HomeMy WebLinkAbout2011 05 02 Other - Documents provided during the Special Meeting Date: May 2, 2011
These documents were provided (and some were
reviewed) during the May 2, 2011 City
Commission Special Meeting.
R 4 4. 4
LEWIS
" LONGMAN &
N WALKER I P.A.
A T T O R N E Y S A T L A W
REPLY TO: TALLAHASSEE
MEMORANDUM
TO: Local Government Clients
• FROM: Jim Linn and Glenn E. Thomas
DATE: May 2, 2011
RE: Pension Reform Update — Local Government Retirement Bill Passes Senate
Today the Senate amended and passed SB 1128 relating to local government retirement plans.
As amended, SB 1128:
• Revises the definition of compensation for all local government defined benefit
retirement plans. For plans that are not subject to collective bargaining, for service earned
on or after 7/1/11, up to 300 hours of overtime may be included in compensation for
pension purposes as specified in the plan, but payments for accrued unused sick or annual
leave may not be included. For plans that are subject to collective bargaining, effective
for the first agreement reached on or after 7/1/11 for service earned on or after that date,
up to 300 hours of overtime may be included in compensation for pension purposes as
specified in the collective bargaining agreement or plan, but payments for accrued unused
sick or annual leave may not be included.
• Requires that all actuarial reports disclose the present value of the plan's accrued vested,
nonvested and total benefits, as adopted by the Financial Accounting Standards Board,
using the Florida Retirement System's assumed rate of return (currently 7.75 %), "to
promote the comparability of actuarial data between local plans."
• Eliminates the requirement in Chapters 175 and 185 that pension benefits be increased
whenever member contributions are increased.
BRADENTON JACKSONVILLE TALLAHASSEE WEST PALM BEACH
1001 Avenue West 245 Riverside Avenue 2600 Centennial Place 515 North Flagler Drive
Suite 670 Suite 150 Suite 100 Suite 1500
Bradenton, FL 34205 Jacksonville, FL 32202 Tallahassee, FL 32308 -0572 West Palm Beach, FL 33401
(941) 708-4040 (904) 353-6410 (850)222 -5702 (561) 640-0820
Fax: (941) 708 -4024 Fax: (904) 353 -7619 Fax: (850) 224 -9242 Fax: (561) 640 -8202
www.11w- law.com
May 2, 2011
Page 2
• Directs the Department of Management Services to provide a fact sheet on each
participating local government defined benefit pension plan summarizing the plan's
actuarial status. The fact sheet must contain a summary of the plan's most recent
actuarial data, minimum funding requirements as a percentage of pay, and a 5 year
history of funded ratios. The fact sheets must be posted on the Department's website,
and plan sponsors that have websites must provide a link to the department's website.
• Amends Chapters 175 and 185 to allow a city with a local law plan in existence on
June 30, 1986, to change the city's representation on the pension board, only if the
change does not reduce the membership percentage of firefighters and police officers on
the board.
• Directs the Department of Management Services to develop a standardized rating system
for local government defined benefit pension plans.
• Creates a Task Force on Public Employee Disability Presumptions.
All bills are available for viewing on line at www.flsenate.gov and www.myfloridahouse.gov. If
you have any questions concerning any retirement - related legislation, please contact us.
IA
OD'
.. ' iii I.
E W
, .„,,,,,1/4„.„,....,*.,,a„.....,01,6. , , ;0 41 -..
I 0
l i g ,P.. ,:.,o..,..,,. -. rte
0 '
,
•
U
*
�a
1
'w r'
1004* k
lik
Y
1
1
Modification
Pension Provisions Current Plan Opportunities
Normal Retirement Age 55 Increase
TIMING Years of Service 10 Increase
Vesting Period gradual vesting; 100% at 7 Cliff vesting
yrs
Final Average Compensation Average three (3) highest
Increase FAC period
(FAC) Period consecutive years
DISTRIBUTION Includes overtime,
Pensionable Compensation Exclude
vacation payouts, etc.
Benefit Accrual Rate 3% Reduce
1 _
Employee Risk — -- - City Risk
1 2 . ;7'3, ‘`_'"- � . t �., -�, 6 �"' 5
ALL EMPLOYEES Defined Contribution (DC) Defined Benefit
(DB)
Modified DB Plan - Current DB Plan - Current DB Plan -
POLICE existing Modified DB Plan - existing existing Current DB Plan -
existing & new hires Modified DB - new existing and new hires
DC - new hires DC - new hires
hires
Modified DB Plan - Current DB Plan - Current DB'Plan $ } a '-� hw�� ,3
existing existing existing _ `- n
GENERAL Modfied DB Plan - � Current DB Plan
EMPLOYEES, existing new hires existing and new hires
D C • new hires DC new hires Modified DB - new
hires