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Home My WebLink AboutCity of Tamarac Ordinance O-2003-0211 Temp. Ord. # 2021 August 18, 2003 Rev. #1 August 20, 2003 Page 1 CITY OF TAMARAC, FLORIDA ORDINANCE NO. 0-2003 -a( AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF TAMARAC, FLORIDA; AMENDING CHAPTER 16, PENSIONS AND RETIREMENT, ARTICLE VIII - POLICE OFFICER PENSION PLAN; PROVIDING FOR A SUBSIDY BENEFIT OF $220.00 PER MONTH FOR PARTICIPANTS WHO RETIRE ON OR AFTER 10/01/02; PROVIDING FOR CODIFICATION; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Florida Legislature adopted amendments to Chapter 185 of the Florida Statutes that outline specific provisions for the use of State contributions to Police Officers Pension Trust Funds; and WHEREAS, the Police Officer Pension Trust Fund currently meets all minimum requirements as defined in said amendments to Chapter 185, and may only use existing reserve funds to provide additional benefits for participants of the Police Officers Pension Trust Fund; and WHEREAS, the City Commission has received and reviewed the actuarial impact statement concerning these changes prepared by Gabriel, Roeder, Smith and Company, the Police Officer Pension Trust Fund's actuaries attached hereto as Exhibit 1; and WHEREAS, the Police Officer Pension Trust Fund approved the proposed changes on June 20, 2003; and WHEREAS, the City Manager and Director of Human Resources recommend approval of this amendment to the Police Officer Pension Trust Fund; and Coding: Words in 64U& through type are deletions from existing laws; Words in underscored type are additions. Temp. Ord. # 2021 August 18, 2003 Rev. #1 August 20, 2003 Page 2 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 Section 16-733 of the Tamarac Code of Ordinances to reflect these changes to the Police Officer Pension Trust Fund. 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. That Sectionl6-733, of the City of Tamarac Code of Ordinances, is hereby amended as follows: Sec. 16-733 Calculation of benefit amount. Subsidy benefit. Each participant who retires on or after 10/01/02 shall be entitled to receive a subsidy benefit in the amount of_$220.00 per month. Such subsidy benefit shall be for ten 10 ears certain and life thereafter as rovided in section 16-722 herein unless the participant elects an optional benefit as_provided in section 16-723 herein for such subsidy benefit. 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 relettered, and the word "Ordinance" may be changed to "Section", "Article" or such other word or phrase in order to accomplish such intention. 1 I Coding: Words in StF E;k throu^h type are deletions from existing laws; Words in underscored type are additions. 1 Temp. Ord. # 2021 August 18, 2003 Rev. #1 August 20, 2003 Page 3 SECTION 4. 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 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. 411110 SECTION 6. This Ordinance shall become effective, retroactively to October 1, PASSED, FIRST READING this 27t" day of August, 2003. PASSED, SECOND READING this 101h day of September, 2003. ATTEST: MARION SWENSON, CMC CITY CLERK I HEREBY CERTIFY that I have approved this ORDINANCE as to form. i G MITCH LL S. KF CITY ATTORN JOE SCHREIBER, MAYOR RECORD OF COMMISSION VOTE: 1st Real MAYOR SCHREIBER DIST 1: COMM. PORTNER DIST 2: COMM. FLANSBAUM-TALABISCO DIST 3: COMM. SULTANOF DIST 4: V/M ROBERTS RECORD OF COMMISSION VOTE: 2nd ReE MAYOR SCHREIBER DIST 1: COMM. PORTNER DIST 2: COMM. FLANSBAUM-TALABISCO DIST 3: COMM. SULTANOF DIST 4: VIM ROBERTS Coding: Words in sty^k thFGUO type are deletions from existing laws; Words in underscored type are additions. ng EXHIBIT I POLICE OFFICERS COMPARATIVE