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HomeMy WebLinkAboutResolution 2005-19 Employee Benefit Plan RESOLUTION NUMBER 2005-19 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS, FLORIDA, AMENDING THE DEFINED BENEFIT PLAN AND TRUST FOR EMPLOYEES OF THE CITY OF WINTER SPRINGS; AMENDING ARTICLE V, SECTION 5.02, TO PROVIDE AN INCREMENTAL BENEFIT MULTIPLIER INCREASE FOR SERVICE PRIOR TO OCTOBER 1, 2000; AMENDING ARTICLE III, SECTION 3.01, INCREASING THE CITY'S CONTRIBUTIONS; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Commission approved certain changes to the City's retirement program for employees on August 30, 2004; and WHEREAS, the retirement changes approved by the City Commission require that the Defined Benefit Plan and Trust for Employees of the City of Winter Springs be amended; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS, FLORIDA: Section 1. Article V, Section 5.02, of the Defined Benefit Plan and Trust for Employees of the City of Winter Springs is hereby amended to read as follows: (A) Normal Retirement Pension. (1) Benefit Formula. W A Participant's normal retirement pension equals 2% of the Participant's Average Compensation multiplied by his Years of Accrual Service for service prior to October 1, 2000, and 3% of the Participant's Average Compensation multiplied by his Years of Accrual Service for service on and after October 1, 2000. Such pension will be adjusted for any distribution in accordance with Section 8.05. The maximum number of Years of Accrual Service taken into account in the normal retirement pension is 30, counting forward from the date of initial participation to include any purchased past servIce. (b) Notwithstanding any provIsIon of subparagraph (a) to the contrary. effective October 1, 2008, a Participant's normal retirement pension shall equal 3% of the Participant's Average Compensation multiplied by his Years of Accrual Service for service prior to October 1. 2000: provided that such multiplier shall increase by one- fourth of one percent (,25%) each year beginning October 1, 2005. as follows: Effective Date Multiplier for Service Prior to October 1. 2000 October 1. 2005 October 1, 2006 October 1. 2007 October 1. 2008 2.25% 2.50% 2.75% 3.00% (c) A Participant's normal retirement pension shall be calculated by applying the multiplier for service prior to October 1. 2000 that is in effect on the date of the Participant's separation from service. (2) Average Compensation, Average Compensation is the average of the Participant's Plan Compensation for the Averaging Period in the Participant's Compensation History which results in the highest Average Compensation, A Participant's Compensation History is the Participant's entire period of employment with the Employer, The Averaging Period is 3 consecutive Compensation periods (or the entire period of employment, if shorter), A Compensation period is the 12-month period ending on the last day of the Plan Year. Section 2. Article III, Section 3.01, of the Defined Benefit Plan and Trust for Employees of the City of Winter Springs is hereby amended to read as follows: 3.01 Amount. (A) The Employer intends to make such contributions as are necessary to fund the Plan on a sound actuarial basis, in accordance with applicable law. For the Plan Years beginning on the following dates. employer contributions shall be as follows unless the plan actuary determines that a different contribution is required: October 1.2004: October 1. 2005: October 1, 2006: October 1, 2007: Nine and one-half percent (9.5%) of covered payroll. Eleven percent (11 %) of covered payrolL Eleven and one-half percent (11.5%) of covered payroll. Twelve percent (12%) of covered payroll. City of Winter Springs Resolution Number 2005-19 Page 2 of3 Section 3. That this resolution shall supersede any and all conflicting provisions of any previously adopted resolutions, Section 4. That should any section or provision of this resolution or any portion thereof, any paragraph, sentence, or word be declared by a court of competent jurisdiction to be invalid, such decision shall not affect the validity of the remainder hereof as a whole or part thereof other than the part declared to be invalid. Section 5. That this resolution shall take effect upon adoption, except as otherwise specifically provided herein. PASSED and ADOPTED this 9th day of May 2005. JOHN F. BUSH, MAYOR ATTEST: CITY CLERK City of Winter Springs Resolution Number 2005-19 Page 3 of3