Loading...
12-07-04 Item 10CITY OF SOUTH MIAMI OFFICE OF THE CITY MANAGER INTER - OFFICE MEMORANDUM To: Honorable Mayor, Vice Mayor Date: December 7, 2004 and City Commission From: Maria V. Davis Subject: Agenda Item 4-110 City Manager �e 11/16/04 Commission Meeting Ifu Amending the Police Pension ", plan REQUEST AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA AMENDING THE CITY OF SOUTH MIAMI PENSION PLAN, PROVIDING FOR ELIGIBILITY AT DATE OF EMPLOYMENT FOR POLICE OFFICER EMPLOYEES OF THE CITY OF SOUTH MIAMI; PROVIDING FOR A MINIMUM RATE OF BENEFIT ACCRUAL FOR POLICE OFFICER EMPLOYEES; PROVIDING FOR SEVERABILITY; PROVIDING FOR CODIFICATION; AND PROVIDING FOR AN EFFECTIVE DATE. Background The attached ordinance was prepared by the City Pension Attorney to improve the pension plan benefits for our Police Officers at no, cost to the City, using the Chapter 185 funds received annually from the State of Florida. The source of the funds is .85 percent of gross receipts from policyholders on all premiums collected on casualty insurance policies covering properties within the City's jurisdiction. State laws restrict the use of these funds to payment of supplemental benefits to retiring Police Officers. This benefit is accrued annually by all Police Officers participating in the City pension plan using a State approved allocation method. Any available excess 'funds after the allocation are used to provide improvements to the plan. As of last fiscal year, there is an available excess amount of $77,000 that can be used to purchase improvements to the plan for officers. RECOMMENDATON Approval of the ordinance is recommended. I ORDINANCE NO. 2 3 4 AN ORDINANCE OF THE MAYOR AND CITY 5 COMMISSION OF THE CITY OF SOUTH MIAMI, 6 FLORIDA AMENDING THE CITY OF SOUTH MIAMI 7 PENSION PLAN, PROVIDING FOR ELIGIBILITY AT 8 DATE OF EMPLOYMENT FOR POLICE OFFICER 9 EMPLOYEES OF THE CITY OF SOUTH MIAMI; 10 PROVIDING FOR A MINIMUM RATE OF BENEFIT 11 ACCRUAL FOR POLICE OFFICER EMPLOYEES; 12 PROVIDING FOR SEVERABILITY; PROVIDING FOR 13 CODIFICATION; AND PROVIDING FOR AN EFFECTIVE 14 DATE. 15 16 17 WHEREAS, the City of South Miami desires to provide compliance with required 18 minimum benefits provided in Chapter 185 of the Florida Statutes for police officer employees in 19 order to continue to receive state premium tax funding; and 20 21 WHEREAS, the City recognizes that such minimum benefits will actuarially impact on 22 the Pension Plan and shall be at the option of certain employees; and 23 24 WHEREAS, there are funds available in excess in the 185 Share Plan account as shown 25 by the actuarial impact statement provided by the actuary; and 26 27 WHEREAS, the City Commission has received and reviewed an actuarial impact 28 statement related to such early retirement incentive. 29 30 NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY 31 COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA: 32 33 34 Section 1. Part I, Provisions governing the South Miami Pension Plan, Section 16 -13 35 of the South Miami Code of Ordinances is hereby amended to read as follows: 36 37 See. 16 -13. Eligibility. 38 (a) Each employee employed by the employer on October 1, 1965, shall be a 39 participant on the first participation date on which he has completed two 40 (2) years of credited service and has attained his twenty -fifth birthday. 