HomeMy WebLinkAboutCity of Tamarac Ordinance O-2001-008Temporary Ordinance 1928
Revision #1 03/22/2001
#2 03/19/2001
#3 03/28/2001
Page 1
CITY OF TAMARAC, FLORIDA
ORDINANCE NO. 0-2001- 0?
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF
TAMARAC, FLORIDA, AMENDING CHAPTER 16, PENSIONS
AND RETIREMENT, ARTICLE VI, FIREFIGHTER PENSION
PLAN; AMENDING SECTION 16-408, "PARTICIPANT
CONTRIBUTIONS", PROVIDING FOR AN INCREASE IN
EMPLOYEE CONTRIBUTIONS; AMENDING SECTION 16-487,
"EARLY RETIREMENT AGE", PROVIDING FOR THE DELETION
OF EARLY RETIREMENT ON ATTAINMENT OF TWENTY-FIVE
(25) YEARS OF CREDITED SERVICE; AMENDING SECTION 16-
489, "NORMAL RETIREMENT AGE", PROVIDING FOR NORMAL
RETIREMENT AT THE ATTAINMENT OF TWENTY-FIVE (25)
YEARS OF CREDITED SERVICE; ADDING SECTION 16-515,
"RETIREMENT SUBSIDY", PROVIDING FOR A MONTHLY
SUBSIDY BENEFIT AT RETIREMENT OF TEN DOLLARS ($10)
PER YEAR OF CREDITED SERVICE INCLUDING A MINIMUM, A
MAXIMUM AND AN ANNUAL ADJUSTMENT OF 2 AND ONE-
HALF PERCENT (2.5%) THAT TERMINATES AT MEDICARE
ELIGIBILITY; PROVIDING FOR CODIFICATION; PROVIDING
FOR CONFLICTS; PROVIDING FOR SEVERABILITY; AND
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the recent collective bargaining negotiations between the City of
Tamarac and the International Association of Firefighters resulted in an agreement to
amend the City of Tamarac Employees Firefighter's Pension Plan as it applies to the
City's firefighters; and
WHEREAS, the City Commission has received and reviewed the actuarial impact
statement concerning these changes prepared by Gabriel, Roeder, Smith & Company,
the Pension Trust Fund's actuaries attached hereto as Exhibit I; and
Temporary Ordinance 1928
Revision #1 03/22/2001
#2 03/19/2001
#3 03/28/2001
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WHEREAS, the Board of Trustees of the Pension Trust Fund has approved
these amendments; and
WHEREAS, the City Manager and Director of Personnel recommend approval of
amendments to the Firefighters Pension Plan; and
WHEREAS, the City Commission deems it to be in the best interest of the
citizens and residents of Tamarac to amend the plan to reflect the changes agreed
upon in collective bargaining.
NOW, THEREFORE, BE IT ORDAINED by the City Commission of the City of
Tamarac, Florida:
Section 1. The foregoing whereas clauses are hereby ratified and confirmed
as being true and correct and are hereby made a specific part of this Ordinance upon
adoption hereof.
Section 2. Chapter 16, Article VI, Section 16-408 is hereby amended as
follows:
Section 16-408. Participant contributions.
(a) All firefighter participants shall make regular contributions at the rate of five
(5) percent of total cash remuneration paid for services rendered to the city before April
1, 1998, and at the rate of eight and one-half (8-1 /2) percent of total cash remuneration
paid for services rendered to the city on or after April 1, 1998, and at a rate of nine (9)
percent of total cash remuneration aid for services rendered to the city on and after
March 1, 2001, which shall be deposited in the fund each pay period. The city shall
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Temporary Ordinance 1928
Revision #1 03/22/2001
#2 03/19/2001
#3 03/28/2001
Page 3
assume and pay participant contributions for firefighter employees in lieu of payroll
deductions from participants' earnings. No participant shall have the option of choosing
to receive the contributed amounts directly instead of having them paid by the city
directly to the fund. All such contributions by the city shall be deemed and considered
as part of the participants' accumulated contributions and subject to all provisions of
this plan pertaining to accumulated contributions of members. This city pick-up of
contributions is the result of a five -percent reduction of each participant's base pay and
of base pay levels which occurred on October 1, 1986, and an additional three and one-
half (3-1/2) percent reduction of each participant's base pay and of base pay levels
which occurred on April 1, 1998 and one-half of one percent 0.5% which occurred on
March 1, 2001. The city pickup of such employee contributions is intended to comply
with section 414(h)(2) of the Internal Revenue Code.
