O99-20 ORDINANCE NO. 099-~O
AN ORDINANCE OF THE CITY COMMISSION OF
THE CITY OF BOYNTON BEACH, FLORIDA,
AMENDING CHAPTER 18, ARTICLE III,
PENSIONS FOR POLICE OFFICERS, SECTION
18.165 AND SECTION 18-186(b) PROVIDING
FOR A 3% MULTIPLIER AND FOR 60%
ALLOCATION OF ASSETS TO EQUITIES;
PROVIDING FOR CONFLICTS, SEVERABILITY,
CODIFICATION AND AN EFFECTIVE DATE.
.WHEREAS, the City Commission of the City of Boynton,
has received a report from EFI Actuaries regarding the cost
for mncreasing the multiplier for the City of Boynton Beach
Municipal Police Officers' Pension Trust Fund (hereinafter
referred to as ~ FUND" ); and
WHEREAS, said report has been reviewed by City staff
and upon staff recommendation, the City Commmssion deems it
to be in the best interests of the members of said FUND to
increase the multiplier from 2 ~% to 3% and to increase from
50% to 60% the allocatmon of assets to equities;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION
OF THE CITY OF BOYNTON BEACH, FLORIDA, THAT:
Section 1. That Chapter 18, Article III, Pensions for
Police Officers Section 18-165 is hereby amended by adding
the words and figures in underlined type and by deleting the
words and figures in struck-through type, as follows:
18-165. Monthly retirement income.
The amount of monthly retirement income
payable to a pcliccman police officer who
retires on or after his/her normal
retirement date shall be an amount equal
to the number of his/her years of credited
service multiplied by ~,,v ...... ~ v~ ~a~ per
~.~ (~ ~,~u, three (3%) per cent of his
final average compensation. If a
~ ........... police officer has been ...
Section 2. That Chapter 18, Article III, Pensions for
Police Officers Section 18-166(b) is hereby amended by
adding the words and figures in underlined type and by
deleting the words and figures in struck-through type, as
follows:
18-166 InvestmenEs.
The investment powers and authority of the
board of trustees of the municipal police
officers' retirement trust fund shall be
in accordance with the provmsions of
Florida Statutes, Section 185.06,
provided, however:
(b) The aggregate invesnment of fund
assets mn the common stock or capital
stock issued by a corporation organized
under the laws of the United States, any
state, or organized territory of the
United States of the District of Columbia
shall not, at market ees~, exceed 50 60
percent (50%) 60% of the fund's assets;
nor shall more than five percent (5%) of
the fund's assets be invested zn common
stock or capital stock of any one issuing
2
company; nor shall the aggregate of such
investment in any one issuing company
exceed 3% of the outstanding common or
capital stock of that company.
Sectio~ 3. If there any additional costs to the
City of Boynton Beach than are specifically as a result of
the mncrease in the multiplier to 3%, the costs will be paid
from the Plan.
Section 4. Each and every other Section of Chapter
18, not herezn specifically amended, shall remain mn full
force and effect as previously enacted.
Section 5.. Ail ordinances or parts of ordinances in
conflict herewith be and the same are hereby repealed.
Section 6. Should any section or provmsion 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 7. Authority is hereby granted to codify
said ordinance.
Section 8._ This ordinance shall become effective
immediately upon passage.
FIRST READING this ~ day of July, 1999.
SECOND, FINAL READING AND PASSAGE this
~ , 1999.
ATTEST:
day of
CITY~F BOYNTQN BEACH, FLORIDA
Vfce Mayor ~ '/
Mayor Pro Tem
Commi~ i one r ~
Commi s s i one r ~-~
CITY OF BOYNTON BEACH MEMORANDUM
FINANCE ADMINISTRATION
TO:
FROM:
DATE:
SUBJECT:
Wilfred Hawkins, Interim City Manager
Diane Reese, Finance Director
June 23, 1999
Increasing Police and Fire Pension Multiplier
I have reviewed the report from EFI Actuaries regarding the cost for increasing the multiplier for
Police and Fire pension funds. The report states if the change in investment rate assumption is
changed from 8% to 8.5% there would be minimum cost to the City for the 1999/2000 fiscal year
This concurs with the report from Gabriel, Roeder & Smith Actuaries that changing the
multiplier from the current 2.5% for Police and 2.6% for Fire to 3% would add a minimum cost
to the City. These reports were based on data for the fiscal year ended 9-30-97.
City contributions to the pension funds for 1998/99 were:
Police Pension - $476,118
Fire Pension - $361,301
Proposed City contribution to the pension funds for 1999/2000 are:
* Police Pension - $295,000.*
* Fire Pension - $245,957.*
*Based on current multipliers and interest rate assumption.
Please note also these contributions are after the state monies have been deducted from the' total
required contributions.
The amount of monies received from state:
* FY 97/98 - Police - $427,874
* FY 97/98 - Fire - $353,230
The decrease in contributions is due partly to the excellent investment returns and also the
decrease in payroll cost due to the early retirement program.
If the City decides to proceed with increasing the multiplier from the current rates to 3%, a
impact study will be required. I have contacted Mr. Steve Palmquist from Gabriel, Roeder,
Smith and Company Actuaries to determine the time frame to perform the impact study. He
stated, due to his current workload, it would take approximately 3 weeks. The proposed change
must also be approved by the State before final adoption by the City.
cc: Jim Cherof, City Attorney