The URL can be used to link to this page

Home My WebLink AboutCity of Tamarac Ordinance O-2012-003Temp Ord. #2239 December 19, 2011 Page 1 of 5 CITY OF TAMARAC, FLORIDA ORDINANCE NO. 0-2012--03 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF TAMARAC, FLORIDA; AMENDING CHAPTER 16, PENSIONS AND RETIREMENT, ARTICLE IX, ELECTED AND APPOINTED OFFICERS AND NON -REPRESENTED EMPLOYEES RETIREMENT PLAN; AMENDING THE DEFINITION OF "COMPENSATION" IN SECTION 16-901 OF THE PLAN TO EXCLUDE OTHER NON-TAXABLE REIMBURSEMENT, LEAVE PAYMENTS OTHER THAN AT SEPARATION AND OVERTIME IN EXCESS OF 300 HOURS PER YEAR; AMENDING SECTION 16- 906(c) AND (e) TO LOWER THE INTEREST PAID ON A RETURN OF EMPLOYEE CONTRIBUTIONS FROM 4 PERCENT TO 2.5 PERCENT; CREATING SECTION 16-906(k) TO ALLOW EMPLOYEES THAT WERE OTHERWISE ELIGIBLE FOR MEMBERSHIP IN THE PLAN BUT CHOSE TO REMAIN IN ANOTHER CITY SPONSORED RETIREMENT PLAN AT THE TIME THE ELECTED AND APPOINTED OFFICERS AND NOW REPRESENTED EMPLOYEES RETIREMENT PLANS WAS ESTABLISHED TO TRANSFER INTO THE PLAN; PROVIDING FOR A SAVINGS CLAUSE; PROVIDING FOR SEVERABILITY; PROVIDING FOR CODIFICATION AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Pension Trust Fund Board of Trustees has reviewed the proposed changes; and WHEREAS, the City Commission has received and reviewed an actuarial impact statement related to this change attached 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; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF TAMARAC, FLORIDA: CODING: Words in stFUGk thFeag-htype are deletions from existing law; Words in underscore type are additions Temp Ord. #2239 December 19, 2011 Page 2 of 5 SECTION 1: Section 16-901 of the City of Tamarac Code of Ordinances, is hereby amended to read as follows: Sec 16-901 Definitions Compensation shall mean a member's total cash remuneration for services rendered, excluding bonuses, employer contributions to any health, dental, disability or related insurance program, medical, of child care or other non-taxable reimbursement, employer contributions to a deferred compensation program under section 457 of the Internal Revenue Code, or cash payments of unused, accumulated leave payable upon sepaFat from the city. Effective July 1, 2011, any overtime pay in excess of 300 hours per year shall be excluded from the definition of compensation. SECTION 2: Sections 16-906(c) and (e) of the City of Tamarac Code of Ordinances, are hereby amended as follows: Sec.16-906 Vesting and Termination; purchase of prior covered service; appointment to covered positions from non - covered positions. (c) Every member shall have the right to elect to receive, in lieu of all benefits under the plan, a return of the member's accumulated contributions, with interest, at CODING: Words in StFUGk thFoug-h-type are deletions from existing law; Words in underscore type are additions Temp Ord. #2239 December 19, 2011 Page 3 of 5 the rate of four (4) percent, simple interest. For credited service accrued on or after January 1, 2012, interest shall be applied at the rate of two and one- half (2.5) percent, simple interest. (e) In no instance shall a member's benefits from the plan be less than the value of the employee's contributions, with interest at the rate of four (4) percent simple interest. For credited service accrued on or after January 1, 2012, interest shall be applied at the rate of two and one-half (2.5) percent, simple interest. SECTION 3: Section 16-906(k) of the City of Tamarac Code of Ordinances is hereby created to read as follows: Sec.16-906 Vesting and Termination; purchase of prior covered service; appointment to covered positions from non - covered positions. (k) Full-time employees of the City who otherwise met the requirements for membership in the Plan prior to or on October 1, 2005, but who chose to remain in the City's 401(a) Retirement Plan at the time this plan was created may elect to transfer into this plan. The CODING: Words in type are deletions from existing law; Words in underscore type are additions Temp Ord. #2239 December 19, 2011 Page 4 of 5 employee may elect to purchase no prior