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Home My WebLink AboutCity of Tamarac Ordinance O-2003-0051 1 Temp. Ord. # 2000 March 3, 2003 Rev. #1 March 5, 2003 Page 1 CITY OF TAMARAC, FLORIDA ORDINANCE NO. 0-2003 - 05 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF TAMARAC, FLORIDA, AMENDING THE CITY OF TAMARAC CODE, CHAPTER 16, ENTITLED "PENSIONS AND RETIREMENT", ARTICLE III, PENSION PLAN, DIVISION 4, BENEFITS, SECTION 16-233. BENEFIT LEVEL, PROVIDING FOR AN INCREASE IN THE BENEFIT MULTIPLIER FROM 2.05% TO 2.25% FOR EMPLOYEES WHO EARN TWENTY-FIVE VESTING CREDITS; PROVIDING FOR CODIFICATION; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Tamarac offers a defined benefit pension plan to its general employees; and WHEREAS, the City of Tamarac has entered into a collective bargaining agreement with the representative organization (The Federation of Public Employees) for its general employees to amend specific pension benefits in the pension plan offered by the City; and WHEREAS, the parties have agreed to jointly recommend such change to the Pension Board and the City Commission; and WHEREAS, the General Employees' Pension Trust Fund approved the proposed change on February 21, 2003 as noted on Exhibit 1; and WHEREAS, the City Commission has received and reviewed an actuarial impact statement related to this change attached hereto as Exhibit 2; and CODING: Words in 6tFUGk thFOu^" are deletions from existing law; Words in underscored type are additions Temp. Ord. # 2000 March 3, 2003 Rev. #1 March 5, 2003 Page 2 WHEREAS, the City Commission of the City of Tamarac has deemed it to be in the best interest of the citizens and residents of the City of Tamarac to amend the plan to provide for an increase in the benefit multiplier. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF TAMARAC, FLORIDA: SECTION 1: That 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: That Section 16-233, Division 4, Article III, Chapter 16, of the City of Tamarac Code of Ordinances is hereby amended as follows: Sec. 16-233. Benefit level. (a) The benefit level is two and five hundredths (2.05) percent of average final compensation for participants with less than twentv-five (25) vears of credited service and two and twentv- five hundredths (2.25) percent for r)articioants with twentv-five (25) or more years of credited service. SECTION 3: 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 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. CODING: Words in istry^k tthrpeug# are deletions from existing law; Words in underscored type are additions Temp. Ord. # 2000 March 3, 2003 Rev. #1 March 5, 2003 Page 3 SECTION 4: All Ordinances or parts of Ordinances in conflict herewith are hereby repealed to the extent of such conflict. SECTION 5: 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 6: This Ordinance shall become effective February 1, 2003. PASSED, FIRST READING this 12th day of March, 2003. PASSED, SECOND READING this 26th day of March, 2003. J SCHREIBER, MAYOR TEST: RECORD OF COMMISSION V TE: 1"t Reading MAYOR SCHREIBER DIST 1: V/M PORTNER MARION S ENSON, CMC DIST 2: COMM. MISHKIN CITY CLERK DIST 3: COMM. SULTANOF DIST 4: COMM. ROBERTS I HEREBY CERTIFY that I have a prove. this RDI N"DIST OF COMMISSION VOTE: 2"d Reading SCHREIBER COMM. PORTNER COMM. TALABISCO COMM. SULTANOF V/M ROBERTS MITCHEYL�FT CITY ATT EY CODING: Words in StFUGk throuo are deletions from existing law; Words in underscored type are additions 02/28/2003 12:54 813 988 6978 FIRST BENEFITS PAGE 02/09 xhibit 1 Temp. Ord. 2000 CITY OF TAMA.RAC GENERAL EMPLOYEES" PENSION TRUST FUND C/O )FIRST BENEFIT SERVICES, INC. 7930 U.S. HIGHWAY 301 NORTH, SUITE A TAMFA, FLORMA 33637 (813)985-9582 / (800) 950-9582 FAX (813) 988-6978 February 28, 2003 Ms. Maria Swanson Director of Human Resources City of Tamarac 7525 NW 881h Avenue Tamarac, FL 33321 RE: CITY OF TA_MA.RAC GENERAL EMPLOYEES' PENSION TRUST FUND Dear Ms. Swanson: Please be advised, the Board of. Trustees of the City of Tamarac General Employees' Pension Fund approved the attached Ordinance (increases the benefit formula multiplier from 2.05% to 2.25% for those participants who earn at least 25 years of service) at their regular meeting on. February 21, 2003. Also enclosed is a signed impact statement from the Fund's Actuary concerning the above Ordinance which must be sent to Charles Slavin and Patricia Shoemaker at the Division of Retirement