12 - Actuarial Impact Statement - Early Retirement Incentive Program - Police 8 mos Credit
October 31, 2011
Mr. Alfredo Riverol
Finance Director
City Hall, 1st 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,
Lawrence F. Wilson, A.S.A.
Senior Consultant and Actuary
Enclosures
cc: Javier Banos, Esq.
Ronald Cohen, Esq.
Ms. Dixie Martinez
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ORDINANCE NO.
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:
***
(£} 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:
ill 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
(8) additional months of any prior Credited Service eamed 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 __ day of ,2011.
ATTEST: APPROVED:
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CITY CLERK
51st Reading
6 2nd Reading
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8 READ AND APPROVED AS TO FORM
9 LANGUAGE, LEGALITY AND
10 EXECUTION THEREOF:
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13 CITY ATTORNEY
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MAYOR
COMMISSION VOTE:
Mayor Stoddard:
Vice Mayor Newman:
Commissioner Palmer:
Commissioner Beasley:
Commissioner Harris:
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