Res No 055-14-14149RESOLUTION NO. 55-14-14149
A Resolution authorizing the City Manager to expend an
amount not to exceed $12,000 with Gabriel Roeder Smith &
Company to perform an Actuarial Projection Study of the
City of South Miami General Employee's Pension Plan.
WHEREAS, Gabriel, Roeder, Smith & Company will prepare actuarial
projection study(s) for the City's General Employee's Pension Plan as directed by the
City Manager; and,
WHEREAS. the actuarial projections study(s) are required for the City's
American Federation of State, County and Municipal Employees (AFSCME) negotiations;
and,
NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA THAT;
Section I. The City Manager is authorized to expend an amount not to exceed
$12,000 with Gabriel Roeder Smith & Company to perform an Actuarial Projection
Study of the City of South Miami General Employee's Pension Plan on behalf of the City,
charging account 001.1410.513.3 100, Finance Professional Services.
Section 2. This resolution shall take effect immediately upon adoption.
PASSED AND ADOPTED this1 st day of April ,2014.
ATTEST: APPROVED:
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COMMISSION VOTE: 4-1
Mayor Stoddard: Yea
Vice Mayor Harris: Yea
Commissioner Edmond: Yea
Commissioner Welsh: Yea
Commissioner Liebman: Nay
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To:
FROM:
DATE:
SUBJECT:
BACKGROUND:
Amount:
Account:
CITY OF SOUTH MIAMI
OFFICE OF THE CITY MANAGER
INTER-OFFICE MEMORANDUM
The Honorable Mayor & Members of the City Commission
South Miami
bOd
ilUP
2001
Steven Alexander, City Manager
Agenda Item No.: J..I April 1,2014
A Resolution authorizing the City Manager to expend an amount
not to exceed $12,000 with Gabriel Roeder Smith & Company to
perform an Actuarial Projection Study of the City of South Miami
Pension Plan on behalf of the City, charging account
001.1410.513.3100, Finance Professional Services.
Gabriel, Roeder, Smith & Company will prepare actuarial
projection study(s) for the City's General Employees Pension Plan
as directed by the City Mana~er. The actuarial projection study(s)
are required for the City's American Federation of State, County
and Municipal Employees (AFSCME) negotiations.
Gabriel, Roeder, Smith & Company is currently the City of South
Miami Pension Board's Actuarial Firm. At the May 17, 2013 South
Miami Pension Board Meeting, the board members approved
Gabriel, Roeder, Smith & Company to work with the City as its
actuarial consultant to produce studies and projections as needed
for the union negotiations.
The City of South Miami has previously used Gabriel, Roeder,
Smith & Company as a consultant on multiple impact studies and
projections and all most recent actuarial valuation reports are
produced by Gabriel, Roeder, Smith & Company using the City's
existing retirement data.
An amount not to exceed $12,000.
001.1410.513.3100, Finance Professional Services, with a current
balance of $4,000.
ATTACHMENTS: Resolution for approval.
Gabriel Roeder Smith & Company's engagement letter.
GRS
March 24, 2014
Gtbrid Ro,~(kl' Smith & Comp,ll1Y
CO!lsulUl1t~ & Ac!l!ari~s
Mr. Alfred Riverol
Finance Director
City Hall, 1 st Floor
6130 Sunset Drive
South Miami, Florida 33143
Olle E,,"f Bro\\',nd Hlvd.
5\1it" 50S
h. LlII<krdak. FL 33.jOJ· HW4
Re: Engagement Letter for Actuarial Services -Actuarial Projection Study
Dear Alfred:
954.527.16lii phone
954.S1S.(JORJ ("X
w\V\\'.i("hrk·' rotder.com
As requested, Gabriel, Roeder, Smith & Company (GRS) is pleased to present this engagement
letter for follow-up professional actuarial and consulting services to the City of South Miami
(City) -The follow-up services are preparation and delivery of an Actuarial Projection Study as
of October 1, 2013 for all employees of the City.
We are enthusiastic about extending our existing relationship with you and your colleagues. We
have a long-standing commitment and experience with working on behalf of public sector
benefit programs. Our philosophy of developing a partnership with our clients emphasizes the
collaborative nature of the GRS working relationship. We strive to earn your trust as your
advisor. We will continue to work together with you in the best interest of the interested parties.
Description of Services
The professional services will be provided under the supervision of Larry Wilson, A.S.A., E.A., a
Senior Consultant and Actuary with over 25 years of experience in employee benefit plans, Kelly
Adams, A.S.A., B.A., a Consultant and Actuary with over 15 years of experience with employee
benefit plans and Jen Borregard, E.A., a Consultant and Actuary with over 15 years of experience
with retirement systems.
We understand the City is interested in analyzing the impact of the following proposed changes
in benefit provisions for all city employees:
Y Close all City retirement programs including:
o Eliminate all future accruals under the City'S Pension Plan
o Cease contributions to all defined contribution plan(s).
Y All current and future City employees will participate in the Florida Retirement System
(FRS).
This follow-up Actuarial Projection Study will include the development of 30-year deterministic
projections measuring the impact of the proposed change.
Mr. Alfred Riverol
March 24, 2014
Page Two
Proposed Fees
We propose a not-to-exceedfee of$12,000. Our fee includes one meeting with the interested
parties to present the key financial results.
Timing
We are prepared to initiate the process immediately upon authorization to proceed.
We will deliver our follow-up Report within sixty (60) days following authorization to proceed
and receipt of allocation reports and final census data.
Other Items
We will complete the follow-up Actuarial Projection Study utilizing the data and results of the
October 1,2013 Actuarial Valuation for the Pension Plan.
In addition, we require member census data on all City employees not participating in the
Pension Plan. This data includes name, current salary, employee contribution rate, if any, City
contribution rate, an indicator of their FRS membership status (for example, senior management,
special risk, special risk administrative support, etc.) and copies of the latest allocation reports.
We understand this follow-up Actuarial Projection Study is an extension ofthe assignment
previously approved by the Board.
We trust the above is responsive to your request. Please do not hesitate to contact us should you
have any questions or require additional information. We look forward to your approval to
proceed and to assisting the City of South Miami with this important project.
Sincerest regards,
~,~.U~
Lawrence F. Wilson, A.S.A
Senior Consultant and Actuary
cc: Ms. Dixie Martinez
Gahriel Roeder Smith &. Company