41 42 (b) Each employee who becomes an employee subsequent to October 1, 1973, 43 shall be a participant on the first participation date on which he /she has 44 completed six (6) months of credited service and has obtained his /her Page 1 of 4 37 38 39 40 41 42 43 44 twentieth birthday. For all current employees as of October 1, 1995, each fiscal year there will be a window for joining the retirement system; i.e. October 1St through October 31St. It shall become mandatory for all employees hired on or after October 1, 1995, to join the pension plan after completion of the probationary period. (c) Each employee classified as policemen shall become eligible to participate in the plan from his /her date of employment provided he /she began participation in the plan when first eligible _ as provided in sub - section (a) & (b) of this section. An employee who has received a cash payment under Option 1 of Ssection 16 -17(b) may elect to participate in the plan upon meeting the following requirements: 1. Election to participate must be made within thirty (30) days of receipt of notice of eligibility to participate. 2. Such employee had received a cash payment under Option 1 of section 16- 17(b). 3. Such employee pays to the employer an amount equal to the amount of cash payment he received under Option 1 of section 16- 17(b), plus credited interest compounded annually at the rate of three (3) percent per annum from the date on which such cash payment was made to the date of such repayment. Participation under this section will be effective as of September 1, 1977. In determining an employee's credited service at any future date, there shall not be included any service during which the employee did not participate under this plan. Section 2. Section 16- 14(b)(1) of the South Miami Code of Ordinances is hereby amended to read as follows: Seca 16 -14. Pension benefits and retirement date. (b) Amount of pension. Basic benefit. A basic benefit commencing at the employee's normal retirement date determined by multiplying one and six - tenths (1.6) percent of the employee's final average compensation by the number of his/her completed years of credited service at his or her retirement date, excluding the first two (2) years of such service and any additional service completed by the employee prior to his /her twenty -fifth birthday. However, as to those participants who became an Page 2 of 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 employee subsequent to October 1, 1973, there shall only be excluded the first six (6) months of such service and any additional service completed by him/her prior to his /her twentieth birthday and /or additional service completed by the employee prior to the time the employee became a participant. For sworn police personnel, effective October 1, 1994, the pension benefit accrual rate (multiplier) shall be increased from 1.6 to 1.8, for services performed in the 1993 -94 fiscal year; effective October 1, 1994, the pension benefit accrual rate (multiplier) shall be increased from 1.8 to 1.9, for services performed in the 1994 -95 fiscal year; effective October 1, 1995, the pension benefit accrual rate (multiplier) shall be increased from 1.9 to 2.25 for services performed in the 1995 -96 fiscal year; the pension benefit accrual rate (multiplier) shall be increased from 2.25 to 2.50, effective. October 1, 1996, for services performed in the 1996 -97 fiscal year; the pension benefit accrual rate (multiplier) shall be increased from 2.50 to 2.75, effective October 1, 1997, for services performed in the 1997 -98 fiscal year and thereafter. The multiplier factor to be applied at the time of retirement of each bargaining unit employee shall be applied as prescribed in the 1992 -93 and 1995- 96 collective bargaining agreements. Provided however, the pension benefit accrual rate (multiplier) for sworn police personnel shall not be less than two percent (2.0 %) for all wears of service. Effective October 1, 1995, the pension benefit accrual rate (multiplier) for participants, excluding police personnel, shall be increased from 1.6 to 1.8 for services performed in the 1995 -96 fiscal year; effective October 1, 1996, the pension benefit accrual rate (multiplier) for participants, excluding police personnel shall be increased from 1.8 to 2.0 for services performed in the 1996 -97 fiscal year and