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Ord No 38-19-2351._ 6 N ORDINANCE NO.38-19-2351 An Ordinance amending the South Miami Pension Plan to Implement the Collective Bargaining Agreement Between the City of South Miami and the Florida State Lodge, Fraternal Order of Police, Inc., and the Dade County Police Benevolent Association, Inc.; by Amending Section 16-14, "Pension benefits and retirement date" by Changing the Normal and Early Retirement Eligibility Dates for Police Officers; by amending Section 16-26, "Reserved" to now be titled "Use of Chapter 185 Funds"; Providing for Severability; Providing for Inclusion in the Code; Providing for a Repealer; and Providing for an Effective Date. WHEREAS, the City of South Miami and the Florida State Lodge, Fraternal Order of Police, Inc., and the Dade County Police Benevolent Association, Inc. (hereinafter "Unions"), have entered into new Collective Bargaining Agreements ("Agreements"); and WHEREAS, the purpose and intention of the Agreements is to continue to attempt to meet Florida's minimum benefit requirements pursuant to Fla. Stat. Ch. 185; and WHEREAS, the South Miami Pension Plan does not currently provide all the required state minimum benefits for Police officers (which includes sergeants, lieutenants and captains), required under F.S. 99-1, to be funded by excess state contributions; and WHEREAS, the Police officers are desirous of obtaining a portion of the remaining minimum benefits required under F.S. 99-1 for police officers under the South Miami Pension Plan; and WHEREAS, in order to receive the additional required minimum benefits for Police officers each additional required minimum benefit has an additional cost (i.e. price tag); and WHEREAS, per the Agreements, the Unions and City of South Miami have agreed to use excess state funds in the City of South Miami Police Officers' Retirement Trust Fund to purchase new minimum normal and early retirement dates; and Page 1 of 6 Ord. No. 38-19-2351- WHEREAS, the cost to purchase the new minimum benefit for normal and early retirement dates shall be borne and funded solely by the City of South Miami Police Officers' Retirement Trust Fund; and WHEREAS, the annual cost to purchase the minimum benefit for the new normal retirement eligibility date is estimated to be $52,117.00; and WHEREAS, the annual cost to purchase the new minimum benefit for the new early retirement eligibility date is estimated to be $4,433.00; and WHEREAS, an actuarial impact statement will be prepared in accordance with state law which will set forth the exact actuarial cost; and WHEREAS, the actual amount to be borne and funded solely by the City of South Miami Police Officers' Retirement Trust Fund will be the amount as set forth in the actuarial impact statement; and WHEREAS, Florida law requires that if any provision of a collective bargaining agreement is in conflict with any ordinance over which the chief executive officer has no amendatory power, the chief executive officer shall submit to the appropriate governmental body having amendatory power a proposed amendment to such ordinance; and WHEREAS, the City Commission wishes to change the terms of the South Miami Pension Plan to effectuate the changes called for in the Agreements; and WHEREAS, the City Commission deems it to be in the public interest to provide these changes to the South Miami Pension Plan; NOW, THEREFORE, BE IT HEREBY ORDAINED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, THAT: Page 2 of 6 Ord. No. 38 a 19-2351 Section 1: Chapter 16, Article Il, Sec. 16-14(a)(A)(2), "Pension benefits and retirement date" of the City of South Miami Code of Ordinances is hereby amended to read as follows: (3) AMSC members. The earlier of (a) age sixty (60) and completion of five (5) years of credited service; or (b) completion of thirty-three (33) years of credited service. (A)Early retirement. (2) Police officers. Shall be the earlier of the completion of twenty-five (25) years of credited police service, regardless of age, or attainment of age fi -five sib (69L5) and completion of ten (10) years of credited police service with the South Miami Police Department. Section 2: That Chapter 16, Article II, of the City of South Miami Code of Ordinances is hereby amended by amending Sec. 16-14(c), "Pension benefits and retirement date" as follows: (b) Amount of pension. The yearly amount of pension payable to a participant on the first day of the month coincident with or next following the participant's retirement date shall be an amount equal to the participant's number of completed years of credited service multiplied by a percentage of final average compensation as stated herein. (c) Early retirement. Page 3 of 6 Ord. No. 38-19-2351 A c (1) A police officer participant may elect an early retirement date which may be the first day of any calendar month coincident with, or subsequent to the participant's fiftieth birthday and completion of fifteen ten (105) years of credited service with the South Miami Police Department. The pension benefits payable to any such participant on early retirement date shall be equal to an actuarial equivalent, determined in accordance with the table below, to the amount of pension to which the participant is entitled up to early retirement date in accordance with subsection (b). Section 3. That Chapter 16, Article II, of the City of South Miami Code of Ordinances is hereby amended by amending Sec. 16-29, "Reserved" to now be titled, "Use of Chapter 185 Funds," as follows: Sec. 16-29. - ReseFv "Use of Chapter 185 Funds" The benefits provided for in the adoption of Ordinance No. 38-19-2351 are considered minimum benefits under Chapter 185. The City of South Miami Police Officers' Retirement Trust Fund has a reserve for unused State funds of $379,052.00 as of September 30, 2018. These funds shall be used to offset the cost of the benefits being purchased by Ordinance No. 38-19-2351. Additional minimum benefits which have previously been purchased include normal retirement at twenty-five years of credited service and entry into the plan and the crediting of South Miami Police service upon hire. In each year, after receipt of the annual distribution of Chapter 185 Funds from the State of Florida, the Board of Trustees shall Page 4 of 6 Ord. No. 38-19-2351 determine the amount of premium tax revenues received by the City of South Miami and the cost of all minimum benefits shall be paid to the South Miami Pension Plan. Section 4. Codification. The provisions of this ordinance shall become and be made part of the Code of Ordinances of the City of South Miami as amended; that the sections of this ordinance may be renumbered or re -lettered to accomplish such intention; and that the word "ordinance" may be changed to "section" or other appropriate word. Section 5. Severability. If any section, clause, sentence, or phrase of this ordinance is for any reason held invalid or unconstitutional by a court of competent jurisdiction, this holding shall not affect the validity of the remaining portions of this ordinance. Section 6. Ordinances in Conflict. All ordinances or parts of ordinances and all section and parts of sections of ordinances in direct conflict herewith are hereby repealed. However, it is not the intent of this section to repeal entire ordinances, or parts of