SUMMARY Off' "VALUATION RESULTS AS OF OCTOBER 11200z Valuation Impact Covered Group A. Number of Participants Actives 5 5 Retirees, Disabilities, Beneficiaries and Vested Terminations 40 40 Total Annual Covered Payroll $41902 S419,082 Long Range Cost B. Actuarial Present Value of Projected Benefits 10,624,372 10,749,613 C. Actuarial Present Value of Future Normal Costs 122,379 129,892 D. Actuarial Accrued Liability (AAL): B-C 10,501,993 10,619,721 E. Valuation Assets 9,338,629 9,338,629 F. Unfunded Actuarial Liability TAAL): D-E 1,163,364 1,281,092 Current Cost G. Payment Required to Amortize UAAL 72,110 81,587 As % of Payroll 17.21 % 19.47% H. Employer Normal Cost (for current year, exclusive of funding toward UAAL) 7016, 4 7317.4 As % of Payroll 0 16.94 /0 0 17.42 /o I. Fiscal Year to which Contributions Apply 2002/03 2002/03 J. Total Required City and State Contributions if paid Monthly during the fiscal year in (I) above 148,885 160,874 As % of Payroll 35.53% 38.39% K. Estimate of Available State Premium Tax Refund 221,635 233,624 As % of Payroll 52.89% 55.75% L. Balance Required from CityBSO 0 Of 0% 0 0.00% As % of Palyroll POLICE OFFICERS DERIVATION OF NORMAL COST AS OF OCTOBER 1 2002 Valuation Impact A. Entry Age Normal Costs for Benefits 1. Service Retirement Benefits $24,532 $25,717 2. Vesting Benefits 3,064 3,532 3. Disability Benefits 4,333 4,725 4. Preretirement Death Benefits 704 704 5. Return of Contributions 43 43 6. Total 32,676 34,721 B. Normal Cost for Administrative Expense 45,438 45,438 C. Expected Member Contributions 7,140 7,140 D. Employer Normal Costs for Plan Year Beginning October 1: (A) + (B) -- (C) 70,974 73,019 . P11E5ENT VALUE OF I'RO,IEC X'ED In .. . AS OP UC POUR 1 21102 Valuation Impact A. Present Value of Future Salaries $ 549,000 $ 549,000 B. Present Value of Projected Benefits 1. Active Members a. Service Retirement Benefits 2,778,242 2,900,803 b. Vesting Benefits 25,920 26,785 c. Disability Benefits 32,548 34,363 d. Preretirement Death Benefits 12,735 12,735 e. Return of Contributions 0 0 f. Total 2,849,445 2,974,686 2. Inactive Members a. Service Retirees 4,258,392 4,258,392 b. Disability Retirees 2,923,772 2,923,772 c. Beneficiaries 173,865 173,865 d. Terminated Vested 418,898 418,898 e. Total 7,774,927 7,774,927 3. Grand Total 10,624,372 1 10,749,613 LIQUIDATION OF THE UNFUNDED ACTUARIAL ACCRUED LIABILITY 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 UAAL are as follows: A. UAAL . Original Current Amortization Years Date Period Amount Remaining Amount Payment 10/1/00 Bases Combined 9 Years $ 110,547 7 $ (223,859) $ (39,564) 10/1/02 (Gain)/L.oss 30 Years 1,349,769 30 1,349,769 108,659 2002 Amendment 30 Years 37,454 30 37,454 3,015 Proposed Ordinance 30 Years 117,728 30 117,728 9,477 Totals 1,281,092 81,587 B. Schedule lHustrating the Expect Amortization of the UAAL Year Protected UAAL 2002 $1,281,092 2003 1,292,466 2004 1,304,722 2005 1,317,928 2006 1,332,157 2011 1,333,091 2016 1,174,162 2021 943,333 2026 608,077 2031 121,151 2032 0 P-" CITY OF TAMARAC POLICE OFFICERS' PENSION TRUST FUND August 15, 2003 Ms. Dodi Cummings City of Tamarac 7525 NW 881h Avenue Tamarac, FL 33321 Dear Ms. Cummings: i iLV,t-1iNl R'F.,., J, UR(,E da Bonerits usA, Inc. 3810 Invenmy Boulevard, Suite 208 03 AUG 15 AM 1 1: 08 Lauaertull, FL 33319 (954) 730-2068 (800)452-2454 (954) 730-0738 Fax The Board of Trustees of the City of Tamarac Police � officers Pension Trust Fund met on June 20, 2003. The Trustees approved the Ordinance for t1,te Health' ubsidy that was provided by the Fund Attorney. If you have any questions regarding this matter, pleas,: do not hesitate to contact this office. Sincerely, J Pete Prior Fund Administrator PP/hl