O00-66ORDINANCE O 00-66
AN ORDINANCE OF THE CITY COMMISSION OF THE
CITY OF BOYNTON BEACH, FLORIDA CREATING AN
EARLY RETIREMENT INCENTIVE PROGRAM; PROVIDING
REQUIREMENTS FOR PARTICIPATION IN THE EARLY
RETIREMENT INCENTIVE PROGRAM; PROVIDING
CRITERIA FOR QUALIFICATION FOR EARLY
RETIREMENT; APPROVING AND ISSUING A STATEMENT
OF ACTUARIAL IMPACT; APPROVING THE FORM OF
AGREEMENT FOR PARTICIPATION IN THE EARLY
RETIREMENT INCENTIVE PROGRAM; DIRECTING CITY
ADMINISTRATION TO FURNISH A COPY TO THE
DIVISION OF INSURANCE; PROVIDING FOR
SEVERABILITY, CONFLICTS AND AN EFFECTIVE DATE.
WHEREAS, the City Administration has formulated an Eady Retirement
Incentive Program, available for participation by full-time employees, who, on April
1, 2001, have been full-time employees for a minimum of seventeen years and are
within three (3) years of normal retirement; and
WHEREAS, the City Commission has evaluated the following actuarial
studies for Police and Fire and General Employees prepared by Gabriel, Roeder
& Smith and has determined that the studies support the feasibility of the Eady
Retirement Incentive Program:
Preliminary Police and Fire study- June 9,
Preliminary General Employees-July 20, 2000,
Final study- ~.~,I~- 12/1/20.00
NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF
THE CITY OF BOYNTON BEACH, FLORIDA:
Section 1. The foregoing whereas clauses are true and correct and
constitute the findings of the Commission necessary to support this Ordinance.
Section 2. The City Commission hereby creates an Early Retirement
Incentive Proqram for any full-time City employee who on April t, 2001, has been
a full-time employee for a minimum of seventeen years and is within three (3_)
years of normal retirement.
Section 3. Any full-time City employee who on Apdl 1, 2001 has a
minimum of seventeen years service, and is within three years of normal
retirement is eliqible to participate, conditioned on the employee executinq an
Agreement for Participation and Waiver no later than 5:00 P.M., January 19, 2001,
\\CH\MAIN\SHRDATA\CA\ORD\Pension\Early Retirement ~ev.112700.dOCJ:\S~RD.~,T.~.\C~,~,O~D\?o~E~r!¥ ~ircm~?, ;~v. i ~, 2700.~
Rev. 11/27/O0,Rev120400
designating a last date of employment not later than April 1, 2001. The actual
retirement date shall be no earlier than January 20, 2001 and no later than April 1,
200','2 2001. The actual retirement date is~ must be approved by the City
Manager, who shall take into consideration the operational impact on the
Department from which the employee is retiring.
Section 4. Eligible employees who elect to participate will receive:
(1) Three years added to years of service time and/or years of
age In no event will the credited time of service or years exceed
three years total.
(2) The City of Boynton Beach will continue to pay health
insurance at prevailing single coverage premium rates for all
employees who elect to participate, through March, 2004.
(3) When necessary to fully vest an employee in the police or fire
service for years credited pursuant to this incentive, but not actually
served or rendered, the pension administrator and the plan actuaries
shall provide a benefit calculation factor for such police or fire
employee which, when applied, result in the employee receiving the
full retirement benefit set forth herein, without offset or penalty.
Section 5. The City Commission adopts, issues and certifies as its own,
the final statement of actuarial impact and analysis of the proposed Eady
Retirement System prepared by Gabriel, Roeder & Smith for Police and Fire
Pensions, and General Employees, copies of which are attached hereto as
composite Exhibit "A".
Section 6. Eligible employees who elect to participate in the Early
Retirement Incentive Proqram must execute an Agreement for Participation and
Waiver of Riqhts form on or before 5:00 p.m. on January 19, 2001.
Section 7. The City administration and the administrators of the
retirement plans, in accordance with the requirements of Chapter 112, Florida
Statutes, and Rule 60T-1.004, are directed to certify and fumish a copy of this
Ordinance toqether with the statement of actuarial impact referenced herein to the.
Department of Manaqement, Division of Insurance. The City administration and
plan administrators are authorized to make such supplemental filinqs with the
Division of Insurance as is necessary to effectuate this Early Retirement Incentive
Plan.
