HomeMy WebLinkAboutItem V (A) Second Reading of Ordinances 4. Ord No 94-07 re:Police Officers' and Firefighters' Retirement Trust Fund 5. Ord No 94-08 re:General Employees' Retirement Trust Fund to provide for a retirement incentive window AGENDA 4-19-94
"CENTS F. D LIVING-PRIDE OF WEST ORANGE" Item V A 4 & 5
Ocoee
cVill1W4
'\° CITY OF OCOEE COMMISSIONERS
RUSTY JOHNSON
D. 150 N.LAKESHORE DRIVE PAUL W.FOSTER
v OCOEE FLORIDA 34761-2258 VERN COMBS
(407)656-2322
JIM GLEASON
lEP OF GOOD CITY MANAGER
ELLIS SHAPIRO
MEMORANDUM
AO: The Honorable Mayor and Board of City Commissioners
r '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
Jr
Attachments
LAV 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 • .ve . , questions.
Yo.rs ve •
Scott R. Christiansen
SRC/dm
enclosures
• • Ocoee
°! , 1 o
Ocoee - • P!� ment
17- 6� :L'" e1;•,4 V'"^ E
0•.E , l0= De 47.1
John H. Boyd • .� , (407)656-1313
Chief of Police ,oar
"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.
Respectfully Submitted,
6(14
JB:fdg J v
AGENDA 4-19-94
IItem V A 4
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 FEE 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 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 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.
amkooe.u►�C.ci
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.
Of"../1/ 2//oP/9 yr
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 Age 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
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 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.
. 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-
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 TBE 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 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 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:
Retirement Incentive Window.
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• • • • • t! • 1 ' ' ' 1 . •: • 11 '! a .�.• \/ - II . - M. =. 1 •
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gbove. provided. however. such benefit shall not be less dim sixty-two,
and one-half percent (62.5 961 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
Jean Grafton, City Clerk By:
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. .
The Orlando Sentinel ,
•
Published Daily NOTICE OFPU9ucHEARING
$46.80Cm OF OCOEE
Notice is herebygivenpursuant
Flor-
ida State Statutd66.041 that the Board
of City Commissioners of the City of
Ocoee will hold a public hearing in the
state of toriba s S e t 125 Drive,Ocoee,Florida Ng.
LakeshorCOUNTY OF ORANGE ar ular session to be held on Apel 19,
1994,at 7:30 p.m.,or as soon thereafter
as possible, in order to consider the
IiiG `'� 1(� adoption of the following ORDINANCE:
Before the undersigned authority personally appeared AN OINCORDINANCE a CITY OF
, who on oath says OCOEE, FLORIDA, RELATING TO
that he/she is the Legal Advertisin Re resentative of The Orlando Sentinel, a dailyTHE CITY OF OCOEE MUNICIPAL
POLICE OFFICERS' AND FIRE-
news aper published at ORLANDO in FIGHTERS' RETIREMENT TRUST
ORANGE Count , Florida; FUND;AMENDING SECTION 6 OF
THE SYSTEM TO PROVIDE FOR A
that the attached cgpy of advertisement being a NOTICE I C E O F PUBLIC I C H RETIREMENT INCENTIVE WIN-
in the matter of 0 ,+, DOW; REPEALING ALL ORDIN-
ANCES IN CONFLICT HEREVNTH
AND PROVIDING AN EFFECTIVE
in the ORANGE Court, DATE.
Interested parties may appear at the
was published in said newspaper in the issue;of 04/07/94 meeting and be hwd with respect to
the proposed action.A copy of the pro-
posed ordinance may be examined at
City Hall, 150 N. Lakeshore Drive,
Ocoee, Florida, between the hours of
Affiant further says that the said Orlando Sentinel is a newspaper published at thr o a.m. and 5:00 p.m., Monday
thaough�Friday. '
NOTICE:Any person who desires to ap-
o RL A N D 0 In said peal any decision made by Commission
ORANGE County, Florida, with respect to any matter considered at
he
and that the said newspaper has heretofore been continuouslypublished in
such proceedings d will need a purporecordse of may
said ORANGE County, Florida, need toiensure that av�erbati �of
each Week Dayand has been entered as second-class mail matter at the post includes proceeding te testimony and virecord
e re
Oft?in ORLANDO in said
upon which the appW is based. Per-
sons with disabilities needing assistance
0 ANGE County, Florida, to participate in any of these
for a period of oneyear next precedingthe firstpublication of the attached Inge should the City c o-
rice 48 hours in advance of the meeting.
copy of advertisement; and affiant further says that he/she has neither paid Jean Grafton,City Clerk
nor promised any person, firm or corporation a discount, rebate,
April
IIS
commission or refund for th- •es pose of sec ring t is advertise ent for 'x"71994
publication in the said newsp.•e-
The foregoing instrument was acknowledged before me this 7 day of
APRIL , 19 94 , by j u;ti,f;I f.4 Al pfm, ,,,,,,,,,„4.
