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Home My WebLink AboutOrdinance 2007-028 Police/Fire Pension Ordinance ORDINANCE NO. 2007-028 AN ORDINANCE OF THE CITY OF OCOEE, FLORIDA, RELATING TO THE CITY OF OCOEE MUNICIPAL POLICE OFFICERS' AND FIREFIGHTERS' RETIREMENT TRUST FUND; AMENDING ORDINANCE NUMBER 96-20, AS SUBSEQUENTLY AMENDED; AMENDING SECTION 6, BENEFIT AMOUNTS AND ELIGIBILITY; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH AND PROVIDING AN EFFECTIVE DATE. SECTION 1: Authority. The City Commission of the City ofOcoee has the authority to adopt this ordinance pursuant to Article VIII of the Constitution of the State of Florida and Chapter 166, Florida Statutes. SECTION 2: That Ordinance No. 96-20, adopting the amended and restated City of Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund, as subsequently amended, is hereby further amended by amending Section 6, Benefit Amounts and Eligibility, by adding subsection 6, Early Retirement Incentive Window, to read as follows: SECTION 6. BENEFIT AMOUNTS AND ELIGIBILITY. 1. Normal Retirement Date. A Member's normal retirement date shall be the first day of the month coincident with, or next following the earlier of the completion of twenty-five (25) years of Credited Service regardlesStof age, or the attainment of age fifty-five (55) and the completion of ten (10) years of Credited Service. A Member may retire on his or her normal retirement date or on the first day of any month thereafter, and each Member shall become one-hundred percent (100%) vested in his or her accrued benefit on the Member's normal retirement date. Normal retirement under the System is Retirement from employment with the City on or after the normal retirement date. 2. Normal Retirement Benefit. A Member retiring hereunder on or after his or her normal retirement date shall receive a monthly benefit which shall commence on the first day of the month coincident with or next following his or her Retirement and be continued thereafter during Member's lifetime, ceasing upon death, but with one hundred twenty (120) monthly payments guaranteed in any event. The monthly retirement benefit shall equal three percent (3.0%) of Average Final Compensation, for each year of Credited Service. 3. Early Retirement Date. A Member may retire on his or her early retirement date which shall be the first day of any month coincident with or next following the attainment of age forty-five (45) and the completion of five (5) years of Credited Service. Early retirement under the System is Retirement from employment with the City on or after the early retirement date and prior to the normal retirement date. L 4. Early Retirement Benefit. A Member retiring hereunder on his or her early retirement date may receive either a deferred or an immediate monthly retirement benefit payable in the same form as for normal retirement as follows: A. A deferred monthly retirement benefit which shall commence on what would have been his or her normal retirement date determined based upon his or her actual years of Credited Service and shall be continued on the first day of each month thereafter. The amount of each such deferred monthly retirement benefit shall be determined in the same manner as for retirement on his or her nomml retirement date except that Credited Service and Average Final Compensation shall be determined as of his or her early retirement date, or B. An immediate monthly retirement benefit which shall commence on his or her early retirement date and shall be continued on the first day of each month thereafter. The benefit payable shall be as detem1ined in paragraph A above, reduced by three percent (3%) for each year to age SO and actuarially reduced from age SO to age 4S, by which the commencement of benefits precedes the date which would have been the Member's normal retirement date determined based upon his actual years of credited service had he continued employment as a Police Officer or Firefighter. S. Supplemental Benefit Effective October I, 2004, all current and future retirees, retired under the early or normal retirement provision, their joint pensioners or beneficiaries, shall receive a supplemental benefit in the amount of two hundred dollars ($200) per month reduced as for early retirement if applicable. Disability retirees and vested tem1inated persons shall not receive this supplement. fh Earlv Retirement Incentive Window A. Members who on or before December 31, 2007 have at least: 1, IS years of Credited Service; and 2. A combined age plus years of Credited Service, the sum of which equals at least 6S vears, shall be deemed "Eligible Members" and may elect to receive the benefits set forth in subsection B. below, on the condition that on or before December 31, 2007 the Member makes a written election, delivered to the Board, to retire on or before January 1, 2008. B. Eligible Members shall be eligible to retire and receive the accrued retirement benefit with no earlv retirement reduction. C. Those Eligible Members who elect to receive this benefit shall not be eligible to participate in the Deferred Retirement Option Plan. SECTION 3. Repeal of Ordinances. All ordinances or parts of ordinances in conflict herewith are hereby repealed. SECTION 4. Severability. In the event any section, subsection, paragraph, sentence, clause, phrase or word of this ordinance shall be held invalid by a court of competent jurisdiction, then such invalidity shall not affect the remaining portions hereof. SECTION 5. Effective Date. This ordinance shall take effect upon second reading and adoption. 