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Home My WebLink AboutCity of Tamarac Ordinance O-2023-008Temp. Ord. #2527 May 10, 2023 Page 1 of 5 CITY OF TAMARAC, FLORIDA ORDINANCE NO. 0-2023- DC)2 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF TAMARAC, FLORIDA; AMENDING CHAPTER 16, PENSIONS AND RETIREMENT, ARTICLE IX, ELECTED AND APPOINTED OFFICERS AND NON -REPRESENTED EMPLOYEES' RETIREMENT PLAN; AMENDING SECTION 16.905, SERVICE RETIREMENT BENEFITS; COST OF LIVING ADJUSTMENT; DISABILITY RETIREMENT; PROVIDING FOR A SAVINGS CLAUSE; PROVIDING FOR SEVERABILITY; PROVIDING FOR CODIFICATION AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Tamarac Elected and Appointed Officers and Non - Represented Employees Retirement Plan (the "Plan") Board of Trustees (the "Board") has reviewed the proposed changes; WHEREAS, the City Commission and the Trustees of the Board desire to amend the Plan Document to modify the City Manager's benefit accrual and years of service; WHEREAS, the City Commission of the City of Tamarac has deemed it to be in the best interest of the citizens of the City of Tamarac to amend the Plan to reflect this change; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF TAMARAC, FLORIDA: SECTION 1: Section 16-905 of the City of Tamarac Code of Ordinances, is hereby amended to read as follows. - CODING Words in strike through type are deletions from existing law; Words in underscore type are additions. Temp. Ord. #2527 May 10, 2023 Page 2 of 5 Sec 16-905. — Service Retirement benefits; cost of living adjustment; disability retirement (b) The normal retirement benefit shall be determined based upon the following percentages of final monthly compensation multiplied by the applicable years and completed months of credited service: (1) For elected officials: Six and two-thirds (6 2/3) percent of the final monthly compensation for each completed year of service term, with a pro-rata accrual for partial years. The maximum benefit accrual shall be eighty (80) percent of final monthly compensation. (2) City manager and sCity aAttorney: Four (4) percent of final monthly compensation multiplied by all years of credited service with the . The maximum benefit accrual shall be eighty (80) percent of final monthly compensation. The city attorney shall refer to a full time, appointed city officer and shall exclude any attorney hired on a contractual basis. (3) City Manager: Four (4) percent of final monthly compensation multiplied by all years of credited service with the City pfev+ded CODING: Words in type are deletions from existing law; Words in underscore type are additions. Temp. Ord. #2527 May 10, 2023 Page 3 of 5 The maximum benefit accrual shall be eighty (80) percent of final monthly compensation. The maximum benefit accrual for a City Manager with twenty-five (25) years of credited service with the City, shall he ninety (90) nernen" find monthly Tears of Gredited se^�:;*hthe` iW—prior to becoming the City Manager, shall be ninety (90) percent of final monthly compensation. (3)141 For all other participants: Three (3) percent of final monthly compensation multiplied by credited service. The maximum benefit accrual shall be eighty (80) percent of final monthly compensation. In no instance shall the aggregate benefit payable from the plan exceed eighty (80) percent of final monthly compensation, except for the City Manager provided that he or she has 25 (twenty-five) years of credited service with the City prior to becoming the City Manager. In no instance shall the benefit paid to a member or the designated beneficiary be less than the member's accumulated contributions, with simple interest at the rate of four (4) percent annually. Once a participant has reached the maximum benefit accrual, the participant's contributions shall continue and the participant's increases in compensation shall apply towards the participant's final monthly compensation calculation. SECTION 2: It is the intention of the City Commission and it is hereby ordained that the provisions of this Ordinance shall become and be made part of the Code of CODING: Words in strife through type are deletions from existing law; Words in underscore type are additions. Temp. Ord. #2527 May 10, 2023 Page 4of5 Ordinances of the City of Tamarac, Florida, and that the sections of this Ordinance may be renumbered or re -lettered, and the word "Ordinance" may be changed to "Section," "Article" or such other word or phrase in order to accomplish such intention. SECTION 3: All ordinances or parts of ordinances in conflict herewith are hereby repealed to the extent of such conflict. SECTION 4: If any provision of this Ordinance or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of this Ordinance that can be given affect without the invalid provision or application, and to this end the provisions of this Ordinance are declared