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HomeMy WebLinkAboutCity of Tamarac Ordinance O-2007-007Temp. Ord. #2132 February 5, 2007 Page 1 of 8 CITY OF TAMARAC, FLORIDA ORDINANCE NO. 0-2007- AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF TAMARAC, FLORIDA; AMENDING CHAPTER 16, PENSION AND RETIREMENT, ARTICLE VI, DIVISION 4 SECTION 16-493 TO PROVIDE FOR AN INCREASE IN DROP PARTICIPATION FROM THREE (3) YEARS TO FIVE (5) YEARS NOT TO EXCEED THIRTY YEARS OF EMPLOYMENT AND TO REMOVE REPEALED BACK DROP PROVISIONS; AMENDING SECTION 16-503 OF DIVISION 4 TO PROVIDE AN INCREASE IN ANNUAL COST OF LIVING ADJUSTMENTS FROM TWO PERCENT TO TWO AND ONE -QUARTER PERCENT; ADDING SECTION 16-516 OF DIVISION 4 TO PROVIDE A SUPPLEMENTAL PENSION BENEFIT IN LIEU OF PAYMENT FOR ACCRUED SICK LEAVE; PROVIDING FOR A SAVINGS CLAUSE; PROVIDING FOR SEVERABILITY; PROVIDING FOR CODIFICATION AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Tamarac and Metro-Broward Professional Firefighters, Local 3080, International Association of Firefighters, 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 agreement; 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 recommended changes, NOW THEREFORE, BE IT ORDAINED by the City Commission of the City of Tamarac, Florida: Coding: Words in S#U& thFeUgh type are deletions from existing laws; Words in underscored type are additions. Temp. Ord. #2132 February 5, 2007 Page 2 of 8 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. Section 2: That Section 16-493 Division 4, Article VI, Chapter 16, of the City of Tamarac Code of Ordinances, be and is hereby amended by deleting the stFiehen through language and adding the underlined language as follows: Sec. 16-493.Optional benefits. Optional benefits are: (3) 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 firefighters' pension plan. Participation shall be subject to the following terms and conditions: a. Eligibility. , aAn "eligible participant" of the city firefighters' pension plan, which is defined as an individual currently 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 Eligible participants entering after the completion of twenty-five (25) years and six moths 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 a total of thirty 30 ears, of employment as a firefighter for the city_eFedited ^^ after which no further DROP eligibility shall be available. b. Written election. An eligible participant electing to participate in DROP 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 irrevocable letter of resignation effective no later than the conclusion of the maximum period of DROP participation. Participants in DROP after March 1 2007 subject to the maximum period of thirty-six 36 months Coding: Words in etMek thFeUgh type are deletions from existing laws; Words in underscored type are additions. Temp. Ord. #2132 February 5, 2007 Page 3 of 8 shall be provided an opportunity to extend _ the effective date of the participant's irrevocable letter of resignation up_to a maximum of sixty (60) months not to exceed thirty (30) years of employment as a firefighter with the city by submitting an amended irrevocable letter of resignation. Election into DROP is irrevocable provided, "^rwweveF, there tsshall be no minimum period of participation, however in the event of a volunta termination prior to the maximum period any DROP participant terminating prior to such maximum DROP period shall submit a written notice at least thirty 30 days prior to such early termination of DROP participation. h. Maximum period of participation. An eligible participant may elect to participate in DROP for a maximum of thiFty-six (36)sixt 60 months or, in the case of a participant who delayed entry, until the attainment of twenty eight (28) yeaFs and sox (6) thirty (30Lvears of service as a firefighter for the Citx, 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. --Bae DAP ■ r ■ r r TO w •� •� w r ■ * w w � w *TAW-' 0100-01 ■ w r - r ■ r ■ r + -Ln R.I-A0 FAa'1I\�����\rJ� ���[r_I�w•\'1'A'_'f■\31 A&-j j �'�t 1 Coding: Words in StMek through type are deletions from existing laws; Words in underscored type are additions. No Text Temp. Ord. #2132 February 5, 2007 Page 5 of 8 I wo M MZZ:_ Section 3: That Section 16-503, Division 4, Article VI, Chapter 16, of the City of Tamarac Code of Ordinances, be and is hereby amended by adding the underlined language as follows: Sec. 16-503. Calculation of benefit amount. (c) Cost of living adjustment benefit. (2) a. For participants who were employed in active service by the city 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 January 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 (2) percent compounded annually. b. For participants who retire on or after March 1, 2007 the cost -of -living adjustment described in this sub- section shall apply. As of each January 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 with normal service retirement, early service retirement or disability retirement shall be increased by two and one -quarter (2.25) percent compounded annually. Section 4: That Section 16-516, Division 4, Article VI, Chapter 16, of the City of Tamarac Code of Ordinances, be added by adding the underlined language as follows: Coding: Words in struelk t FOUgh type are deletions from existing laws; Words in underscored type are additions. Temp. Ord. #2132 February 5, 2007 Page 6 of 8 Sec. 16-516. Supplemental Pension Benefit. Each eligible participant who was an active employee on or after March 1_, _ 2007 shall be entitled to a supplemental pension benefit that shall be considered an "extra benefit" within the meaning of section 175.351 1 b of