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Home My WebLink AboutCity of Tamarac Ordinance O-2012-011Temp. Ord. 2249 April 9, 2012 Page 1 of 3 CITY OF TAMARAC, FLORIDA ORDINANCE NO. 0-2012- AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF TAMARAC, FLORIDA; AMENDING CHAPTER 16, PENSIONS AND RETIREMENT, ARTICLE III, DIVISION I, PENSION PLAN, AMENDING THE DEFINITION OF ACTUARIAL EQUIVALENCE OR ACTUARIALLY EQUIVALENT; PROVIDING FOR A SAVINGS CLAUSE; PROVIDING FOR SEVERABILITY; PROVIDING FOR CODIFICATION AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the current mortality table utilized to determine actuarial equivalence establishing the actuarial present value of benefit payments is outdated and requires revision; and WHEREAS, the pension plan's actuary has recommended incorporating the most recently accepted actuarial methodology mortality table providing for greater accuracy and precision in benefit calculations; and WHEREAS, an amendment to the City Code is necessary to permit such new obligations and conditions, and WHEREAS, the trustees of the City of Tamarac Employees' Pension Trust Fund have reviewed the proposed changes, and WHEREAS, the City Commission has received, reviewed and considered an actuarial impact statement describing the actual impact of the amendments provided for herein, 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 pension plan to reflect these changes. NOW THEREFORE, BE IT ORDAINED by the City Commission of the City of Tamarac, Florida: CODING: Words in s#FUsk through type are deletions from existing law; Words in underscore type are additions Temp. Ord. 2249 April 9, 2012 Page 2 of 3 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 are incorporated herein and made a specific part of this Ordinance. Section 2: That Section 16-126 of Chapter 16, Article III, Division 1, of the City of Tamarac Code of Ordinances, be and is hereby amended as follows: Sec.16-126. Definitions. Actuarial equivalence or actuarially equivalent means that any benefit payable under the terms of this plan in a form other than the standard form of benefit for participantsshall have the same actuarial present value > on the date payment commences as such standard form of benefit. For the purposes of establishing the actuarial present `»value 'of any form of payment, all future payments shall be discounted for interest and mortality by using seven -percent interest and the unisex mortality table promulgated by the Secretary of the Treasury for purposes of calculatina lump sum distributions pursuant to Internal Revenue Code (IRC) 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 CODING: Words in struGk thFough type are deletions from existing law; Words in underscore type are additions 1 1 Temp. Ord. 2249 April 9, 2012 Page 3 of 3 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 shall become effective when all of the following have occurred: (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 amendment has been sent to the State of Florida Division of Retirement; and (c) A Memorandum of Understanding ratifying the foregoing changes to pension benefits has been ratified by the City Commission and the Federation of Public Employees. PASSED, FIRST READING this day of ' 2012. PASSED, SECOND READING this day of f� , 2012. s BETH TALABISCO MAYOR M. J. 7CHARDSON,ICRM,/ICMC ,PETER ITY CLERK pp I hereby certify that I have approved this ORDINANCE as to form. SAMOEL S. G RE , CITY ATTORNEY RECORD COMMISSION OF VOTE: 1ST READING MAYOR TALABISCO vxz� DIST 1: COMM. BUSHNE DIST 2: COMM. GOMEZ DIST 3: V/M GLASSER DIST 4: COMM. DRESSLEk RECORD COMMISSION VOTE: 2ND READING MAYOR TALABISCO k*_' DIST 1: COMM. BUSHNt LL DIST 2: COMM. GOMEZ -� DIST 3: V/M GLASSER DIST 4: COMM. DRESSL CODING: Words in struGk throuo type are deletions from existing law; Words in underscore type are additions • (i Pw 0ltltl. box 888,w AftANIA, G KIA 30356-03� 11apHON( 110,392,0980 IUSI ILI Po.391.2193 April 9. 