HomeMy WebLinkAboutResolution 2006-52 Employee Pension Plan
RESOLUTION NUMBER 2006-52
A RESOLUTION OF THE CITY OF WINTER SPRINGS,
SEMINOLE COUNTY, FLORIDA PROVIDING FOR A STUDY
METHODOLOGY FOR THE CITY COMMISSION TO
DETERMINE THE FEASIBILITY AND DESIRABILITY OF
APPROVING CHANGES TO THE CITY'S CURRENT UNIFIED
CITYWIDE DEFINED BENEFIT PENSION PLAN.
WHEREAS, On November 10, 2003 the City Commission adopted a unified citywide
Defined Benefit Pension Plan for its employees; and
WHEREAS, Members of the current Pension Board, and the City Commission desire to
explore the feasibility and desirability of making changes to the current plan; and
WHEREAS, The City Commission desires to establish a study methodology to provide
for an orderly and detailed analysis of information required to provide the City
Commission with sufficient information to make an informed and intelligent decision
regarding the feasibility and desirability of making changes to the current unified citywide
Defined Benefit Pension Plan.
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COMMISSION OF
THE CITY OF WINTER SPRINGS, SEMINOLE COUNTY, FLORIDA, adopts the
study methodology provided herein for the purpose of performing its study of potential
changes to the City's current unified citywide Defined Benefit Pension Plan.
Section I:
Purpose
The purpose of this study methodology is to develop the information needed
for the City Commission to make an informed and intelligent decision
regarding the feasibility and desirability of making changes to the City's
unified citywide Defined Benefit Pension Plan.
Section II: Task
Phase A Orientation - September 27. 2006
Goal: The goal of this phase of the study is to overview the evolution of the
City's Defined Benefit Plan, the current provisions of the City Plan, and to
review other optional retirement plans that are available to the City.
Expectation: It is expected that the participants will become
knowledgeable enough of the various retirement plans available to the City,
and to be able at a conceptual level to compare the City's current plan with
other alternative retirement plans.
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Outline:
1. Review of the City's Current Defined Benefit Plan.
2. Review of other Retirement Plan Options.
a. Types of Plans
i. Defined Contribution Plans
ii. Defined Benefit Plans
lll. Hybrid Plans
b. Types of Defined Benefit Plans
i. Citywide Plans
ii. General Governmental Plans
c. Local Law Plans
1. Unified Police and Fire Plans
11. Police Only Plans
111. Fire Only Plans
d. Chapter Plans
i. Unified Police and Fire Plans
ii. Police Only Plans
111. Fire Only Plans
Decision: Policy makers will decide if they desire to go to Phase B, and
which plan alternatives are to be studied in Phase B, or to maintain the
status quo.
Cost: It is estimated that Phase A will cost between $5,000 and $10,000
Phase B.
Preliminary Feasibility and Desirability Studv-
November 8. 2006
Goal: The goal of this phase is to prepare and review a preliminary report
of the feasibility and desirability of implementing alternative plans the
Commission may choose to explore.
Expectation: It is expected that policy makers will have sufficient
information to determine if they desire to go to Phase C.
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Outline:
1. Feasibility:
a. Legal Analysis
b. Economic Analysis (Cost of current and alternative plans)
i. Plan Design
ii. Plan Assumptions
111. Benefits
IV. Funding Goals
v. Participation Rates
2. Desirability Policy Analysis
Decision: It is anticipated that the Commission will have sufficient
information available to determine if they desire to go to Phase C, or to
maintain the status quo.
Cost: It is estimated that Phase B will cost between $10,000 and $15,000.
Phase C.
Detailed Feasibility and Desirability Study - February
14.2007
Goal: The goal of this plan is to develop the final cost and plan documents
that are needed for the Commission to decide if they desire to implement a
plan option.
Expectation: It is expected that City Commission and administrators will
have sufficient policy, plan, and contractor documents in place to provide
for an orderly transition to the chosen alternative.
Outline:
a. Final Legal Analysis
b. Final Detailed Actuarial Studies and Cost.
c. Final Policy Analysis.
Decision: The City Commission will decide if they desire to implement an
alternative plan option and go to Phase D, or to maintain the status quo.
Cost: It is estimated that Phase C will cost between $10,000 and $15,000.
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Phase D.
Implementation - April 11. 2007
Goal: The goal of this phase is to implement the chosen alternative plan.
Expectation: It is expected that implementation will be made in an orderly and
timely manner.
Outline:
1. Prepare and adopt final plan design and plan document by Ordinance.
2. Prepare and adopt final amendments to existing plan documents by
Ordinance.
3. Appoint Board Members
4. Prepare and adopt amendments to existing contracts with servIce
providers.
5. Select, prepare, and adopt contracts with new service providers.
6. Establish appropriate accounting entities and procedures.
7. File appropriate documents with the State Division of Retirement.
Cost: It is estimated that Phase D will cost between $10,000 to $15,000, dependent
upon the alternative plan design chosen, if any.
PASSED AND ADOPTED THIS the 25th day of September, 2006 by the
Commission of Winter Springs, Seminole County, Florida, duly assembled.
John F. B ush, Mayor
ATTEST:
Andrea Lorenzo-Luaces, City Clerk
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