service, elect to purchase a portion of prior service for prior employment with the City, or elect to purchase all prior service for prior employment with the City. A decision to purchase service may be made at any time prior to retirement. The employee must pay the full actuarial cost for all prior service that is being purchased. The member shall pay the cost for any and all estimates or calculations performed by the Plan actuary. Full payment for any service being purchased must be made within 90 days of the date of the actuarial cost calculation. Purchased service under this subsection shall be used for meeting the vesting requirements of the plan, and shall count toward nears of credited service for meeting retirement eligibility and for benefit accrual purposes. SECTION 4: 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 5: All ordinances or parts of ordinances in conflict herewith are hereby repealed to the extent of such conflict. CODING: Words in StFUGk t# gl}type are deletions from existing law; Words in underscore type are additions 7 L__. Temp Ord. #2239 December 19, 2011 Page 5 of 5 SECTION 6: 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 7: This Ordinance shall become effective upon adoption. PASSED, FIRST READING this o�y�i day of�17 , 2012. PASSED, SECOND READING this day of „¢ , 2012. PAMELA BUSHNELL MAYOR ATTEST: RECORD PETER M. J. RI A DSON OF COMMISSION VOTE: 1st Reading CRM, CMC MAYOR BUSHNELL 61t`z— CITY CLERK DIST 1: COMM. SWENSON (-i� I HEREBY CERTIFY that I have approved this ORDINANCE as to form. DIST 2: COMM. GOMEZ� DIST 3: V/M GLASSER 1�u� DIST 4: COMM. DRESSLER 10, RECORD OF COMMISSION VOTE: 2nd Reading MAYOR BUSHNELL DIST 1: COMM. SWENSON tite DIST 2: COMM. GOMEZ -� DIST 3: V/M GLASSER DIST 4: COMM. DRESSLER try?/' CODING: Words in stFuGk thmuq-l}-type are deletions from existing law; Words in underscore type are additions EXHIBIT 1 == SOUTHERN _= ACTUARIAL SERVICES January 5, 2012 Trustees oi' the City of Tamarac Employees Retirerrient Plan c/o Mr. Rick Spencer ACCountin"' Supervisor City of Tamarac 7525 N.W. 88th Avenue Tamarac. FL 33321-2401 Post 01lia Box 888343 AI[AwA, Gtok(a 3o358-o3�3 li,[[Pot jjo.39t.o98o (AcsIMILE P.391.2193 MMS011111FRNAMARIAL(OM Elected and Appointed Officers and Nan -Represented Re: Citv of Tamarac Elected and Appointed and Non -Represented Employees Retirement Plan Ladies and Gentlemen: Plr•SUant to your request. I have enclosed the impact statement for the proposed Ordinance 0- 2012- for subject plan submitted 10 me. This ordinance reduces the interest credit for the members' aceunudated contributions 1i•om 4.0014 per year to 2.50(/,- per year. restricts overtime pay after .tune 30. 2011 to no more than 300 hours ter purposes of determining plan compensation. and allows eli«ihle full-tir employees to transfer into this plain by payinL7 the full actuarial cost of any prior service credit. Once the ordinance has been adopted. you should till in the ordinance number in the spaces provided and have the Chairman sign the statement. 'Then the statement should he submitted to Ilse Division of Retirement in accordance with Chapter 112. Florida Statutes. A01111 with a copy of the ordinance. If you have any questions Concerning the enclosed, please do not hesitate to call me. Sincerely. Charles T. Carr C011SUIting ACtnary Enclosure as stated cc: N1r. Dustin Heintz. Florida LcaQ.rue of Cities f w/ enclosure) I — Maria Swanson f w/ enclosure 1 OUR IJlrl(l I, [()(A![[; . jO(P) AM,Adl P (),00. �Ull,- ,, Al oil". ((EIiRt;la jo;6o CiTY OF TAMARAC ELECTED AND APPOINTED OFFICERS AND NON -REPRESENTED EMPLOYEES RETIREMENT PLAN IMPACT STATEMENT FOR ORDINANCE. 0-2012- PART ONE: CERTIFICATION OF T1IF PLAN ADMINISTRATOR I have enclosed a copy of Ordinance 0-2012-.___ of the City of Tamarac. which ordinance make,, the followin« changes to the City of 1"anlarac Elected and Appointed Officers and Non - Represented Employees Retirement Plan: (1) Plan compensation 11•111 include outer non-tavable reimbursements and, e /je' ctive Juh• 1, �011, overtime pav in excess of 00 hours per rear will be excluded in accordance with State lair•: (_') Ffiective Jcuucarr 1, 012, simple interest is credited to the member's acci mulaied connributions at the rate of*2. 