Section 3. Chapter 16, Article VI, Section 16-487 is hereby amended a
follows:
Section 16-487. Early retirement age.
The early retirement age shall be the first day of any month on which or after a
participant has eaFRed +,. eRty_five (75) vesting credits or hearned ten (10) vesting
credits and attained fifty (50) years of age.
Section 4: Chapter 16, Article VI, Section 16-489 is hereby amended as
follows:
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Temporary Ordinance 1928
Revision #1 03/22/2001
#2 03/19/2001
#3 03/28/2001
Page 4
Section 16-489. Normal retirement age.
The normal retirement age shall be the first day of the month on or after which
the participant attains five (5) vesting credits and fifty-five (55) years of age or attains
twenty-five (25) vesting credits regardless of age.
Section 5: Chapter 16, Article VI, Section 16-515 — 16-540 are hereby
amended as follows:
Section 16-515 - IA-540;served .Retirement subsidy.
Each participant who was an active employee on or after March 1 2001 shall
receive upon retirement and receipt of monthly benefits from this pension plan
(separation of service a monthly subsidy benefit of ten dollars 10.00 for each
completed year of credited service as adjusted herein to be not less than fifty dollars
50.00 and not to exceed three hundred dollars 300.00per month. Such subsidy
benefit shall be adjusted annually, commencing March 1 2002 by a two and one-half
percent 2.5% increase. This retirement subsidy shall continue until the participant
attains Medicare eligibility, at which time the subsidy benefit shall cease.
Section 16-516 — 16-540. Reserved.
Section 6. It is the intention of the City Commission and it is hereby ordained
that the provisions of this Ordinance shall become and be made a part of the Code of
Ordinances of the City of Tamarac, Florida, and that the Sections of this Ordinance may
be renumbered, relettered, and the word "Ordinance" may be changed to "Section",
"Article" or such other word or phrase in order to accomplish such intention.
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Temporary Ordinance 1928
Revision #1 03/22/2001
#2 03/19/2001
#3 03/28/2001
Page 5
Section 7. All Ordinances or parts of Ordinances, and all Resolutions or parts
of Resolutions in conflict herewith are hereby repealed to the extent of such conflict.
Section 8. If any provision of this Ordinance or the application thereof to any
person or circumstance 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 9. This Ordinance shall become effective March 1, 2001.
PASSED, FIRST READING this 28T" day of March, 2001.
PASSED, SECOND READING this 111" day of April, 2001.
ATTEST:
11AWON" NSON, CMC
EltY CLt=RK
L° RTIFY that I
aVtD 'roved this
• ' D E',ki
MITtH`F-LL S.4<Pj
CITY ATTORNEY
4n-
JOE SCHREIBER, MAYO
I:] x6I67:11Z91 YKe] J, I J,16-1-4Is] ► Wel9 :9
MAYOR SCHREIBER
DIST 1: COMM. PORTNER
DIST 2: COMM. MISHKIN
DIST 3: V/M SULTANOF
DIST 4: COMM. ROBERTS
5
L' 11,i11D1 1 1
0M
GABRIEL ROEDER. SMTTH & COMPANY
Consultants & Actuaries
301 Ease US Uas Blvd. • Suite 200 - Ft. Lauderdale, FL 33301 ■ 954-527-1616 • FAX 954-525-0083
March 12, 2001
Board of Trustees
c/o Patrick Flores
First Rencfits Inc. of Florida
2500'Hollywood Blvd., Suite 210
'Hollytivood, FL 33020
Re: Actuarial Impact Statement for Tamarac Firclighters
Dear Trustees_
Enclosed are letter's to the Division of Retiremcnt and the State Treasurer's Office including:
1 _ a summary of the purpose of the Ordinance and a statement that it is in compliance with
appropriate laws.