Section 8. The City Commission authorizes the Mayor, City Manager
and City Clerk to execute Aqreements for Participation In Eady Retirement
Incentive Program and Waiver of Riqhts forms with eligible employees. A copy of
\\CH\MA~N\SHRDATA\CA\ORD\Per~sion\Early Retireme,q~l: re¥.l 'J 2700.docJ:\S~RD.~.T,^.',C,~,\ORD\P~!O,,;\E~r!¥ R.~t!rcmc,q~-ce~'.!
Rev. 11/27/O0,Rev120400
the Agreement for Participation is attached hereto as Exhibit "B".
Section 9. The City Commission adopts and ratifies the Commencement
Notice, Acknowledqement of Receipt of Proqram Commencement Notice,
Information Fact Sheet, and Employee Declination to Participate forms, heretofore
prepared by the City administration, copies of which are attached hereto as
Exhibits "C", "D". "E" and "F" respectively. The City Administration is authorized to
modify these forms when modification is necessary to facilitate the objectives of
this Ordinance or when amendment is required to conform the forms to
requirements of state or federal law.
Section 10. All ordinances or parts of ordinances in conflict herewith
be and the same are hereby repealed.
Section 1 1. Should any section or provision of this ordinance or portion
hereof, any paragraph, sentence or word be declared by a court of competent
jurisdiction to be invalid, such decision shall not affect the remainder of this
ordinance.
Section 12. This ordinance shall become effective immediately upon
passage.
FIRST READING this o¢-/ day of November, 2000.
SECOND, FINAL READING AND PASSAGE this ~" day of December,
2000.
Vice Mayor
ATTEST:
Commissioner
City Cle r ~¢,m ll~ut///,. Commissioner
. i ~ ~AT~~ o~ar~et remeT~ rev 112700 doc ................
Rev. 11/~e~00 ' ~% -~ ~
AGREEMENT FOR PARTICIPATION IN EARLY
RETIREMENT INCENTIVE PROGRAM
WAIVER OF RIGHTS
THIS AGREEMENT for Participation in Early Retirement Incentive Program
(hereinafter referred to as Agreement) is entered into between the City of Boynton Beach,
Florida (hereinafter referred to as City) and
(hereinafter referred to as Employee), this ~ day of ., 200_.
WHEREAS, the City has announced an early retirement incentive program which
provides inCentive benefits for participation; and
WHEREAS, the City has prepared and distributed a Program Commencement Notice and
a information Fact Sheet setting forth the terms and conditions for participation in the
Early Retirement Incentive Program; and
WHEREAS, the Employee has been provided with a copy of the Program
Commencement Notice and Information Fact Sheet setting forth the terms and con0itions
for participation in the Early Retirement Incentive Program; and
WHEREAS, the Employee has been advised that the Employee has up to forty-five (45)
daYs in which to consider the terms and conditions of this Agreement; and
WHEREAS, the Employee has acknowledged understanding of the benefits associated
with the Early Retirement Incentive Program; and
WHEREAS, the employee has been advised to consult with an attorney prior to the
execution of this Agreement and has had such oppommity; and
WHEREAS, the Employee is eligible for participation in the Early Retirement Incentive
Program based upon the Employee's years of service and age;
NOW, THEREFORE, the City and the Employee, in exchange for the mutual covenants
expressed herein and which are derived fi:om the creation of and participation in the Early
Retirement Iiicentive Program agree as follows:
All representations and statements set forth in the foregoing Whereas
clauses are tree and correct and constitute material representations of each
party to the other.
The Employee agrees to participate in the Early Retirement Incentive
Program.
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o
The last day of employment of Employee with the City of Boynton Beach
is , a date which has been approved by the
City Manager.
The City will credit the Employee, who has a minimum of 17 years of
credited service and who is within three years of normal retirement, either
three years to the employees' time of service or age or both so that a
minimum criteria for normal retirement is satisfied. When necessary to
fully vest an employee in the police or fire service for years credited
pursuant to this incentive, but not actually served or rendered, the pension
administrator and the plan actuaries shall provide a benefit calculation
factor for such police or fire employee which, when applied, result in the
employee receiving the full retirement benefit set forth herein, without
offset or penalty.
Employee shall receive any payment for any unused annual leave and/or
sick leave in accordance with current City policy. The total cost of the
pay-out will be added to the employees gross wages for pension
calculation purposes. However, the actual pay-out will be made in three
(3) equal installments. The first installment will be on the retirement date
set forth in paragraph 2 above. The second installment will be paid on
December 1, 2001. The third installment will be paid on December 1,
2002.
