Attainment of age 60 (age 50 for Police Officers) and completion of 15 years of
credited service.
2. Benefit: Accrued benefit based upon FMC and credited service as of early retirement date,
reduced 6% (3% for Police Officers) for each year that the benefit commencement
date precedes Normal Retirement.
H. Delayed Retirement:
1. Elz ibili : Retirement subsequent to normal retirement date.
2. Benefit: Accrued benefit based upon FMC and credited service as of delayed retirement
date.
I. Disability Retirement:
1. Eli ibili : Totally and permanently disabled for a six month period while actively employed.
2. Benefit: Accrued benefit based upon FMC and credited service as of date of disability,
actuarially reduced as for early retirement for early commencement.
I Pre - Retirement Death Benefit:
The beneficiary shall receive the member's accumulated employee contributions.
K. Benefit Upon Termination of Service:
1. Benefit payable at. normal retirement equal to the greater of:
a. Accrued benefit based upon FMC and credited service as of date of termination times the
vesting percentage shown below, or
b. Benefit which can be supported by the accumulated member contributions with interest to
normal retirement date.
No, supplemental benefit shall be payable to vested terminees until they commence receiving
benefits.
-10-
Gabriel. Roeder Smith St Company
South Miami Pension Plan
Outline of Principal Provisions of the Retirement Plan
2, Vesting Schedule:
3. Refund Option:
A terminated member may elect to receive a refund of accumulated contributions (with 3%
interest for General Employees) in lieu of receiving any other plan benefits.
L. Member Contributions:
Members contribute 7% (7.5% for Police Officers) of member's basic annual compensation.
Should the City contribution for General Employees be actuarially determined to exceed 7.0 %,
both the City and the General Employees will share equally in the amount in excess of 7.0 %.
Should the City contribution for Police Officers be actuarially determined to exceed 7.5 %, both
the City and the Police Officers will share equally in the amount in excess of 7.5 %.
Effective October I, 2009 and for one fiscal year thereafter, participant contributions for non
bargaining unit employees, members of the AFSME bargaining unit and members of the Police
Lieutenant and Captains bargaining unit shall be reduced from the above calculated percentages
.by two percent (2.0 %).
M. Normal Form of Retirement income:
The normal form of payment shall be a life annuity with a guarantee of a refund of accumulated
employee contributions.
N. Changes Since Previous Valuation:
Member contributions were 7% (7.5% for Police Officers) of member's basic annual
compensation. Should the City contribution for General Employees be actuarially determined to
exceed 7.0 %, both the City and the General Employees will share equally in the amount in excess
of 7.0 %. Should the City contribution for Police Officers be actuarially determined to exceed
7.5 %, both the City and the Police Officers will share equally in the amount in excess of 7.5 %.
.11-
Gabriel Roeder Smith & Company
South Miami Pension Plan
Actuarial Assumptions and Methods
Used in the Valuation
A. Mortali
For healthy active lives, the 1994 UP Mortality Table Projected to 2006 was used with separate
rates for males and females.
For disabled lives, the RP 2000 Disabled Mortality Table Projected to 2006 was used with separate
rates for males and females.
B. Interest to be Earned by Fund
8.0 %, compounded annually.
C. Allowances for Expenses or Contingencies
Actual expenses paid in previous year.
D. Employee Withdrawal Rates
Withdrawal rates for males and for females were used in accordance with the following illustrative
example based upon number of years of service:
E. Disability Rates
1985 Disability Study, Class 1 with separate rates for females was used.
-12-
Gabriel Roeder Smith 8G Company
South Miami Pension Plan
Actuarial A sumOons and Methods
Used in the Valuation
F. Marital Assumptions
100% of active members are assumed to be married. Where applicable, females are assumed to be
three years younger than their male spouses.
G. Salary Increase Factors
Current salary is assumed to increase in accordance with the following table based upon number of
years of service.
H. Increase in Covered Payroll
4.0% per year, limited to average annual increase over most recent ten years (8.5 %).
1. Retirement Rates
Rates of early retirement for Police Officers were used in accordance with the following table.
Rates of normal retirement were used in accordance with the following tables.
-13-
Gabriel Raeder Smith a Company
South Miami Pension Plan
Actuarial Assumptions and Methods
Used in the Valuation
I Cost of Living Increases
Future cost of living increases are assumed to be 3.0% per annum.
K. Valuation of Assets
The method used for determining the actuarial value of assets phases in the deviation between the
expected and actual return on assets at the rate of 20% per year. The actuarial value of assets will
be further adjusted to the extent necessary to fall within the corridor whose lower limit is 80% of
the fair market value of plan assets and whose upper limit is 120% of the fair market value of plan
assets.
