Res No 219-18-15252e
RESOLUTION NO. 219 -18 -1 5 2 5 2
A Resolution authorizing the City Manager to expend an amount not to exceed
$9,986 with Gabriel Roeder Smith & Company to perform an Actuarial Projection
Study of adding additional positions to the Administration Management Service Class
(AMSC) and provide for an annual open enrollment period for members who
previously elected to participate in the City's defined contribution plan to join as
second tier members as well as to prepare an Actuarial Impact Statement including a
Deferred Retirement Option Program (DROP) in the City of South Miami Pension Plan.
WHEREAS, Gabriel, Roeder, Smith & Company will prepare actuarial projection
study(s) of adding additional positions to the Administration Management Service Class
(AMSC) and provide for an annual open enrollment period for members who previously
elected to participate in the City's defined contribution plan to -join as second tier
members as well as to prepare an Actuarial Impact Statement including a Deferred
Retirement Option Program (DROP) in the City of South Miami Pension Plan, as directed
by the City Manager; and,
WHEREAS, the City of South Miami continues to work in studying and
completing projections using Gabriel Roeder Smith and Company (GRS), the City's
pension plan actuary; and,
WHEREAS, the City is not only reviewing and studying benefit and cost
projections related to the analysis of adding additional positions to the Administration
Management Services Class (AMSC) and provide for an annual open enrollment period
for members who previously elected to participate in the City's defined contribution
plan to join as second tier members including a Deferred Retirement Option Program
(DROP), but also reviewing effects of amending the City's existing current retirement
benefit plans.
NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF
THE CITY OF SOUTH MIAMI, FLORIDA THAT;
Section 1. The City Manager is authorized to expend an amount not to exceed
$9,986 with Gabriel Roeder Smith & Company to perform an Actuarial Projection Study
of adding additional positions to the Administration Management Service Class (AMSC)
and provide for an annual open enrollment period for members who previously elected
to participate in the City's defined contribution plan to join as second tier members as
well as to prepare an Actuarial Impact Statement including a Deferred Retirement
Option Program (DROP) in the City of South Miami Pension Plan, charging account
001.1410.513.3100, Finance Professional Services.
Section 2. This resolution shall take effect immediately upon adoption.
PASSED AND ADOPTED this 20t' day of November, 2018
Page 1 of 2
Res. No. 219-18-15252
ATTEST:
i
COMMISSION VOTE:5-0
Mayor Stoddard: Yea
Vice Mayor Harris: Yea
Commissioner Gil: Yea
Commissioner Welsh: Yea
Commissioner Liebman: Yea
Page 2 of 2
Agenda Item No:10.
City Commission Agenda Item Report
Meeting Date: November 20, 2018
Submitted by: Michelle Caloca
Submitting Department: City Manager
Item Type: Resolution
Agenda Section: RESOLUTION(S)
Subject:
A Resolution authorizing the City Manager to expend an amount not to exceed $9,986 with Gabriel Roeder
Smith & Company to perform an Actuarial Projection Study of adding additional positions to the Administration
Management Service Class (AMSC) and provide for an annual open enrollment period for members who
previously elected to participate in the City's defined contribution plan to join as second tier members as well as
to prepare an Actuarial Impact Statement including a Deferred Retirement Option Program (DROP) in the City
of South Miami Pension Plan. 3/5 (City Manager -Finance)
Suggested Action:
Attachments:
GRS AMSC DROP MEMO.doc
GRS AMSC & DROP RESO.doc
GRS Engagement Letter- Actuarial Projection Study - Adding AMSC Positions & DROP Implementation & Open
Enrollment.pdf
South Miami
THE C17 Y OF PLEASANT LIVING
OFFICE OF THE CITY MANAGER
INTER -OFFICE MEMORANDUM
To: The Honorable Mayor & Members of the City Commission
From: Steven Alexander, City Manager
Date: November 20, 2018
Subject: A Resolution authorizing the City Manager to expend an amount
not to exceed $9,986 with Gabriel Roeder Smith & Company to
perform an Actuarial Projection Study of adding additional
positions to the Administration Management Service Class
(AMSC) and provide for an annual open enrollment period for
members who previously elected to participate in the City's
defined contribution plan to join as second tier members as well
as to prepare an Actuarial Impact Statement including a
Deferred Retirement Option Program (DROP) in the City of South
Miami Pension Plan.
Background: Gabriel, Roeder, Smith & Company will prepare an actuarial
projection study(s) of adding additional positions to the
Administration Management Service Class (AMSC) and provide for
an annual open enrollment period for members who previously
elected to participate in the City's defined contribution plan to
join as second tier members as well as to prepare an Actuarial
Impact Statement including a Deferred Retirement Option
Program (DROP) in the City of South Miami Pension Plan.