Employee must complete all termination clearance procedures established
by the City prior to the receipt of final payment fi.om the City.
The City shall continue to pay medical coverage premiums for the
Employee until March 31, 2004. The Employee may continue
participation in the medical plan offered by the City after March 31, 2004,
but such continued participation shall be at the sole expense of the
Employee. The current monthly premiums are as follows:
Health HMO PPO-$100 ded. PPO-$$300 ded.
Single Coverage $270.04 $295.39 $270.04
Employee plus spouse $542.74 $595.37 $542.74
Employee plus children $505.23 $554.09 $505.23
Employee plus family $627.41 $688.49 $627.41
Dental insurance coverage will not be paid by the City of Boynton Beach
after employee's last date of employment. If the employee wishes to
continue dental insurance it will be at the employees expense.
The Employee will be responsible for the payment of all premiums for
insurance coverage for family members other than the Employee. City
will deduct the premium for additional spouse, child or family coverage
for the month of retirement from the Employee's final pay check.
Thereafter monthly amounts for additional spouse, child or family
C:',WINDOWS\TEMPkERIP Package 110200 - REVI20500.doe
Coverage will be deduCted from Employee's monthly pension check. No
notice will be sent to employee concerning payments for additional
coverage.
This Agreement contains the entire understanding of the parties hereof
superseding all communications between the parties, whether oral or
written, and this Agreement may not be altered, amended, or modified or
otherwise changed, nor may any of the terms hereof be waived except by
written instrument executed by both parties.
10.
By countersigning below, Employee acknowledges that Employee
understands and agrees to this Agreement and that Employee has been
advised by the City to consult with an attorney regarding Employee's
rights and that Employee has had the oppommity to do so.
11.
Employee releases the City of Boynton Beach, Florida, its officers,
employees, trustees and agents, from and against, any and all liability or
causes of action arising out of the City's offer of an Early Retirement
Incentive Program or Employee's decision to participate in the program.
12.
Employee acknowledges understanding of Employee's rights under the
Older Workers' Benefit Protection Act and the Age Discrimination and
Employment Act and waives any right or claim provided by either of those
Acts against the City.
13.
Employee agrees not to seek or accept reemployment with the City of
Boynton Beach.
14.
This Agreement may be revoked by the Employee for a period of seven
(7) days following execution of this Agreement. Thereafter, this
Agreement is irrevocable by the Employee.
IN WITNESS WHEREOF, the City and the Employee execute and enter into this
Agreement.
Witnosses as to Employee:
(Print) Witness Name
Wimess Signature
(Print) Wimess Name
Witness Signature
(Print) Employee Name
Employee Signature
C:\W[NDOWS\TEMP~RIP Package 110200 - REV 120~00.do~
STATE OF FLOR/DA
COUNTY OF PALM BEACH
On this ~ day of , 2000, before me, the undersigned
Notary Public of the State of Florida, personally appeared
and whose name is Subscribed to the within
instrument, and he/she acknowledged that he/she executed the same.
WITNESS my hand and official seal.
Notary Public- State of Florida
(Seal)
Personally known to me
Produced Identification:
EMPLOYER/CITY OF BOYNTON BEACH:
Mayor
Attested to:
City Clerk
City Manager
C:\WINDOWS\TI~MP~ERIP Package 110200 - RI~V 120.500. doc
CITY OF BOYNTON BEACH
EARLY RETIREMENT INCENTIVE PROGRAM
COMMENCEMENT NOTICE
The City of Boynton Beach, Florida announces an Early Retirement Incentive Program.
This program is available for participation by Full-Time Employees who, on April 1,
2001, will be within three years of normal retirement and have attained at least 17 years
of service. The City has prepared an Information Fact Sheet which provides a detailed
overview of the program. The City has prepared an Agreement For Participation in Early
Retirement Incentive Program and Waiver of Rights form which interested Employees
will be required to sign to participate in the program. Both the Information Fact Sheet
and the form Agreement are available for review and may be Obtained from the Finance
Department.
Eligible employees who wish to participate in the Early Retirement Incentive Program
must execute an Agreement for Participation and Waiver of Rights by 5:00 P.M., on
January 19,2001.
DATED: December 6, 2000.
