HomeMy WebLinkAboutCity of Tamarac Ordinance O-2015-001Temp. Ord. #2313
November 20, 2014
Page 1 of 4
CITY OF TAMARAC, FLORIDA
ORDINANCE NO. 0-2015-
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF
TAMARAC, FLORIDA; AMENDING CHAPTER 16, PENSION AND
RETIREMENT, ARTICLE III, EMPLOYEES' PENSION PLAN,
PROVIDING FOR A NORMAL RETIREMENT OPTION FOR A LIMITED
TIME PERIOD FOR ELIGIBLE PARTICIPANTS; PROVIDING FOR A
SAVINGS CLAUSE; PROVIDING FOR SEVERABILITY; PROVIDING
FOR CODIFICATION AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the City of Tamarac recently ratified a new collective bargaining
agreement with the Federation of Public Employees; and
WHEREAS, as a condition of the acceptance and ratification of the proposed
collective bargaining agreement, effective October 1, 2014, the City of Tamarac and the
Federation of Public Employees agree to offer certain eligible pension plan participants
a normal retirement option for a limited time period providing certain benefits in
exchange for an earlier retirement; and
WHEREAS, an amendment to the Code of Ordinances of the City of Tamarac,
Florida is necessary to permit such new benefits; and
WHEREAS, the trustees of the City of Tamarac General Employees' Pension
Trust Fund have reviewed such amendments negotiated between the City and the FPE
as being in the best interests of the participants; and
WHEREAS, the City and the FPE have tentatively agreed to this Pension Plan
Amendment, signed and tentatively agreed to as part of its negotiations, attached
hereto as Exhibit A; and
CODING: Words in StF 1Gk through type are deletions from existing law;
Words in underscored type are additions.
Temp. Ord. #2313
November 20, 2014
Page 2 of 4
WHEREAS, the City Commission has received, reviewed and considered an
actuarial impact statement describing the actual impact of the amendment provided for
herein, attached hereto as Exhibit B.
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. All exhibits attached hereto and referenced herein are
incorporated and made a specific part of this Resolution.
Section 2: That Section 16-219 of Chapter 16, Article III, Division 4, of the City
of Tamarac Code of Ordinances, be and is hereby amended as follows:
Sec. 16-219. - Normal retirement age.
B. Participants who are actively employed and of record,
and have or will have attained age fifty-five (55) and
completed twenty-five (25) or more years of vesting
credits during the period of employment between
January 1, 2015 through December 31, 2017, shall be
deemed "Eligible Participants" to retire in accordance
with the benefits as provided for herein and may elect to
receive the benefits set forth herein, provided that they
(1) make and deliver to the City a one-time irrevocable
written election, and (2) retire by terminating employment
or by entering DROP, within one -hundred and eighty
(180) calendar days of becoming an Eligible Participant,
but in no event later than December 31, 2017. Eligible
Participants shall be eligible to enter the DROP as
provided for in Section 16-223, et seq., and shall receive
an unreduced normal retirement benefit as provided for in --'
Section 16-233, et seq., herein, subject to the specific
requirements in 16.219.8.
CODING: Words in StFUGk through type are deletions from existing law, -
Words in underscored type are additions.
Temp. Ord. #2313
November 20, 2014
Page 3 of 4
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.
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 will be effective as of January 1, 2015 or when all of
the following have occurred, whichever date is later:
(a) The City Commission has received and has accepted a report
establishing the actuarial soundness of these amendments or a letter of
opinion from the Plan Actuary that the amendment has no actuarial
impact; and
(b) The Ordinance and impact statement have been sent to the State
of Florida Division of Retirement; and
CODING: Words in StF6lGk through type are deletions from existing law;
Words in underscored type are additions.
Temp. Ord. #2313
November 20, 2014
Page 4 of 4
(c) The Federation of Public Employees, or its successor organization,
accept the changes proposed in this ordinance in writing.
PASSED, FIRST READING this `' day of /-��'i , 2014
PASSED, SECOND READING this / '�/ day of , 2015
q &4Le'-_
HARRY D ESSLER, MAYOR
ATTEST:
— : _ RECORD OF COMMISSION VOTE:
PATR CIA TEUF MC 1ST READING
CITY CLERK
I HEREBY CERTIFY THAT I HAVE
APPROVED THIS ORDINANCE
AS TO FORM
SAMUEL S. GOREN y
CITY ATTORNEY
MAYOR DRESSLER /., ✓.
DIST 1: V/M BUSHNELL ,-
DIST 2- COMM. GOMEZ <
DIST 3: COMM. GLASSER ¢ ';
DIST 4- COMM. PLACKO
RECORD OF COMMISSION VOTE:
2ND READING
MAYOR DRESSLER
DIST 1- V/M BUSHNELL
DIST 2: COMM.GOMEZ.c,
DIST 3: COMM. GLASSER
DIST 4: COMM. PLACKO ----
CODING: Words in StFUGk threugh type are deletions from existing law-,
Words in underscored type are additions.