2 PASSED AND ADOPTED this4\bday OfV~Y: 2007. ATTEST: (SEAL) FOR USE AND RELIANCE ONLY BY THE CITY OF OCOEE, FLORIDA APPROVED AS TO FORM AND LEGALITY TIllS ~ day of 'S'" II1lU<l ,200g. CHRISTIANSEN & DEHNE' , P.A. Special Counsel By 1J1~~~~ ksd\ocoee\pf\1 0-04-07 ,ord APPROVED: CITY OF OCOEE, FLORIDA ADVERTISED NOI/.~~QC:>1 READ FIRST TIME ~lN.::L .,).00'" READ SECOND TIME AND OPTED \)a... '-\ ) ~OO, APPROVED BY THE OCOEE CITY ~ISSI~ AT A MEETING HELD ON c.... , 2007 UNDER A END A ITEM NO. \h. 3 F oster&F osterINC. Actuarial Consultants for Public Pension Plans September 20, 2007 VIA MAIL AND E-MAIL Mr. Jim Carnicella City of Ocoee 150 N. Lakeshore Avenue Ocoee, FL 34761 Re: City of Ocoee Police Officers' and Firefighters' Retirement Trust Fund Early Retirement Incentive Dear Jim: As requested by the Board at the August 8, 2007 meeting, we have determined the costs associated with the implementation of an Early Retirement 1 ncentive Program for Members who meet certain eligibility requirements. The eligibility requirements which are selected must define those members who may receive the enhanced benefit on the basis of a uniform, nondiscriminatory criteria which considers their age and/or credited service. At the Board's direction, the members who would qualify are those active participants who meet the following requirements, determined as of October 1, 2007: a. At least 15 years of Credited Service. b. Age plus Credited Service is at least 65 years. The incentive benefit for those members who meet the eligibility requirements shall be the unreduced accrued benefit. While reviewing the table on the following page, please note the following items: . The true cost borne by the pension plan of offering the incentive to the eligible members is about $445,000, assuming that all members accept the award. . We assumed that all eligible members would elect to receive the award and retire immediately. While we realize that this assumption is not likely to hold, without any additional knowledge to the contrary, we feel that it is the -appropriate assumption to make. . The costs shown represent an annual savings (as a $ amount) because participants will not be ac(,ruing future service and their liability will be financed over approximately 30 years. Mr. Jim Carnicella September 20, 2007 Page 2 . There would be an increase in the Unfunded Actuarial Liability of about $568,000. . The costs as a percentage of payroll will likely be lower once replacement personnel are hired. Additionally, the costs as a dollar amount will increase as new police officers and firefighters are hired to replace the new retirees. . The total impact associated with offering this incentive will not be known until each eligible member has made an election and until the demographics of the replacement firefighters are known. The cost estimates below were developed using census data as of October 1, 2006 with eligibility criteria as of October 1, 2007. These costs are applicable for the funding year beginning October 1,2007, and are as follows: Current Proposed * Valuation Date 10/1/2006 10/1/2006 Plan/Fiscal Year Ending 9/30/2008 9/30/2008 Total Required Contribution $1,773,549 $1,702,581 % of Projected Annual Payroll 29.6% 31.7% Member Contributions (Est.) 455,028 408,459 State Contribution (Est.) 238,045 238,045 Balance from City $1,080,476 $1,056,077 % of Projected Annual Payroll 18.0% 19.6% * Unless otherwise noted, the actuarial assumptions, methods, and provisions used in this study are identical to those set forth in the October 1, 2006 Actuarial Valuation Report. Additionally, Table A on the attached pages lists those members who would be eligible according to the established criteria, including estimated monthly benefits payable before and after application of the incentive. Mr. Jim Camicella September 20,2007 Page 3 If you have any questions regarding this analysis, please let me know. DHUkst Sincerely, LQen Enclosure Cc with enclosure: Mr. Ken Strickland Table A CITY OF OCOEE MUNICIPAL POLICE OFFICERS' AND FIREFIGHTERS' RETIREMENT TRUST FUND Active Members Eligible for Proposed Early Retirement Incentive as of October 1, 2007 Date of Age Plus Estimated Estimated Social Active Participant Age as of Employment Credited Service Credited Monthly Monthly Security Dale of Birth October 1 , as a Police as of October 1, Service as of Number Name 2007 Officer or 2007 October 1, Benefit Before Benefit After Firefighter 2007 Incentive Incentive Buckner, Ben 7/20/1959 46.2000 10/19/1986 20.9507 69.1507 $3,165.42 $4,312.35 Convers, Randall 7/16/1960 47.2062 6/15/1986 21.1288 66.3370 2,733.40 4,041.97 - -- Goclon, Steven 9/3/1962 45.0767 10/1/1983 24.0000 69.0767 3,243.71 5,779.67 Reed, Charles 9/5/1953 54.0712 10/11/1969 17.9726 72.0436 3,008.33 3,095.19 -1 I .L Rivera, Robert 3/2/1961 46.5836 9/26/1966 19.0137 65.5945 2,240.67 3,472.73 Silberstein, Ted 2/20/1956 51.6110 10/18/1965 21.9534 73.5644 3,779.59 4,188.40