ordinances, that give the appearance of being in conflict when the two ordinances can be harmonized or when only a portion of the ordinance in conflict needs to be repealed to harmonize the ordinances. If the ordinance in conflict can be harmonized by amending its terms, it is hereby amended to harmonize the two ordinances. Therefore, only that portion that needs to be repealed to harmonize the two ordinances shall be repealed. Section 7. Effective Date. This ordinance shall become effective upon enactment. PASSED AND ENACTED this 31d day of December, 2019. ATTEST: APPROVED: `�/ / �� a. CITY CILERK MAY b R Page 5 of 6 Ord. No. 38-19-2351 15t Reading — 11/19/19 2"d Reading — 12/3/19 READ AND APPROVED LAN GE, LEGALI7; EX C ON THEREOA CITY TO FORM: COMMISSION VOTE: Mayor Stoddard: Vice Mayor Harris: Commissioner Welsh: Commissioner Liebman Commissioner Gil: Page 6 of 6 5-0 Yea Yea Yea Yea Yea Agenda Item No:7. City Commission Agenda Item Report Meeting Date: December 3, 2019 Submitted by: Nkenga Payne Submitting Department: Finance Department Item Type: Ordinance Agenda Section: Subject: An Ordinance amending the South Miami Pension Plan to Implement the Collective Bargaining Agreement Between the City of South Miami and the Florida State Lodge, Fraternal Order of Police, Inc., and the Dade County Police Benevolent Association, Inc.; by Amending Section 16-14, "Pension benefits and retirement date" by Changing the Normal and Early Retirement Eligibility Dates for Police Officers; by amending Section 16-26, "Reserved" to now be titled "Use of Chapter 185 Funds"; Providing for Severability; Providing for Inclusion in the Code; Providing for a Repealer; and Providing for an Effective Date. 3/5 (City Manager -Finance Dept.) Suggested Action: Attachments: Memo - Ordinance 2 New Benefits Funded by 185 Funds.docx Ordinance - 2 New Benefits Funded By 185 Funds.docx Chapter 185 Minimum Benefits - Price Tags 2019.pdf Actuarial Impact Statement - Police.pdf MDBR Ad - 2019.12.03 meeting.pdf Miami Herald Ad 2019.12.03 meeting.pdf South CITY OF SOUTH MIAMI OFFICE OF THE CITY MANAGER THE CITY OF PLEASANT LIVING INTER -OFFICE MEMORANDUM To: The Honorable Mayor, Vice Mayor and Members of the City Commission From: Steven Alexander, City Manager Date: November 19, 2019 Agenda Item: Subject: An Ordinance amending the South Miami Pension Plan to Implement the Collective Bargaining Agreement Between the City of South Miami and the Florida State Lodge, Fraternal Order of Police, Inc., and the Dade County Police Benevolent Association, Inc.; by Amending Section 16-14, "Pension benefits and retirement date" by Changing the Normal and Early Retirement Eligibility Dates for Police Officers; by amending Section 16-26, "Reserved" to now be titled "Use of Chapter 185 Funds"; PFeyidi_g f9F SeyeFabiliw.j providing fG 4.,..k...:e.:R4he Cede. PF9yidIRg fGF a oepealeFi and e.eyidi g se. -.., WeGti..e Date Subject to re -opener resolution being approved tonight, the City of South Miami and the Florida State Lodge, Fraternal Order of Police, Inc., and the Dade County Police Benevolent Association, Inc. (hereinafter "Unions"), have entered into new Collective Bargaining Agreements ("Agreements"). The purpose and intention of the Agreements is to continue to attempt to meet Florida's minimum benefit requirements pursuant to Fla. Stat. Ch. 185. The South Miami Pension Plan does not currently provide all the required state minimum benefits for Police officers (which includes sergeants, lieutenants and captains), required under F.S. 99-1, to be funded by excess state contributions. The Police officers are desirous of obtaining a portion of the remaining minimum benefits required under F.S. 99-1 for police officers under the South Miami Pension Plan; and in order to receive the additional required minimum benefits for Police officers each additional required minimum benefit has an additional cost (i.e. price tag). Per the Agreements, the Unions and City of South Miami have agreed to use excess state funds in the City of South Miami Police Officers' Retirement Trust Fund to purchase new minimum normal and early retirement dates. The cost to purchase the new minimum benefit for normal and early retirement dates shall be borne and funded solely by the City of South Miami Police Officers' Retirement Trust Fund. The annual cost to purchase the minimum benefit for the new normal retirement eligibility date is estimated to be $52,117.00; and the annual cost to purchase the new minimum benefit for the new early retirement eligibility date is estimated to be $4,433.00. An actuarial impact statement will be prepared in accordance with state law which will set forth the exact actuarial cost. The actual amount to be borne and funded solely by the City of South Miami Police Officers' Retirement Trust Fund will be the amount as set forth in the actuarial impact statement. Florida law requires that if any provision of a collective bargaining agreement 2 is in conflict with any ordinance over which the chief executive officer has no amendatory power, the chief executive officer shall submit to the appropriate governmental body having amendatory power a proposed amendment to such ordinance. Attachments: Proposed Ordinance FS Chapter 185 Minimum Required Benefits GR S Retirement 4 Consulting January 4, 2019 Pension Board South Miami Pension Plan c/o Ms. Edemir K. Estrada Pension Administrator Gabriel, Roeder, Smith & Company One East Broward Blvd. Suite 505 Fort Lauderdale, Florida 33301-1804 Re: Minimum Required Benefits Dear Edemir: P:954.527.1616 j F:954.525.0083 1 www.grsconsulting.com As requested, we have performed an Actuarial Study to determine the effect on the minimum required annual contribution requirements (price tags) of the additional remaining minimum benefits required under F.S. Chapter185 for Police Officers under the South Miami Pension Plan (Plan). Background -The Plan does not currently provide all the required state minimum benefits to be funded by excess state contributions. Our Study identifies the benefits required and includes the key financial results - price tags - for each additional minimum benefit. Excess State funds are defined as monies received from the State that exceed the base amounts (1997 generally paid in 1998) plus the cost of any improvements including minimum benefits to be paid with the excess state contributions. Under our understanding of current State interpretations, the payment under Chapter 185 is measured to determine the base amount, and hence, to determine whether excess state funds are available. The Chapter Fund has a reserve for unused State funds of $328,882 as of September 30, 2017. The source of this reserve is State payments in excess of the base amount plus minimum benefits already purchased ($37,780 = $12,498 +$25,282). This reserve will reduce the annual cost - price tags - of minimum benefits by $25,619. Based upon the State payment received for fiscal 2018, future excess State payments available to the fund are projected to equal $50,170 ($110,419 — $37,780 — $22,469). Thus, the Police Officers have a projected $75,789 ($50,170 + $25,619) to apply towards the annual cost - price tags - of minimum benefits. Results -The attached Exhibit sets out the required minimum benefits as well as the incremental annual costs for each, both as a dollar amount and as a percentage of projected Police Officer payroll ($2,970,815). 