HomeMy WebLinkAboutCity of Tamarac Ordinance O-2004-0161
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Temp.Ord. #2052
June 16, 2004
Page 1 of 20
CITY OF TAMARAC, FLORIDA
ORDINANCE NO. 0-2004-Z6
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF
TAMARAC, FLORIDA; AMENDING CHAPTER 16, PENSIONS AND
RETIREMENT, ARTICLE V. "FIREFIGHTERS — DECLARATION OF
TRUST" PROVIDING FOR ELIGIBILITY TO SERVE AS A
TRUSTEE; AMENDING CHAPTER 16 PENSIONS AND
RETIREMENT, ARTICLE VI "FIREFIGHTER PENSION PLAN"
PROVIDING FOR DEFINITIONS; PROVIDING FOR THE
PURCHASE OF CREDITED SERVICE FOR MILITARY AND
FIREFIGHTER SERVICE PRIOR TO EMPLOYMENT BY THE CITY
OF TAMARAC; ESTABLISHING A DEFERRED RETIREMENT
OPTION PROGRAM (DROP); PROVIDING FOR A COST OF LIVING
ADJUSTMENT FOR CERTAIN PARTICIPANTS; PROVIDING FOR
CODIFICATION; PROVIDING FOR CONFLICTS; PROVIDING FOR
SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Tamarac and the International Association of Firefighters,
Local 3080, have agreed through the collective bargaining process to enhance certain
pension benefits for the Firefighters of the City of Tamarac; and
WHEREAS, the parties have, as required by'State of Florida Statutes, ratified such
collectively bargained agreements; and
WHEREAS, the Firefighters' Pension Trust Fund Board of Trustees approved the
proposed changes on June 18, 2004, and
WHEREAS, the City Commission has, received and reviewed an actuarial impact
statement related to this change, attached hereto as Exhibit 1; and
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 these
changes;
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Temp.Ord. #2052
June 16, 2004
Page 2 of 20
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_; Chapter 16, Pensions and Retirement, Article V, Firefighters -
Declaration of Trust, Division 2. Board of Trustees of the City of Tamarac Code of
Ordinances, is hereby amended to read as follows:
Section 16-331. Members.
A firefi hter who has started artici ation in the DROP
after the date on which he/she began a term as a trustee shall
be entitled to complete that full term. A firefighter who has
started participation in the DROP for purposes of this section
shall be considered to be retired.
SECTION 3: Chapter 16, Pensions and Retirement, Article VI, Firefighter Pension
Plan, Division 1. Generally of the City of Tamarac Code of Ordinances, is hereby
amended to read as follows:
Section 16-401 Definitions.
Average final compensation means one -twelfth of the average
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Temp.Ord. #2052
June 16, 2004
Page 3 of 20
annual compensation, definedas total cash remuneration
paid for services of the city, of the five (5) highest years of
service prior to the employee's normal retirement date e, ntN
into the DROP or prior to the employee's voluntary
discontinuance of participation in the plan.
DROP means the Deferred Retirement Option Program
which is a voluntary optional form of retirement which permits
employees to continue in servipe for a_limited period of time
while accruing the value of retirement benefits as if the
employee had separated from service and commenced
retirement.
Retirement or retired means the complete withdrawal of a
participant from any further employment in an employment
classification covered by this pension plan, except as
provided in sections 16-493(c) @nd 493(d).
Service means years and completed months of continuous
uninterrupted employment:
a full time fiFefighter of the eity-
La) As a full-time firefighter Qf the City:
(1) For the performance of duties;
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Temp.Ord. #2052
June 16, 2004
Page 4 of 20
(2) For reasons other than the performance of
duties, including vacations, holidays, temporary disability,
illness, jury duty, military duty which interrupts service as a
firefighter, administrative leave, paid leave or approved leave
of absence;
(3) As the result of back pay being awarded, or
agreed to, by the city (irrespective of mitigation of damages).