5014' peryear instead ol'=l.O(Ic%r per year: and (;) Full -tithe employees who dial not choose to transfer into thi.s plan from the Ciiy's 401(a) Retirement Plan as ol'October /, 20015 mar elect to transfer into, this plan by purchasing all or any portion of their prior sc ri iCe° at no actuarial cost to the plan. The plan's enrolled actuary. Charles T. Carr Ol' Southern Actuarial Services Company. Inc.. was provided with a copy of the proposed ordinance. In addition, the described plan Change iueets the requirements of Part V11. Chapter 112. Florida Statutes. and Section 14. Article X of the State. Crnutitution. 0wirman, Board ojTrustees PART TWO: CERTIFICATION OF THE F_.NROLLED ACTUARY Chapter 112 reCluires CIISCIOStrre of the el'fcCt of changes in assumptions. methods, and plan prcnisions on certain liabilities. I have Cleternlined the impact of Ordinance (-)-2012- based on the result: of the October 1. 2011 actuarial valuation. The ordinance will not decrease the annual Contribution reCluired lrcnn the City because (lie decrease in plan liabilities attributable to t11e OrdinanCC iS nOnnnal. The: tahle sets forth the reiluired disclosures in Connection with the plan changes which have heen dCSCr'ihCd above: GlY a/ Tamarac Elected and ,appointed O%fir err.s cool tVun Represeraed Emplol°ees Retireme m Man hnpact Stcrte ment %nr Ordinance 0-2012- (cullthilleell As of As of October 1, 2011 October 1, 2011 (Old Plan Pro% isions) (New Plan Provisions) Present value of future erpcxted hrnelit payments: for actin e participants retirenr•nt benejit.c S 28.021.911 S 25,021.91 1 termiliatioll bell('l!1.1 O O disability bene%irs 1.179.487 1.179,487 death benelirs 362,365 362.365 ret!!r'11 of CYoil tribilliol1.1 1.891 I.V6 29.565.639 soh -toter! S 29.565.05-t for tornunated rested participants S -1.001. I31 S 4.001.13,1 for retired participants and beneficiaries retirt'd !other thcul disclb. r d belle/: S 7.056. 427 S 7M56,427 disabled retiree. 0 0 5 7.056-427 sub -weal S 7.056,417 total Entry aei 110111a1 accnled ]KINIM: for octk c participants relireuleat ben(ritc S 17,66t).825 17,666.5_' i termillatiolt hene't(Lti O U disability belle its 684.729 684.729 death benefits 213. 165 2I3.168 1'etln'n u/ c ontr'thtlnolls _—____._ L. 79 1.565 cub -total S 18.566.299 S 18.566.2 S for terminated 4'estod participants S 4.001.131 ti 4,001.1 31 for retired participants and heucliciaries retired (other them disal).1 ct belle/: S 7.056.427 S 7,056.4271 disabled retirees 0 (1 S TO1 6.12)7 cuh-total S 7,056.427 S 29,623.857 total S 29,623.84 ( 1 5.005,465) .actuarial \ aloe ui' Ztsscts 115.665.465) S 13. 15).3�)3 Unfunded accruc(I liahilit\ ti__-- 13,958.381 S 24.940.143 ACttlal-i ld present value of accrued henelit, S -1 4.9.40.1-13 Present \altle Ofactive participants': Future salaries S 40.91 2.r-15 S 40.912.345 Future C01111-lbtltIMIS S d,091,282 S 4.091,252 Present salve 01'future contributions front the emploNer (including expenseloading I 5 21.275,593 S 21-275.575 Total .lnmlal compensation (201 1112 1-1') S -1.992.71 1 S 4.992.711 Mmilmt111) l'e(1n11Y(1 COntrlbUtioll (estimated for the 2011/12 [- ): :Annual normal cost (incl. exprmes) S I.477.194 S 1.477.194 .Amortization payment 763, 321 763,320 Interest adjustment 64.656 64,656 Employee C011I1-Ib1111011 __(499,271) (499,271 ) Total S 1 "105.900 1,605,899 Cih oJ ervv� Rctirement Plan Imp(y Statemew (nr Ordinance 0-2013- I continued i This actuarial valuation and/or cost determination was prepared and completed by me or under rrly direct supervision and I acknowle(lLe responsibility for the results. To the best of my knowledge. the results are complete and accurate and, in my opinion. the technique~ trod assutitptions used arc reasonable and meet the. requirements and intent of Part VII, Chapter 112. Florida Statutes. There is no benefit or expense to he 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. Can'. A.S.A. Cimsultin<, Actuary Enrolled Actuary No. 1 1-04927 l (5't 2 Date si«ned