thereafter. Section 3: If any section, clause, sentence or phrase of this ordinance is for any reason held invalid or unconstitutional by a court of competent jurisdiction, the holding shall not affect the validity of the remaining portions of this ordinance. Section 4: All ordinances or parts of ordinances in conflict with the provisions of this ordinance are repealed. Section 5: This Ordinance shall take effect immediately upon approved. PASSED AND ADOPTED this day of , 2004 ATTEST: CITY CLERK 1 st Reading — 2" d Reading — APPROVED: MAYOR Page 3 of 4 1 2 3 4 5 6 7 8 9 10 11 12 13 READ AND APPROVED AS TO FORM: CITY ATTORNEY G: \ \SMPF\ PLAN\ ProvideEligibility - Employment - Police -ORDN Page 4 of 4 COMMISSION VOTE: Mayor Russell: Vice Mayor Palmer: Commissioner Birts- Cooper: Commissioner Sherar: Commissioner Wiscombe: Robert A. Sugarman Howard S. Susskind Kenneth R. Harrison, Sr. David E. Robinson D. Marcus Braswell, Jr. .►Board Certified Labor & Employment Lawyer SUGARMAN & SUSSKIND PROFESSIONAL ASSOCIATION ATTORNEYS AT LAW June 21, 2004 2801 Ponce De Leon Boulevard Suite 750 Coral Gables, Florida 33134 (305) 529 -2801 Broword 327 -2878 Toll Free 1 -800- 329 -2122 Facsimile (305) 447 -9115 City Commission City of South Miami c/© Maria Davis, City Manager 5130 Sunset Drive South Miami, Florida 33143 Re, Summary of Proposed Ordinance Amendment City of South Miami Police Off cers' Retirement Plan Dear Commission Members: This firm represents the City of South Miami Police Officers' Retirement Plan. Our client has directed that we provide an overview of the enclosed proposed ordinance amendment to be considered by the City Commission. The Board of Trustees of the Police Officers' Retirement Plan recommends adoption of this proposed ordinance amendment to the existing code in order to comply with specific minimum requirements of Chapter 185 of the Florida Statutes. Florida Law 99 -1 specifically required municipalities that receive state contributions under Chapter 185 of the Florida Statutes to provide certain minimum benefits and operational requirements. The City of South Miami receives such state contribution for its Police Officers' Retirement Plan. The following summarizes the necessary amendments to the existing code in order to comply with specific minimums established by the state legislative action and Florida Law 99 -1. Section 16 -13. Eligibility. This section of the code provides for different participation dates depending on employment date of employees. Section (a) rewired a two year period of probation before participation in the Retirement PIan was allowed. Subsection (b) states that employees hired on a different date, a six month probation and the necessity of obtaining a participant's 20th birthday must occur before participating in the Retirement Plan. Further, this section provided a third provision that completion of a probationary period was necessary for employees hired on any other date in order to enter the Retirement Plan, Chapter 185 of the Florida Statutes requires mandatory participation in pension plans commencing on date of employment. Therefore, Subsection (c) has been added that allows participation from date of employment to comply with this requirement of the state statutes. Section 16 -14. Pension Benefits and Retirement Date was amended to add a specific sentence at the end of Subparagraph (b)(1) which addressed the basic benefit and contained certain limitations therein. The addition of this paragraph stated that the benefit accrual rate for police officer participants may not be less than 2% for all years of service. This specific language is required in Chapter 185 of the Florida Statutes. By copy of this letter we are requesting that the Retirement Plan actuary provide an impact statement for your consideration prior to final reading and enactment of this ordinance amendment, We