U As purchased and credited in accordance with Section
16-470.
Non -covered employment: A person who is paid, or entitled to
payment, by the city shall also be credited with service for
purposes of participation, vesting and breaks in service (but
not for benefit purposes) based upon service in non -covered
employment for the city, provided that the person worked for
the city in covered employment immediately before or
immediately after the non -covered employment, and further
provided that no resignation, discharge or retirement occurred
between the covered employment and the non -covered
employment, except as provided in sections 16-493 (c) and
493(d).
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June 16, 2004
Page 5 of 20
SECTION 4: Chapter 16, Pensions and Retirement, Article VI, Firefighters Pension
Plan, Division I. Generally of the City of Tamarac Code of Ordinances, is hereby amended
as follows:
Section 16-410. City Contribution.
■9MInFAi�:ri■rr•.ti■i_uM�:i:IML:JI:1:_Ii— ii=�i�n�w
fiFefightefs-, shall contribute to the plan, on at least a quarterly
basis, an amount, which will be sufficient to rneet the annual
maintain the plan
on a sound actuarial basis as required by Chapters 112 and
(39) yeeFs. The city shall consider the contributions derived
from participants and the amount derived from premium taxes
and other income sources as authorized by law in determining
said contribution.
SECTIONS: Chapter 16, Pensions and Retirement, Article VI, Firefighter Pension
Plan, Division 3, Credited Service of the City of Tamarac Code of Ordinances, is hereby
amended to read as follows:
Section 16-470. Purchase of Service Credit.
Effective April 1, 2004, a participant may purchase service
credit for prior military service ,or prior service as a_ full-time
professional firefighter with the 'City of Tamarac or any other
governmental employer. The service credit may be purchased
by payment into the pension fund of the full actuarial cost of
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Temp.Ord. #2052
June 16, 2004
Page 6 of 20
,y the „actuary for the Board
the service credit. as determined b
of Trustees so there is no cost to the Plan nor increased
liability to the city.
Purchase of service credit shall be subject to the followin
conditions:
La) Prior service credit under this section which is claimed
for firefighting service shall only be provided for service
as a full-time firefighter with any governmental
employer, including the _City of Tamarac. As used in
this section, "full-time firefighter" shall mean a paid,
certified firefighter who was employed under conditions
comparable to those of a full time Tamarac firefighter.
Service credit for milita service shall only be available
to persons _serving full time active„ duty in the regular
armed forces of the United States, as defined by_federal
law.
U Prior_ service credit for either military service or
firefighter service shall not exceed two (2) years. Actual
prior service credit purchased shall be added to the
ears of service with the City of Tamarac.
Lc) Service credit shall not be„granted for service where the
participant is receiving or is entitled to receive a benefit
from another governmental pension plan for such
service.
Election to purchase service for prior firefighter service
with the City, prior full-time firefighter service with
another employer as defined in this section or prior
re ular military service as defined in this section shall
be made in writing on forms promulgated by the Board
of Trustees. Payment for said service credit may be
made as a lump sum, as a transfer from the
participant's deferred compensation account or from
any other qualified retirement plan or through payroll
deductions. Purchase by payroll deductions shall be
made in accordance with a schedule approved by the
Board of Trustees shall be coml2leted in a period of not
greater than two (2) years and shall include interest
which will be calculated annually on the declining
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Temp.Ord. #2052
June 16, 2004
Page 7 of 20
balance at the actuarial rate of return applicable for the
Plan for that time period. The payment method must be
elected in advance and is irrevocable.
Le) No credit for the service purchased shall be granted
until full payment is received by the Plan.
Notwithstanding any other time limitation in this section,
full payment must be completed prior to the participant's
actual retirement following the earlier of separation from
service or entry into the DROP.
f The cost of the initial actuarial estimate for the purchase
of credit shall be paid by Plan. Any other requested
actuarial estimates shad be paid by the participant
requesting the calculation.
