HomeMy WebLinkAbout2003 01 27 Regular H - 4 Pension Plan - Financial Status
012703 REGULAR H 4 PENSION PLAN
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COMMISSION AGENDA
ITEM
H-4
CONSENT
INFORMATIONAL
PUBLIC HEARING
REGULAR X
January 27,2003
Meeting
MGR RJl IDEPT
Authorization
REQUEST: City Manager requesting the City Commission to receive an updated report on the
financial status of the City's Pension Plan and to provide any directive it deems appropriate.
PURPOSE: This agenda item is needed to provide the Commission with an update of the
financial status of the City's Pension Plan and to fulfill annual audit requirements of the plan for
year ending September 30,2003.
CONSIDERATIONS:
The report proposed by the City's Pension Actuaries demonstrates the following:
A. Investment has declined as a result of stock market activity.
B. However, there is no funding crisis in the plan at this time.
a. Contributions are on target for the current year. The goal was to achieve 100%
funding of the present value of accrued benefits in 15-17 years.
b. Today, the present value of vested accrued benefits is 68% funded after just 3
years experience; not as good as we had hoped, but none the less, a very healthy
funding of vested accrued benefits.
FUNDING: N/ A
RECOMMENDATIONS:
Based upon the report it is recommended that the City not take any actions relative to
contributions rates or actuarial assumptions upon which the plan is built until the completion of
financial period 2003, analyze the data from 2003, and make any changes indicated