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Home My WebLink About2005 05 09 Consent 202, Resolution Number 2005-19 Memorializing Amendments to the City Pension Plan CITY OF WINTER SPRiNGS CITY COMMISSJON RFGULAK. MEETING - MAY 9, 2005 CONSENT AGENl)A ITEM "202" PAGE 1 01"2 COMMISSION AGENDA ITEM 202 Consent X Informational Public Hearing Regular May 9, 2005 Regular Meeting Mgr. r: Depl. Authorizalion RF.QUEST: The City Manager requestin~ the City Commission to adopt Resolution Number 2005-19 memorializing amendments to the City Pension Plan approved by the Commission at its August 30, 2004 meeting. PURPOSE: This Agenda Item is needed to complete the public record regarding actions taken by the Commission at its August 30, 2004 meeting to amend thc City's Pension Plan Benefits. CONSIDERATIONS: On August 30, 2004 the Commission approved amendments to thc City's Pension Plan providing for the following: 1. Increased pension contributions to fund the annual benefits for employees with service prior to adoption ofthe new defined bendit plan from 2% annually to 3% annually. 2. Increased conlributions to reduce the past service unfmlded liability. The City's Pension Attorney has prepared a resolution memorializing the amendments in the public record by form of resolution. It is important to note that it is the Commission's actions of August 30, 2004 authorized the amendments. The resolution simply memorializes the actions taken by the Commission for the public record, and for inclusion in the Pension Plan Document. ----~,_..._----- CITY OF WINTER SPRINGS CITY COMMISSION REGULAR MEETING - MAY 9, 2005 CONSCNT AGENDA ITEM "202" PAGE20Fl FUNDING: N/A RECOMMENDATION: It is recommended that the Commission adopt Resolution Numher 2005-19 memorializing amendments to the City Pension Plan approved by the City Commission at its August 30, 2004 Commission meeting. ATTACHMENT: a) Pcnsion Attorney Lettcr of May 3, 2005 b) Resolution Number 2005-19 c) August 30, 2004 Commission Minutes COMMISSION ACTION: --~-~-~~-----_._._,.- 05/03/2005 09:22 LEWIS LONGMAN WALKER TALLAHASSEE 7 14073276686 NO.310 [;1002 LEWIS, loNGMAN &WALKER, PA ATTORNEYS AT LAW REPLY To: TAl.LABJ\.SSBE HELPING SHAPE FLORIDA'S FUTURE~ www.l1w_l11w.""m May 3, 2005 Ronald W. McLemore, City Manager City of Winter Springs 1126 East State Road 434 Winter Springs, FL 32708-2799 Re: Resolution 2005-19 (Retil<ment Plan Amendment) Dear Ron: Resolution 2005w19, which amends the Defined Benefit Plan and Trust for Employees of the City of Winter Springs to implement changes that were approved by the City Commission in August 2004, is enclosed. The Resolution amends the retirement plan to increase the benefit multiplier for service prior to October 1. 2000, from 2% to 3%. In accordance with the City Commission's action, the Resolution increases the multiplier by ,25% each year beginning October 1, 2005, such that an employee who retires on or after October 1.2008 would receive the full one percent increase. An employee who leaves the City before October 1, 2008 will receive the multiplier that is in effect on the date of separation from City employment. The resolution also provides for an increase in the City contribution rate from 9% to 12% over a four year period commencing October 1. 2004. As required by State law, if the required City contribution as determined by the actuary is more than these amounts, the contribution as deternnned by the actuary will control. Because the frrst benefit increase does not take effect until October 1, 2005, and since the City's contl"ibution for the current fiscal yeaJ: 1s in accordance with the Resolution, the time that has passed since the City Commission approved the plan changes wUl have no effect on the iJnplementation of these changes. Ace(tJ:dtngly~ it is approprbtte for Resolution 2005-19 to be adopted at this time. Sincerely, @L:; l Bra~nton lOOl)ldAvenueWoot Sulle670 aradenton, FL 341-05 (941) 708-404D Fax: (941) 708-4024 ]iHksonville 9428 BlI.ymeadows Road Suite 6.25 ]il.CkSOflville, FL 32156 (904)737-2020 }'3J{; (904) 737-3J-Zl Tallahassee PostOff,c2 Box 10788 (32102) 125 Sout}1, Oadsden Sm:et, Suite 300 TallahassI':I':,FL32301 (850) 222-5702 Fax: (850) 2:24-9242 W~tl'rdmIJeac:h 1700 Palm Beacb Lakes Blvd. Sum: 1000 West Palm Bea.cl1, l'l- 33401 (:.i61) 640-0820 FaJI.:(561)640-8202 - -------~.__._._._-_.._~-_..