Service credit purchased under this section shall be
counted as a_vesting credit for purposes of vesting of
benefits. except that the service credit purchased shall
not count as a vesting_credit until a participant has
obtained the five (5) vesting credits required to vest in
the plan as provided in section 16-462 (b).
Lh� The service credit purchased shall be credited to a
participant's account upon the participant otherwise
vesting_ in the plan. If a_participant terminates service
prior to attaining vested status and receives a refund of
employee contributions,.. ...........--------------
the amount paid for such prior
service credit shall also he refunded.
For purposes of this section, service credit and credited
service are synonymous.
SECTION 6: Chapter 16, Pensions and Retirement, Article VI, Firefighter Pension
Plan, Division 4, Benefits, of the City of Tamarac Code of Ordinances, is hereby amended
to read as follows:
Section 16-493. Optional Benefits.
Optional benefits are:
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Temp.Ord. #2052
June 16, 2004
Page 8 of 20
O+La) Single life annuity. Any participant may file an
election to receive monthly payments for life.
(-;�) U Any other actuarially equivalent benefit approved by
the board of trustees or provided by section 175.171.
F.S., et. seq.
Lc) Deferred Retirement Option Plan (DROP).
A DROP, as defined in this plan, is established and
shall be administered by the Board of Trustees of the
City of Tamarac Firefighters' Pension Plan.
Participation shall be subject to the following terms and
conditions:
Eligibility
Effective April 1, 2004, an "eligible participant" of the
City of Tamarac Firefighters' Pension Plan, which is
defined as an individual current) on full-time work
status, may elect to participate in the DROP on the first
day of the month coincident with or next following the
completion of twenty-five (25)years of credited service,
which date shall constitute the "initial date of eligibility."
Between the initial date of eligibility and the completion
of twenty-five (25)years and six (6) months of credited
service, an eligible participant may elect to participate in
the DROP for the maximum period of participation, as
defined in this section. Eligible participants entering
after the completion of twenty-five (25) years and six (6)
months of credited service shall have DROP eligibility
reduced by one (1) month for each month in which
participation is delayed up to the completion of twenty-
eight 28 ears and six 6 months of credited service
after which no further DROP eligibility shall be available.
Written Election
An eligible participant electing to participate in DROP
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Temp.Ord. #2052
June 16, 2004
Page 9 of 20
must complete and execute such. forms as may be
required by the City and supplied by the Board of
Trustees not less than sixty (60) days prior to entering
into the DROP. The forms shall include but not be
limited to an irrevocabl@ letter of resignation effective
no later than the conclusion of the maximum period of
DROP participation. Election into DROP is irrevocable
provided, however, there is no minimum period of
participation.
Limitation/disqualification for other benefits
An eligible participant may elect to participate in the
DROP only once. After commencement of participation
in DROP, a participant shall no longer earn, accrue or
purchase additional service credits towards retirement
benefits, including the retirement subsidy established in
this plan, and shall not be eligible for disabilitX
retirement benefits. pre -retirement death benefits or
. later enhancements to the City of Tamarac -Firefighters'
Pension Plan.
u Cessation or reduction of contributions
Upon the effective date of an eligible participant's
participation in DROP, all contributions _byVand on behalf
of the participant to the Plan shall be discontinued.
Benefit calculation
For all plan purposes, service and vesting credits of an
eligible participant electing DROP shall be fixed as of
the effective date of ^commencement of DROP
participation. Any service as a firefighter after entry into
DROP shall not be used for calculation or determination
of benefits payable by the Plan. The average final
compensation of a participant, as defined in this Plate
shall be determined ps of the effective date of
commencement of DFkQP participation and any
subsequent earnings shall not be used for calculation or
determination of benefits payable by the Plan.
