HomeMy WebLinkAboutCity of Tamarac Ordinance O-2006-005Temp. Ord. #2108
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CITY OF TAMARAC, FLORIDA December 21, 2005
ORDINANCE NO. 0-2006- 5
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY
OF TAMARAC, FLORIDA; AMENDING CHAPTER 16,
PENSION AND RETIREMENT, ARTICLE III, DIVISION 1,
SECTION 16-133 TO PROVIDE FOR AN INCREASE OF
THE PARTICIPANT CONTRIBUTION FROM 5% TO 7% OF
TOTAL CASH REMUNERATION PAID FOR SERVICES
RENDERED TO THE CITY; AMENDING SECTION 16-219
OF DIVISION 4 TO PROVIDE, EFFECTIVE FEBRUARY 4,
2006 FOR NORMAL RETIREMENT UPON THE
ATTAINMENT OF AGE 55 AND 30 YEARS OF SERVICE;
AMENDING SECTION 16-233 OF DIVISION 4 TO PROVIDE
FOR AN INCREASE OF THE BENEFIT MULTIPLIER TO
2.6% FOR ALL PARTICIPANTS RETIRING ON OR AFTER
FEBRUARY 4, 2006; PROVIDING FOR A SAVINGS
CLAUSE; PROVIDING FOR SEVERABILITY; PROVIDING
FOR CODIFICATION AND PROVIDING FOR AN
EFFECTIVE DATE.
WHEREAS, the City Manager and the Federation of Public Employees have
agreed through collective bargaining to recommend to the City Commission certain
changes to the City of Tamarac General Employees' Pension Fund; and
WHEREAS, the City Commission of the City of Tamarac, Florida deems it to be
in the best interest of the citizens and residents of the City of Tamarac to amend the
plan to reflect recommended changes,
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.
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Temp. Ord. #2108
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December 21, 2005
SECTION 2: That Section 16-133, Division 1, Article III, Chapter 16, of the City
of Tamarac Code of Ordinances, be and is hereby amended by deleting the s#Fiekea
through language and adding the underlined language as follows:
Sec. 16-133. Participant Contributions.
(a) All general employee participants shall make
regular contributions at the rate of five percent until February
3, 2006, and effective February 4 2006 and thereafter at the
rate of seven (?percent of total cash remuneration paid for
services rendered to the city, which shall be deposited in the
fund at least monthly. The city shall assume and pay
participant contributions for their respective 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 plan. All such contributions by the city
shall be deemed and considered as a part of the participant's
accumulated contributions and subject to all provisions of
this plan pertaining to accumulated contributions of
members. This city pickup 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, all of
which is intended to comply with section 414(h)(2) of the
Internal Revenue Code.
SECTION 3: That Section 16-217, Division 4, Article III, Chapter 16, of the City
of Tamarac Code of Ordinances, be and is hereby amended by adding the underlined
language as follows:
Sec. 16-219. Normal retirement age.
Until Februa 3 2006 the normal retirement age
shall be the first day of the month on which or after which the
participant attains age sixty-two (62). Effective February-4
2006 the normal retirement age shall be the earlier of the
first day of the month on which or after which the participant
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Temp. Ord. #2108
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December 21, 2005
attains age sixty-two (62) or attains age 55 and 30 years of
vesting credits.
SECTION 4: That Section 16-233, Division 4, Article III, Chapter 16, of the City
of Tamarac Code of Ordinances, be and is hereby amended by deleting the stFieken
through language and adding the underlined language as follows:
Sec. 16-233. Benefit level.
(a) With respect to participants retiring prior to
February 4, 2006, Tthe benefit level is two and five -
hundredths (2.05) percent of average final compensation for
participants with less than twenty-five (25) years of credited
service and two and twenty-five hundredths (2.25) percent
for participants with twenty-five (25) or more years of
credited service. With respect to all participants retiring on
or after February 4 2006 the benefit level shall be 2.6%.
SECTION 5: 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.
SECTION 6: All Ordinances or parts of Ordinances in conflict herewith are
hereby repealed to the extent of such conflict.
SECTION 7: 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
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Temp. Ord. #2108
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December 21, 2005
application, and to this end the provisions of this Ordinance are declared to be
severable.
SECTION 8: This Ordinance shall become effective on adoption.
PASSED, FIRST READING this I t day of , 2006.
PASSED, SECOND READING this 25 day of2006.