2. a summary of valuation rrsults
3_ a copy of the Ordinance.
You will have to add a letter from the City stating that the additional cost, if any, will be covered by the
City. Tlten sign the letters (#1 above) and send the packages to Mr_ Slavin at his address and Ms -
Shoemaker at her address (as shown on the lettcrs).
If you have any questions, please contact me.*
Sincerely,
Avo-
Theora P. Braccialarghe, FSA
Scnior Consultant & Actuary
TPB:al
Enclosures
cc: Xenneth R. I:Iarrison, Sr.
GABRIEL, ROEDER. SMITH & COMPANY
Consultants & Actuaries
301 East Las 01as 8W. 0 Sule 200 • FL Lauderdale. FL 33301 •954-527-161 B ■ FAX 954-525.00W
March 12, 2001
Ms- Patricia Shoemaker
Bureau of Municipal Police Officers
& Firefighters Retirement Fund
P.O. Box 3010
"Tallahassee, Florida 32315-3010
Re: Actuarial Impact Staterrtcrit for the City of Tamarac Firefighters' Retirement Plata
Dear Ms. Shoemaker:
Enclosed is a copy of Ordinance No. 0-2000- amending the above -captioned retirement
plan. i7tis luncr, with enclostues, constitutes the Statt-mcm of Actuarial Lnpact as issued by the plan
administrator.
The proposed Ordiriancc provides for:
• Normal ltetiTCMt:nt alter 25 years of service, regardless of age
S300/mo subsidy for currently active members, accrued evenly over 30 yrs., 2.5% arulual
adjustment beginning 3/l/02. BE-nefit stops at Medicare Eligibility -
An increase in the member contribution rate from 8.5% to 9%.
The 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 mast the
requirements and intent of Part VT1, Chapter 112, Florida Statues. There is no benefit or expense to be
provided by the plan an(]/or paid from the plan's assets for which liabilities or current cost have not been
established or otherwise wken into account in the cost determination. 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 cost determination.
0
Theora P. Braccialarghe, FSA, MAAA. FCA Date
Enrolled Actuary #99-2826
For the Pension Board as
Plan Administrator
TPB:a]
Enclosure
Date
LW
GABRIEL- ROEDER. SMITH & COMPANY
Consultants & Actuaries
301 East Las Olas Blvd • Suite 200 • FL Lauderdale. FL 33301 •954.527-1616 • FAX 954-525.00M
March 12, 2001
Mr. Charles Slavin, Actuary
Bureau of Program Services
Division of Retirement
Cedars .Executive Center, Bldg. C
2639 North Monroe Street
Tallahassee, Florida 32399-1560
Re: Actuarial impact Statement for the City of Tamarac Fireftgltters' Retirement Plan
Dear Mr. Slavin:
Enclosed is a copy of Ordinance No. U-2000- amending the above -captioned retirerriev
plan. This letter, with enclosures, constitutes the Statement of Actuarial Impact as issued by the plan
administrator.
The proposed Ordinance provides for.
• Normal Retirement after 25 years of service, regardless of age
• S300/mo subsidy for currently active members, accrued evenly over 30 yrs., 2.5°1n annual
adjustment beginrdng 3/1/02. Benefit stops at Medicare Eligibility.
• An increase in the member contribution rate from 8.5% to 9%.
The cost determination was prepared and completed by me or under my direct supervision, and I
a6mowledge 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 VU, Chapter 112, Florida Statues. There is no benefit or expense to be
provided by the plan and/or paid from the plan's assets for which liabilities or currant cost have not been
established or otherwise taken into account in the cost determination. All ]mown events or trends,
which may require a material increase in plan costs or required contribution rates have been taken into
account in the cost determination.