HUMAN RESOURCES
October 1, 2014
Mr. Alan Eichenbaum, Attorney
c/o The Federation of Public Employees
1700 NW 66 Avenue
Suite I OOB
Plantation, FL 33313
Dear Alan:
EXHIBIT A
Maria Swanson
DIRECTOR
cc -
VL� VVA
As a condition of the acceptance and ratification of the proposed collective
bargaining agreement, effective October 1, 2014, the City of Tamarac and the
Federation of Public Employees agree to present to the Pension Board and the
City Commission, an amendment to the Pension Ordinance effective January 1,
2015 and to recommend that the Pension Board and City Commission approve
such amendments providing the following changes to the General Employees
Pension Ordinance:
> Provide an unreduced retirement benefit upon attainment of age 55 with
25 years of service during the period January 1, 2015 through December
31, 2017 and which must be affirmatively selected in writing by the
employee and received by the City within one -hundred and eighty (180)
days of becoming eligible for this unreduced retirement benefit, but no
Eater than December 31, 2017.
Sincerely,
Maria Swanson
Director of Human Resources
C: Michael C. Cernech, City Manager
Samuel S. Goren, City Attorney
"eAmwftd 4, Ewd&,we ..
7525 N.W. 88th Avenue I Tamarac, Florida 33321-24011 P: 954.597,36001 F: 954.597,3610
EQUAL OPPORTU"TY ENPLOYER
CITY OF TAMARAC EMPLOYEES' PENSION PLAN
IMPACTSTATEMENT FOR TEMPORARY ORDINANCE 2313
PARTONE: CERTIFICATiON OF THE PLAN ADMINISTRATOR
I have enclosed a copy of Temporary Ordinance 2313 of the City of Tamarac, which ordinance
makes the following change to the City of Tamarac Employees' Pension Plan:
Ac•tivel . emplovecl plan participants who attain age 55 with at least �'._S veers' of service on
or before December 31, 2017 mal' retire or enter the Deferred Retirement Option Program
r
(DROP) with an unreduced early retirement pension, provided that the snake a one-time
irrevocable election to terminate their emplo ment or eater• the DROP within 180 dm-.v of
becoming eligible for the unreducecl early retirerrmettt pension and that theY retire or enter
the DROP on or before. December 31, 2017.
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 VIL Chapter 112, Florida Statutes, and Section 14. ,article X of the State
Constitution,
Chair. Board cif 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 Temporary Ordinance 2313
Lased On the assumptions and methods used to prepare. the October 1. 2013 actuarial valuation,
except that those individuals who are anticipated to become eligible for the unreduced early
retirement pension are assumed to retire when they first become eligible during the period
January 1. 2015 through December 31. 2017. The ordinance increases the annual contribution
required from the City by 0.15% of payroll.
'rile following table sets forth the required disclosures in connection with the plan changes which
have been described above:
City nJ'Tamar•ac• Empk).vees' Pension Phut
bnnacr Statement for Temnoram• Ordinance 2 3H (continued
As of
As of
October 1, 2013
October 1, 2013
(Old Plan Provisions)
(New Plan Provisions)
Present value of future expected benefit
payments:
for active participants
retirement benefits
S 26.819.165
$ -17,104,765
termination benefits
1,563,482
1,526.560
(lisubilit. benefits
1,472.924
1,404.413
decrtlr ben, fits
282,709
274.049
rernnt of con n-rbutio is
i7,485
57,485
S 30,195.765
sub-torut
S 30,367.271
for terminated vested participants
S 1.622,195
S 1.61-2.195
for retired participants and beneficiaries
retire(/ (other than disab.) Q hem, .'
f 13.648.1 a.i
S )3.648.133
disabled retire(�s
702026
702,026
S 143i0,159
.crib -rota!
S 14.350.1i9
S 68.119
total
5 ) 3; 9 6255
_
Emry age normal accrued liability:
for active participants
retirement benefits
S 20.418,458
5 20.772.980
termination benefits
1.171.540
1.134,847
eivabilin• ly-nefits
1.040.135
975.963
death benefirc
201.115
192.280
return nlcrrunihrrtivrts
29,728
29.728
S 22.860,976
srrb-uru�l
$ 23.105.798
for inactive participants
$ 15.972.354
S I i.972354
38.831, t t
total
3
04.=486.870)
Actuarial value of ,assets
(34.486.870)
_._ 6,
Unfunded accrued liability
S 34.21 1.024
Actuarial present value of accrued benefits
S 3:4,658.517
Present value of active participants':
Future salaries
$ 4.1.644.287
S 42.886.443
Fuutre. contributions
3.055.102
S 3.002,051
Present value of future contributions from
the emplover (includin, expense loading)
S 9.171.701
S 9,386,785
Total annual compensation (2013114 FYI
S 6,495.689
S 6.766.987
4tinimurn required contribution
(2013/14 FY);
Annual normal cost (inel, expenses)
S 1.344.374
S 1.406.371
Unlmrded liability amortization port.
336.213
354.652
Interest adjustment
O
O
Expected employee contribution
(454.698)
(=473,689
_._ I ��4 88<I
"Total
5 t.'87 3L4
18$71li
As a percentage of pavroll
19.02�%
Ort' nf'7utnarac Etnplo.ees' Pension Plan
ImInicr Surrentent for Temporary Ordinance 2313 trxn.thwedl
This actuarial valuation and/or cost detennination 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 art` 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.
CAN-d-- 'A
Charles T. Carr, A.S.A.
ConsultinLF Actuary
Enrolled Actuary No. 14-0 tg27
/�4
U at signed