remain available to respond to any questions you may have on this matter. Yours truly, NNETH R. HARRISON SR. KRHJld Enclosure cc: Board of Trustees Larry Wilson, Actuary, Gabriel, Roeder, Smith & Co. G: \ \SMPF\ PLAN\ SummaryofProposedordaAtnend- LtCityMgr Algia GABRIEL, ROEDER, SMITH & COMPANY Consultants & Actuaries 301 East Las Olas Blvd. • Suite 200 • Ft. Lauderdale, FL 33301 - 2254.954 -527 -1616 • FAX 954525 -0083 August 16, 2004 Ms. Haydee Lopez Benefits USA, Inc. 3810 Inverrary Blvd., Suite 208 Lauderhill, FL 33319 Re: South Miami Pension Plan Dear Haydee: As requested, we are pleased to enclose three (3) copies of the Actuarial Impact Statement for filing the proposed Ordinance for the South Miami Pension Plan with the State of Florida. The proposed Ordinance (copy attached) will allow Police Officers to participate in the Plan from date of employment and credited service shall be continuous employment provided that participation began at first eligibility. The proposed change in eligibility is a minimum benefit required under F.S 99 -1 for Police Officers. Our records show, the Chapter Fund held a reserve for unused excess State funds of $65,275 as of September 30, 2003. The proposed Ordinance includes release of the reserve to the South Miami Pension Plan. In addition, the increase in the annual cost ($25,282) is assumed to be paid by current and future State funds. Please note that this Statement must be signed and dated on behalf of the Pension Board. Copies of the proposed Ordinance following passage at first reading along with the signed and dated Actuarial Impact Statement should be filed with the State prior to passage at second reading at the following addresses: Mr. Charles Slavin, A.S.A. Ms. Patricia Shoemaker Division of Retirement Division of Retirement Cedars Executive Center. Building C Cedars Executive Center. Building C 2639 North Monroe Street 2639 North Monroe Street Tallahassee, Florida 32399 -1560 Tallahassee, Florida 32399 -1560 Please forward a copy of the ordinance upon passage at second reading to update our files. The employee census and financial data utilized in the preparation of this Actuarial Impact statement are the same as utilized for the October 1, 2003 Actuarial Valuation. Ms. Haydee Lopez August 16, 2004 Page Two 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. 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: Mr. Ken Harrison, Esq. South Miami Pension Plan Actuarial Impact Statement as of October 1, 2003 Police Officers A. Participant Data 1. Active participants 2. Terminated vested participants 3. Participants receiving benefits including DROPs 4. Annual payroll of active employees B. Assets 1. Actuarial value 2. Market value 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 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 Actuariat Valuation 50 1 8 $ 3,350,992 $ 6,732,468 $ 6,081,957 $ 11,328,815 782,661 53,304 285,446 206,750 $ 12,656,976 Proposed Ordinance 50 1 8 $ 3,350,992 $ 6,797,743 $ 6,147,232 $ 11,580,543 843,728 51,943 286,980 190,383 $ 12,953,577 $ 258,298 $ 258,298 $ 875,520 0 166,487 15,959 $ 1,057,966 $ 13,973,240 $ 9,227,670 $ 2,495,202 $ 875,520 0 166,487 15,959 $ 1,057,966 $ 14,269,841 $ 9,502,196 $ 2,704,453 South Miami Pension Plan Actuarial Impact Statement as of October 1, 2403 Police Officers Actuarial Proposed D. Statement of Accumulated Plan Benefits Valuation Ordinance 1. Actuarial present value of accumulated vested benefits a. Participants currently receiving benefits $ 1,042,007 $ 1,042,007 b. Other participants 3,520,127 3,735,452 c. Total $ 4,562,134 $ 4,777,459 2. Actuarial present value of accumulated non - vested plan benefits 622,216 560,180 3. Total actuarial present value of accumulated plan benefits $ 5,184,350 $ 5,337,639 E. Pension Cost I . Total normal cost $ 569,894 $ 576,093 2. Payment required to