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HomeMy WebLinkAboutItem VI (A) 4. Ordinance No. 94-07 and 5.Ordinance No. 94-08 Re: to provide for a retirement incentive window. AGENDA 4-5-94 "CENTER OF GOOD LIVING-PRIDE OF WEST ORANGE" Item VI A 4 & 5 Ccoe CITY OF OCOEE RUSTYOHN ON 150 N.LAKESHORE DRIVE PAUL W.FOSTER OEE FLORIDA 34761-2258 VERN COMBS (407)X2322 JIM GLEASON MANAGERf G 000 ELLIS SHAPIRO MEMORANDUM TO: The Honorable Mayor and Board of City Commissioners FROM: Ellis Shapiro, City Manager DATE: April 1, 1994 RE: PENSION PLAN - RETIREMENT WINDOW Approximately two months ago, Chief John Boyd approached me with the possibility of retiring as Chief of Police for the City of Ocoee. At that time we discussed the many years of service that John had given us as well as other employees who have worked for the City when the pay and benefits were bad and working conditions were limited. To this end, I promised Chief Boyd that I would determine whether or not the City could possibly provide a full retirement benefit to a small group of employees that met the above criteria. Attached to this memo are the Ordinances from the Police and Fire and General Employees that would provide a window to allow three employees the opportunity to retire at full pension benefit during the enclosed stated time period. Also enclosed is the actuarial information regarding the costs to the City for providing this option to these employees. The fact that we pass these Ordinances does not mean that any of the employees then must retire. I will be happy to answer any questions. Respectfully Submi ed, ES1 :fdg:28 Attachments LAW OffICES CHRISTIANSEN & DEHNER, P.A. 2975 BEE RIDGE ROAD SCOTT R. CHRISTIANSEN SUITE C TELEPHONE H. LEE DEHNER SARASOTA,FLORIDA 34239 (813)922-0200 TELECOPIER (813)923-5683 March 18, 1994 Mr. Ellis Shapiro, City Manager City of Ocoee 150 North Lakeshore Drive Ocoee, Florida 34761 Re: Police Officers' and Firefighters' and General Employees' Pension Plans - Retirement Window Ordinances Dear Mr. Shapiro: Enclosed please find the requested retirement window ordinances for the Police Officers' and Firefighters' Plan and the General Employees' Pension Plan. Please feel free to contact me should you .r ve • , questions. Yo,rs ve I Ad Scott R. Christiansen SRC/dm enclosures OrOcoee � Ocoee ' tment 17' 6 );• »N E John H. Boyd O•. , n D 47.1 w r° (407)656-1313 Chief of Police rt or Gogo '� "Service With Honor And Pride" MEMORANDUM TO: The Honorable Mayor and Board of City Commissioners Police Advisory Board FROM: John Boyd, Police Chief DATE: March 31, 1994 RE: PROPOSED ORDINANCE-PENSION PLAN-RETIREMENT WINDOW As I am enjoying my vacation, I am disturbed by the numerous rumors around the City of Ocoee regarding my absence from work. For the record, I am currently on six weeks vacation, and approximately 30 to 40 days ago, I asked the City Manager to research the possibility of an early retirement window in the Pension Plan. On the April 5, 1994 Agenda, there is an ordinance that will allow me, and other employees with approximately the same years of service, to enjoy a full pension benefit under early retirement. It is my and my wife's desire to leave the area if possible, and raise our child in a different environment; I am hopeful that you will act positively on this ordinance in front of you in recognition of both my service and other employees' service to the City. Respectf lly Submitted, N ‘1. r , o(..„(k JB:fdg ,J , (.01 ORDINANCE NO. 94- 07 AGENDA 4-5-94 Item VI A 4 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 authori to adopt this Ordinance pursuant to Article VIII of the Constitution of the State of Florida d Chapter 166, Florida Statutes. CTION 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. PASSED AND ADOPTED this day of , 1994. APPROVED: ATTEST: CITY OF OCOEE, FLORIDA By: Jean Grafton, City Clerk S. Scott Vandergrift, Mayor (SEAL) ADVERTISED April 7 , 1994 READ FIRST TIME April 5 , 1994 READ SECOND TIME AND ADOPTED , 1994 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. Special Counsel By: APPROVED BY THE OCOEE CITY COMMISSION AT A MEETING HELD ON , 1994 UNDER AGENDA ITEM NO. dmv1694p as 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. 