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Temp.Ord. #2052
June 16, 2004
Page 10 of 20
n Benefit Credits to DROP account
I) Upon entry into DROP, the monthly
retirement benefit which would have been
payable had the participant ceased
em to ment and commenced receiving a
normal retirement benefit shall be
credited to the artici ant's DROP
account on a monthly basis. No benefit
credits from the Plan shall be made to a
DROP account for more than the
maximum period of DROP participation.
U No participant shall receive a credit to the
participant's DROP account until the
required DROP forms have been
submitted including the participant's
irrevocable letter of resignation and the
City has actually discontinued the
participant's contributions to the plan.
l?) DROP account earnings
Each DROP account shall be eligible to earn
interest in accordance with one of the following
methods as elected by the participant, and such
election is irrevocable:
a. The DROP account shall earn interest as
of each Jnnua 1 e ual to the actual net
earnings of the Pension Plan for the prior
Plan year as determined by the actua
using the standard IRS formula for
purposes of reporting the annual
investment return on Schedule B Form
5500 whether or not such form is
actual) required for this plan, but not less
than five 2ercent 5% annually nor more
than nine percent 9% annually, less the
DROP's administrative fee sub'ect to
confirmation through the annual
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Temp.Ord. #2052
June 16, 2004
Page 11 of 20
independent audit. In the case of a partial
year's participation, interest shall be
prorated to achieve the applicable rate of
interest set forth in this section on an
annualized basis. Interest shall be
compounded annually: or
b. The DROP account shall earn interest as
actually realized, less the DROP's
administrative fee, in any of the self -
directed options selected by the
participant from those made available _by
the Board of Trustees. Participants in the
self -directed option, by their selection of
that option, agree to hold the City, the
Pension Plan and the Board of Trustees
harmless from any and all claims arising
out of the self -directed option.
Maximum period of participation
An eligible garticigant may elect to participate in
DROP for a maximum of thirty-six 36 months
or, in the case of a participant who delayed
end, until the attainment of twenty-eight (28)
ears and six 6 months of service whichever
occurs sooner. At the conclusion of the
maximum period of DROP participation,
retirement benefit payments to the DROP
account shall cease and the participant's
termination from employment with the City shall
become effective pursuant to the irrevocable
letter of resignation.
(9) Administrative Fee for DROP account
An annual admini§trative fee shall be charged on
each January 1 for the administration and
operation of a participant's DROP account at the
rate of one half of one percent (0.5%). In the
case of a participant who separates from service
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Temp.Ord. #2052
June 16, 2004
Page 12 of 20
after January 1, the administrative fee shall be
paid on a prorated basis for the partial year of
participation.
Distribution of DROP account
a. Upon termination of a DarticiDant's Cit
employment, whether by retirement,
resignation, discharge or death, no further
benefit credits shall be made to the
DROP account.
b. All retirement benefits paid after
termination of employment shall be made
directly to the participant, or in the case of
death, in accordance with any
survivorship option which the Darticipant
elected.
C. Within sixty (60) days following the end of
the month in which the participant
terminated employment,_ the balance of
the participant's DROP account shall be
paid to the participant as a lump sum or
by rollover to another qualified retirement
plan. The participant must elect the
method of payment within fifteen (15)
days following the end of DROP
participation and the election shall be
irrevocable. Failure to elect a payment
within the prescribed time shall be
deemed an election to receive payment of
the entire DROP account balance in cash,
less required income x to withholding_
d. Notwithstanding „the „option selected by
the participant, the Board of Trustees
reserves the right to accelerate payments
to comply with the minimum distribution
provisions of the Internal Revenue Code
or to defer payments ___......_..___ _he
to comply with the
maximum benefit provisions of the
Internal Revenue Code.
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Temp.Ord. #2052
June 16, 2004
Page 13 of 20
Disability of a DROP participant
If If the City determines that a firefighter has
become unable to perform the duties of a
Tamarac firefighter due to service or non -service
related disability and terminates the employment
of the _firefighter _for this reason, the participant
shall be deemed to have retired on a service
retirement and DROP participation shall end.