- 5/2/05 RESOLUTION NO, 2005-19 A RESOLUTION OF THE CITY COMMISSlON 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 INCREMENT AL BENEFIT MULTIPLIER INCREASE FOR SERVICE PRIOR TO OCTOBER I, 2000; AMENDING ARTICLE 111, SECTION 3,01, INCREASING THE CITY'S CONTRlBUTlONS; 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 afthe City of Winter Springs be amended; NOW. THEREFORE, BE IT RESOLVED BY TIlE 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) Nanna! Retirement Pension. (1) Benefit Formula. ill 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 serVlce. --_..__.._---~-_..._' . (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 pcrcent (.25%) each year beginning October 1.2005. as follows: Effcctive Date Multiplier for Service Prior to October 1. 2000 Octoher 1,2005 October 1. 2006 October 1, 2007 October I, 2008 ..................................... ...........2.25% .................... ..................2.50% _________...________..............................___2.75% ______..uu....................____. _____ _..... _______3.000/0 (c) A Participant's normal retiremcnt pension shall be calculated by applving the multiplier for service prior to October 1, 2000 that is in cffect 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 IIistory is the Participant's entirc period of employment with the Employer. The Averaging Period is 3 consecutive Compensation periods (or the entire period of employmenl, if shorter). A Compensalion period is the l2-month period cnding on the last day ofthe Plan Year. Section 2. Article IlT, Section 3.01, of the Defined I3enefit Plan and Trust for Employees of the City of Winter Springs is hereby amended lo read as follows: 3.01 Amount. (A) The Employer intends to make such contributions as arc necessary to fund the Plan on a sound actuarial basis, in accordance with applicable law. For the Plan Years bC2.inning on the follpwing datcs. employer contributions shall be as follows unless the plan actuary. determincs that a different contribution is required: October 1, 2004: Octoher l, 2005: Octobcr L 2006: Octoher 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 payrQl1 Twelve perc~nt (12%) of covered payrolL 2 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 courl 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 _ day of ,2005, MAYOR ATTEST: CITY CLERK 3 CITY OF WINTER SPRINGS MINUTES CITY COMMISSION SPECIAL MEETING AUGUST 30, 2004 CALL TO ORDER The Special Meeting of Monday, August 30, 2004 of the City Commission was called to order by Mayor John F. Bush at 6:30 p.m. in the Commission Chambers of the Municipal Building (City Hall, 1 126 East State Road 434, Winter Springs, Florida 32708). ROLL CALL: Mayor John F. Bush, present Deputy Mayor Robert S. Miller, Jr., absent Commissioner Michael S. Blake, absent Commissioner Donald A. Gilmore, present Commissioner Sally McGinnis, present Commissioner David W. McLeod, present City Manager Ronald W. McLemore, arrived at 6:37 p.m. City Attorney Anthony A. Garganese, absent A moment of silence was held, followed by the Pledge of Allegiance. ~ush stated, "Andrea [Lorenzo-Luaces. City Clerk] - has called around to all of yo~ abo~aY-ail@ility of the Advisory Board Appreciation Dinner. The only date that it looks like is plausffiIeis--&epternber the 22nd - [2004] that is a Wednesday, and 1 think even then Commissioner McL~can' ake it - Commissioner [McLeod] you told her that it was okay." Commissioner David W. d stated, "The new Commissioner [Joanne Krebs] will be more than happy to take my p a e;;.:_"_Commissioner McLeod added, "I am very sorry - 1 have a commitment at that time." Mayo~en said, "September 220' [2004] at 7:00 p.m. at the Tuscawilla Country Club for the ~ Board and Committee Appreciation Dinner." ++ AGENDA NOTE: THE FOLLOWING AGENDA ITEMS WERE DISCUSSED, AS DOCUMENTED, ++ AGENDA Ice Of The City Manager Discussion lated Issues. --- -- - Chief Timothy J. Lallathin, Fire Department gave an the homes in Tuscawilla, which were affected by a Charley. the City Commission on sewer back-up icane CITY OF WINTER SPRINGS MINUTES CITY COMMlSSION SPhCIALMEETrNG - AVGllST 30, 2004 PAGE20F5 ussion, Mayor Bush recommended to the City Commission that "I think we need to funne calls through Tim [Lallathin]." -------- City Manager Ronald W McLemore arrived at : At the request of Commissioner McLeod, Chief Lallathin gave a brief update status of Hurricane Frances, 1. Office Of The City Manager Discussion Of Budget Issues. On the 'Retirement Plan' issue, Commissioner McLeod stated, ''The Retirement Plan with the employees - I was very much against the fact of going to the employees and asking them to give up two percent (2%) of their money. I have been in contact with Mr. McLemore and we have discussed this. And, I think at this time Commissioners, what we have found is - we have found a way to do this without going to the employees." Manager McLemore explained that what he [Commissioner McLeod] has proposed was ~ "The three percent (3%) retro benefit, and we are going to do that by reducing our Merit Increase from four percent (4%) to three percent (3%) over two (2) years; and based on the additional revenues we have -- we do have sufficient funds to pay for the increased one percent (1 %) retro in this year without having to reduce our Merit Increase from four percent (4%) to three percent (3%); so the route we would be on is that over the next two (2) years. we would increase the City's contribution by one percent (1%) this year and one percent (1%) next year, and then it would be - the employees part would be payed in, Then we would increase one-half percent (Yz%) every year for the next four (4) years or as long as you wanted to - hopefully we would get it down to zero (0)." Manager McLemore added, "The caveat is - if anyone retires within the next four (4) years, this becomes one hundred percent (100%) eiIective after four (4) years so if you retire say with one (1) year, then you get twenty-five percent (25%) of that one percent (1 %) extra. If you retire at two (2) years, it would be fifty percent (50%) of that one percent (I %) extra. Three (3) years, seventy-five percent (75%) ofthat one percent (1 %) extra; and after - four (4) full years, it would a hundred percent (100%) of that one percent (I %) extra," Furthennore, Manager McLemore stated, "OUf recommendation is to go forward with the one percent (1%) retro, bringing the retro to three percent (3%), getting all of our employees on the samc benefit table." CITY OF WLNTER SPRINGS MrNUTES CITY COMMISSION SPECIAL MEETING - AUGUST 30, 2004 PAGE30F5 ~I MAKE A MOTION THAT WE DO ADD THE ONE PERCENT (1%) ADDITIONAL AT ONCE TO INCREASE THE RETRO BENEFIT TO THE THREE PERCENT (3%) AND THAT IT COMES OUT OF THE CITY'S BUDGET, OVER THE NEXT TWO (2) YEARS," MOTION BY COMMISSIONER McLEOD, SECONDED BY COMMISSIONER McGINNIS, DISCUSSION. MANAGER McLEMORE ADDED, ~ONE PERCENT (1%) THIS YEAR AND ONE PERCENT (1%) NEXT YEAR." COMMISSIONER McLEOD ADDED, "THE MOTION IS FOR ONE (I) THIS YEAR AND ONE (1) NEXT YEAR," COMMISSIONER DONALD A. GILMORE INQUIRED, ~WHAT ABOUT THE PERIODS BEYOND THAT?" WITH DISCUSSION, MANAGER McLEMORE NOTED, ~I WOULD CERTAINLY RECOMMEND THAT FOR THE NEXT FOUR (4) YEARS, DO A HALF PERCENT (112%) PER YEAR," COMMISSIONER GILMORE ASKED IF IT WAS PART OF THE MOTION. COMMISSIONER McLEOD SAID, "YES IT WAS," MANAGER McLEMORE SAID, "THE HALF PERCENT (112%) IS ALREADY IN YOUR BUDGET FOR THE 2005." COMMISSIONER McLEOD ADDED, ~THAT IS CORRECT," "I WILL AMEND MY MOTION TO ADD THE HALF PERCENT (y,%) FOR THE NEXT FOUR (4) YEARS," AMENDMENT TO THE MOTION BY COMMISSIONER McLEOD. MAYOR BUSH SAID, "SECONDED AGAIN BY COMMISSIONER McGINNIS?" COMMISSIONER SALLY McGINNIS STATED, "CORRECT,~ DISCUSSION, VOTE: (ON THE AMENDMENT) COMMISSIONER McLEOD: AYE COMMISSIONER GILMORE: AYE COMMISSIONER McGINNIS: AYE MOTION CARRIED, VOTE: (ON THE MAIN MOTION, AS AMENDED) COMMISSIONER McGINNIS: AYE COMMISSIONER GILMORE: AYE COMMISSIONER McLEOD: AYE MOTION CARRIED, NeXL, MClUCl~(.f MeLcmorp: ~t;lted, "This is one of your Budget issues for tonight dealing with Hurricane Charley and the costs 1.Ulder consideration. 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 I, 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. (I) Benefit Formula. .@) A Participant's Donna! 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 I, 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 nomml retirement pension is 3D, 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 begirming October 1. 2005. as follows: Effective Date Multiplier for Service Prior to October L 2000 October 1, 2005 October L 2006 October L 2007 October L 2008 2.25% 2.50% 2.75% 3.00% (c) A Participant's normal retirement pension shall be calculated by applying the multiolier 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 reauired: October L 2004: October L 2005: October 1,2006: October 1, 2007: Nine and one-half percent (9.5%) of covered oavroll. Eleven percent 01 %) 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 Page2of3 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 tbis 9th day of Mav 2005. F, BUSH, MAYOR LERK Cily of Winter Springs Resoll1tiOll NlImber 200S-19 Page3of3