01,4W 74, 4/e/7411 Ward V. Foster", Jr. , A.S.A. 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 $361, 380 $12, 439 Actives 949, 665 1, 124, 115 Member Contributions 157, 221 162, 392 Total $1, 468, 266 $1, 298, 946 Non-vested Accrued Benefits 25, 209 25, 209 Total $25, 209 $25, 209 Total Present Value Accrued Benefits $1, 493 , 475 $1, 324, 155 Increase (Decrease) in Present Value of Accrued Benefits Attributable to: Plan Amendments $169, 320 Assumption Changes 0 New Accrued Benefits 0 Benefits Paid 0 Interest 0 Other 0 $169, 320 After Before 10/1/93 10/1/93 E. Pension Cost Normal Cost (with interest) $372, 167 $371, 535 % of Total Annual Payroll* 21. 8 21. 1 Payment Required to Amortize Unfunded Actuarial Accrued Liability over 28 years (as of 10/1/93) to 2021 49, 667 49, 667 % of Total Annual Payroll* 2 .9 2.8 Total Required Contribution 421, 834 421, 202 % of Total Annual Payroll* 24.7 23 .9 Expected Member Contributions 85, 312 87, 990 % of Total Annual Payroll* 5. 0 5. 0 Expected City & State Contrib. 336, 522 333 , 212 % of Total Annual Payroll* 19 . 7 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: After Before (a) Retirees and Beneficiaries $12 , 439 $361, 380 receiving Benefits and Vested Terminated Participants entitled to Future Benefits (b) Current Employees i. Accumulated Member Contributions 162, 392 157, 221 ii. Sponsor-financed Vested 1, 604, 856 1, 362, 877 iii. Sponsor-financed Non-Vested 34, 102 34, 102 (c) TOTAL $1, 813 , 789 $1,915, 580 (5) Net Assets Available for Benefits 989, 107 989, 107 (6) Unfunded Pension Benefit $824 , 682 $926,473 Obligation: (4) - (5) (7) Changes in (4) and (5) Resulting from $101,791 Plan Amendments or Assumption Changes ACTUARIAL ASSUMPTIONS AND FUNDING METHODS Assumptions Mortality Rate UP 1984 Mortality Table. Interest Rate 8% per year compounded annually, net of investment related expenses. Retirement Age 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) . Termination Rate See table below (1302) . 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 Growth 3 . 0% per year. Administrative Expenses $12,300 annually. Current Salary % Becoming Disabled % Terminating as A % of Age During the Year During the Year Salary at Aae 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 Fundina Methods Actuarial Valuation - Frozen Entry Age Actuarial Cost Method. GASB 5 Calculation - Projected Unit Credit Actuarial Cost Method. SUMMARY OF PLAN PROVISIONS Eligibility Full-time employees who are classi- fied as Police Officers or Fire- fighters participate as a condition of employment. Credited Service Total years and completed months of employment with the City. Earnings W-2 Compensation. Average Monthly Earnings Average Earnings for the 5 best years of the 10 years immediately preceding retirement or termination. Member Contributions 5% of Earnings. City and State Contributions 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) . Early Retirement Eligibility Age 45 and 5 Years of Credited Service. Benefit Accrued benefit, actuarially reduced. Vesting 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. Z3 Disability Eligibility Service Incurred Covered from Date of Employment. Non-Service Incurred 10 years of Credited Service. Exclusions Disability resulting from use of drugs, illegal participation in riots, service in military, etc. Benefit 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) . Duration Payable for life or until recovery (as determined by