10 Pension Board January 4, 2019 Page Two Other Considerations - Please note we have prepared our Actuarial Study based upon our understanding of F.S., 99-1. In addition, adoption of one or more of the changes may not equal the sum of the price tags due to any synergy among the benefits. Under Governmental Accounting Standards Board (GASB) Statement Number 68, we understand the cost of benefit changes must be recognized immediately in pension expense (accounting not funding). Therefore, the pension expense would be expected to increase the first year and then would be expected to return to lower levels in fiscal years following initial recognition of any benefit change. Actuarial Assumptions and Methods, Financial Data and Member Census Data - The actuarial assumptions and methods, financial data and member census data employed for purposes of our Study are the same actuarial assumptions and methods, financial data and member census data used for the October 1, 2017 Actuarial Valuation with the following exceptions: ➢ Normal Retirement —The probability of retirement forages 55 — 59 are assumed to be 25% per annum. ➢ Service -Connected and Non -Service Connected Disability —75% of disabilities are assumed to be service connected and 25% of disabilities are assumed to be non - service connected. This Actuarial Study is intended to describe the estimated future financial effects of the proposed benefit changes on the Plan and is not intended as a recommendation in favor of the change nor in opposition to the change. 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. 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 Actuarial Study are not described or that conditions have changed since the calculations were made, you should contact the undersigned prior to relying on information in this Actuarial Study. If you have reason to believe that the information provided in this Actuarial Study 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. Future actuarial measurements may differ significantly from the current measurements SRetirement Consolbng 11 Pension Board January 4, 2019 Page Three presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Due to the limited scope of the actuary's assignment, the actuary did not perform an analysis of the potential range of such future measurements. This report should not be relied on for any purpose other than the purpose described in the primary communication. Determinations of the financial results associated with the benefits described in this report in a manner other than the intended purpose may produce significantly different results. This report has been prepared by actuaries who have substantial experience valuing public employee retirement systems. To the best of our knowledge and belief the information contained in this report is accurate and fairly presents the actuarial position of the South Miami Pension Plan as of the valuation date. All calculations have been made in conformity with generally accepted actuarial principles and practices, with the Actuarial Standards of Practice issued by the Actuarial Standards Board and with applicable statutes. The undersigned is independent of the Plan Sponsor. The undersigned is a Member of the American Academy of Actuaries and meets the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained herein. We look forward to discussing our findings with the interested parties and assisting in implementation including preparation of the Actuarial Impact Statement for filing with the State for any benefits adopted. Sincerest regards, g.!�S.L"� Lawrence Wilson, A.S.A. Senior Consultant and Actuary Enclosure cc: Ronald Cohen, Esq. (w/ Enclosure) LGRS Retirement Consulting 12 South Miami Pension Plan Plan Changes As Required by Chapter 185, Florida Statute With an Actuarial Cost Impact —Police Officer Price Tags Provision Current Provision Required Provision Annual % of 1. Normal form of payment Monthly annuity payable for life for Monthly annuity payable for 120 months Cost $ 23,330 Payroll 0.8% Normal Retirements, Early certain and life thereafter for Normal Retirements and Terminated Vesteds. Retirements, Early Retirements and Terminated Vesteds. 2. Normal Retirement Earlier of (1) attainment of age 60 and Earlier of (1) attainment of age 55 and $ 52,117 1.8% completion of 10 years of credited completion of 10 years of credited service service or (2) completion of 25 years of or (2) completion of 25 years of credited credited service. service. 3. Early Retirement Attainment of age 50 and completion Attainment of age 50 and completion of $ 4,433 0.1% of 15 years of credited service. 10 years of credited service. 4. Service -Connected Accrued benefit as of date of disability Unreduced accrued benefit as of date of $ 14,972 0.5% Disability Benefit actuarially reduced as for early disability, minimum of 42% of average retirement for early commencement monthly compensation, payable (3% per annum) payable for life. immediately for 120 months certain and life thereafter. 5. Non Service -Connected Accrued benefit as of date of disability Accrued benefit as of date of disability $ 1,489 0.1% Disability Benefit actuarially reduced as for early actuarially reduced as for early retirement for early commencement retirement for early commencement (3% (3% per annum) payable for life. per annum) payable for 120 months certain and life thereafter prior to completion of 10 years of credited service. Upon completion of 10 years of credited service, unreduced accrued benefit as of date of disability, minimum 25% of average monthly compensation, payable immediately for 120 months certain and life thereafter. Page 1 of 2 G RS c��:S,n�e` Prepared: January4, 2019 13 South Miami Pension Plan Plan Changes As Required by Chapter 185, Florida Statute With an Actuarial Cost Impact — Police Officer Price Togs (Continued) Provision Current Provision Required Lrovision Annual A OT Cost Payroll 6. Death Benefit Refund of member's accumulated Refund of member's accumulated $ 3,707 0.1% contributions. contributions. Upon the completion of 10 years of credited service, minimum of the vested accrued benefit deferred to normal retirement payable for 10 years certain only or actuarially reduced for early commencement. 14 Page 2 of 2 {S !'';. Prepared: January 4, 2019 G C Retirement J Consulting November 26, 2019 Ms. Edemir K. Estrada Pension Administrator Gabriel, Roeder, Smith & Company One East Broward Blvd. Suite 505 Fort Lauderdale, Florida 33301-1804 Re: South Miami Pension Plan Actuarial Impact Statement Dear Edemir: P:954.527.1616 1 F:954.525.0083 1 www.grsconsulting.com As requested, we are pleased to enclose twelve (12) copies of our Actuarial Impact Statement as of October 1, 2018 for filing the proposed Ordinance under the South Miami Pension Plan (Plan) with the State of Florida (copy enclosed) prior to second reading. Background — Currently the Plan provides: Police Officers Only ➢ Normal Retirement Eligibility —The earlier of attainment of age 60 and completion of ten (10) years of Credited Service or completion of twenty-five (25) years of Credited Service. ➢ Early Retirement Eligibility —Attainment of age 50 and completion of fifteen (15) years of Credited Service. Proposed Ordinance —The proposed Ordinance provides: Police Officers Only ➢ Normal Retirement Eligibility —The earlier of attainment of age 55 and completion of ten (10) years of Credited Service or completion of twenty-five (25) years of Credited Service. ➢ Early Retirement Eligibility —Attainment of age 50 and completion often (10) years of Credited Service. ➢ Use a reserve of unused State funds of $379,052 to offset the cost of the above changes. Ms. Edemir K. Estrada November 26, 2019 Page Two Cost —The total impact of the proposed Ordinance results in an expected increase in the State Annual Required Contribution of $41,448. This increases the total State annual required contribution due from $37,780 to $79,228. 