01? `RIStees of the City of'I'anmrac General Employees' Pension Plan Ms. 'Maria Swanson Director of I luman Resources 7525 N.W. 88"' Avenue I'amarac, FL 3332 1-2401 Re: C ttv of Tamarac Employees' Pension Plan Ladies and Gent.letnen: In response to your request. I have reviewed Ordinance No, 0-201 Z- . This ordinance amends the definition Of actuarial Equivalence by changing the mortality table used to determine actuarial equivalence from the 1981 Group Annuity )Mortality Tahle to the unisex mortality tahle prolIMIO ted by the Secretar4 of Treasury for purl)oses of cEilculatin�II luttIp sum distrih'utiimy pursuant to Internal Revenue Code section 417(e)(). ]'his ordinance does nor male any suhstantivc changes. Therefore. Eye have determined that the proposed ordinance 4Ni11 hay;°e n() actuarial impGtet on the: plan. If you ha\e ans questions. please do not hesitate to call me. Sincerely. Charles 7'. Carr Consulting Aettiary Oud€na is hcufa AI 3069 Amwim Ron, Sum 3, All ANIA, WRGIA 30360 ` s v NOV 14 PH 3 13 RECEIVEf) CM/ TAMARAC Ms. Maria Swanson Director of Human Resources City of Tamarac 7525 N.W. 88t`' Avenue Tamarac, Florida 3 3 3 21-2401 AILAN E ICHENBAUM ATTORNEY AT LAW 10059 NORTHWEST IST COURT PLANTATION, FLORIDA 33324 OVA, VOTOO t w.V^ TELEPHONE (954) 916-1 202 FAX (954) 916-1 232 • . E-MAIL: alanlaw@bellsouth.net CD M October 30, 2012 Re: MOU - Changes lo City of Tamarac General Employees Pension Plan Dear Maria: Enclosed please find the Memorandum of Understanding that has been signed by Jim Silvernale and myself on behalf of the Federation of Public Employees. Thank you for your attention to this matter. AE:pc Enclosure N:1ttp\ALAN FPE\Ltr to Maria Swanson dated October 30.wpd Sincerely, ALAN EICHENBAUM a�a`c•ic(�yha �•. t 1' MEMORANDUM OF UNDERSTANDING This Memorandum of Understanding is entered into between the CITY OF TAMARAC (the "CITY") and the FEDERATION OF PUBLIC EMPLOYEES (the "FPE") for the purpose of modifying an existing Collective Bargaining Agreement between the CITY and the FPE: WHEREAS, the CITY and the FPE have entered into a Collective Bargaining Agreement, the term of which expires September 30, 2014 ("Agreement"); and WHEREAS, the CITY and the FPE agree that it is necessary to modify the City of Tamarac General Employee Pension Plan ("the Plan") to incorporate the most updated mortality table utilized by the Pension Plan to ensure the accuracy of the actuarial determination of benefit calculations; and WHEREAS, the City adopted Ordinance 0-2012-11 on May 9, 2012 amending the definition of actuarial equivalence by changing the mortality table used to determine actuarial equivalence from the 1983 Group Annuity Mortality Table to the unisex mortality table promulgated by the Secretary of the Treasury, attached hereto as Exhibit 1; NOW THEREFORE, the parties agree as follows: 1. The foregoing whereas clauses are true and correct. 2. The CITY and the FPE agree that, with respect to the mortality table to be utilized by the Plan shall be changed from the 1983 Group Annuity Mortality Table to the unisex mortality table promulgated by the Secretary of the Treasury. 3. The Memorandum of Understanding shall be effective nuns pro tune May 9, 2012. 4. All other terms of the Collective Bargaining Agreement expiring September 30, 2014, are binding except where expressly modified herein or hereinafter by the CITY and the FPE. THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK 1 � s* MEMORANDUM OF UNDERSTANDING THE CITY OF TAMARAC C. Cernech, City Manager l 57" Date AT. T- . 'City, -Cferk APPROVED AS TO LEGAL FORM: Office of the City Attorney FEDERATION OF PUBLIC EMPLOYEES Silvernale, FPE Business Representative I o - 2-q- I Date Alan Eichenbaum, FPE Attorney HA GOV CLIENTSITAM 2704\050164 GWLABORWOU with HE re actuarial equivalence.doc 0)