amortize unfunded liability 202,473 219,683 3. Interest 30,187 32,060 4. Total required contributions $ 802,554 $ 827,836 5. Item 4 as a percentage of payroll 23.9% 24.7% 6. Estimated employee contributions $ 361,518 $ 361,518 7. Item 6 as a percentage of payroll 10.8% 10.8% 8. Estimated State contributions $ 12,498 $ 37,780 9. Item 8 as a percentage of payroll ' 0.4% 1.1% 10. Net amount payable by City $ 428,538 $ 428,538 11. Item 10 as apercentage of payroll 12.8% 12.9% F. Disclosure of Following Items: 1. Actuarial present value of future salaries - attained age $ 31,720,433 $ 31,453,407 2. Actuarial present value of future employee contributions - attained age $ 2,379,032 $ 2,359,005 3. Actuarial present value of future contributions from other sources N/A NIA 4. Amount of active members' accumulated contributions $ 1,118,955 $ 1,118,955 5. Actuarial present value of future salaries and future benefits at entry age Not provided by software 6. Actuarial present value of future employee contributions at entry age Not provided by software South Miami Pension Plan Actuarial Impact Statement as of October 1, 2003 Police Officers G. Amortization of Unfunded Actuarial Accrued Liability Date Establish 10/01/1990 10/01/1991 10/01/1992 10/01/1992 10/01/1993 10/01/1993 10/01/1994 10/01/1994 10/01/1995 10/01/1995 10/01/1996 10/01/1997 10/01/1998 10/01/1999 10/01/1999 10/01/2001 10/01/2001 10/01/2001 10/01/2002 10/01/2002 10/01/2003 10/01/2003 10/01/2003 ed Assumption Method Change Actuarial Loss (Gain) Plan Amendment Actuarial Loss (Gain) Actuarial Loss (Gain) Plan Amendment Actuarial Loss (Gain) Assumption Change Actuarial Loss (Gain) Plan Amendment Actuarial Loss (Gain) Actuarial Loss (Gain) Actuarial Loss (Gain) Actuarial Loss (Gain) Plan Amendment Actuarial Loss (Gain) Method Change Plan Amendment Actuarial Loss (Gain) Plan Amendment Actuarial Loss (Gain) Plan Amendment Proposed Ordinance TOTAL Unfunded Liability $ (111,250) (82,013) (6,611) (176,651) (39,396) 211,614 62,749 26,117 (176,836) 253,853 (100,436) (190,172) (302,323) (96,311) 126,894 1,032,446 (519,257) 812,417 775,068 193,557 563,535 238,208 209,251 $ 2,704,453 Amortization Payment $ (11,293) (8,103) (637) (17,032) (3,715) 19,957 5,800 2,414 (16,051) 23,042 (8,967) (16,724) (26,223) (8,249) 10,869 86,505 (43,506) 68,069 64,315 16,061 46,349 19,592 17,210 $ 219,683 Remaining Funding Period 17 years 18 years 19 years 19 years 20 years 20 years 21 years 21 years 22 years 22 years 23 years 24 years 25 years 26 years 26 years 28 years 28 years 28 years 29 years 29 years 30 years 30 years 30 years 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. 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 otherwise taken into account for in the valuation. All known events or trends which may require a material increase in plan costs or required contribution rates have been taken into account in the valuation. Enrollment Number: 02 -2802 Lawrence F. Wilson, A.S.A. Dated: August 16, 2004 -4- GABRIEL., ROEDER, SMITH 8, COMPANY South Miami Pension Plan Outline of Principal Provisions of the Retirement Plan A. Effective Date: October 1, 1965. Most recent resolution / bargaining agreement was adopted July 23, 2002. B. 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 /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, overtime pay, vacation, sick leave and other additional compensation. -5- South Miami Pension Plan Outline of Princinal 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 Through September 30, 1999 2.50% October 1, 1999 and thereafter 2.75% b. Police Officers 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% F. Supplemental Benefit: A cost -of- living supplemental benefit based upon the consumer price index is provided upon retirement. The annual increase is limited to 3 %. -6- GABRIEL, ROEDER, SMITH & COMPANY South Miami Pension Plan Outline of Principal Provisions of the Retirement Plan G. Early Retirement: 1. Eligibility 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. Eligibility: Retirement subsequent to normal retirement date. 2. Benefit: Accrued benefit based upon FMC and credited service as of delayed retirement date. 1. 