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 Ordinance upon passage at first reading along with the signed and dated Actuarial Impact Statement are generally required to be filed with the State at the following address: Mr. Douglas E. Beckendorf, A.S.A. Bureau of Local Retirement Services Division of Retirement Building 8 Post Office Box 9000 Tallahassee, Florida 32315-9000 We understand the State requires funding any increases in costs no later than the fiscal year next following the effective date of the Ordinance. Please forward a copy of the Ordinance upon passage at second reading to update our files. Actuarial assumptions and methods, Plan Provisions, financial data and member census data —The actuarial assumptions and methods, financial data and member census data employed for purposes of our Actuarial Impact Statement are the same actuarial assumptions and methods, financial data and member census data utilized for the October 1, 2018 Actuarial Impact Statement dated October 24, 2019 with the following exception: &RS ➢ The probability of normal retirement forages 55 — 59 for Police Officers are assumed to be 25% per annum. The Plan provisions employed for purposes of our Actuarial Impact Statement are the same Plan provisions utilized in the October 1, 2018 Actuarial Impact Statement dated October 24, 2019 with the exception of the proposed changes described above. Other Considerations— Under Governmental Accounting Standards Board (GASB) Statement Number 68, we understand the full cost of benefit changes must be recognized immediately in pension expense (accounting not funding). Risk Assessment— Risk assessment may include scenario tests, sensitivity, or stress tests, stochastic modeling and a comparison of the present value of benefits at low -risk discount rates. We are prepared to perform such assessment to aid the City in the decision making Retirement Consulting 16 GRS Ms. Edemir K. Estrada November 26, 2019 Page Three process. Please refer to the October 1, 2018 Actuarial Valuation Report dated May 8, 2019 for additional discussion regarding the risks associated with measuring the accrued lability and the minimum funding payment. This Actuarial Impact Statement is intended to describe the estimated future financial effects of the proposed benefit changes on the Plan and is not intended as a recommendation in favor of the benefit changes nor in opposition to the benefit changes. If all actuarial assumptions are met and if all current and future minimum required contributions are paid, Plan assets will be sufficient to pay all Plan benefits, future contributions are expected to remain relatively stable as a percent of payroll and the funded status is expected to improve. Plan minimum required contributions are determined in compliance with the requirements of the Florida Protection of Public Employee Retirement Benefits Act and Police Officers Retirement Chapter 185 with normal cost determined as a level percent of covered payroll and a level percent amortization payment using an initial amortization period of 25 years. The Unfunded Actuarial Accrued Liability (UAAL) may not be appropriate for assessing the sufficiency of Plan assets to meet the estimated cost of settling benefit obligations but may be appropriate for assessing the need for or the amount of future contributions. The UAAL would be different if it reflected the market value of assets rather than the smoothed value of assets. 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 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 Actuarial Impact Statement are not described or that conditions have changed since the 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 anyway 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. Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as the following: Plan experience differing from Retirement Consulting 17 Ms. Edemir K. Estrada November 26, 2019 Page Four that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period) and changes in Plan provisions or applicable law. Due to the limited scope of our assignment, we did not perform an analysis of the potential range of such future measurements. This Actuarial Impact Statement should not be relied upon for any purpose other than the purpose described in the primary communication. Determinations of the financial results associated with the benefits described in this report in a manner other than the intended purpose may produce significantly different results. This Actuarial Impact Statement has been prepared by actuaries who have substantial experience valuing public employee retirement systems. To the best of our knowledge the information contained in this report is accurate and fairly presents the actuarial position of the Plan as of the valuation date. All calculations have been made in conformity with generally accepted actuarial principles and practices, with the Actuarial Standards of Practice issued by the Actuarial Standards Board and with applicable statutes. This Actuarial Impact Statement may be provided to parties other than the Board only in its entirety and only with the permission of an approved representative of the Board. RS The signing actuaries are independent of the Plan sponsor. 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, gn"& jr-� Shelly L. Jones, ASA, EA, MAAA, FCA Consultant and Actuary Enclosures cc: Mr. Alfredo Riverol Jennifer M. Borregard, EA, MAAA, FCA Consultant and Actuary Retirement Consultmg 18 Actuarial Impact Statement as of October 1, 2018 A. Description of Proposed Amendment Normal Retirement Elieibility for Police Officers Attainment of age 55 and completion of ten (10) years of Credited Service or Completion of twenty-five (25) years of Credited Service regardless of age. Early Retirement Elieibility for Police Officers Attainment of age 50 and completion of ten (10) years of Credited Service. Chapter 185 Funds The benefits described above are considered minimum benefit under Florida Statutes Chapter 185. The Plan will use a reserve for unused State funds of $379,052 as of September 30, 2018 to offset the cost of the benefits provided. B. An estimate of the cost implementing this amendment (see attachment) C. In my opinion, the proposed changes are in compliance with Part VII, Chapter 112, Florida Statutes and Section 14, Article X of the Statement Constitution. Chairman, Pension Board Date 19 Actuarial Impact Statement as of October 1. 