HomeMy WebLinkAboutOrdinance 94-07
ORDINANCE NO. 94- 07
AN ORDINANCE OF THE CITY OF OCOEE RELATING TO
THE CITY OF OCOEE MUNICIPAL POLICE OFFICERS'
AND FIREFIGHTERS' 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 vrn 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 Police Officers' and Firefighters' Retirement Trust Fund as adopted by the City
Commission of the City of Ocoee in Ordinance No. 91-09, 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 forty-six (46) and who have
or will have at least twenty-three (23) 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 an unreduced
Normal Retirement Benefit to be computed as set forth in subsection 2
above. provided. however. such benefit shall not be less than sixty-two
and one-half percent (62.5 %) 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resolutions in conflict herewith are hereby repealed and rescinded.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.
A-ptlL
,
PASSED AND ADOPTED this I crtL day of
ATTEST:
(SEAL)
FOR USE AND RELIANCE ONLY BY
THE CITY OF OCOEE, FLORIDA
APPROVED AS TO FORM AND LEGALITY
THIS /~ day of ~/// , 1994.
.
CHRISTIANSEN & DEHNER, P.A.
Spe;;;l
By: /~~
dm\oooee\3161l4pf2.otd
,1994.
APPROVED:
CITY OF OCOEE, FLORIDA
By: s-1~ott~fJJft~ta~J~1J
ADVERTISED April 7 , 1994
READ FIRST TIME April 5 ,1994
READ SECOND TIME AND ADOPTED
/fPllL..- I' , 1994
APPROVED BY THE OCOEE CITY
COMMISSION AT A MEETING HELD
ON J-PR/L /q , 1994 UNDER
AGENDA ITEM NO. -sr p.. Lt- .
CITY OF OCOEE MUNICIPAL POLICE OFFICERS'
AND FIREFIGHTERS' 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 46
and have at least 23 years of credited service to retire with an
unreduced benefit which is equal to the greater of their accrued
benefit or 62.5% 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~~l::1f Jr. :/:.1.~~
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 57 58
Service Retirees 1 0
Beneficiaries 0 0
Terminated Vested 1 1
Disability Retirees 0 0
Total 59 59
Total Annual Payroll $1,706,230 $1,759,798
Payroll Under Assumed Ret. Age 1,706,230 1,759,798
Annual Rate of Payments to:
Service Retirees $30,970 $0
Beneficiaries 0 0
Terminated Vested 6,240 6,240
Disability Retirees 0 0
B. Assets
Actuarial Value $989,107 $989,107
Market Value 989,107 989,107
c. Liabilities
Present Value of Benefits
Active Members
Retirement Benefits $2,596,112 $2,876,596
Disability Benefits 275,041 291,852
Death Benefits 63,070 67,940
Vested Benefits 478,621 511,128
Refund of Contributions 113,899 113,899
Service Retirees 348,941 0
Beneficiaries 0 0
Terminated Vested 12,439 12,439
Disability Retirees 0 0
Total $3,888,123 $3,873,854
After Before
10/1/93 10/1/93
C. Liabilities - (Continued)
Liabilities Due and Unpaid $0 $0
Present Value Fut Salaries (AA) 10,648,800 10,929,300
Present Value Fut Salaries (EA) 7,644,700 7,751,300
Present Value of Future
Member contributions 532,440 546,465
Present Value of Future
Normal Costs (Entry Age) 607,725 608,525
Actuarial Accrued Liability 1,747,087 1,747,087
Unfunded Actuarial Accrued 757,980 757,980
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
$361,380 $12,439
949,665 1,124,115
157,221 162,392
---------- ----------
$1,468,266 $1,298,946
25,209 25,209
---------- ----------
$25,209 $25,209
---------- ----------
$1,493,475 $1,324,155
Value of
to:
$169,320
o
o
o
o
o
$169,320
After
10/1/93
E. Pension Cost
Normal Cost (with interest)
% of Total Annual payroll*
$372,167
21.8
Payment Required to Amortize
Unfunded Actuarial Accrued
Liability over 28 years
(as of 10/1/93) to 2021
% of Total Annual payroll*
49,667
2.9
Total Required Contribution
% of Total Annual payroll*
421,834
24.7
Expected Member contributions
% of Total Annual payroll*
85,312
5.0
Expected City & state Contrib.