C:\WINDOWS\TEMP\ERIP Package 110200 - REVI20500.doc
CITY OF BOYNTON BEACH
EARLY RETIREMENT INCENTIVE PROGRAM
ACKNOWLEDGEMENT OF RECEIPT OF PROGRAM COMMENCEMENT
NOTICE AND INFORMATION FACT SHEET
The Undersigned, a current employee of the City of Boynton Beach, Florida, acknowledges, that he/she:
Was given a PROGRAM COMMENCEMENT NOTICE, INFORMATION FACT SHEET,
AGREEMENT FOR PARTICIPATION IN EARLY RETIREMENT INCENTIVE PROGRAM
AND WAIVER OF RIGHTS, and DECLINATION TO PARTICIPATE form, describing the
Early Retirement Incentive Program being offered by the City of Boynton Beach.
Was advised that he/she may have rights which are protected under the Older workers' Protection
Act or the Age Discrimination in Employment Act.
Was advised to consult with an attorney prior to executing an Agreement For Participation in
Early Retirement Incentive Program.
Was advised that he/she may have up to for~-five (45) days to consider the Agreement For
Participation in Early Retirement Incentive Program.
Was advised that he/she may revoke his/her Agreement For Participation in Early Retirement for a
period of seven (7) days following execution of the Agreement.
Was advised that his/her actual date of retirement is subject to approval by the City Manager.
IN WITNESS WHEREOF, I have hereunto set:my hand and seal this
., 200_.
day of
Signed, sealed, and delivered
in the presence of:
WITNESSES:
(Wimess Signature)
(Employee Signature)
(Print Name of Witness
(Print Name of Employee)
(Witness Signature)
(Print Name of Witness)-
C:\ WINDO WS~TEMP',ERIP Package 110200 - REV 120500.doc
CITY OF BOYNTON BEACH
EARLY RETIREMENT INCENTIVE
PROGRAM FACT SHEET
FACTSHEET
Based on the City's current staffing needs and requests of employees, the City is offering
an Early Retirement Incentive Program (ERIP). Eligible emplOyees are not required to
accept the offer and participate in the program.
WHO IS ELIGIBLE?
Any full-time employee who, on April 1,2001, will have been a full-time employee for a
minimum of seventeen years and is within three (3) years of normal retirement. In order
to participate an eligible employee must execute an Agreement for Participation and
Waiver document by 5:00 P.M., on January 19, 2001, designating a last day of
employment, not earlier than January 20, 2001 and not later than April 1, 2001. The
actual retirement date must be approved by the City Manager who shall take into
consideration the operational impact on the department from which the employee is
retiring.
An employee who elects to receive the Early Retirement Incentive Program cannot also
participate in the Deferred Retirement Option Plan.
HOW WILL IT WORK?
If you are eligible to participate in the program and elect to do so, you will receive:
Three (3) years added to your years of service time and/or years of age. In no
event will the additional years service or age exceed three (3) total years.
(General Employees for example, i.e. If you have 17 years of service and you are
age 59, 3 years would be added to your age; if you have 22 years of service and
are age 55, 3 years would be added to your years of service; if you have 17 years
of service and are age 62, 3 years would be added to your years of service. For
Police and Fire only, the pension administrator and the plan actuaries shall
provide a benefit calculation factor, when applied, will result in the employee
receiving the full retirement benefit set forth herein, without offset or penalty.
The City of Boynton Beach will continue to pay health insurance at the single
coverage rate through March 2004 for all employees who elect to participate
in the early retirement program. Dental insurance coverage will not be paid
by the City after employees last date of employment with the City.
IS THIS A ONE TIME OPPORTUNITY?
C:\WINDOWS\TEMP~ERIP Packag~ 110200 - REV120500.doc
At the time, the City does not anticipate offering this program again.
HOW LONG DO I HAVE TO MAKE A DECISION?
You will have up to 45 days from the date of formal notification, December 6, 2000, to
accept or reject this offer. If you elect to participate any time before January 19, 2001, by
signing an Agreement for Participation and Waiver, you will have an additional seven (7)
days following signing to notify the City that you revoke your decision to participate.
SHOULD I SEEK LEGAL AND FINANCIAL ADVICE BEFORE I MAKE MY
DECISION?
Yes, you should seek the advice of legal and financial counsel before accepting or
rejecting this offer.
WILL I BE REQUIRED TO SIGN ANY TYPE OF WAIVER TO ACCEPT THE
PLAN?
Yes, you will be required to sign an Agreement for Participation in Early Retirement
which includes a Waiver and a general release of all claims against the City. A copy of
the Agreement for Participation in Early Retirement is available for your review.
CAN I REVIEW THE AGREEMENT, RELEASE AND WAIVER NOW?
Yes, the documents have been released and are available in the Finance Department.