the Board) . Death Benefits Pre-Retirement Vested Monthly accrued benefit payable to designated beneficiary for 10 years. Non-Vested Refund of accumulated contributions without interest. Post-Retirement Benefits payable to beneficiary in accordance with option selected at retirement. Board of Trustees 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. ORDINANCE NO. 94- N ORDINANCE OF THE CITY OF OCOEE RELATING TO HE CITY OF OCOEE MUNICIPAL POLICE OFFICERS' 0 FIREFIGHTERS' RETIREMENT TRUST FUND; • NDING SECTION 6 OF THE SYSTEM TO PROVIDE I-OR A RETIREMENT INCENTIVE WINDOW;REPEALING LL ORDINANCES IN CONFLICT HEREWITH AND i'ROVIDING AN EFFECTIVE DATE. BE IT ENACTED BY THE CITY COMMISSION OF THE CITY OF OCOEE, FLORIDA, • FOLLOWS: spy s . . Authority. The City Commission of the City of Ocoee has the authority to a opt this Ordinance pursuant to Article VIII of the Constitution of the State of Florida and Chapter 166, Florida Statutes, SECTIQN 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: I,• Retirement Incentive Window. Ah„ ,L 11 • . 1 • - r •1 ./ • ' ri 2 • • 1! -7 . ' I . 11i 1 • L. ` - c Ii.0 I -..I i-. r. _i_, • t.'• ._• i •11 4 before September 30._1994 shall be deemed "Eligible Members" and inay elect to receive the benefits gcjJQrth in this subsection. on the, • 1 •.�• I I . , ' • i 11•4, • 1 •) • 1t .j/ .• If 41 . $ 1' '4 - • •• •/ 11 • '• 4,0 1 1 t : 1 I t • I 1_t • ..1 • ,t1 iI t 11 I ► 1 1 /. h•11 •1 [.• i • • I I / . 11.1 above. provided. however. such benefit shall not be less than sixty-two, . , • • 1'-L: •_ (. 1 • .• 1 - ; -: • - _1.% • 11- 1. 1 .:. 1 • / 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 day of , 1994. APPROVED: ATTEST: CITY OF OCOEE, FLORIDA By: Jean Grafton, City Clerk S. Scott Vandergrift, Mayor (SEAL) ADVERTISED , 1994 READ FIRST TIME , 1994 READ SECOND TIME AND ADOPTED , 1994 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. Special Counsel By: APPROVED BY THE OCOEE CITY COMMISSION AT A MEETING HELD ON , 1994 UNDER AGENDA ITEM NO. _. AGENDA 4-5-94 Item VIA 5 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 EFH CTIVE DATE. BE IT ENACTED BY THE CITY COMMISSION OF THE CITY OF OCOEE, FLORIDA, AS FOLLOWS: SECTION I. Authority. The City Commission of the City of Ocoee 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. 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 of Ocoee in Ordinance No. 91-08, is hereby amended to add subsection 5 to read as follows: 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 day of , 1994. APPROVED: ATTEST: CITY OF OCOEE, FLORIDA By: Jean Grafton, City Clerk S. Scott Vandergrift, Mayor (SEAL) ADVERTISED April 7 , 1994 READ FIRST TIME April 5 , 1994 READ SECOND TIME AND ADOPTED , 1994 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. Special Counsel By: APPROVED BY THE OCOEE CITY COMMISSION AT A MEETING HELD ON , 1994 UNDER AGENDA ITEM NO. � 31694g2.4xd 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. //d4/d✓. , ..?//PA' Ward V. Foste Jr. , A.S.A. 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 $423 , 969 $195, 156 Actives 363 , 524 527, 543 Member Contributions 191, 771 196, 896 Total $979, 264 $919, 595 Non-vested Accrued Benefits 102 , 885 102 , 885 Total $102, 885 $102 , 885 Total Present Value Accrued Benefits $1, 082, 149 $1, 022, 480 Increase (Decrease) in Present Value of Accrued Benefits Attributable to: Plan Amendments $59, 669 Assumption Changes 0 New Accrued Benefits 0 Benefits Paid 0 Interest 0 Other 0 $59, 669 After Before 10/1/93 10/1/93 E. Pension Cost Normal Cost (with interest) $288, 942 $293 , 194 % of Total Annual Payroll* 13 . 2 13 . 0 Payment Required to Amortize Unfunded Actuarial Accrued Liability over 28 years (as of 10/1/93) to 2021 34, 079 34 , 079 % of Total Annual Payroll* 1. 6 1.5 Total Required Contribution 323 , 021 327, 272 % of Total Annual Payroll* 14 . 