The City of South Miami continues to work in studying and
completing projections using Gabriel Roeder Smith and Company
(GRS), the City's pension plan actuary. The City is not only
reviewing and studying the benefit and cost projections related to
the analysis of adding additional positions to the Administration
Management Services Class (AMSC) and including a Deferred
Retirement Option Program (DROP), but also reviewing at effects
of amending the City's existing current retirement benefit plans.
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 projection study(s) for
the City's General and Police Employees' Pension Plan.
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Amount: An amount not to exceed $9,986.
Account: 001.1410.513.3100, Finance Professional Services, with a current
balance of $10,000.
Attachments: Resolution for approval
Gabriel Roeder Smith & Company's engagement letter.
Rc Retirement
J Consulting
November 12, 2018
Mr. Alfred Riverol
Finance Director
City Hall, 1't Floor
6130 Sunset Drive
South Miami, Florida 33143
Re: Engagement Letter for Actuarial Services
Dear Alfred:
P:954.527.1616 1 F:954.525.0083 1 www.grsconsulting.com
As requested, Gabriel, Roeder, Smith & Company (GRS) is pleased to present this
engagement letter to perform an Actuarial Projection Study of adding additional positions
to the Administration Management Service Class (AMSC) and provide for an annual open
enrollment period for members who previously elected to participate in the City's defined
contribution plan to join as second tier members as well as to prepare an Actuarial Impact
Statement for including a Deferred Retirement Option Program (DROP) in the City of South
Miami Pension Plan (Plan) on behalf 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
and Jen Borregard, E.A., a Consultant and Actuary with over 15 years of experience with
retirement systems.
➢ AMSC / Open Enrollment Actuarial Projection Study
Currently, the Pension Plan provides AMSC membership for the following positions:
tz City Manager
Z City Attorney
rt City Clerk
M Assistant / Deputy City Manager
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Mr. Alfred Riverol
November 12, 2018
Page Two
GRS
tt Finance Director / Chief Financial Officer
tt Chief of Police
11 Planning and Zoning Director
t2 Building Director
tt Director of Public Works
tt Chief Administrative Officer (currently Finance Office Manager)
tt Chief Procurement Officer (currently Purchasing Manager)
tt Parks and Recreation Director
Additionally, general employees who were not participating in the Plan as of
October 1, 2016 and general employees hired on or after October 1, 2016 shall be
given a one-time irrevocable election (to be made within 90 days from the later of
the effective date of the Ordinance to re -open the Plan to general employees or
date of hire) to either become a second tier member of the Plan or join a defined
contribution plan.
We understand the City is interested in an analysis of providing an annual open
enrollment period for members who previously elected to participate in the City's
defined contribution plan to join as second tier members and adding the following
positions to the AMSC:
tt Community Redevelopment Agency Director
tt Personnel Manager
tt Project Manager
tt Special Assistant to the Manager (vacant and not funded in FY 2019)
tt Superintendent of Maintenance
tt Assistant Director of Parks and Recreation
The projection study will be completed as if the change was made for the October 1,
2017 actuarial valuation —the most recent completed valuation.
This Actuarial Projection Study will include the development of 30-year deterministic
projections measuring the impact of the changes.
➢ DROP Actuarial Impact Statement
Currently, the Pension Plan does not provide a DROP.
We understand the City is interested in designing a DROP program with no increased
contribution requirements under State funding rules.
Retirement
Consulting
7
Mr. Alfred Riverol
November 12, 2018
Page Three
Data Requirements
In order to proceed with the AMSC / Open Enrollment Actuarial Projection Study, please
provide identifying information for each participant currently in the positions listed above.
In the event the position is vacant, please provide an estimated annual salary for the
position.
In addition, we require member census data on all City employees not participating in the
Pension Plan. This data includes name, gender, date of birth, date of hire and current
salary.
In order to proceed with the DROP Actuarial Impact Statement, please provide a copy of the
proposed Ordinance.
Other Considerations
We understand providing annual open enrollment is subject to review by the Plan's legal
counsel.
Proposed Fees
Our fees forthe project will be based upon our hourly rates.
`GRS
Title Hourly Rate
Senior Consultant and Actuary $ 330 - $ 43S
Consultant and Actuary $ 250 - $ 325
Senior Analyst $ 195 - $ 250
Analyst $ 140 - $ 195
Administrative Assistant $ 85 - $ 95
Our hourly rates include the cost of our overhead including computer charges, telephone
and the like. We will agree to a not -to -exceed fee of $9,986.
Timing
We are prepared to initiate the process immediately and look forward to presenting our
AMSC / Open Enrollment Actuarial Projection Study within sixty (60) days of authorization
to proceed and receipt of the necessary census data.
Retirement
Consulting
G R S
Mr. Alfred Riverol
November 12, 2018
Page Four
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.
If you should have any question concerning the above, please do not hesitate to contact us.
Sincerest regards,
Lawrence F. Wilson, A.S.A
Senior Consultant and Actuary
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Retirement
Consulting IFIIP
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