WHERE CAN I GET MORE INFORMATION?
You should contact either of the following individuals:
Diane Reese, Finance Director
Barbara LaDue, Pension Administrator
(561) 742-6312
(561) 742-6081
BY SIGNING THE AGREEMENT FOR PARTICIPATION IN THE EARLY
RETIREMENT INCENTIVE PROGRAM AND WAIVER OF RIGHTS, IS AN
EMPLOYEE WAIVING WORKERS' COMPENSATION CLAIMS?
No. The Waiver contained in the Agreement is a waiver of age discrimination claims
only. An employee does not waive claims arising from Workers' Compensation claims.
C:\WINDOWS\TEMP~RIP Package 110200 - REV120$00.d~
BY SIGNING THE AGREEMENT FOR PARTICIPATION IN THE EARLY
RETIREMENT INCENTIVE PROGRAM AND WAIVER OF RIGHTS, IS AN
EMPLOYEE WAIVING WAGE AND HOUR MATTERS?
No. The waiver contained in the Agreement is a waiver of age discrimination claims
only. An employee does not waive claims arising from wage and hour matters.
WHAT IF INSURANCE PREMIUMS INCREASE AFTER AN EMPLOYEE'S
RETIREMENT DATE?
For the first three (3) years after the retirement date the City pays the full premium for the
employee coverage, regardless of whether it increases, decreases or remains the same.
The employee is responsible for payment of all of the premiums for dependent coverage
whether it increases, decreases or remains the same.
IMPLEMENTATION DATES:
OFFER OF PROGRAM
LAST DAY TO SIGN AGREEMENT
TO PARTICIPATE
EARLIEST RETIREMENT DATE
LAST DAY OF EMPLOYMENT
December 6, 2000
January 19, 2001
January 20, 2001
April 1, 2001
C:\!~rlIqDOW~T]gM~ERIP Packas¢ 110200 - RI~V 120500. d~
CITY OF BOYNTON BEACH
EARLY RETIREMENT INCENTIVE PROGRAM
EMPLOYEE DECLINATION TO PARTICIPATE IN
THE CITY OF BOYNTON BEACHS'
EARLY RETIREMENT INCENTIVE PROGRAM
The undersigned, a current employee of the City of Boynton Beach, Florida,
acknowledges that after receipt and careful review and consideration of the PROGRAM
COMMENCEMENT NOTICE and INFORMATION FACT SHEET describing the Early
Retirement Incentive Program dated , (the "program"), being
offered by the City of Boynton Beach, the undersigned has decided not to accept the
Program.
IN WITNESS WHEREOF, I have hereunto set my hand and seal this
,200_.
day of
Signed, sealed and delivered
in the presence of:
WITNESSES:
Witness Signature
Employee Signature
Print Name
Print Name of Employee
Witness Signature
Print Name
DATED:
C:\WINDOWS\TEMP\ERIP P~k.~¢ 110200 - REVI20500.dOC
GABRIEL, ROEDER, SMITH & COMPANY
Consultants & Actuaries
301 East Las Olas Blvd. · Suite 200 · Ft. Lauderdale, FL 33301 · 954-527-1616 · FAX 954-525-0083
December 1, 2000
Ms. Barbara LaDue
Pension Administrator
City of Boynton Beach
100 E. Boynton Beach Boulevard
Boynton Beach, Flodda 33425-0310
Dear Barbara:
Enclosed are our Actuarial Impact Statements for each Plan pertaining to the eady retirement
incentive program. They must be filed with the State before second reading of the ordinance.
Please have a member of each Pension Board sign the Statement. Then send the Statement
along with a copy of the ordinance to each of the two State agencies.
We welcome your questions and comments.
SincerelY yours,
J. Stephen Palmquist
JSP/or
Enclosures.
GABRIEL, ROEDER, SMITH & COMPANY
Consultants & Actuaries
301 East Las Olas Blvd. · Suite 200 · Ft. Lauderdale, FL 33301 · 954-527-1616 · FAX 954-525-O083
December 1, 2000
Mr. Chades Slavin, Actuary
Bureau of Local Retirement Systems
Division of Retirement
Cedars Executive Center, Bldg. C
2639 North Monroe Street
Tailahassee, Florida 32399-1560
Ms. Patricia Shoemaker
Municipal Police Officers
& Firefighters Pension Funds
Division of Retirement, Bldg. B
Post Office Box 3010, Room 252
Tallahassee, Flodda 32315-3010.