2018 (All Participants) A. Participant Data 1. Active participants 2. Retired participants and beneficiaries receivi rig benefits 3. Disabled participants receiving benefits 4. Termirated vested participants 5. Annua payroll of active participants 6. Expected payroll of active employees for the following year 7. Annual benefits payable to those currently receiving benefits B. Assets 1. Market. Value of Assets 2. Smoothed Value of Assets C. Liabilities 1. Actuaral 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 2. Actuarial present value of future expected benefit payme its for terminated vested members 3. Actuarial present value of future expected benefit payme its for members currently receiving benefits a. Service retired b. Disability retired c. Beneficiaries d. Miscellaneous e. Total Prior AIS Dated Prior AIS Dated Actuarial Impact Valuation June 14,2019 October24,2019 Statement 10/01/2018 10/01/2018 10/01/2018 10/02/2018 107 119 119 119 48 48 48 48 0 0 0 0 9 9 9 9 $ 6,675,196 $ 7,421,302 $ 7,421,302 $ 7,421,302 $ 6,721,049 $ 7,467,155 $ 7,467,155 $ 7,467,155 $ 1,530,667 $ 1,530,667 $ 1,530,667 $ 1,530,667 $ 43,219,378 $ 43,219,378 $ 43,219,378 $ 43,598,430 $ 41,264,634 $ 41,264,634 $ 41,264,634 $ 41,643,686 $ 21,342,077 1,461,043 109,769 718,464 283,544 $ 21,716,062 1,686,264 111,228 741,694 280,107 $ 23,198,664 1,686,264 111,228 794,384 280,107 $ 23,556,477 1,906,101 104,230 750,094 280,107 $ 23,914,897 $ 24,535,355 $ 26,070,647 $ 26,597,009 $ 1,266,989 $ 1,266,989 $ 1,266,989 $ 1,266,989 $ 19,210,022 $ 19,210,022 $ 19,210,022 $ 19,210,022 0 0 0 0 176,438 176,438 176,438 176,438 149,378 149,378 149,378 149,378 $ 19,535,838 $ 19,535,838 $ 19,535,838 $ 19,535,838 20 South Miami Pension Plan 1 Actuarial Impact Statement as of October 1, 2018 (All Participants) 4. Total actuarial present value of future expected benefit payments S. Actuarial accrued liabilities 6. Unfunded actuarial accrued liabilities D. Statement of Accumulated Plan Benefits 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 (including expenses) 2. Payment required to amortize unfunded liability 3. Interest adjustment 4. Total preliminary required contribution 5. Total required contribution 6. Item 5 as a percentage of payroll 7. Estimated member contributions 8. Item 7 as a percentage of payroll 9. Estimated State contributions 10. Item 9 as a percentage of payroll 11. Net amount payable by City 12. Item 11 as a percentage of payroll Valuation 10/01/2018 $ 44,717,724 $ $ 39,169,604 $ $ (2,095,030) $ S Prior AIS Dated Prior AIS Dated Actuarial Impact June 14, 2019 October 24, 2019 Statement 10/01/2018 10/01/2018 10/01/2018 45,338,182 $ 46,873,474 $ 47,399,836 39,390,620 $ 40,608,737 $ 41,082,454 (1,874,014) $ (655,897) $ (561,232) 19,386,460 $ 19,386,460 $ 19,386,460 $ 19,386,460 12,223,902 12,223,902 12,737,307 14,217,421 31,610,362 $ 31,610,362 $ 32,123,767 $ 33,603,881 3,134,126 3,134,126 3,235,636 2,506,083 34,744,488 $ 34,744,488 $ 35,359,403 $ 36,109,964 $ 981,888 $ 1,038,501 $ 1,095,295 $ (193,875) (175,611) (74,952) 28,696 31,358 36,156 _ $ 816,709 $ 894,248 $ 1,056,499 $ $ 1,066,311 $ 1,143,996 $ 1,249,119 $ 16.0% 15.4% 16.8% $ 439,175 $ 480,067 $ 480,067 $ 6.5% 1 6.4% 2 6.4% 2 $ 37,780 $ 37,780 $ 37,780 $ 0.6%1 0.5%2 0.5%2 $ 597,995 $ 634,788 $ 739,911 $ 8.9% ' 8.5% 2 9.9% 2 1 Percent of expected 2019-2020 covered payroll ($6,721,049) 2 Percent of expected 2019-2020 covered payroll ($7,467,155) 1,127,133 (68,030) 38,272 1,097,375 1,289,995 17.4% 480,067 6.4% 2 79,228 1.1% 2 739,911 9.9% 2 21 gt GRS �' South Miami Pension Plan 2 Actuarial Impact Statement as of October 1, 2018 (All Participants) F. Disclosure of Following Items: 1. Actuarial present value offuture 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 Prior AIS Dated Prior AIS Dated Actuarial Impact Valuation June 14, 2019 October 24, 2019 Statement 10/01/2018 10/01/2018 10/01/2018 10/01/2018 45,957,035 $ 51,272,977 $ 51,272,977 $ 50,451,825 2,896,466 $ 3,164,343 $ 3,164,343 $ 3,102,757 N/A N/A N/A N/A 5,431,831 $ 5,431,831 $ 5,431,831 $ 5,431,831 N/A N/A N/A N/A N/A N/A N/A N/A ON South Miami Pension Plan 3 Actuarial Impact Statement as of October 1, 2018 Current Remaining Unfunded Actuarial Unfunded Amortization Funding Accrued Liabilities Liabilities Payment Period General Employees Tier 1 10/01/2015 Combined Bases * $ (1,166,604) $ (117,886) 16 years 10/01/2016 Actuarial Loss / (Gain) (413,545) (35,269) 23 years 10/01/2016 Assumption Change 426,727 36,393 23 years 10/01/2017 Actuarial Loss / (Gain) (280,976) (23,571) 24 years 10/01/2018 Actuarial Loss / (Gain) (1,290,160) (106,612) 25 years 10/01/2018 Plan Amendment - June 14, 2019 0 0 25 years 10/01/2018 Plan Amendment - October 24, 2019 662,333 54,732 25 years TOTAL $ (2,062,225) $ (192,213) General Employees Tier 2 10/01/2017 Initial Base $ 61,121 $ 5,213 23 years 10/01/2018 Actuarial Loss / (Gain) 19,733 1,631 25 years 10/01/2018 Plan Amendment - June 14, 2019 0 0 25 years 10/01/2018 Plan Amendment - October 24, 2019 73,756 6,095 25 years TOTAL $ 154,610 $ 12,939 AMSC 10/01/2017 Combined Bases * $ 187,758 $ 16,013 23 years 10/01/2018 Actuarial Loss / (Gain) 487,112 40,252 25 years 10/01/2018 Plan Amendment - June 14, 2019 221,016 18,264 25 years 10/01/2018 Plan Amendment - October 24, 2019 482,028 39,832 25 years TOTAL $ 1,377,914 $ 114,361 Police Officers 10/01/2018 Combined Bases * $ (126,196) $ (10,039) 21 years 10/01/2018 Actuarial Loss / (Gain) 0 0 25 years 10/01/2018 Plan Amendment - Retirement Eligibility 94,665 6,922 25 years TOTAL $ (31,531) $ (3,117) * Combined per Internal Revenue Code Regulation 1.412(b)-1 This actuarial valuation and/or cost determination was prepared and completed by us or under our direct supervision, and we acknowledge responsibility for the results. To the best of our knowledge, the results are complete and accurate, and in our 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 taken into account in the valuation. gnt4�A&& J""� � 4vu—d aAlo(- Shelly L. Jones, A.S.A., E.A. Jennifer M. Borregard, E.A. Enrollment Number: 17-08646 Enrollment Number: 17-07624 Dated: November 26, 2019 G R S C e' 23 South Miami Pension Plan 4 Outline of Principal Provisions of the Retirement Plan A. Effective Date: October 1,1965. Most recently amended by Ordinance 35-19-2348 adopted November 5, 2019. B. Eligibility Reguirements: 1. General Employees Tier 1: Regular full-time employee hired before October 1, 2011 is eligible to enter the Plan following the completion of six months of Credited Service and attainment of age 20. Tier 2: Regular full-time employee hired on or after October 1, 2011 and not participating in the Plan as of October 1, 2016 who elects to join or fails to make any election within ninety (90) days from September 20, 2016 is eligible to enter the Plan as a Tier 2 employee as of October 1, 2016. Regular full-time employee hired on or after October 1, 2016 who elects to join or fails to make any election within ninety (90) days from date of hire is eligible to enter the Plan as a Tier 2 employee as of their date of hire. Any regular full-time employee who previously entered into the Defined Contribution (DC) Plan may opt -out of the DC Plan and elect to join the Plan as a Tier 2 member or as their respective classification at the time they elect to join the Plan during an annual open enrollment period. 2. Police Officers Regular full-time Police Officer is eligible to enter the Plan as of date of employment. 