Distribution of the DROP account balance shall
be made in accordance with the provisions and
requirements of this section in the manner
elected by the participant.
12 Death of a DROP participant
If_a DROP participant dies, the participant shall
be deemed to have retired upon entry into
DROP and survivorship benefits, if any, shall be
paid in accordance with the participant's benefit
elections upon entry into DROP. The balance in
the DROP account shall be distributed in
accordance with the distribution methodology
elected by the participant, or if no such election
has been made, the participant's designated
beneficiary may elect the method of payment in
accordance with the time and election
requirements of this section.
13) Retirement Subsidy DROP Limitations
While a participant is in the DROP, the
retirement subsidy i shall not be payable.
14 Forms
All forms and notices used in the administration
of the DROP shall be prepared through ioint
cooperation between the City of Tamarac and
the Board of Trustees.
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Temp.Ord. #2052
June 16, 2004
Page 14 of 20
Back DROP
(.1) Eligibility: Duration of Back -DROP election.
The Back -DROP shall be defined as a partial
lump sum distribution with a forward annuity for
the remainder of the lifetime of the participant
available only to participants_ who have _passed
the initial DROP eligibility date as of the effective
date of this ordinance. This sub -section sets
forth rights for participation in the Back Drop and
DROP. This sub -section shall be effective only
for a period of ninety (90) days after the effective
date of the ordinance, which 90 day_ period is
defined as the "window period." Participants
failing to submit a written election of
participation in the Back DROP or combination of
Back DROP and DROP as set forth in this sub-
section within the ninety (90) day "window
period" shall permanently forfeit any right to
participation in the Back DROP or any
combination of the Back DROP and DROP.
Participants with more than Twenty-eight (28)
Years and six (6) months of service.
Participants who have completed twenty-eight
(28)years and six (6) months of service as of the
effective date of the ordinance shall be eligible
during the "windowperiod" provided in this
section to elect to participate in the Back DROP.
Back -DROP benefits for persons with _more _than
twenty-eight (28)years and six (6) months of
credited service shall be up to thirty-six (36)
_months of accumulated pension payments
utilizing service accrued and averse final
compensation based on what would have been
the participant's selected date of eligibility_ had
the DROP then been in existence. Anx
contributions paid by the eligible participant
during the Back DROP period, not to exceed
thirty-six (36) months, shall be transferred to the
participant's Back DROP account. The Back
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Temp.Ord. #2052
June 16, 2004
Page 15 of 20
DROP account shall be credited with interest
equal to five percent (5%) annually from the
selected date of Back DROP initiation to the date
of the artici ant's retirement resignation from
employment with the city. In the case of a partial
year's participation, interest shall be prorated to
achieve that applicable rate of interest set forth
in this section on an annualized basis. Interest
shall be compounded annually. As part of the
application process for Back DROP, participants
shall submit an irrevocable letter of retirement
resignation to take effect immediatelyupon
completion of the _ Back DROP application
process. Participants electing the Back DROP
shall also elect a distribution methodology of the
Back DROP account on the same basis as_a
DROP participant as provided in section 16-
493(c) (10).
u Participants with ent -five 25 ears and six
(6) months of service but less than twenty-eight
(28)years and six (6) months of service.
Participants with over twentv-five (25) vears and
six (6) months of service but less than twenty-
eight (28) years and six (6) months of service, as
defined by this PI n shall be eligible during the
"windowperiod" provided in this section to elect
to participate in a combination of Back DROP
under the terms set forth in this section and in
DROP for any remaining period of eligibility as
defined in the Plan. Such a participant can
select initiation of the Back DROP as of an
date between the participant's twenty-five years
of credited service and the participant's current
years of credited service. Any contributions paid
by the eligible participant during the Back DROP
period shall be transferred to the participant's
DROP account. For the eligible period selected
as the Back DROP period, the participant's
DROP account shall be credited with interest
equal to five percent (5%_annually from the
selected date of Back DROP initiation to the date
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Temp.Ord. #2052
June 16, 2004
Page 16 of 20
of the participant's_ initiation of _current DROP
with the city. In the case of a_partial year's
participation, interest shall be„prorated to
achieve that applicable rate of interest set forth
in this section on an annualized basis. Interest
shall be compounded annually. For the duration
of the DROP period, the artici ant may elect an
earnings accrual method in the same manner as
any DROP participant. As part of the a lication
process participants electing the Back DROP/
DROP combination shall submit an irrevocable
letter of resignation to take effect no later than a
combination of thirty six 36 months of Back
DROP and DROP participation. which must take
effect by the date of the participant's twenty-
eight years and six months of credited service.