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 westing 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. -7- GABRIEL, ROEDER, SMITH & COMPANY South Miami Pension Plan Outline of Principal Provisions of the Retirement Plan 2. Vesting Schedule Years of Vesting Credited Service Percentage Less than 10 0 %Q 10 or more years 100 % 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 12% (9.5% for Police Officers), both the City and the General Employees will share equally in the amount in excess of 12 % (9.5 % for Police Officers). 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: Prior to proposed Ordinance, for Police Officers: 1. Eligibility Service: Any regular full -time employee was eligible to enter the plan following the completion of six months of Credited Service and attainment of age 20. 2. Credited Service: 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. -8- GABRIEL, ROEDER, SMITH & COMPANY South Miami Pension Plan Actuarial Assumptions and Actuarial Cost Methods Used in the Valuation South Miami Pension Plan Actuarial Assumptions and Actuarial Cost Methods Used in the Valuation G. Salary Increase Factors Current salary is assumed to increase at an annual rate equal to 6.0 % per year. H. Retirement Rates Members are assumed to retire on their nonnal retirement date, minimum one year of future service. Rates of early retirement for Police Officers were used in accordance with the following illustrative example: I. 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. J. 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 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. K. Changes Since Previous Valuation None -10- GABRIEL, ROEDER, SMITH & COMPANY f South Miami Pension Plan Actuarial Impact Statement as of October 1, 2003 A. Description of Proposed Amendment (see attached Proposed Amendment) Police Officers shall participate in the Plan from date of employment. For Police Officers, credited service shall be continuous employment provided that participation began at first eligibility. B. An estimate of the cost of 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 State Constitution. Chairman, Retirement Committee Date Nov 22 04 03:46p s ti To: JEANETTE ENFVO, Fax: 305- 663.6345 CITY OF SOUTH MIAMI From: HAYDEE LOPEZ Date: 11, 22104 Re: MINUTES Pages 6 REGARDING BALLOTS CC: Benefits USA, Inc. 38I0Inverruy Blvd #208 Lauderbll, FL 33319 954 -730 -2068 Fax 954- 730 -0738 71,111 rn • X For Reviev6 0 Plena Comment ''lease Re I ' 0 PkAss Recycle ' ST, ENCLOSED PLEAS'E FIND ON 'AGE 2 OF THE MINUFES THE BALLOT A. y. - RES AVE ALSO ATTACHED THE PROVISION OF BENEFITS WHICH WAS PREPARED BY T Y. IF YOU HAVE ANY QUIESTIONS, P LEASE DO NOT HESITATE TO GIVE US J r. A C I,, THANKS P. Nov 22 04 03:46p CITY OF SOUTH MIAMI PENSION FUN D MIIVLTTES JANVARY 27, 20- a4 Chairman Fulton called the meeting of the Board of Trustees of the City of South Miami Pension Fund to order at 9:10 a.m., at the City Cc mmission Chambers of the City of South Miami. TRUSTEES PRESENT: Eric Fulton, Maria Stout Tate, Rick Freeburg, Frank Gilbert and Bruce Ross OTHERS PRESENT: Fund Attorney David Rob nson; Tim Nash of Trusco Capital Management and Administrator Haydee Lopez of Be: ie0ts USA, Inc. APPROVAL OF MINUTES: A motion made by Ms. Stout -Tate to ;approve tt a minutes of the regular meeting December 8, 2003 was seconded by Mr. Freeburg. 