ATTEST:
MAR ON SWEN ON, CMC
CITY CLERK
I HEREBY CERTIFY that
I have approved this
ORDINANCE as to form.
h
J E SCHREIBER, MAYOR
RECORD OF COMMISSION VOTE: 1st Reading
MAYOR SCHREIBER ale
DIST 1: COMM. PORTNER Afel
DIST 2: V/M TALABISCO
DIST 3: COMM. SULTANOF
DIST 4: COMM. ROBERTS INfe,
RECORD OF COMMISSION VOTE: 2nd Reading
MAYOR SCHREIBER Ave
DIST 1: COMM. PORTNER Ale
DIST 2: V/M TALABISCO
_1 DIST 3: COMM. SULTANOF
DIST 4: COMM. ROBERTS
S MUEL S. GOREN
CITY ATTORNEY
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EXHIBIT I
1Y e A - A;�
C''A ,
Mr. Alan Eich+enbaum, Attorney
The Federation of Public Employees
1700 NW 66 Avenue
Suite 1008
Plantation. FL 33313
Dear Alan:
4
peCember 2. 2005
As a condition of the acceptanoe and ratification of the propOsed collective
bargaining agreement, effective October 1, 2005, the City and the Federation of
Public Employees agree to present and recommend to the Pension Board and
the City Commission, amendments to the Pension Ordinance effective February
4, 2006 and that the Pension 'Soard and City Commission approve suet,
amendments providing the following changes to the [mineral Employees
Pension:
Increase benefit multiplier from 2.05% or 2.25% to 2.0% per year of
service for all pdaticipanta.
Unreduced retirement benefit upon the attainment of age 55 with at least
30 years of service (and change the assumed retirement pattern to 100%
when the participant is first eligible for an unreduced benefit and to 5% per
year at each other eligible retirement age.)
D Employee contribution to pension plan increases from 5% to 7%-
sincerely,
Maria Swanson
Director of Human Resources
; jab
C_ Jeffrey Miller, City Manager
Samuel S. Goren, Interim City Attorney
EXHIBIT It
CITY OF TAMARAC EMPLOYEES' PENSION PLAN
IMPACT STATEMENT FOR ORDINANCE 0-2006-
PART ONE: CERTIFICATION OF THE PLAN ADMINISTRATOR
I have enclosed a copy of Ordinance 0-2006- of the City of Tamarac, which
ordinance makes the following changes to the City of Tamarac Employees' Pension Plan as of
February 4, 2006:
(1) The benefit formula multiplier for all service has been increased from either 2.05% or
2.25% to 2.6% for all active employees retiring on or after February 4, 2006;
(2) The normal retirement age has been changed from age 62 to the earlier of age 55 with at
least 30 years of service or age 62 for all active employees retiring on or after
February 4, 2006; and
(3) The employee contribution has been increased from 5% of compensation to 7% of
compensation.
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.
Maria Swanson
Chairman, Board of Trustees
PART TWO: CERTIFICATION OF THE 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 0-2006- ,
as well as the impact of changing the assumed pattern of retirement to 100% when the participant
is first eligible for an unreduced benefit and to 5% per year at each other eligible retirement age.
The ordinance and assumption changes are anticipated to increase the annual contribution
required from the City by $233,381, or 4.23% of payroll, which amount reflects an increase in
normal cost of $165,077, an increase in amortization payments of $169,693, an increase in the
interest adjustment of $12,431, and an increase in expected employee contributions of $113,820.
City of Tamarac Employees' Pension Plan
Im act Statement for Ordinance 0-2006-
(continued)
The following table sets forth the required disclosures in connection with the plan and
assumption changes which have been described above:
As of
As of
As of
October 1, 2004
October 1, 2004
October 1, 2004
(Old Plan Provisions;
(Old Plan Provisions;
(New Plan Provisions;
Old
Assumptions)
New Assumptions)
New
Assumptions)
Present value of future expected benefit
payments:
for active members
$
18,643,026
$
17,568,800
$
21,860,91.7
for terminated vested members
1,205,959
1,205,959
1,205,959
for retired members and
beneficiaries
9,445,584
_
9,445,584
9,445,584
_
$
32,512,460
total
$ 29,294,569
$ 28,220,343
Actuarial accrued liability
$
23,160,488
$
22,462,139
$
25,413,626
Actuarial value of assets
$
16 827 267
$
(16,827,267)
$ _
(16-827 267
$
6,333,221
$
5,634,872
$
8,586,359
Unfunded actuarial accrued liability
Actuarial present value of accrued
benefits
$
17,294,659
$
17,549,132
$
19,452,817
Present value of active members':
Future salaries
$
51,813,043
$
48,070,152
$
48,070,152
Future contributions
$
2,590,652
$
2,403,508
$
3,249,535
Present value of future contributions
from the City
$
9,876,650
$
8,989,568
$
12,435,658
Total annual compensation
$
6,087,937
$
5,974,533
$
5,974,533
Minimum required contribution
(beginning of year):
Annual normal cost
$
851,206
$
826,284
$
1,016,283
Amortization payment
446,482
$
393386
616,175
$
1,297,688
$
1,220,170
$
1,632,458
Total
City of Tamarac Employees' Pension Plan
Impact Statement for Ordinance 0-2006-,...
(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 fart 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. 05-04927