Participants electing the Back DROP/ DROP
combination shall also elect a distribution
methodology 0 0 on the basis „ ..,.._
gy as a_ DROP
participant as provided in section 16-493 (c) (10�
W
Duration of this subsection.
This sub -section shall automatically be repealed
without further action of the Tamarac Cit
Commission at the end of the "window eriod" as
defined in section 16-493 (d) (1).
SECTION 7: Chapter 16, Pensions and Retirement, Article VI, Firefighter Pension
Plan, Division 4, Benefits, of the City of Tamarac Code of Ordinances, is hereby amended
to read as follows:
Section 16-495. Revocation of election.
(a) No revocation of a resignation from, employment
with the City which is made as part of an election to a Deferred
Retirement O tion Plan DROP may be made by a participant.
However, an earlier separation of service may be made b a
participant.
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Words in underscored type are additions.
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Temp.Ord. #2052
June 16, 2004
Page 17 of 20
(,a-)(b) Other than participants who have elected DROP,
an election of a standard or optional form of benefit payment
may be revoked at any time before the first payment of
benefits from this pension plan. Such a revocation must be in
writing, signed by the participant.
(b)(c ) After benefits have commenced, a retired
participant may change her or his designation of joint annuitant
or beneficiary twice in the manner prescribed in section
175.333, F.S.
SECTION 8: Chapter 16, Pensions and Retirement, Article VI, Firefighter Pension
Plan, Division 4, Benefits, of the City of Tamarac Code of Ordinances, is hereby amended
to read as follows:
Section 16-503. Calculation of benefit amount.
(c) Cost of living adjustment benefit.
0) For participants retired on or before September
30, 2002, in any given year in which the pension
plan shall recognize an actuarial gain from
favorable actuarial experience, the pension plan
may pay a cost of living adjustment benefit to all
participants receiving a normal retirement
benefit, in an amount to be established by the
board of trustees, which shall not exceed two (2)
percent of the current retirement benefits paid or
payable to participants receiving a normal
retirement benefit during that specific year, and
the cost of which shall not exceed the amount of
the aforesaid actuarial gain. Any benefit paid to
participants as a cost of living adjustment
benefit, as provided in this sub -section, shall be
paid to participants only during that specific year,
and may not be paid to participants as an
accumulation to, or in conjunction with any other
benefits due to participants during any prior or
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Temp.Ord. #2052
June 16, 2004
Page 18 of 20
subsequent annual period.
2 For participants whowere employed
p ip in active
..
service by the cty_on or after October 1, 2002,
and who subsequently have retired, only the
cost -of -living adjustment described in this sub-
section shall apply. As of each Janua 1 the
retirement benefits only as provided under
sections 16-497 and 16-504 of participants who
retired at least three (3) years prior to such
January 1 (which _shall include all „Back DROP
participants from the date of initiation of their
Back DROP) with normal service retirement,
early service retirement or disability retirement
shall be increased by two percent (2%)
compounded annually.
Deferred vested members who do not retire
immediately following termination of their
employment with the City shall not be eligible for
a cost -of -living adjustment.
SECTION 9: Chapter 16, Pensions and Retirement, Article VI, Firefighter Pension
Plan, Division 4. Benefits, of the City of Tamarac Code of Ordinances, is hereby amended
to read as follows:
Section 16-507. Suspension of benefits.