the Florida Statutes and a supplemental benefit within the meaning of section 112.65(1) of the Florida Statutes. City; Eligibility for the Supplemental Pension Benefit shall require: a. Termination of employment as a firefighter with the b. Receipt of a normal, early or disability pension benefit from this Plan; and C. Accrual of unused sick leave. (Q Eligible firefighter participants shall, receive a supplemental pension benefit that: a. Shall be in the form of an increased benefit that: i for the maximum of two thousand four hundred ninety six (2496) hours of accrued sick leave (for which no payment has been received) is equivalent to three percent (3%) of the average monthly compensation that was used to calculate the retiree's standard monthly benefit; and (ii) is proportionally reduced for lesser amounts of accrued sick leave. b. Shall be adjusted in accordance with the optional form of benefit, if any, elected at the time of retirement and shall be payable for the remaining period that a pension benefit is payable under this plan. C. Shall not be subject to cost of living adjustment provided in section 16-503(c) nor benefit limitations provided in section 16-506. Section 5: That funding for the benefit improvements in sections 3 & 4 above shall be provided from available additional state premium tax revenue as provided in section 175.351(1), Florida Statutes. Coding: Words in stFUGI( thFOUgh type are deletions from existing laws; Words in underscored type are additions. 1 Temp. Ord. #2132 February 5, 2007 Page 7 of 8 Section 6: 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 7: All Ordinances or parts of Ordinances in conflict herewith are hereby repealed to the extent of such conflict. Section 8: If any provision of this Ordinance or thb 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. Coding: Words in dough type are deletions from existing laws; Words in underscored type are additions. 2007. Temp. Ord. #2132 February 5, 2007 Page 8 of 8 Section 9: This Ordinance shall become effective on the 1st day of March PASSED, FIRST READING this 7 day of 2007. PASSED, SECOND READING this day of , 2007. d BETH FLANSBAUM-TALABISCO, Wyor ATTEST: r MARION SWE SON, CMC CITY CLERK I HEREBY CERTIFY that I have approved this ORDINANCE as to form. d SAMUEL S. GOREN CITY ATTORNEY RECORD OF COMMISSION VOTE: 1st Reading MAYOR FLANSBAUM-TALABISCO DIST 1: V/M PORTNER DIST 2: COMM. ATKINS-G D DIST 3: COMM. SULTANOF G&4 DIST 4: COMM. DRESSLER RECORD OF COMMISSION VOTE: 2nd Reading MAYOR FLANSBAUM-TALABISCO .Ae DIST 1: V/M PORTNER DIST 2: COMM. ATKINS-GRAD DIST 3: COMM. SULTANOF DIST 4: COMM. DRESSLER P_ Coding: Words in stMek thFeU@h type are deletions from existing laws; Words in underscored type are additions. E 1 EXHIBIT 1 CITY OF TAMARAC FIREFIGHTERS' PENSION PLAN IMPACT STATEMENT FOR ORDINANCE 0-07- © -- PART ONE: CERTIFICATION OF THE PLAN ADMINISTRATOR I have enclosed a copy of Ordinance 0-07- 0 of the City of Tamarac, which ordinance makes the following changes to the City of Tamarac Firefighters' Pension Plan: (1) Effective March 1, 2007, the maximum participation period under the Deferred Retirement Option Plan (DROP) is increased from 36 months to 60 months; (2) Effective March 1, 2007, for participants who retire on or after that date, the automatic annual cost -of -living adjustment (COLA) for normal, early, and disability retirement benefits is increased from 2.00% to 2.25916; and (3) Ejfective March 1, 2007, a monthly supplemental pension benefit that is not subject to the automatic COLA is added to the plan equal to 3% of the average monthly compensation that is used to calculate, the participants standard retirement benefit, Proportionally reduced for less than 2,496 hours of accrued sick leave. 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, th eseribed plan change meets the requirements of Part VII, Chapter 112, Florida Statut d S ion 14, Article X of the State Constitution. Randy E. Correll 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 0-07- Oq The ordinance is anticipated to increase the annual contribution required from the City by $164,539, or 2.84% of payroll, which amount reflects an increase in normal cost of $71,300 and an increase in amortization payments of $93,239. City of Tamarac Firefighters' Pension Plan Impact Statement or Ordinance 0-07- C 4 (continued) The following table sets forth the required disclosures in connection with the plan changes which have been described above: As of As of October 1, 2005 October 1, 2005 Old Plan Provisions)(New Plan Provisions Present value of future expected benefit payments: for active members $ 43,399,924 $ 45,223,747 for terminated vested members 28,921 28,921 for retired members and beneficiaries 8,616,752 8,616,752 _ $ 52,045,597 $ 53,869,420 total Actuarial accrued liability $ 39,185,356 $ 40,423,354 Actuarial value of assets $ (26370,033) $ (26370,033) $ 12,815,323 Unfunded actuarial accrued liability $ 14,053,321 Actuarial present value of accrued benefits $ 32,365,946 $ 33,306,902 Present value of active members': Future salaries $ 51,714,725 S 51,714,725 Future contributions $ 4,654,325 $ 4,654,325 Present value of future contributions from the City and State $ 21,021,239 $ 22,845,062 Total annual compensation $ 5,793,827 $ 5,793,827 Minimum required contribution (beginning of year): Annual normal cost $ 1,577,520 $ 1,648,820 Amortization payment $ 979,210 $ 1,072,449 Expected participant contribs. (521,444) $ (521,4441 $ 2,035,286 $ 2,199,825 Total City of Tamarac Firefighters' Pension Plan Impact Statement for Ordinance 0-07- n (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. 05-04927