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HomeMy WebLinkAboutItem #11 Approval of Early Retirement Option AGENDA ITEM COVER SHEET Meeting Date: 04/04/06 Item#~ Contact Name: Contact Number: James Carnicella 1032 Reviewed By: ~ D~partment Director:. . _ ___ __ ~ City Manager: Background Summary: The Pension Board for the City of Ocoee Municipal General Employees' Retirement Trust Fund is governed by ordinance. Issue: Amendment to the General Employees' Pension Ordinance to allow an Early Retirement Option window for employees with more than 30 years of service. These employees will be entitled to a normal retirement amount based on their years of service at the present 2.5% multiplier. These employees would not be subject to the age penalty provision for retiring before age 60. Recommendations Staff recommends the Commission amend the General Employees' Retirement Trust Fund ordinance to allow for a one-time early retirement option for current employees with 30+ years of service. Attachments: Actuarial Analysis. Financial Impact: Foster & Foster, the General Employees' Pension Actuary has stated it will cost $37,291 to fund this early retirement option window. The anticipated savings from replacing the employees, by hiring replacements at the minimum of their respective pay grades is $59,782. Therefore, the savings to the City after payment ($37,291) is made for the cost of the early retirement option window will be $22,491. Type of Item: D Public Hearing [8J Ordinance First Reading D Ordinance First Reading D Resolution D Commission Approval D Discussion & Direction For Clerk's Deaf Use: D Consent Agenda D Public Hearing D Regular Agenda o Original DocumenUContract Attached for Execution by City Clerk o Original DocumenUContract Held by Department for Execution Reviewed by City Attorney Reviewed by Finance Dept. Reviewed by ( ) D N/A D N/A D N/A ORDINANCE NO. 20- AN ORDINANCE OF THE CITY OF OCOEE, FLORIDA, RELATING TO THE CITY OF OCOEE MUNICIPAL GENERAL EMPLOYEES' RETIREMENT TRUST FUND, ADOPTED AND RESTATED IN FULL BY ORDINANCE NUMBER 96-19; AS SUBSEQUENTLY AMENDED; IS HEREBY FURTHER AMENDED BY AMENDING SECTION 6, BENEFIT AMOUNTS AND ELIGIBILITY; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH AND PROVIDING AN EFFECTIVE DATE. SECTION 1: Authority. The City Commission ofthe 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. 96-19, adopting the amended and restated City of Ocoee Municipal General Employees' Retirement Trust Fund, as subsequently amended, is hereby further amended by amending Section 6, Benefit Amounts and Eligibility, 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 age sixty (60) regardless of the 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 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 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 two and one-halfpercent (2.5%) 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 fifty (50) 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. 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 for life as follows: 1 A. A deferred monthly retirement benefit which shall commence on what would have been his or her normal retirement date had he or she remained a General Employee 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 as his or her normal 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 determined in paragraph A above, which is actuarially reduced from the amount to which he or she would have been entitled had he or she retired on his or her normal retirement date and with the same number of years of Credited Service as at the time his or her benefits commence and based on his or her Average Final Compensation at that date. 5. Cost-of-Living Adjustment. The monthly retirement benefit being paid to all Retirees and Beneficiaries who were receiving benefits on June 15, 1997, shall be increased by ten percent (10%). 6. Early Retirement Incentive Window. A. Those members with thirty (30) years of Credited Service as of the effective date of this ordinance, may elect within thirty (30) days from the effective date of this ordinance, to terminate employment on or before June 30, 2006 and shall be eligible to receive the pension benefit provided for in paragraph B. below. This election shall be irrevocable and shall be made to the Board of Trustees and the City in writing. B. Those members eligible to retire pursuant to paragraph A. of this subsection 6., shall receive an unreduced monthly benefit in the amount of two and one-half (2.5%) of the member's Average Final Compensation times years of Credited Service. SECTION 3. Repeal of Ordinances. All ordinances or parts of ordinances in conflict herewith are hereby repealed. SECTION 4. Effective Date. This ordinance shall take effect upon adoption. PASSED AND ADOPTED this _ day of , 2006. APPROVED: ATTEST: CITY OF OCOEE, FLORIDA By: Beth Eikenberry, City Clerk S. Scott Vandergrift, Mayor 2 (SEAL) FOR USE AND RELIANCE ONLY BY THE CITY OF OCOEE, FLORIDA APPROVED AS TO FORM AND LEGALITY THIS _ day of , 2006. CHRISTIANSEN & DEHNER, P.A. Special Counsel By: noc\ocoee\gen \03-08-06. ord 3 ADVERTISED , 2006 READ FIRST TIME , 2006 READ SECOND TIME AND ADOPTED , 2006. APPROVED BY THE OCOEE CITY COMMISSION AT A MEETING HELD ON , 2006 UNDER AGENDA ITEM NO.