Re:
Actuarial Impact Statements for the Boynton Beach General
Employees, Police Officers and Firefighters Retirement Plans
Dear Sir and Madam:
Please review the enclosed ordinance which would provide an eady retirement incentive program
for participants of the three Plans who, as of Apdl 1, 2001, meet both of the following criteria:
· At least 17 years of service, and
· Within three years of normal retirement date.
Participants who elect to retire under this program will receive credit for three years of service. In
the case of the Police Officers and Firefighters Plans, this credit will be made by providing that the
multiplier for each of the first three years of service will be 6% and the multiplier for each year
after the first three will be 3%.
Those who elect to retire will also benefit from the City's continuation of payment of health
insurance premiums through March, 2004. Because this benefit is not a part of the Retirement
Plans, the Actuarial Impact Statements do not reflect the payment of health insurance premiums
by {he City.
Charles Slavin/Patdcia Shoemaker
Re: Boynton Beach
December 1, 2000
Page Two
The number of participants who would be eligible for this program is:
General Employees 23
Police Officers 21
Firefighters _25.
69
Our analysis is based on the assumption that 60% of those eligible will elect to retire. We have
also made these assumptions:
There would be a number of new hires equal to the number of participants who
retire.
(2)
There would be a number of promotions equal to the number of participants who
retire. Those promoted would be the remaining highest paid participants, and
their raise would be 5% of pay.
As indicated by the enclosed tables, the effect of the program would be as follows:
Increase in
Annual Pension Decrease Net
Grour~ Plan Contribution in Pawetl Savin,~-~
General Employees $ 35,131 $ 281,794 $ 246,663
Police Officers 19,447 370,325 350,878
Firefighters ~ ._Z;]9,BZ3 ~
103i222 1~391,992 1,288~770
In preparing this analysis for General Employees and Firefighters, we used the same participant
data, asset values, and actuarial assumptions and methods as were used in the October 1, 1999
Actuarial Valuation. Reports. For Police Officers, the comparative basis is the June 6, 2000
Actuarial Impact Statement pertaining to the DROP implementation.
GABRIEL, ROEDER, SMITH & COMPANY
Chades Slavin/Pat~icia Shoemaker
Re: Boynton Beach
December 1, 2000
Page Three
In our opinion, the proposed changes are in compliance with Part VII,
Statutes and Section 14, Article X of the State Constitution.
Respectfully submitted,
EmDJeyees Retirement Plan ~
~ff~'~ersBOard of Trustees of the Po~l~
Reti[,er~, Plan/",
For the Board of Trustees of the Firefighters
Retirement Plan
J~Stephefi Paimquist, ASA, ~AAA, FCA
Enrolled Actuary No. 99-1560
Chapter 112,
Flodda
GABRIEL, ROEDER, SMITH & COMPANY
GENERAL EMPLOYEES
SUMMARY OF VALUATION RESULTS
_ As of October 1, 1999
Before Changes I After Changes
COVERED GROUP
A. Number Included in the Valuation
1. Active Members 499 499
2. Inactive Members 153 166
B. Covered Annual Payroll $ 17,094,127 $ 16,812,333
LONG RANGE COST "
C. Actuarial Present Value of Projected Benefits 71,243,690 72,051,072
D. Actuarial Value of Assets 53,943,256 53,943,256
E. Actuarial Present Value of Future Contributions '
1. Total: C-D 17,300,434 18,107,816
2. Portion Assigned to Unfunded Actuarial
Accrued Liability (UAAL) (4,397,230) (3,554,545)
3. Portion Assigned to Future Normal Costs 21,697,664 21,662,361
CURRENT ANNUAL COb'T
F. Annual Payment Needed to Amortize UAAL (778,644) (731,174)