3. Administration Management Service Class (AMSC) Employees of the City with the following positions who do not elect to participate in a defined contribution Plan of the City: City Manager City Attorney City Clerk Assistant / Deputy City Manager Finance Director / Chief Financial Officer Chief of Police Planning and Zoning Director Building Director Director of Public Works G R S' Iftw Chief Administrative Officer (currently Finance Office Manager) Chief Procurement Officer (currently Purchasing Manager) Parks and Recreation Director Assistant Director of Parks and Recreation Community Redevelopment Agency Director Personnel Manager Project Manager Special Assistant to the Manager Superintendent of Maintenance 24 South Miami Pension Plan S Outline of Principal Provisions of the Retirement Plan C. Credited Service: 1. General Employees and AMSC 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. Credited service for Tier 2 employees and AMSC will be continuous employment from the date of hire for all purposes except for benefit accruals which will be from the later of date of Plan entry election date or date of hire. 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 Average Compensation is 1/36th of the final 36 consecutive months of compensation. For Police Officers, not less than 1/5th 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. Effective October 1, 2011, Final Average Compensation for General Employees is 1/60th of the final 60 consecutive months of basic compensation, provided it is not less than the Final Average Compensation as of September 30, 2011 based on the definition above. Basic compensation shall mean base wages and salaries, excluding commissions, overtime pay, bonuses and any other forms of additional compensation earned outside of base wages. Effective October 1, 2011, Final Average Compensation for members covered under the Police Officers and Sergeants collective bargaining agreement is the best five (5) years of basic compensation, provided it is not less than the Final Average Compensation as of September 30, 2011 based on the definition above. Basic compensation shall mean base wages and salaries, including up to 300 hours of overtime in a fiscal year and excluding payments for accrued unused sick or annual leave, extra duty or special detail work, shift differential, assignment pay, bonuses and any other forms of additional compensation earned outside of base wages. 25 GRS ' South Miami Pension Plan 6 Outline of Principal Provisions of the Retirement Plan D. Final Monthly Compensation (FMC) (cont'd): Effective October 1, 2016, Final Average Compensation for members covered under the Miami -Dade County Police Benevolent Association Upper -Collective Bargaining Union (Lieutenants & Captains) collective bargaining agreement is the best five (5) years of basic compensation, provided it is not less than the Final Average Compensation as of September 30, 2016 based on the definition above. Basic compensation shall mean base wages and salaries, including up to 300 hours of overtime in a fiscal year and excluding payments for accrued unused sick or annual leave, extra duty or special detail work, shift differential, assignment pay, bonuses and any other forms of additional compensation earned outside of base wages. Final Average Compensation for Tier 2 General Employees and AMSC shall be the average of the highest eight (s) years of credit service. E. Normal Retirement: 1. Eligibility: a. General Employees: b. Police Officers: c. AMSC: 2. Benefit: Attainment of age 55 and completion of ten (10) years of Credited Service for benefits accrued as of September 30, 2011. Attainment of age 60 and completion of ten (10) years of Credited Service for benefits accrued after September 30, 2011, including increases in the accrued benefit as of September 30, 2011 due to increases in the Final Average Compensation. Attainment of age 65 and completion of ten (10) years of Credited Service or completion of thirty-three (33) years of Credited Service regardless of age for Tier 2 General Employees. Attainment of age 55 and completion of ten (10) years of Credited Service or completion of twenty-five (25) years of Credited Service regardless of age. Attainment of age 60 and completion of five (5) years of Credited Service or completion of thirty-three (33) years of Credited Service regardless of age. 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 GRSv�M� For Credited Service Through September 30, 1999 October 1, 1999 through September 30, 2011 October 1, 2011 and thereafter Percentage 2.50% 2.75% 2.25% 26 South Miami Pension Plan 7 Outline of Principal Provisions of the Retirement Plan E. Normal Retirement (cont'd): 2. Benefit: b. Police Officers c. General Employees (Tier 2) d. AMSC F. Supplemental Benefit: For Credited Service Percentage Through September 30, 1995 2.00% October 1, 1995 through September 30,1996 2.25% October 1, 1996 through September 30, 1997 2.50% October 1, 1997 through September 30, 2001 2.75% October 1, 2001 through September 30, 2002 2.80% October 1, 2002 through September 30, 2003 2.90% October 1, 2003 and thereafter 3.00% For Credited Service Percentage October 1, 2016 and thereafter 1.60% For Credited Service Percentage October 1, 2016 and thereafter 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%. No cost -of -living supplemental benefit is provided for Tier 2 General Employees and AMSC members who retired or entered the DROP prior to October 1, 2019. No cost -of -living supplemental benefit is provided on the portion of the benefit accrued after September 30, 2011 for Tier 1 General Employees who retired or entered the DROP prior to October 1, 2019. G. Early Retirement: 1. Eligibility: a. Police Officers: b. AMSC: 2. Benefit: a. Police Officers: G R S ' Attainment of age 50 and completion of 10 years of Credited Service. Attainment of age 55 and completion of 10 years of Credited Service. Accrued benefit based upon FMC and Credited Service as of Early Retirement Date, reduced 3% for each year that the benefit commencement date precedes Normal Retirement. 27 South Miami Pension Plan 8 Outline of Principal Provisions of the Retirement Plan G. Early Retirement (cont'd): 2. Benefit: b. AMSC: Accrued benefit based upon FMC and Credited Service as of Early Retirement Date, reduced 1/15 for each of the first five years and 1/30 for the next five years that the benefit commencement date precedes Normal Retirement. H. Delayed Retirement: 1. Eligibility: 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. Eligibility: 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. J. 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. 2. Vesting Schedule: All employees except AMSC: Years of Credited Service Less than 10 10 or more years Vesting Percentage 0% 100% m GRS - .. South Miami Pension Plan 9 Outline of Principal Provisions of the Retirement Plan K. Benefit Upon Termination of Service (cont'd): AMSC: Years of Credited Service Less than 5 5 or more years Vesting Percentage 0% 100% AMSC members who have completed three (3) years of continuous Credited Service as of June 18, 2019 are 100% vested. 