HomeMy WebLinkAboutOrdinance 94-08
ORDINANCE NO. 94- 08
AN ORDINANCE OF THE CITY OF OCOEE RELATING TO
THE CITY OF OCOEE MUNICIPAL GENERAL
EMPLOYEES' RETIREMENT TRUST FUND; AMENDING
SECTION 6 OF THE SYSTEM TO PROVIDE FOR A
RETIREMENT INCENTIVE WINDOW; REPEALING ALL
ORDINANCES IN CONFLICT HEREWITH AND
PROVIDING AN EFFECTIVE DATE.
BE IT ENACTED BY THE CITY COMMISSION OF THE CITY OF OCOEE,
FLORIDA, AS FOLLOWS:
SECTION 1. Authority. The City Commission of the City of Ocoee has the
authority to adopt this Ordinance pursuant to Article vm of the Constitution of the State of
Florida and Chapter 166, Florida Statutes.
SECTION 2. Section 6, Benefit Amounts and Eligibility, of the City of Ocoee
Municipal General Employees' Retirement Trust Fund as adopted by the City Commission
of the City ofOcoee in Ordinance No. 91-08, is hereby amended to add subsection 5 to read
as follows:
5. Retirement Incentive Window.
A. Members who are or will be at least age sixty-two (62) and who have
or will have at least fifteen (15) years of Credited Service on or before
September 30. 1994 shall be deemed "Eligible Members" and may elect
to receive the benefits set forth in this subsection. on the condition that
they elect to retire on or before September 30. 1994.
B. Eligible Members shall be eligible to retire and receive a Normal
Retirement Benefit to be computed as set forth in subsection 2 above.
provided. however. such benefit shall not be less than forty percent
(40%) of Average Final Compensation.
SECTION 3. Conflict. All ordinances and resolutions, or parts of ordinances and
resolutions in conflict herewith are hereby repealed and rescinded.
SECTION 4. Effective Date. This ordinance shall become effective upon adoption.
PASSED AND ADOPTED this I ?d day of A-f ;etL
.
APPROVED:
(SEAL)
FOR USE AND RELIANCE ONLY BY
THE CITY OF OCOEE, FLORIDA
APPROVED AS TO FORM AND LEGALITY
THIS ~ day of hlA?;"// , 1994.
CHRISTIANSEN & DEHNER, P.A.
spe~~ _ ~
By' . ~ ~~~
dm"""-\031694g2.ord
, 1994.
ADVERTISED April 7 , 1994
READ FIRST TIME April 5 , 1994
RE~ SECOND TIME AND ADOPTED
ilL / ~ , 1994
,
APPROVED BY THE OCOEE CITY
COMMISSION AT A MEETING HELD
ON ~R.(C ('1 , 1994 UNDER
AGE A ITEM NO. Y.~5 .
CITY OF OCOEE
MUNICIPAL GENERAL EMPLOYEES'
RETIREMENT TRUST FUND
ACTUARIAL IMPACT STATEMENT
March 18, 1994
Attached hereto is a comparison of the impact on the Total
Required contribution (per Chapter 112, Florida Statutes), and
the Required Sponsor Contributions, resulting from the implemen-
tation of the following benefit improvements:
Permit Members who terminate employment during the period
from April 1, 1994 to September 30, 1994, who are at least age 62
and have at least 15 years of credited service to retire with an
unreduced benefit which is equal to the greater of their accrued
benefit or 40.0% of Average Final Compensation.
The changes presented herein are in compliance with Part
VII, Chapter 112, Florida Statutes and section 14, Article X of
the State Constitution.
wa!!~:?!f J/(f1~~.
Enrolled Actuary #93-2808
STATEMENT OF PLAN ADMINISTRATOR
The prepared information presented herein reflects the
estimated cost of each proposed improvement.
Plan Administrator
Comparative Summary of Principal Valuation Results
After Before
10/1/93 10/1/93
A. Participant Data
Number Included
Actives 87 89
Service Retirees 5 3
Beneficiaries 0 0
Terminated Vested 5 5
Disability Retirees 0 0
Total 97 97
Total Annual Payroll $2,195,218 $2,262,495
Payroll Under Assumed Ret. Age 2,195,218 2,262,495
Annual Rate of Payments to:
Service Retirees $42,746 $18,198
Beneficiaries 0 0
Terminated Vested 9,942 9,942
Disability Retirees 0 0
B. Assets
Actuarial Value $941,671 $941,671
Market Value 941,671 941,671
C. Liabilities
Present Value of Benefits
Active Members
Retirement Benefits $2,975,444 $3,173,415
Disability Benefits 0 0
Death Benefits 153,131 156,078
Vested Benefits 230,635 230,635
Refund of contributions 97,699 97,699
Service Retirees 406,339 177,526
Beneficiaries 0 0
Terminated Vested 17,630 17,630
Disability Retirees 0 0
Total $3,880,878 $3,852,983
After Before
10/1/93 10/1/93
C. Liabilities - (Continued)
Liabilities Due and Unpaid $0 $0
Present Value Fut Salaries (AA) 19,917,200 19,984,500
Present Value Fut Salaries (EA) 17,203,300 18,034,300
Present Value of Future
Member contributions 995,860 999,225
Present Value of Future
Normal Costs (Entry Age) 1,420,227 1,427,136
Actuarial Accrued Liability 1,461,756 1,461,756
Unfunded Actuarial Accrued 520,085 520,085
Liability (UAAL)
D. Actuarial Present Value of Accrued Benefits
Vested Accrued Benefits
Inactives
Actives
Member contributions
Total
Non-vested Accrued Benefits
Total
Total Present Value Accrued
Benefits
Increase (Decrease) in Present
Accrued Benefits Attributable
Plan Amendments
Assumption Changes
New Accrued Benefits
Benefits Paid
Interest
Other
$423,969 $195,156
363,524 527,543
191,771 196,896
---------- ----------
$979,264 $919,595
102,885 102,885
---------- ----------
$102,885 $102,885
---------- ----------
$1,082,149 $1,022,480
Value of
to:
$59,669
o
o
o
o
o
$59,669
After
10/1/93
E. Pension Cost
Normal Cost (with interest)
% of Total Annual payroll*
$288,942
13.2
PaYment Required to Amortize
Unfunded Actuarial Accrued
Liability over 28 years
(as of 10/1/93) to 2021
% of Total Annual payroll*
34,079
1.6
Total Required Contribution
% of Total Annual payroll*
323,021
14.7
Expected Member Contributions
% of Total Annual payroll*
109,761
5.0
Expected City Contribution
% of Total Annual payroll*
213,260
9.7
Before
10/1/93
$293,194
13.0
34,079
1.5
327,272
14.5
113,125
5.0
214,147
9.5
* Contributions developed as of 10/1/93 are expressed as a
percentage of projected annual payroll at 10/1/93 of
$2,195,218
DISCLOSURE INFORMATION PER STATEMENT NO. 5 OF THE
GOVERNMENTAL ACCOUNTING STANDARDS BOARD
The information provided below has been prepared in accordance
with the requirements of paragraph 35 C. of Statement No. 5 of the
Governmental Accounting Standards Board.