.
who is personally known to me and whoti take an/oath^
(SEAL) p'y r:; '�1
t\. Jr..t4;' ELIZABETH L HADDAD
". My Commission CC323402
ry 7,K4,'�
Expires Oct.13,1997
,,li;., , ,'.?J B0. ..nded by HAI
r', of nolo 800-422-1555
•
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AGENDA 4-19-94
! Item VA5
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 EF1 CTIVE 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 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:
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 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.
dabooee41316941,.'..ad
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.
///441 3/f0V57tr
Ward V. Fasts , 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
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 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) .
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 Earninas 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:
SECTION 1. 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.
1d • :' 1 • i i • 1 I i •. i -‘. • • • • • l i
• .i I • $ I ! t • :••1.• •i . • 1 •1 h• •1[
September 30. 1994 shall be deemed "Eligible Members" and may elect
to receive the benefits set forth in this subsection, on t-hgcondition that
they elect to retire on or before September 30. 1994.
D,. • . n • • • • . - i. '• a . • ; 0 • t • ' 1i. • 1111 •
• • .• .• Ie . " 7 1 • n' i j ; • • 1 1 I It 0. . 1
(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
Jean Grafton, City Clerk BY:S. Scott Vandergriit, 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 HEIR
ON , 1994 UNDER
AGENDA ITEM NO. ____.
The Orlando Sentinel ' '
Published Daily
$16.80
state of ftoriba 1 S.S. a �� '
COUNTY OF ORANGE r wx, toridatislirina:nsil
+• cnye0°w11ANIT1 POSAD ;s�$ °" ::: 25'wx`""$der
Before the undersigned authority personally appeared �, � M ori., y, aail
, who on oath says �dopnonwinecE e
that he/she is the Legal Advertising Representative of The Orlando Sentinel, a daily AN OR RDI N 94 oe
newspaper published at 0 R L ODD 00 in OCOEE, FLORI THE CITY of
THE CITY OF REBATING TO
ORANGE County, Florida; I GENERAL EM:7:E:0'
pOMUNICIPAL
that the attached coy of advertisement being a NOTICE OF PUBLIC MENT TRUSTMENDING
in the matter of ORD. N0- 94-08PRoTDEus TNTIN
R
STEM 70
AILCENORDINATIVE INNFU
in the ORANGE Court, HEREWITH AND PROVIDING qN
was published in said newspaper in the issue; of 04/07/94EFFECTIVE DAA
I •
mmeeting ansted dabe s� mey epPear at the
the on.A w respect to
poaePdroposed action.A the
iI C ty Heordt lnanoe T.ween hotxe e,
Affiant further says that the said Orlando Sentinel is a newspaper published at 1 ° . Florida,
O ORANGE
L A D O y in said I N°« ah•Fr rondo. p, es Monday
RA G E County, Florida, e.An,yr,wno dea7ltri res ro
and that the said newspaper has heretofore been continuously published in I wah ro"18debrCommiseb
said ORANGE County, Florida, w+ad a ret
each Week Dayand has been entered as second-class mail matter at the post need to e 'rpt,a a81�p�rPoae may
Woceedl Is verbehm record of
office in ORLANDO in said made, w,,;�, d
ORANGE County, Florida, Upon ws the �tl ind evidence
' upon which
sons with ate in an b • Per_
for a period of one year next preceding the first publication of the attached ; to participate;r, ne.d+nga,,esra,x;e
copy of advertisement; and affiant further says that he/she has neither paid rMe4eourscontact the i a o .send_
nor promised any person, firm or corporation any discount, rebate, Jea4tlnoGrafton,in
City meeting.
commission or refund for the,�pptt se of securing this dvertisemen for April
publication in the said newspaper. , / — - Apr.7,1994
( U,d4'u L.6Jt—
The foregoing instrument was ac owledged before me this 7 day of
APRIL , 19_g.q._, by &ThNTT'A Fill lf1
who is personally known to me and who di t�e an 4,1 I 1) X71, 1/1
(SEAL)
4o61'tl PI19'�O ELI7ADETH L HADDAD
�;,
v-Z�- My Commission CC323402
*fi• .n2l * Expires Oct.13.1997
;Ir''i P Bonded by HAI
4'40FmdtP 800.422-1555 •