3. Refund Option: A terminated member may elect to receive a refund of Accumulated Contributions without interest in lieu of receiving any other Plan benefits. L. Member Contributions: Members contribute 7.0% (3.0% for Tier 2 General Employees and 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%, not including expenses, both the City and the General Employees (other than Tier 2 General Employees and AMSC) will share equally in the amount in excess of 7.0%. General Employees (other than Tier 2 General Employees and AMSC) Contributions are capped at 10% of basic annual compensation as of October 1, 2016. Should the City contribution for Police Officers be actuarially determined to exceed 7.5%, not including expenses, both the City and the Police Officers will share equally in the amount in excess of 7.5% but not more than 12.0%. 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. 29 G R 5 ipMv�me South Miami Pension Plan 10 Outline of Principal Provisions of the Retirement Plan N. Deferred Retirement Option Plan (DROP) 1. Eligibility: Attainment of normal retirement date. 2. The maximum period of participation in the DROP is sixty (60) months. 3. A member's account in the DROP shall be credited monthly with interest in an amount equal to 50% of the net (gross return minus investment expense) yearly interest earned by the Plan for the preceding fiscal year, up to a maximum of 5% and a minimum of 0%. 4. No payment may be made from the DROP until the member actually separates from service with the City. The DROP account balance may be distributed in a lump sum, periodic payments, an annuity or a combination thereof. 0. Changes Since Previous Actuarial Impact Statement: 1. Police Officers Normal Retirement Eligibility was: 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. Police Officers Early Retirement Eligibility was: Attainment of age 50 and completion of 15 years of Credited Service. 30 G R 5 � -fttat""' Ifto South Miami Pension Plan 11 Actuarial Assumptions and Methods Used in the Valuation A. Mortality General Employees including AMSC Mortality Assumptions: For healthy male participants during employment, RP 2000 Combined Male Healthy Participant Mortality Table, with 50% White Collar / 50% Blue Collar Adjustment and fully generational mortality improvements projected to each future decrement date with Scale BB. For healthy female participants during employment, RP 2000 Combined Female Healthy Participant Mortality Table, with White Collar Adjustment and fully generational mortality improvements projected to each future decrement date with Scale BB. For healthy male participants post employment, RP 2000 Annuitant Male Mortality Table, with 50% White Collar / 50% Blue Collar Adjustment and fully generational mortality improvements projected to each future decrement date with Scale BB. For healthy female participants post employment, RP 2000 Annuitant Female Mortality Table, with White Collar Adjustment and fully generational mortality improvements projected to each future decrement date with Scale BB. For disabled male participants, RP 2000 Disabled Male Mortality Table, setback four years, without projected mortality improvements. For disabled female participants, RP 2000 Disabled Female Mortality Table, set forward two years, without projected mortality improvements. Pre -retirement Post -retirement Sample Future Life Future Life Ages Expectancy (Years) Expectancy (Years) (2018) Male Female Male Female 55 30.53 33.57 30.10 33.34 60 25.60 28.54 25.44 28.44 62 23.70 26.58 23.60 26.52 Pre -retirement Sample Future Life Ages Expectancy (Years) (2038) Male Female 55 32.67 35.41 60 27.78 30.38 62 25.87 28.40 G R S Ms' Post -retirement Future Life Expectancy (Years) Male Female 32.26 35.21 27.63 30.30 25.78 28.35 31 South Miami Pension Plan 12 Actuarial Assumptions and Methods Used in the Valuation A. Mortality (cont'd) Police Officer Mortality Assumptions: For healthy participants during employment, RP 2000 Combined Healthy Participant Mortality Tables, separate rates for males and females, with 90% Blue Collar Adjustment / 10% White Collar Adjustment and fully generational mortality improvements projected to each future decrement date with Scale BB. For healthy participants post employment, RP 2000 Annuitant Mortality Tables, separate rates for males and females, with 90% Blue Collar Adjustment / 10% White Collar Adjustment and fully generational mortality 'improvements projected to each future decrement date with Scale BB. For disabled male participants, 60% RP 2000 Disabled Male Mortality Table setback four years / 40% RP 2000 Annuitant Male Mortality Table, with White Collar Adjustment and no setback, without projected mortality improvements. For disabled female participants, 60% RP 2000 Disabled Female Mortality Table set forward two years / 40% RP 2000 Annuitant Female Mortality Table, with White Collar Adjustment, without projected Mortality improvements. Sample Ages (2018) 55 60 62 Sample Ages (2038) 55 60 62 G R S " Iftw Pre -retirement Future Life Expectancy (Years) Male Female 29.84 32.60 24.96 27.56 23.09 25.59 Pre -retirement Future Life Expectancy (Years) Male Female Post -retirement Future Life Expectancy (Years) Male Female 29.33 32.40 24.76 27.41 22.97 25.49 Post -retirement Future Life Expectancy (Years) Male Female 32.06 34.54 31.57 34.36 27.21 29.49 27.03 29.36 25.34 27.51 25.23 27.42 32 South Miami Pension Plan 13 Actuarial Assumptions and Methods Used in the Valuation B. Investment Return to be Earned by Fund 7.375% (net of investment expenses), compounded annually - includes inflation at 2.75%. 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: Withdrawal Rates Per 100 Employees Service Police General / AMSC 1-2 12.00 20.00 3-6 8.00 9.25 7 - 10 8.00 5.00 11 & Over 3.50 5.00 E. Disability Rates 1985 Disability Study, Class 1 with separate rates for females. 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 - includes wage inflation of 3.25%. Service Police General / AMSC 0-9 5.25% 5.25% 10 - 14 3.75% 4.75% 15 - 19 3.75% 4.25% 20 & over 3.75% 3.75% 33 South Miami Pension Plan 14 Actuarial Assumptions and Methods Used in the Valuation H. Increase in Covered Payroll 4.0% per year, limited to average annual increase over most recent ten years (1.4%) but not less than 0.0% for Police Officers. No increase in covered payroll is assumed for General Employees including AMSC. I. Retirement Rates Rates of Early Retirement for Police Officers were used in accordance with the following table. Years Preceding Normal Retirement Police 1-6 5% 7-10 10% Faes of Normal Retirement were used in accordance with the following tables. Age Police General * AMSC ** 55-59 25% 10% 10% 60-61 25% 10% 25% 62-64 40% 25% 35% 65-66 100% 25% 35% 67 & above 100% 100% 100% Service Police 25 years 100% * Rates are 25% for Tier 2 members for each year upon meeting 33 years of service until 100% at age 67. ** Includes Early Retirement. Rates are 25% below the age of 62 and 35% between the ages of 62 and 66 upon meeting 33 years of service until 100% at age 67. General Employees who retire prior to age sixty (60) but after attainment of ten (10) years of Credited Service (55 & =0) are assumed to receive an actuarially reduced benefit payable immediately upon retirement. J. Cost of Living Increases Future cost of living increases for General Employees (including Tier 1 and Tier 2 General Employees), AMSC and Police Officers are assumed to be 3.0% per annum. K. Valuation of Assets The method used for determining the smoothed value of assets phases in the deviation between the expected and actual return on assets at the rate of 20% per year. The smoothed 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. 