As % of B (4.55)% (4.35)%
G. Annual Employer Normal Cost 1,431,346 1,417,266
As % of B 8.37% 8.43%
H. Required Employer Contribution on the
Valuation Date: F+G 652,702 686,092
As % of B 3.82% 4.08%
I. Increase Due to Rise in Projected Payroll from
Val. Date to Contribution Date 34,030 35,771
J. Required Employer Contribution: H+I 686,732 721,863
I
K. Year to Which Contributions Apply
1. Plan Year Ending ~ 9130100 9/30~00
2. Employer Fiscal Year Ending 9/30/01 9/30/01
3. Assumed Date(s) of Employer Contributions 10/15/00 10/15/00
GENERAL EMPLOYEES
ACTUARIAL PRESENT VALUE OF BENEFITS AND CONTRIBUTIONS
As of October 1, 1999
Before Changes After Cha~.~_
A. Actuarial Present Value of Projected
Benefits for
1. Active Members
a. Service Retirement Benefits $ 50,853,481 $ 47,714,181
b. Vesting Benefits 2,289,856 2,297,891
c. Disability Benefits 0 0
d. Preretirement Death Benefits 460,711 450,582
e. Return of Member Contr. 497,253 509,946
~f. Other 0 (~
g. Total 54,101,301 50,972,600
2. Inactive Members
a. Service Retirees & Beneficiaries 16,465,579 20,401,662
b. Disability Retirees 49,172 49,172
c. Terminated Vested Members .~ ~
d. Total 17,142,389 21,078,472
3. Total for All Members 71,243,690 72,051,072
B. Actuarial Present Value of Projected
Normal Costs 21,697,664 21,662,361
C. Actuarial Accrued Liability:. A3 - B 49,546,026 50,388,711
D. Actuarial Value of Assets 53,943,256 53,943,256
E. Unfunded Actuarial Accrued Liability
(UAAL): C- D (4,397,230) (3,554,545)
F. Actuarial Present Value of Projected
Member Contributions 10,916,649 10,893,610
G. Actuarial:Present Value of Projected
Covered Payroll 169,782,600 169,467,700
GENERAL EMPLOYEES
COMPARISON OF NORMAL COSTS
As of October 1, 1999
Before After
Changes Chan.ne_s
A. Total Normal Cost for
1. Normal Retirement Benefits $1,968,746 $1,939,974
2. Vesting Benefits 109,792 107,296
3. Disability Benefits 0 0
4. Preretirement Death Benefits 23,409 23,443
5. Return of Member Contributions 94,170 93,529
6. Administrative Expenses ~ ~
7. Total 2,474,777 2,442,902
As % of Covered Payroll 14.48% 14.53%
B. Expected Member Contributions 1,043,431 1,025,636
As % of Payroll 6.11% 6.10%
C. Net Employer Normal Cost: A7 - B 1,431,346 1,417,266
As % of Payroll 8.37% 8.43%
POLICE OFFICERS
SUMMARY OF VALUATION RESULTS
As of October 1, 1999
Before Changes* ] After ChanGe=
COVERED GROUP
A. Number Included in the Valuation
1. Active Members 128 128
2. Inactive Members 49 62
B. Covered Annual Payroll $ 7,129,868 $ 6,759,543
LONG RANGE (~Q~T
C. Actuarial Present Value of Projected Benefits 40,493,174 41,384,093
D. Actuarial Value of Assets 28,956,651 28,956,651
E. Actuarial Present Value of Future Contrib.
1. Total: C - D 11,536,523 12,427,442
2. Portion Assigned to Unfunded Frozen
Actuarial Accrued Liability (UFAAL) 3,014,944 3,780,589
3. Portion Assiqned to Future Normal Costs 8,521,579 8,646,853
CURRENT ANNUAL
F. Annual Payment Needed to Amortize UFAAL 183,238 229,439
As % of B 2.57% 3.39%
G. Annual Employer Normal Cost 685,258 656,920
As % of B 9.61% 9.72%
H. Interest on F and G from Valuation Date to
Contribution Date(s) 77,030 78,614
As % of B 1.08% 1.17%
I. Required Employer/State Contribution: F +G+H 945,526 964,973
As % of B 13.26% 14.28%
J. Estimated State Premium Tax Refund 427,874 427,874
As % of B 6.00% 6.33%
K. Balance Required from Employer:. I - J 517,652 537,099
As % of B 7.26% 7.95%
:
L. Year to Which Contributions Apply
1. Plan Year Ending 9/30/00 9/30/00
2. Employer Fiscal Year Ending 9/30/01 9/30/01
3. Assumed Date(s) of Employer Contributions 10/15/00 10/15/00
* From 6/6/00 Actuarial Impact Statement.