(1) The Pension Benefit Obligation, which is the actuarial present
value of credited projected benefits, is a standardized disclo-
sure measure of the present value of pension benefits, adjusted
for the effects of projected salary increases and any step-rate
benefits, estimated to be payable in the future as a result of
employee service to date. The measure is intended to help the
Board of Trustees and the City assess, on a going-concern basis,
the funded status of the retirement program, assess progress
made in accumulating sufficient assets to pay benefits when
due, and make comparisons among other plans. The measure is
independent of the actuarial funding method used to develop
contributions.
(2) The disclosure information set forth herein was developed as of
10/1/93.
(3) The actuarial assumptions used to compute the Pension Benefit
Obligation are attached.
(4) The Pension Benefit Obligation applicable to the System as of
the date described in (2), above, is as follows:
(a) Retirees and Beneficiaries
receiving Benefits and Vested
Terminated Participants entitled
to Future Benefits
After
$195,156
Before
$423,969
(b) Current Employees
i. Accumulated Member Contributions
ii. Sponsor-financed Vested
iii. Sponsor-financed Non-Vested
196,896
863,331
186,466
191,771
683,796
186,466
(c) TOTAL
$1,441,848
$1,486,002
(5) Net Assets Available for Benefits
(6) Unfunded Pension Benefit
Obligation: (4)- (5)
941,671
941,671
$500,177
$544,331
(7) Changes in (4) and (5) Resulting from
Plan Amendments or Assumption Changes
$44,154
9
ACTUARIAL ASSUMPTIONS AND FUNDING METHODS
Assumotions
Mortality Rate
UP 1984 Mortality Table.
Interest Rate
8% per year compounded annually,.
net of investment related expenses.
Retirement Aae
Age 60. Also, any member who has
reached Normal Retirement is
assumed to continue emploYment for
one additional year.
Disability Rate
See table below (1202).
See table below (T-3).
Termination Rate
Salary Increases
6.0% per year until the assumed
retirement age; see table below.
Projected salary at retirement is
increased 20% to account for
non-regular compensation.
Payroll Increases
3.0% per year.
$11,200 annually.
Administrative EXDenses
% Becoming Disabled
Aae Durina the Year
20 .051%
30 .058
40 .121
50 .429
% Terminating
Durina the Year
Current Salary
As A % of
Salary at Aae 60
50.0%
9.7%
34.9
17.4
3.8
31.2
1.5
55.8
Fundina Methods
Actuarial Valuation - Frozen Entry Age Actuarial Cost Method.
GASB 5 Calculation - Projected Unit Credit Actuarial Cost Method.
17
Eliaibilitv
SUMMARY OF PLAN PROVISIONS
Full-time employees who are
classified as General Employees
(excluding certain Department
Heads) participate as a condition
of emploYment.
Total years and completed months of
emploYment with the city.
Credited Service
Earninas
Averaae Monthlv Earninas
W-2 Compensation.
Average Earnings for the 5 best
years of the 10 years immediately
preceding retirement or
termination.
Member contributions
City and State contributions
5% of Earnings.
Remaining amount required
in order to pay current costs and
amortize unfunded past service
cost, if any, over 30 years.
Normal Retirement
Date
Attainment of Age 60.
2% of Average Monthly Earnings
times
Credited Service
Benefit
Form of Benefit
Ten Year certain and Life Annuity
(options available).
Earlv Retirement
Eligibility
Age 50 and 5 Years of Credited
Service.
Benefit
Accrued benefit, actuarially
reduced.
Vestina
Schedule
100% after 5 years of Credited
Service.
Benefit Amount
Member will receive the vested
portion of his (her) accrued bene-
fit payable at the otherwise Early
or Normal Retirement Date.
18
Death Benefits
Pre-Retirement
Vested
Monthly accrued benefit payable to
designated beneficiary for 10
years.
Refund of accumulated contributions
without interest.
Non-Vested
Post-Retirement
Benefits payable to beneficiary in
accordance with option selected at
retirement.
Board of Trustees
a. Two City Commission appointees,
b. Two Members of the Department
elected by the membership, and
c. Fifth Member elected by other 4
and appointed by City
Commission.