L. Cost Methods
Normal Retirement, Termination Disability and Pre - Retirement Death Benefit:
Entry -Age- Actuarial Cost Method
Under this method the normal cost for each active employee is the amount which is calculated to be
a level percentage of pay that would be required annually from his date of hire to his retirement age
to fund his estimated benefits, assuming the PIan had always been in effect. The normal cost for
the Plan is the sum of the individual normal costs for aII active participants. The actuarial accrued
liability as of any valuation date for each active employee or inactive employee who is eligible to
receive benefits under the plan is the excess of the actuarial present value of estimated future
benefits over the actuarial present value of current and future normal costs. The unfunded actuarial
accrued liability as of any valuation date is the excess of the actuarial accrued liability over the
actuarial value of assets of the Plan.
M. Changes Since Previous Valuation
None.
_Iq_
Gabriel Roeder Smith &c Company
MIAMI DAILY BUSINESS REVIEW
Published Daily except Saturday, Sunday and
Legal Holidays
Miami, Miambpade County, Florida
STATE OF FLORIDA
COUNTY OF MIAMI -DADE:
Before the undersigned authority personally appeared
V. PEREZ, who on oath says that he or she Is the
LEGAL CLERK, Legal Notices of the Miami Daily Business
Review 1110a Miami Review, a daily (except Saturday, Sunday
and Legal Holidays) newspaper, published at Miami in Miami -Dade
County, Florida; that the attached copy of advertisement,
being a Legal Advertisement of Notice in the matter of
CITY OF SOUTH MIAMI - NOTICE OF PUBLIC HEARING
APRIL 6, 2010
in the XXXX Court,
was published in said newspaper in the issues of
03/26/2010
Afflant further says that the said Miami Daily Business
Review is a newspaper published at Miami in said Miami -Dade
County, Florida and that the said newspaper has
heretofore been continuously published in said Miami -Dade County,
Florida, each day (except Saturday, Sunday and Legal Holidays)
and has been entered as second class mail matter at the post
office in Miami in said Miami -Dade County, Florida, for a
period of one year next preceding the first publication of the
attached copy of advertisement; and affiant further says that he or
she has neither paid nor promised any person, firm or corporation
any discount, rebate, commission or refund for the purpose
of securing this advertiseme for publication in the said
newspaper. qqq
Sworn to and subscribed before me this 1)
26 day of MARCH , A.D. 2010
(SEAL)
V. PEREZ personally known to me
Yo pa. PV�t' Cheryl lt Wleafe of Fladda
My Commission My Commisson DD7934900
Expires 07110 /2072
of sDUx9 ..
4lir �
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+ • ,NWPPORpib
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ctr�r, 1P.111 saustt MIAMI
NO�.10E iF,�iJt3 tC HEARt►CG
NOTICE ISNEfE§Ygiven that the City Qommisston of the City of South
Nleml,'., oil aWill conduct Public Hearings arils regular City Commission
beefing Stilest000- 1prTue0ay, Aprfl:8, 20.10,beginhirig at 7:30 p.m. in
he CAyGpmr�issfon Chambers' 8130 Sunset Drive, to ponside "r the
oliowr179ifam(s , ,'i .' '+ ,,
An Ord(na�ce of tfie;Mayor and the City Commission of the City,
of South Miami, Florida adopgng the Evatuahon''and Appraisal .
Report ;YYEAR) Based 7ext'Amendmerds to't(ie South Miami
Compreftensfye the 'amendments ar', to tho . goals,
An ordinance of the.Mayor`antl City,COtr2misstory of tbe'Crty,.of.'
South': Miami Florida retabng to emendmenfs io Land
Development Codei�Seotlan 20,,2' en" _`be0mtions
order toprovEdeadefigObaof Liquor Store `Secttbn203:3(D)
apildef,; Wlrmiited`Use Schedule" fn order id change drinking
Place and _�Flqudr'store' our a Permitted use in coimierciel
.zoning use. districts. tp.a Spedtal use in commercial zoning use
distriet5y� §action ;20•$ 4 ent(tled;'.'Special use.,cpndiilohs ", in'
ort)er:toprovjderegulotions allowing fora revpcation,ota special
use or
Approves v(ding forseyeratility provfdirig ip(.diri'mces
In cohfiict Approve,; for all effective date.:
An ordlnahca Qf thaMayor and City Commission of the City of
South Miami Fiodtla. amending the South Miami pension:plan, .'
pmvtfl`g fp! cortipflatice with ChapletiE009 -97, La*SOf Florida;
providing for a reduction m certain employee contributions
t0 Rne;.iscal year,;,proyidirib for severabiffty;i providing for
codtf(catlon erdmans's '; conflict ;andprovicingforaneffecttve
date
ALf. interested padres are mviled to attend andwflJ be In '
For funhprinformauoon, please contact the City Clerk's 9fffce'ah ::
� ,... -
c Maria M: Menendez, CMC
CttyCierk .
iPUrsuanYto Florida Statutes 28S.0 the City hereby advises the public
( %at: if ,a person:decides .fo appeal any decision made by this Board,
Agedcyor Commission tvith;respact to any matter considered at its
meeting or hearing, he or she will need a record of the proceedings,, and
;that fpr,such purpose; affepted person may need to ensure that a,verbatim
record of the proceedings is made which record' includes the'testiltnony
and evidence 6ponw6i61hthe appeal isto be .based, ..
16- 3- 23f/1436993M
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