'I he motion carried. CONSENT AGENDA: Sugarman & Susskind, PA(Inv#2771 I Legal Fee) $2,500.00 Benefits USA, Inc. (January, 2004 Adm Fee) $990.00 Salem Trust Company (10/1/03- 12/31/03 Custodian F ee) $1,802.10 Gabriel, Roeder, Smith & Company (Inv# €9185) $4,585.00 A motion by Ms. Stout -Tate to approve the cony ent agenda was seconded by Mr. Freeburg. The motion passed. UNFINISHED BUSINESS: Status of Pending Annuity Policy — Attorney Robinsi in reviewed a letter prepared by his office dated January 22, 2004 as directed by the Tr astees. Attorney Robinson reported that there has been no response form the City as of yet. Chairman Fulton directed the Fund Attorney to follow up within 30 days. Attorne :i Robinson reported they would do so, Trustee Vacancies and Expired Terms- Attorney Rot inson reviewed a letter prepared by his office dated January 22, 2004. M.S. Stout -Tate ; i.dvised the Trustees that she has a possible applicant for the Board who lives in Souti i Miami. Attorney Robinson also reviewed a letter prepared by this office regarding th make up of the board. Following review, it was noted that the Fund Attorney did not h,, ve the amended Ordinance because the ordinance had changed from five to seven membe rs. The Administrator was directed to contact the City Clerk and provide the Fund Attorn �y with the amended Ordinance. It was noted they would do so. The Trustees directed th , Fund Attorney to revise the letter. p.2 Nov 22 04 03:47p p.3 BALLOT RESULTS RE: CHAPTER 99 -1 MINT 4UM BENEFITS Ms. Lopez reported on the ballot results regarding tl Le Chapter 99 -1- Minimum Benefits. It. was noted that 17 pension fund members chose Option 42 which was Provisions 7 and 8; 2 pension fund members chose Option 1 which was Provisions 3,4,5 and 7; and 2 pension fund members chose Option 3 which was held the monies in reserve. Following discussion, the Trustees, directed the Fund Attorne -, to draft an Ordinance to fund the Minimum Accrual Rate at an annual cost of $103.00 and the Credited Service Definition at an annual cost of $26,473.00. It was noted that tie Fund has $28,333 in excess state funds to apply towards the annual cost: of these two minimum benefits. Attorney Robinson noted they would do so. REPORTS Attorney- No further report. Chairman- No further report Secretary — No further report Administrator- Ms. Lopez reported that the Inver tment Agreements between Trusco Capital Management and the Fund were in order an( had been signed by all appropriate parties. A copy of the Investment Agreements we. -c in the Trustees packets for their records. The next meeting date was scheduled for April 27, 20A at 9:00 a.m. A motion by Mr. Ross to adjourn the meeting at 9:3 5 a.m. was seconded by Ms. Stout - Tate. The motion passed. Mr. Tim Nash of Trusco Capital arrived at 9:35 a.: n. to present his firms Investment Report for the quarter ended December 31, 2003. A r, lotion by Mr. Ross to reconvene the meeting at 9:35 a.m.was seconded by Ms. ;tout- Tate. The motion passed. INVESTMENT .REPORT FOR QUARTER ENDE 0 DECEMBER 31, 2003 Mr. Tim Nash was present to provide his report for tht : quarter ended December 31, 2003. Mr. Nash reported that now that the Investment Agree ments have been signed the 2 fixed income portfolio were purchased on December 31, 20 )3. Mr. Nash stated that the market value of the Fund as of December 31, 2003 was $12,( 33,695. Mr. Nash reported that the investment returns for the total Fund was 6.55% as of December 31, 2003. The investment returns for the equity portfolio was 10.6 % vs. 12.18% and the investment returns for the fixed income portfolio was 1.06% vs. 0.14% for the quarter ended December 31, 2003, Mr. Nash reported that the ass-It allocation is as follows: 63.2% Equity; 33.9% Fixed Income and 2.9% Cas)�. 