HomeMy WebLinkAboutVII (B) General Employee Pension Survey Results and Recommendation Agenda 5-20-2003
Item VII B
STAFF REPORT
DATE: May 14, 2003
TO: The Honorable Mayor and City Commissioners
FROM: Pat Cornell, Vice Chairperson, General Employees Pension Board
THROUGH: Tom !son, Chairperson, General Employees Pension Board
SUBJECT: Pension Survey Results
ISSUE:
To present to the Mayor and City Commissioners with the results of the General Employees
Pension survey. Wherein the general employees were provided certain options for their
consideration for enhanced benefit levels.
BACKGROUND:
Wherein as a direct response to requests made by the employees to the General Employee
Pension Board and to the City Commissioners, a survey for additional or enhanced changes to
the benefit levels of the pension plan was prepared by an appointed committee; wherein the
survey was distributed to the general employee populace for their consideration and adoption.
Wherein the committee selected five (5) options out of 14 that were presented to the Board from
Foster and Foster, the actuary, and a ballot was prepared and distributed to the general
employees for their response.
DISCUSSION:
The General Employee Board Members and the Human Resources Department tabulated the
results of the survey under strict supervised conditions. The actuarial valuations determining the
cost of each benefit were prepared by Foster and Foster and included in the survey.
BOARD RECOMMENDATION:
It is recommended by the General Employees Pension Board that based on the final tabulation
results, that no changes be made to the General Employees Pension Plan at this time. That the
benefit enhancements be revisited again in the next fiscal year to ascertain the financial position of
the City and whether or not the level of benefits could be enhanced with the assistance of the City.
THE CITY OF OCOEE
GENERAL EMPLOYEE PENSION FUND
BENEFIT INCENTIVE SURVEY
The General Employee Pension Board is responding to member requests for changes in benefit
levels for all members of the General Employee Pension Fund. Please review the options listed
below and select the option you consider to be most appropriate at this time. SELECT ONLY
ONE OPTION
( ) Option one: Cost of Living Adjustment(COLA)—To implement a 2% COLA annually
for retirees retiring after approval of this option. First COLA increase to become effective
three (3) years after approval of the ordinance by the City Commission. Cost to be paid
by all participating members. Cost of the benefit to the employee will be an increase in
member contribution from 7.4%to approximately 10.6%, a difference of approximately
3.2%.
( ) Option two: Cost of Living Adjustment(COLA)—To implement a 3% COLA every other
year(bi-annually)for retirees retiring after approval of the option. COLA to become
effective immediately upon approval of the ordinance by the City Commission. Cost to
be paid by all participating members. Cost of the benefit to the employee will be an
increase in member contributions from 7.4% to approximately 10.4%, a difference of
approximately 3.0%.
( ) Option three: Cost of Living Adjustment(COLA)—To implement a 3% COLA every other
year(bi-annually)for retirees retiring after approval of the option. COLA to become
effective three (3) years after approval of the ordinance by the City Commission. Cost to
be paid by all participating members. Cost of the benefit to the employee will be an
increase in member contributions from 7.4% to approximately 9.7%, a difference of
approximately 2.3%.
( ) Option four: Allowing normal retirement at age 60 with 5 years of service or at any age
with 30 years of service (30 and out) -To expand the definition of normal retirement form
age 60 with 5 years of credited service to include allowing members to take a normal
retirement at any age with 30 years of service. Cost to be paid by all participating
members. Cost of benefit to the employee will be an increase in member contributions
from 7.4% to approximately 10.0%, a difference of approximately 2.6%. Increase does
not include a COLA option.
( ) Option five: No change in benefit level for members. Keep the current level of benefits
with no changes. Cost to participating members to remain at 7.4%.
2/18/03
The GENERAL EMPLOYEES PENSION BOARD has completed the tally of its recent pension benefit survey. A
very sincere thank you goes out to all of the department individuals who monitored the collection of the
survey forms: Judy Henry(Public Works),Michelle Wise(Parks and Recreation),and the Human
Resources Department staff; Debbie Bertling, Debbie McDonald,Jack Dabbs, and Marilyn Johnson. A
great deal of work,planning and preparation went into the groundwork of this survey to which Fran
Diedrich provided 100%support to make this survey as successful as it was. 85%of the participants in the
pension program participated and voiced their opinions in this survey and the results are tabulated below:
Official Pension Survey Results
3/21/2003
Pension Benefit Survey Results
® No Change ■ 3% Cola Bi-Annually
0 3% Cola Bi-Annually 0 3% Bi-Annually in 3 Years
■ 30 & Out
Public Parks& City Hall&
Option Description Utilities Works Recreation Comm. Total
1 2%Cola Annually in 3 Years 10 10
2 3%Cola Bi-Annually 3 3
3 3%Bi-Annually in 3 Years 2 5 14 21
4 30 & Out 7 3 2 1 13
5 No Change 21 22 17 33 93
Total 30 30 19 61 140