% of Total Annual payroll*
336,522
19.7
Before
10/1/93
$371,535
21.1
49,667
2.8
421,202
23.9
87,990
5.0
333,212
18.9
* Contributions developed as of 10/1/93 are expressed as a
percentage of projected annual payroll at 10/1/93 of
$1,706,230
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
$12,439
Before
$361,380
(b) Current Employees
i.
ii.
iii.
Accumulated Member contributions
Sponsor-financed Vested
sponsor-financed Non-Vested
162,392
1,604,856
34,102
157,221
1,362,877
34,102
(c) TOTAL
$1,813,789
$1,915,580
(5) Net Assets Available for Benefits
989,107
989,107
(6) Unfunded Pension Benefit
Obligation: (4)- (5)
(7) Changes in (4) and (5) Resulting from
Plan Amendments or Assumption Changes
$824,682
$926,473
$101,791
9
ACTUARIAL ASSUMPTIONS AND FUNDING METHODS
AssumDtions
Interest Rate
UP 1984 Mortality Table.
8% per year compounded annually,
net of investment related expenses.
Mortality Rate
Retirement Aqe
Earlier of age 55 and 10 years of
service or age 52 and 25 years of
service. 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 (1302).
Termination Rate
Salarv 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 Growth
3.0% per year.
$12,300 annually.
Administrative Excenses
CUrrent Salary
% Becoming Disabled % Terminating as A % of
Aqe Durinq the Year Durinq the Year SalarY at Aqe 55
20 .14 50.0% 13.0%
30 .18 34.9 23.3
40 .30 3.8 41.7
50 1.00 1.5 74.7
Fundinq Methods
Actuarial Valuation - Frozen Entry Age Actuarial Cost Method.
GASB 5 Calculation - Projected Unit Credit Actuarial Cost Method.
17
SUMMARY OF PLAN PROVISIONS
Eliaibilitv
Full-time employees who are classi-
fied as police Officers or Fire-
fighters participate as a condition
of employment.
Total years and completed months of
employment with the city.
Credited Service
Earninas
W-2 Compensation.
Average Earnings for the 5 best
years of the 10 years immediately
preceding retirement or
termination.
Averaae Monthlv Earninas
Member Contributions
citv 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
Earlier of Age 55 and 10 years of
Credited Service, or age 52 and 25
years of Credited Service.
Benefit
2 1/2% of Average Monthly Earnings
times
Credited Service
Form of Benefit
Ten Year Certain and Life Annuity
(options available).
Earlv Retirement
Eligibility
Age 45 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.
Disabilitv
Eligibility
service Incurred
Non-service Incurred
Exclusions
Benefit
Duration
Death Benefits
Pre-Retirement
Vested
Non-Vested
post-Retirement
Board of Trustees
18
Covered from Date of EmplOYment.
10 years of Credited Service.
Disability resulting from use of
drugs, illegal participation in
riots, service in military, etc.
Benefit accrued to date of disabil-
ity but not less than 42% of Aver-
age Monthly Earnings (Service
Incurred), or 25% of Average Month-
ly Earnings (Non-Service Incurred).
Payable for life or until recovery
(as determined by the Board).
Monthly accrued benefit payable to
designated beneficiary for 10
years.
Refund of accumulated contributions
without interest.
Benefits payable to beneficiary in
accordance with option selected at
retirement.
a. Two Council appointees,
b. One Members from each Department
elected by the membership, and
c. Fifth Member elected by other 4
and appointed by Council.