9 Nov 22 04 03:47p Mr. Nash reported that the S & P 500 rose 12.2% on i total return bases in the 4 "1 quarter. The index was up 28.7% for all of 2003 grid this was the largest increase since 1997, Mr. Nash stated that all ten sectors in the S & P 540 incre tsed in the 4th quarter and small caps generally outperformed large cap stocks during the 4" quarter. Mr. Nash reported that the expansion in the economy, supported by continued fiscal and monetary policy will support further earnings growth and higher stock prices and the Fund will remain overweighted in equities. Mr. Nash reported the Lehman Aggregate Bond inde x rose 0.32% on a total return basis during the fourth quarter. It was noted that this was the fourth consecutive positive year for the index. Mr. Nash believes that the 20 year secular decline in interest rates is ending, a sharp rise from this point is unlikely over .he near term given current Federal policy and the vulnerability of interest sensitive secto- s. As a result, Trusco is positioning portfolio durations neutral relative to benc:lunarks in nder to allow the portfolio to "out - yield" the market, during this low bond yield period. Mr. Nash inquired regarding the best execution left+ x. Attorney Robinson reported he would draft a letter. A motion by Mr. Freeburg to d -aft a letter and have the Chairman sign as soon as possible was seconded by Nis. Stout -T.te. The motion passed. A motion by Mr. Freeburg to adjourn the meeting a 1, 10:10 a.m. was seconded by Ms. Stout -Tate. The motion passed. Secretary Q p.4 w oq 0 N m n O A C A S A� R. n b w m a N W N 0 0 w old 9 Q � &y rj �Q p�' v F O � H � �b o00 b I� O b CD s'd dLi, =60 b0 zz ADW w N 0 N 0 ro �•t w a a n 0 b o. N W N O O w CD 0 oS a. o' CD � �! CD CD P -e p� O y CD �� G O CCDD 0 "ti p 0�� t try � Oro �7. CC D O a � P C D p� � a v 4, C DD . -. � 2. O co CD 0 Ch h 11 ww��'y u 0 O rt r. N CD r r CD1 �TCD �. p CD Q�Q N @ C 1 O: t. CD ~C3'Cnp "NCO O r,6P,b * ^' ice p, A� 10" �W 0 q w ^� � Fr o it rh 'P, o` A. IV O a N -- co O p 00 O CD CD n �w Nom' b !� w0 h-h A C CD 0 A O C3- v ° CD 0' Cya- t.) D 03 H "� O rt w C VI N �. `C N ry r-, CD C13 CD oci `'.w oCD w m rA n y Op C rt F+1 � b O h ys AE3+ C� OIL O ro a� F�+ 9 - d dab• = EO -1,0 as AON r MIAMI DAILY BUSINESS REVIEW Published Daily except Saturday, Sunday and Legal Holidays Miami, Miami -Dade County, Florida STATE OF FLORIDA COUNTY OF MIAMI -DADE: Before the undersigned authority personally.appeared O.V. FERBEYRE, who on oath says that he or she is the SUPERVISOR, Legal Notices of the Miami. Daily Business Review f /k/a 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 HEARING - 12/7/2004 ORDINANCE AMENDING SECTION 20 -3.6 (H) (2) (C), ETC. in the XXXX Court, was published in said newspaper in the issues of 11/26/2004 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 office in Miami in said Miami -Dade County, Florida, fora 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 thi dvertise for publication in the said newspaper. Sworn to and subscribed before me this 26 d of BE A.D. 2004 (SEAL) O.V. FERBEYRE personally known to me oa Maria I. Mesa � t Commission DD293865 Expires March 04, 2008 23 a 0 0 N Ir W m W W Z } Q O Z m J a w i x w x F E 0 u D m L 3 3 3 . w - . ® — ® ®® -- . ■ %v r ^` %01 1111.. rv`lmvYY7I51V1 I VVV r- mr1rXIMU VARIANCES ' _. IN. ORDER TO PERMIT PROPERTY LOCATED; AT 6230 S11V 70TH STREET IN AN "RO "RESIDENTIAL OFFICE ZONING USE DISTRICT TO BE USED AS A COMMERCIAL OFFICE BUILDING:'(1) VARIANCE FROM THE LAND DEVELOPMENT CODE TO ALLOW FOUR OFF- STREET PARKING SPACES WHERE THE REQUIRED OFF - STREET PARKING IS FIVE SPACES; (2) VARIANCE FROM THE LAND DEVELOPMENT CODE TO ALLOW REQUIRED PARKING TO BE LOCATED IN THE FRONT SETBACK AREA WHICH IS PROHIBITED IN THE RO, ZONING USE DISTRICT. inquiries concerning this item should be directed to the Planning Department at 305 -663- 6326 ALL interested parties are invited to attend and will be heard. Maria M. Menendez City Clerk Pursuant to Florida Statutes 286.0105, the City hereby advises the public that if 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. �I V I i r