to be severable. SECTION 5: This Ordinance shall become effective upon passage. "The remainder of this page left blank intentionally." CODING: Words in type are deletions from existing law; Words in underscore type are additions. PASSED, FIRST READING this PASSED, SECOND READING this ATTEST: KIMBERLY ILLON, CMC CITY CLERK J°2 day of Ok Temp. Ord. #2527 May 10, 2023 Page 5 of 5 OIL , 2023. day of MAy , 2023. MIC LLE J. GONXLt4 MAYOR FIRST READING: RECORD OF COMMISSION VOTE: MAYOR GOMEZ `ItFs DIST 1: V/M BOLTON DIST 2: COMM. WRIGHT JR \1 r=5� DIST 3: COMM. VILLALOBOS ��- DIST 4: COMM. DANIEL SECOND READING: RECORD OF COMMISSION VOTE: MAYOR GOMEZ DIST 1: V/M BOLTON DIST 2: COMM. WRIGHT JR DIST 3: COMM. VILLALOBOS DIST 4: COMM. DANIEL APPROVED AS TO FORM AND LEGAL SUFFICIENCY FOR THE USE AND RELIANCE OF THE CITY OF TAMARAC ONLY. :1 - AN OTTINOT CITY ATTORNEY CODING: Words in stroke through type are deletions from existing law; Words in underscore type are additions. TO 2527 CITY OF TAMARAC ELECTED AND APPOINTED OFFICERS' AND NON -REPRESENTED EMPLOYEES RETIREMENT PLAN IMPACT STATEMENT FOR ORDINANCE. NO. 0-2023- PART ONE: CERTIFICATION OF TI IE PLAN ADMINISTRATOR I have enclosed a copy of Ordinance No. 0-2023---- of the City of Tamarac, which ordinance provides for a maximum benefit of 90% of average earnings (instead of 80%) for the City Manager, provided that the City Manager has earned at least 25 years of service with the City prior to his or her appointment to that position. The plan's enrolled actuary, Charles T. Carr of Southern Actuarial Services Company, Inc., was provided with a copy of the proposed ordinance. In addition, the described plan change meets the requirements of Part VII, Chapter 112, Florida Statutes, and Section 14, Article X of the State Constitution. Chair, Board of Trustees PART TWO: CERTIFICATION OF TI iE ENROLLED ACTUARY Chapter 112 requires disclosure of the effect of changes in assumptions, methods, and plan provisions on certain liabilities. I have determined the impact of Ordinance No. 0-2023- based on the results of the October 1, 2022 actuarial valuation. The ordinance is expected to increase the annual contribution required from the City by 0.46% of payroll. As of October 1, 2022, the increase in annual cost is estimated to be $38,434 assuming a beginning -of - year employer contribution. The following table sets forth the required disclosures in connection with the plan change which has been described above: City of Tamarac Elected and Appointed Officers and Non-Represenled Employees Retirement Plan Impact Statement for Ordinance No. 0-2023- (continued) As of As of October 1, 2022 October 1, 2022 Old Plan Provisions New Plan Provisions Present value of future expected benefit payments: for active participants retirement benefits $ 45,067,892 $ 45,297,509 lermination benefits 0 0 disabilih, benefits 1,190,607 1,190,607 death benefits 321,801 321,801 return of contributions 1,189 1,189 $ 46,581,489 sub -total $ 46,811,106 for terminated vested participants $ 6,138,511 $ 6,138,511 for retired participants and beneficiaries retired (other than disab.) & henef. $ 30,702,350 $ 30,702,350 disabled retirees 0 0 $ 30,702,350 stab -total $ 30,702,350 $.___._,S.Q.____,___.v.b.5.1,267 total Entry age normal accrued liability: for active participants retirement benefits $ 29,806,1 15 $ 30,030,385 termination benefits 0 0 disability benefts 612,823 612,823 death benefits 167,627 167,627 return of contributions 356 356 $ 30,586,921 sub -Iota/ $ 30,811,191 for terminated vested participants $ 6,138,511 $ 6,138,511 for retired participants and beneficiaries retired (other than disab.) & benef $ 30,702,350 $ 30,702,350 disabled retirees 0 0 $ 30,702,350 $ 30,702,350 sub -total $--_ GZ,427,782 _._ 67,652.,( 52 total (69,147,959) Actuarial value of assets (69,147,959) $.0 - :. _.__ __ _0 Unfunded accrued liability Actuarial present value of accrued benefits $ 61.733,786 $ 61,952,434 Present value of active participants': Future salaries $ 49,915,097 $ 49,915,097 Future contributions $ 4,991,514 $ 4,991,514 Present value of future contributions from the employer (including expense loading) $ 9,532,452 $ 9,762,069 Total annual compensation (2022/23 FY) $ 8,354,904 $ 8,354,904 Minimum required contribution (2022/23 FY): Annual normal cost (incl. expenses) $ 1,595,564 $ 1,633,998 Interest adjustment o 0 Total As a percentage of payroll 19.10% 19.560/,, * bused on n heginning-of-year employer contribution City of T amarac Elected and Appointed OJJlcers and Non -Represented Employees Retirement Plan Impact Statement for Ordinance No 0-2023- (continued) 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 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. Respectfully submitted, ei(Ai/tJ, ✓. (0-1AjVN, Charles T. Carr, A.S.A. Consulting Actuary Enrolled Actuary No. 23-04927 J-v )3 Date signed