in Tallahassee. If you have any questions or need any additional information, please contact me. Sincerely, N+aN. Dan Gatzulis Administrative Manager Enclosure 02/28/2003 12:54 813 988 6978 _= SOUTHERN _= ACTUARIAL SERVICES February 25, 2003 Ms, Maria Swanson Director of Personnel City of Tamarac 7525 N.W. 8$"' ,Avenue Tamarac, FL 33321-2401 Re: Ci r of T'amgmc Em ees' Pensio. an Dear Maria: FIRST BENEFITS FEB 2 (i 2003 PAGE 06/09 �+.'Xhibit G Temp. Ord. 2000 POST ORIG Box 66d343 ATLANTA, GEORGIA 303501W TILE NON1770,39t.096o 461HILL 710,394.2193 WWW SOUT11TRNA(TUARIAL.tOM In response to your request, I have enclosed two signed impact statements for the proposed ordinance which increases the benefit formula multiplier from 2.05% to 2.25% for those participants who earn at least 25 years of service. If you have any questions, please do not Lesitate to call. me. Sincerely, Charles T. Carr Consulting Actuary Enclosures as stated. cc: Mr. Daniel E. Gatzulis (w/enclosure) Mr. Robert A. Sugaman (w/enclosure) OUR OM(I IS LO(AT0 AT 7676 RmILL {GOAD, SUITS ioOTLANTA, GEORGIA p3w 02/28/2003 12:54 813 988 6978 FIRST BENEFITS PAGE 07/09 CITY OF TAMARAC EMPLOYEES' PENSION PLAN IMP CT STATEMENT FOR ORDINANCE 2003- PART ONE: FP TIFICATION OF TH THAN ADMINISTRATOR I have enclosed a copy of Ordinance 2003- of the City of Tamarac, which ordinance makes the following change to the City of Tamarac Employees' Pension. Plan as of February 1, 2003 : The benefit formula multiplier for all service has been increased from 2.05% to 2.25% for those employees who attain 25 years of service. The plan's enrolled actuary, Charles T. Carr of Southern Aetuatial 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. Maria Swanson Chairman, Board of Trustees PART TWO: CFRTIFIC TI N OF THE ENROLLED ACTUAJ� Y Chapter 112 requires disclosure of the effect of changes in assumptions, methods, and plan provisions on certain Iiabilities. I have determined the impact of Ordinance 2003- as well as the impact of the elimination of the assumed withdrawal and retirement rates within three years of eligibility for the increased benefit. The ordinance and assumption changes are anticipated to increase the annual contribution required from the City by $91,720, or 1.49% of payroll, which amount reflects an increase in normal cost of $30,212, an increase in amortization payments of $62,244, and an increase in expected employee contributions of $736_ The following table sets forth the required disclosures in, connection with the plan and assumption changes which have been described above: R2128l2003 12:54 813 908 6978 FIRST BENEFITS PAGE 00/09 City of Tamarac Employees' Pension Plan Lm pact 3l�for Drd nance 2003- (Continued) As of October 1, 2002 (Old Plan Provisions; Old Assumptions) As of October 1, 2002 (Old Plan Provisions; New Assam tons) As of October 1, 2002 (New Plan Provisions; New Assumptions) Present value of future expected benefit payments: for active members $ 16,379.438 $ 16,791,991 $ 17,643,656 for terrawated vested. members 732,896 732,896 732,896 for retired members and beneficiaries 9,4 .158 9.401,8 $ _9.401A.59 total $ 26,514,192 $ 26,926,745 $ 27,778,410 Actuarial accrued liability $ 20,582,27-5 $ 20,822,400 $ 21,408,675 Actuarial value of assets $ (15,799,694] $ (15,798,694) 15 7 8 94 Unfunded actuarial accrued liability $ 4,783,531 $ 5,023,706 $ 5,609,981 Actuarial Present value of accrued benefits $ 16,095,069 S 15,993,596 $ 15,993.596 Present value of active members': Future salaries $ 50,481,030 $ 52,447,510 $ 52,447,510 Future contributions $ 2,524,052 $ 2,622,376 $ 2,622,376 Present value of future contributions from the City $ 8,191,446 $ 8,505,675 $ 9,357,340 Total annual compensation $ 6,022,054 $ 6,036,789 $ 6,036,788 Minimum required contribution (beginning of year): Annual normal cost $ 839,642 $ 843,233 $ 869,854 Amortization payment __ __ 325,9L6 $ „ _ 344,005 388 160 Total $ 1,165,558 S 1,187,238 $ 1,258,014 R2/28/2003 12.54 813 988 6978 FIRST BENEFITS PAGE 09/09 City of Tamarac Lmployees' Pension Plan. Z. mnact &ttement (or Ordinance 2003- (conanued) 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 tecluiiques and assumptions used are reasonable and meet the ,requirements and intent of Part VIX, Chapter 112, Florida Statutes. There is no bentdit 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, Charles T. Carr, ,A-S.A. Consulting Actuary Enrolled Actuary No. 02-4927