HomeMy WebLinkAbout1998 03 23 Regular Item B
COMMISSION AGENDA
ITEM B
Regular X
Consent
Informational
March 23. 1998
Meeting
MGR DEPT
Authorization
REQUEST: The City Manager requesting City Commission hold a Public
Hearing for second reading and adoption of Ordinance 697, which amends
the Money Purchase Pension Plan and Trust, and establishes a Defined
Benefit Pension Plan and Trust.
PURPOSE: The purpose of this item is to request the City Commission approve
the second reading of Ordinance 697 which amends the Money
Purchase Pension Plan and Trust, and establishes a Defined
Benefit Pension Plan and Trust.
CONSIDERATIONS:
At the August 25, 1997 City Commission meeting, Regular Agenda
Item H requested the City Commission discuss options for
improvements to the city's pension plan and to select an
appropriate option,
The City Commission approved Regular Agenda Item H with the
following provisions: Unified city offset pension plan, 30 year max,
15 year amortization, normal retirement at age 55 with 10 years of
service, disability coverage, city contributes 8%, employees
contribute 2% and retain Sun Trust until next year, The
Commission also authorized the City Manager to employ a
competent attorney speCializing in retirement plans to draft a new
set of pension plan documents,
On September 9, 1997, the City Manager issued a memo to the
Mayor and Commission updating the pension plan cost. The City
Manager recommended making a one time contribution of $135,000
to the retirement funding in order to maintain the established
contribution rates of 8% city, 2% employees, and payoff the past
service liability cost within the 15 year amortization period,
At the September 22, 1997 City Commission meeting, Regular
Agenda Item D requested the City Commission retain the services
of Gray, Harris and Robinson, et aI., to develop all the necessary
documents to implement the new pension plan. The Commission
approved Regular Agenda Item D,
On January 13, 1998, the Pension Board met to review the floor
offset pension plan documents. The board approved
recommending passage of the new pension plan by the
Commission, The Board requested that the City Commission
receive the following information:
1) Plan specifications with actuarial assumptions.
2) Schedule of projected liabilities and estimated contribution
for the' next 15 years.
3) Projected plan cost for the next 15 years.
4) Numbers of Fire and Police Defined Benefit Plans compared
to the total number of Defined Benefit Plans among local
governments statewide,
At the March 9, 1998 City Commission meeting, Regular Agenda
Item E requested the City Commission approve the first reading of
Ordinance 697, which amends the Money Purchase Pension Plan
and Trust and establishes a Defined Benefit Pension Plan and
Trust. The Commission approved the first reading,
FUNDING:
Funds are available in the FY 97/98 budget.
RECOMMENDATIONS:
It is recommended that the City Commission approve the second
reading and adopt Ordinance 697 which amends the Money
Purchase Pension Plan and Trust and establishes a Defined Benefit
Pension Plan and Trust.
IMPLEMENTATION:
Upon adoption of Ordinance 697.
ATTACHMENTS:
Ordinance 697
COMMISSION ACTION:
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