POLICE OFFICERS
DERIVATION OF EMPLOYER NORMAL COST
As of October 1, 1999
I Before After
Chanc,__~* Char~$
A. Actuarial Present Value of Projected
Benefits for
1. Active Members
a. Service Retirement Benefits $ 24,944,220 $ 20,653,164
b. Vesting Benefits 484,043 486,924
c. Disability Benefits 1,603,119 1,526,669
d. Preretirement Death Benefits 522,379 470,799
e. Return of Member Contributions 302,867 349,630
f. Other o ... 0
g. Total 27,856,628 23,487,186
2. Inactive Members
a. Service Retirees and Beneficiaries 8,882,079 14,142,440
b. Disability Retirees 2,918,566 2,918,566
c. Terminated Vested Members .~ _~
d. Total 12,636,546 17,896,907
3. Total of All Members 40,493,174 41,384,093
B. Actuarial Value of Assets 28,956,651 28,956,651
C. Unfunded Frozen Actuarial Accrued
Liability (UFAAL) 3,014,944 3,780,589
D. Actuarial Present Value of Projected
Member Contributions 3,743,788 3,783,861
E. Actuarial Present Value of Projected
Employer Normal Costs: A3 - B - C - D 4,777,791 4,862,992
F. Actuarial Present Value of Projected
Covered Payroll 53,482,700 54,055,200
G. Employer Normal Cost Rate:
100 x E/F - 8.93% 9.00%
H. Annual Payroll of Active Members 7,1'29,868 6,759,543
I. Assumed Amount of Administrative Expenses 48,561 48,561
J..Employer Normal Cost: (G x H) + I 685,258 656~920
* From 6/6/00 Actuarial Impact Statement.
FIREFIGHTERS
SUMMARY OF VALUATION RESULTS
As of October 1, 1999
Before I After
Charm_es Chan,~es
COVERED GROUP
A. Number Included in the Valuation
1. Active Members 92 92
2. Inactive Members 40 57
B. Covered Annual Payroll $5,083,063 $4,343,190
LONG RANGE COST ..
C. Actuarial Present Value of Projected Benefits 36,122,810 37,406,443
D. Actuarial Value of Assets 28,290,983 28,290,983
E. Actuarial Present Value of Futura Contributions
1. Total: C-D 7,831,827 9,115,460
2. Portion Assigned to Unfunded Frozen
Actuarial Accrued Liability (UFAAL) 3,839,164 4,823,377
3. Portion Assi.qned to Futura Normal Costs 3,992,663 4,292,083
CURRENT ANNUAL COST
F. Annual Payment Needed to Amortize UFAAL 252,690 309,433
As % of B 4.97% 7.12%
G. Annual Employer Normal Cost 217,814 205,752
As % of B 4.29% 4.74%
H. Interest on F and G from Valuation Date to
Contribution Date(s) 41,731 45,694
As % of B 0.82% 1.05%
I. Required Employer/State Contrib: F+ G+ H 512,235 560,879
As % of B 10.08% 12.91%
J. Estimated State Premium Tax Refund 351,241 351,241
As % of B 6.91% 8.08%
K. Balance Required from Employer:. I - J 160,994 209,638
As % of B 3.17% 4.83%
L. Year to Which Contributions Apply
1. Plan Year Ending 9/30/2000 9/30/2000
2. Employer Fiscal Year Ending 9/30/2001 9130/2001
3. Assumed Date(s) of Employer Contrib. 10/1512000 10115/2000
FIREFIGHTERS
DERIVATION OF EMPLOYER NORMAL COST
As of October 1, 1999
Before Changes t After Changes
A. Actuarial Present Value of Projected
Benefits for
1. Active Members
a. Service Retirement Benefits $ 21,275,076 $ 15,330,185
b. Vesting Benefits 1,205,488 1,144,873
c. Disability Benefits 1,108,496 1,031,992
d. Preretirement Death Benefits 375,804 322,511
e. Return of Member Contributions 115,190 145,329
f. Other 0 (3
g. Total 24,080,054 17,974,890
2. Inactive Members
a. Service Retirees and Beneficiaries 11,433,417 18,822,214
b. Disability Retirees 0 , 0
c. Terminated Vested Members .~ _.~
d. Total 12,042,756 19,431,553
3. Total for All Members 36,122,810 37,406,443
B. Actuarial Value of Assets 28,290,983 28,290,983
C. Unfunded Frozen Actuarial Accrued
Liability (UFAAL) 3,839,164 4,823,377
D. Actuarial Present Value of Projected Member
Contributions 2,674,671 2,792,115
E. Actuarial Present Value of Projected
Employer Normal Costs: A3 - B - C - D 1,317,992 1,499,968
F. Actuarial Present Value of Projected
Covered Payroll 38,209,600 39,887~400
G. Employer Normal Cost Rate: 100 x E/F 3.45% 3.76%
H. Annual Payroll of Active Members 5,083,063 4,343,190
I. Assumed Amount of Administrative Expenses 42,448 42,448
J. Employer Normal Cost: (G x H) + I 217,814 205,752