34 South Miami Pension Plan 15 Actuarial Assumptions and Methods Used in the Valuation 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 Plan had always been in effect. The normal cost for the Plan is the sum of the individual normal costs for all active employees. 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 smoothed value of assets of the Plan. M. Changes Since Previous Actuarial Impact Statement 1. Rates of Normal Retirement for Police Officers were used in accordance with the following tables. Age Police 55 - 59 N/A 60-61 25% 62 - 64 40 % 65 - 66 100% 67 & above 100% Service Police 25 years 100% 35 GR52:'- South Miami Pension Plan 16 MIAMI DAILY BUSINESS REVIEW Published Daily except Saturtlay. Sunday and Legal Holidays Miami. Miami -Dade County. Florida STATE OF FLORIDA COUNTY OF MIAMI-DADE: Before the undersigned authority personally appeared GUILLERMO GARCIA, who on oath says that he or she is the DIRECTOR OF OPERATIONS, Legal Notices of the Miami Daily Business Review We 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 - PUBLIC HEARINGS - DEC. 3, 2019 in the XXXX CourL was published in said newspaper in the issues of 11/22/2019 Affiant 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 othce 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 secunng this advertisement for publication in the said newspaper. Swo to and subscribed before me this 22 day f HOVE BER, A.D. 2019 ( L! GUILLERMO GARCIA personally known to me BARBARATHOMAS Cnmr4ission S GG 121171 '%•r Expires November 2,2021 ••$„n Banded TNaTray Fain Insurance Soa365.7019 CITY OF SOUTH MIAMI NOTICE OF PUBLIC HEARINGS NOTICE IS HEREBY given that the City Commission of the City of South Miami, Florida will conduct Public Hearing(s) at its regular City Commission meeting scheduled for Tuesday. December 3, 2019, beginning at 7:00 p.m., in the City Commission Chambers; 6130 Sunset Drive, to consider the following hem(s): An Ordinance amending the Land Development Code, Article II, Section 20-2.3 'Definitions', Article fit, Section 20-3.3(D) "Permitted Use Schedule' and Section 20-3.4 'Special Use Conditions', Article VII, Section 2D-7.12(A) 'Permitted and Special Uses and Parking Requirements' and Section 2D-7.51 'Special Exception' concerning Medical Marijuana and Drug, Pharmacy, and Sundry store uses. An Ordinance amending Section 7-3.2- of the Code of Ordinances to adjust the parks impact fees. An Ordinance amending the South Miami Pension Plan to Implement the Collective Bargaining Agreement Between the City of South Miami and the Florida State Lodge, Fraternal Order of Police, Inc., and the Dade County Police Benevolent Association, Inc.; by Amending Section 16-14, 'Pension benefits and retirement date' by Changing the Normal and Fady Retirement Eligibility Dales for Police Officers; by amending Section 16-26, 'Reserved' to now be titled 'Use of Chapter 185 Funds'; Providing for Severebil* Providing for Inclusion in the Code; Providing for a Repealer, and Providing for an Effective Date. An Ordinance amending the City of South Miami land Development Code, Chapter 20, Article IV, Section 20-4.10 to authorize the City Commission to waive, from time to time, the permitting requirements to hold a garage sake in the RS-Single Family Residential Districts and the RT-Townhouse Districts. ALL interested parties are invited to attend and wilt be heard. For further information, please contact the City Clerk's Office at: 305- 663-6340. Nkenga A. Payne, CMG City Clerk Pursuant to Florida Statutes 286.0105, the City hereby advises the public that it a person decides to appeal any decision made by this Board, Agency or Commission with respect to any matter considered at its meeting or hearing, he or she will need a record of the proceedings, and that for such purpose, affected person may need to ensure that a verbatim record of the proceedings is made which record Includes the testimony and evidence upon which the appeal is to be based. 11122 19-62/0000440088M 41 SUNDAY NMEM6ER 24 2019 I NEIGHBORS I 1255E IAM MIHERA RCOM Various Types of Coffee Smoothies • Salads • Breakfast Pastme• Various Paninis Pia Piu•Fine Sweets Cakes for every occasion __�ATJN AMERICAN� 890 S.W. 57 granS.WW'.557�7 granreani e, Mimi Ph: 305-264-2800 rbe PC of rpe BREADS: Cuban Bread Wheal Cuban Bread Croissants • Crackers Palilroques HOT BREAKFAST SERVED UNTIL NOON: Scrambled Eggs or Fried with Potatoes, Ham 4LT 99 Bacon or Sausage, Toast and Cafe con Leche • Greene�e Monday that, Thursday: 6am-10pm r riday: 6am-12m • Saturday: 7am-12m Sunday: 8am-9pm �— ' iO QathtdaRs5 ---07 LATIN _ AMERICAN CAFETERIA - RESTAURANT Best Cuban Food In Town r .� ''7t7am Enjoy Our Daily Chef Specials We Cater Parties Size Not A Problem toMidnight are eSevven Days a Week We Can Serve You Inside and Outside 898 SW 57 Avenue 305.267.9995 Major Credit Pads arrested rnrtudh, Pdmecud —aaaa CITY OF SOUTH MIAMI NOTICE OF PUBLIC HEARINGS NOTICE IS HEREBY given that the City Commission of the City of South Miami, Florida will conduct Public Hearing(s) at its regular City Commission meeting scheduled for Tuesday, December 3, 2019, beginning at 7:00 p.m., in the City Commission Chambers, 6130 Sunset Drive, to consider the following item(s): An Ordinance amending the Land Development Code, Article II, Section 20-2.3 "Definitions", Article III, Section 20-3.3(D) "Permitted Use Schedule" and Section 20-3A "Special Use Conditions", Article VIL Section 20-7.12(A) "Permitted and Special Uses and Parking Requirements" and Section 20-7.51 "Special Exception" concerning Medical Marijuana and Drug, Pharmacy, and Sundry store uses. An Ordinance amending Section 7-3.2 of the Code of Ordinances to adjust the parks impact fees. An Ordinance amending the South Miami Pension Plan to Implement the Collective Bargaining Agreement Between the City of South Miami and the Florida State Lodge, Fraternal Order of Police, Inc., and the Dade County Police Benevolent Association, Inc.; by Amending Section 16-14, "Pension benefits and retirement date" by Changing the Normal and Early Retirement Eligibility Dates for Police Officers; by amending Section 16-26, "Reserved" to now be titled "Use of Chapter 185 Funds Providing for Sevembility; Providing for Inclusion in the Code; Providing for a Repealer; and Providing for an Effective Date. An Ordinance amending the City of South Miami Land Development Code, Chapter 20, Article IV, Section 20-4.10 to authorize the City Commission to waive, from time to time, the permitting requirements to hold a garage sale in the RS-Single Family Residential Districts and the RT-Townhouse Districts. ALL interested parties are invited to attend and will be heard. For further information, please contact the City Clerk's Office at: 305-663-6340. Nkenga A. Payne, CMC City Clerk Pursuant to Florida Statutes 286.0105, the City hereby advises the public [hat if a person dairies to appeal my decision made by this Board, Agency or Commission with respect to any matter considered at its meeting or hearing, he or she will need a record of the proceedings. and that for such purpose, affected person may need to ensure that a verbatim record of the proceedings is 42 made which record includes the testimony and evidence upon which the appeal is to be based.