Theora 1. Braccialarghe, FSA, MAAA, FCA Date
Enrolled Actuary #99-2826
For the Pension Board as
,Plan Adrninvstrator
TPB:al
Date
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1999 I.mpaet
1999 New
dated An .'00
A. Number of Participants
Actives
70
70
Retirees, Disabilities, Beneficiaries and
Vested Terrninations
6
6
Total Amtual Covered Payroll
S3,7S6,$22
S3,761,648
lr b • Ran a Cost
B. Actuaiial Present Value ofProjccted Benefits
24,898235
24,597,990
C. Actuarial Present Value of Future Normal Costs
9,387,544
10,207,211
D. Actuarial Accrued Liability (AAL): B -- C
15,510,692
14,390;779
E. Valuation Assets,
13,860,526
13,860,526
F. Unfunded Actuarial Liability (UAAL): D--F
1,650,366
530,253
^t3tirr",eiat-Cost . .
G. Payment Required to Amortize UAAL
98,811
8,656
As % of Payroll
2.63%
0.23%
B. Employer Normal Cost (for current year, exclu.5ive
of funding toward UAAL)
690,828
657,519
As %of Payroll
18.39%
17.49%
1, Plan Year to which Contributions Apply
N/A
1999/2000
J. Total Required City and State Contributions if paid
the fiscal car in (1) above
monthly during Y
821,650
693,493
As % of Payroll
�
21.87 /a
18.44%
K. Estimated State Contributions
201,338
166.525
As % of Payroll
5.360/6
4.43%
L. Fs6matt ofRequired City Contributions for the
fiscal year beginning one year after the valuation
620,312
526,968
elate, as % of payroll in that year
16.51 %
14.01 %
p3tE,SEN3" A ilt-bF:'PROJECTED BENEFITS.—.
OFOCTOMM 1,
1999 New 19991mpact
dates Aug_'00
A. Present Value of Future Salaries $34,789,700 540,538,400
B. Prescnt Value of Projected Benefits
1. Active Members
a. Servicc Retirement Benefits
20,679,281
19,641,107
b, Vesting Benefits
1,296,062
1,930,995
c. Disability Benefits
1,097,682
1,099,705
d_ Pt=tircmcntDeath Benefits
324,738
442,896
e. Remm of Contributions
191.279
1--- 74,094
f. Total
23,589,042
23,2SE,797
2. inactive Members
a. Service Retirees
634,839
634,839
b. Disability Retirees
634,502
634,502
C. Brncficiaries
27,589
27,589
d. Terminated Vested
12,263
�1,309,193
12,263
e. Total
1,309,193
3. Grand Total
24,893,235
24,597,990
FEkMG=RS
UQMA.TION OF THY, L1NnJNDED ACTUARIAL ACCRUED LIABILTTY
The Unfunded Actuarial Accrued Liability (UAAL) is being amortized as a level dollar amount
over the number of years remaining in the amortization period- Details relating to the MAL are as
follows_
rOrlxtal
Current
Amortization
Years
Date
Pcriiod
Amount
Rempinixic
Amount
Payment
]D/1/86
30 years
$379,914
17
$ 306,793
S 30,696
10/1/88
30 years
334,335
19
287,814
27,315
10/J/93
30 years
383,224
24
359,074
30,994
10/1/93
30 years
92,022
24
86,222
7,442
10/1/94
30 year;
(228,901)
25
(217,351)
(18,495)
10/1/96
30 years
266,506
27
258,908
21,496
10/1/97 Method
30 years
1,061,162
28
1,041,308
55,468
10/1/98 Gain
15 years
(712,146)
14
(685,292)
(76,028)
1011/99 Gain
15 years
(1,034,769)
15
(1,034,769)
(110,490)
10/1/99 Correction
30ycars
123,734
30
123,734
9,961
10/1/99 Benefit Change
30 years
2,007
30
2,007
162
1011/99 Bcnefit Change
30 years
1,805
30
1,&05
145
10/1/99 Benefit Change
30 year's
1,119,913
30
1119.913
90,155
1,650,166
98,511
Equivalent single amortization period per GASB No. 25 —
'=S: S'ctr�iliile}llua'iiA"Tian`�tlieEsoc�ied;iA:inb��tnir�i�C:kl'e�. �::S;�Y:;�..� � ............... .. •- .
Year I Proieeted UAAL
1999
$1,650,166
2000
1,671,595
2001
1,694,664
2002
1,719,532
2003
1,746,327
2008
1,914.862
2013
2,159,642
2015
1,57 l ,183
2023
952,199
2028
100,423
2029 1 0