7 14.5 Expected Member Contributions 109, 761 113 , 125 % of Total Annual Payroll* 5. 0 5. 0 Expected City Contribution 213 , 260 214, 147 % of Total Annual Payroll* 9 . 7 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: After Before (a) Retirees and Beneficiaries $195, 156 $423,969 receiving Benefits and Vested Terminated Participants entitled to Future Benefits (b) Current Employees i. Accumulated Member Contributions 196, 896 191, 771 ii. Sponsor-financed Vested 863 , 331 683 ,796 iii. Sponsor-financed Non-Vested 186, 466 186,466 (c) TOTAL $1, 441, 848 $1,486, 002 (5) Net Assets Available for Benefits 941, 671 941, 671 (6) Unfunded Pension Benefit $500, 177 $544, 331 Obligation: (4) - (5) (7) Changes in (4) and (5) Resulting from $44, 154 Plan Amendments or Assumption Changes 9 ACTUARIAL ASSUMPTIONS AND FUNDING METHODS Assumptions Mortality Rate UP 1984 Mortality Table. Interest Rate 8% per year compounded annually,. net of investment related expenses. Retirement Age 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) . Termination Rate See table below (T-3) . 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. Administrative Expenses $11,200 annually. Current Salary % Becoming Disabled % Terminating As A % of Age During the Year During the Year Salary at Age 60 20 .051% 50. 0% 9.7% 30 .058 34.9 17.4 40 .121 3 .8 31.2 50 .429 1.5 55.8 Funding Methods Actuarial Valuation - Frozen Entry Age Actuarial Cost Method. GASB 5 Calculation - Projected Unit Credit Actuarial Cost Method. SUMMARY OF PLAN PROVISIONS Eligibility Full-time employees who are classified as General Employees (excluding certain Department Heads) participate as a condition of employment. Credited Service Total years and completed months of employment with the City. Earnings W-2 Compensation. Average Monthly Earnings Average Earnings for the 5 best years of the 10 years immediately preceding retirement or termination. Member Contributions 5% of Earnings. City and State Contributions 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. Benefit 2% of Average Monthly Earnings times Credited Service Form of Benefit Ten Year Certain and Life Annuity (options available) . Early Retirement Eligibility Age 50 and 5 Years of Credited Service. Benefit Accrued benefit, actuarially reduced. Vesting 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. Death Benefits Pre-Retirement Vested Monthly accrued benefit payable to designated beneficiary for 10 years. Non-Vested Refund of accumulated contributions without interest. 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. ORDINANCE NO. 94- 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: V ► . Authority. The City Commission of the City of Ocoee has the authority to adopt this Ordinance pursuant to Article VIII of the Constitution of the State of Florida and Chapter 166, Florida Slatptes. SECTION Z. 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 of Ocoee in Ordinance No. 91-08, is hereby amended to add subsection 5 to read as follows: Retirement Incentive Window. 11 • at I:. l• . I • % ,1 a .; a •. • • • • .h• 1 . • .1 I • P AP I I _. r, • I.•. ,,• •i V. a I •/ •.. • �. y• It • 0 • . I : •. • if .• H .' • •• • :I • IL. • 1 I • • • 1 •I 1 a . ;al •1 1 111•I . 1 ! % I ' • . • I •I • • • i ilk ala, I • • ' •• U III. • , . • •,•• a i ii i • l . •- ► • $11 - • l II a OA- • I) •. • • 11I I • , • I ; • • • • • • -• 1 • .[ 7 I • ' I • !.: E• a 1 : I • I1 •. . I (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 day of , 1994. APPROVED: ATTEST: CITY OF OCOEE, FLORIDA By: Jean Grafton, City Clerk S. &con Vandergrift, Mayor (SEAL) ADVERTISED , 1994 READ FIRST TIME , 1994 READ SECOND TIME AND ADOPTED , 1994 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. Special Counsel By: APPROVED BY THE OCOEE CITY COMMISSION AT A MEETING HELD ON , 1994 UNDER AGENDA ITEM NO. __.___.