(a) Except for participants who have elected and are
currently employed_by_the City under a DROP, the payment of
pension benefits shall be suspended for each month a
participant works as a firefighter, consultant or independent
contractor of the City.
(b) The board of trustees may uniformly waive the
provisions of this section for such periods of time, as it deems
appropriate.
SECTION 10: Chapter 16, Pensions and Retirement, Article VI, Firefighter Pension
Plan, Division 4, Benefits, of the City of Tamarac Code of Ordinances, is hereby amended
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Words in underscored type are additions.
Temp.Ord. #2052
June 16, 2004
Page 19 of 20
to read as follows:
Section 16-508. Notice of reemployment and retirement.
(a) Except for participants who have elected and are
currently employed by the City under a DROP, retired
participants must notify the board of trustees upon returning to
work for the City as a firefighter within thirty (30) days after
starting such work. Notice of reemployment shall be given on
a form provided by the board of trustees.
(b) Except for participants who have elected and are
currently employed by the City under a DROP, a participant
must notify the board of trustees upon re -retirement if the
participant returns to work for the City after having a claim filed
for pension benefits. Notice of re -retirement shall be given on
a form provided by the board of trustees. Pension benefits
shall be suspended until notice of re -retirement is given.
SECTION 11: It is the intention of the City Commission and the Plan's Board of
Trustees to seek a favorable determination letter from the IRS concerning the Retirement
Plan, including all provisions of the DROP.
SECTION 12: 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.
SECTION 13: All ordinances or parts of ordinances in conflict herewith are hereby
repealed to the extent of such conflict.
SECTION 14: 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
Coding: Words in s#FUel(thFedgh type are deletions from existing laws;
Words in underscored type are additions.
Temp.Ord. #2052
June 16, 2004
Page 20 of 20
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 15: This Ordinance shall become effective on adoption.
PASSED, FIRST READING this 23rd day of June, 2004.
PASSED, SECOND READING this 14t" day of July, 2004.
L:
J, SCHREIBER, MAYOR
ATTEST:
r
RECORD OF COMMISSION VOTE: 1st Rea Ing
MARION S NSON, CMC MAYOR SCHREIBER 11
CITY CLERK DIST 1: COMM. PORTNER
DIST 2: COMM. FLANSBAUM-TALABISCO
DIST 3: V/M SULTANOF
DIST 4: COMM. ROBERTS
I HEREBY CERTIFY that
I have approved this
ORDINANCE as to form. RECORD OF COMMISSION VOTE: 2nd ading
MAYOR SCHREIBER
DIST 1: COMM. PORTNER
DIST 2: COMM. FLANSBAUM-TALABISCO
DIST 4: COMM ROBERTS
MITCHELL S,
CITY ATTO
Coding: Words in stFuel(thmuo type are deletions from existing laws;
Words in underscored type are additions.
EXHIBIT 1
== SOUTHERN
_= ACTUARIAL
SERVICES
June 14, 2004
04 JUN 16 Fin' 1: 37
Trustees of the City of Tamarac Firefighters' Pension Fund
c/o Mr. Daniel E. Gatzulis
First Benefit Services, Inc.
7930 U.S. Highway 301 North, #A
Tampa, FL 33637
Re: City of Tamarac Firefighters' Pension Plan
Ladies and Gentlemen:
POST 01TIff Box 68839
ATLANTA, GEOR6IA 30356-q3 3
TELEPHONE RO-392.0980
fA(SIMILE RO-392.2193
WWW.SOUTHERNA(TUARIAL (OM
Pursuant to your request, I have enclosed the impact statement for the proposed ordinance for
subject plan submitted to me by Ms. Maria Swanson earlier today.
Once the ordinance has been adopted, you should fill in the ordinance number in the spaces
provided and have the Chairman sign the statement. Then the statement should be submitted to
the Division of Retirement in accordance with Chapter 112, Florida Statutes, along with a copy
of the ordinance.
If you have any questions concerning the enclosed, please do not hesitate to call me.
11
Sincerely,
Charles T. Carr
Consulting Actuary
Enclosure as stated
cc: Ms. Maria Swanson (w/ enclosure)
OUR Offl(E IS LOCATED AT 7876 ROSWELL ROAD, SUITE 100, AUNTA, 61096IA 30350
CIT`ir OF TAMARAC FIREFIGHTERS' PENSION PLAN
I have enclosed a copy of Ordinance 2004. Of the City of Tom, whit
ordinance makes the following changes to the City of Tamarac Fiarefightem, pension plan;
(1) Effective April 1, 2004, parricipwas will be allowed to purchase up to two years of
credit for prior military or full time firefighter service by paying the All ach�al
cost thereof into the pension fund;
(2) A Deferred Retirement Option Plan (DROP) will be available to those participants
who have earned 25 years of service, with a three-year limit on participation to the
DROP and an interest credit equal to the return on the market value of assets
subject to a S% to 9% corridor minus a %% administrative charge (or the actual
investment return for those participants who elect the self -directed option);
(3) A "BACKDROP" which is temporarily available to those participants who would
have become eligible)br, the DROP had it been in effect for the past three years,
and
(4) An automatic 2% compounded annual cost -of living adjustment etj`ecdve each
January 1 for all participants who retire from active serve after October I, 2002
and who have been retired for at least three years.
The Alan's enrolled actuary, Charles T. Carr of Southem Actuarial Services Company, Inc., was
Provided with a copy of the proposed ordinance. In addition, the described plan change meets
the requirements of Part VIL Chapter 112, Florida Statutes, and Section 14, Article X of the State
Constitution.
Randy E. Correll
Chairman, Board of Trustees
PARS' TWO: CERTIE1ATIOA OF = MROUEDRy
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 2004-
The ordinance is anticipated to increase the annual contribution required from the City, by
$369,379, or 7.51 % of payroll, which amount reflects an increase in normal cost of $77,068 and
an increase in amortization payments of S292,311.
Ed WUOO : T T VOW z T -unr £6 T M6£0LL : 'ON XUJ 0O sao I A83s 1b I auniDU N63Hinos : wwA
City of Tamarac Firefighters' Pension Plan
Impact Statement for Ordinance_2004-
(continued)
The following table sets forth the required disclosures in connection with the plan changes which
have been described above:
As of
October 1, 2003
Old Plan Provisions
As of
October 1, 2003
ew Plan Provisions
Present value of future expected benefit
payments:
for active members
$',
35,629,221
$
39,561,144
for terminated vested members
19,750
19,750
for retired members and
beneficiaries
2,725,380
2,916,577
total
$
38,374,351
$
42,497,471
Actuarial accrued liability
$
28,274,076
$
32,155,283
Actuarial value of assets
S (19A26.170)
S (19,426,170)
Unfunded actuarial accrued liability
$
8,847,906
$
12,729,113
Actuarial present value of accrued
benefits
$''
21,375,469
$
24,531,188
Present value of active members':
Future salaries
$
40,182,654
$
40,182,654
Future contributions
$'
3,616,439
$
3,616,439
Present value of future contributions
from the City
$
15,331,742
$
19,454,862
Total annual compensation
$
4,919,730
$
4,919,730
Minimum required contribution
(beginning of year):
Annual normal cost
$
1,262,512
$
1,339,580
Amortization payment
$
662,752
$
955,063
Expected participant contribs.
$
(442,776)
$ (442.776)
Total
$
1,482,488
$
1,851,867
City of Tamarac Firefighters' Pension Plan
Impact Statement for Ordinance 2004-
(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,
Charles T. Carr, A.S.A.
Consulting Actuary
Enrolled Actuary No. 02-04927