02-11-1975 Regular MeetingFebruary 11, 1975
aiami J'hores9illage
F L OR ID A
PENSION BOARD MEETING
A breakfast meeting of the Miami Shores Pension Board was held on
Tuesday morning, February 11, 1975 at Howard Johnson's Restaurant.
The following were presents
Mayor James W. Condit
Harry Smenner
Michael Franco
Dean Miller
No members were absent.
David Peace
John Fletcher
Ann Vigneron
Jim Glaid
The meeting began at 7:45 am. A discussion was held on the State
Pension System. More information was requested for a later meeting
regarding (1) the amount of our present Village contribution and (2)
what the state contribution would be if we were in their plan.
A motion was made by Mike Franco and seconded by Harry Smenner to
have the secretary get information on whether the Village contribution
would remain in our pension fund, if and when unvested personnel in
the Police Department would transfer over to the State Pension System.
A discussion was held on the cost of living increases. A motion was
made by Ann Vigneron and seconded by Mike Franco to defer any cost of
living adjustment until information was obtained on cost of living
adjustments currently on: (1) Social Security (2) Federal Government
Employee Pensions, and (3) State Pensions.
The meeting adjourned at 8:45 am.
Respectfully submitted
Secretary
91iami cSllores9ilIage
F L OR ID A
January 31, 1975
ALL PENSION BOARD MEMBERS
There will be a breakfast meeting of the Pension Board at the
Howard Johnson's Restaurant on 95th Street and N.E. 2nd Avenue on
Tuesday, February 11th at 7:30 AM.
The agenda will include:
(1) Discussion of the State Pension System (enclosed find letter from
State Retirement Actuary, L.J. Gidney.)
(2) Cost of living increase to Pensioners.
Please be prompt, as the meeting should be rather short.
J.A. GLAID — Pension Secretary
•
liami cfhores'illage
F L OR ID A
FROM THE DESK OF JIM GLAID
January 31, 1975
PENSION BOARD MEMBERS
After discussion with several State, County and Municipal
people I am rather convinced that:
(1) The State plan would cost the village a good deal
more than we are presently paying, for several reasons,
number one being that the plan becomes non-contributory
as of 10-1-75.
(2) Our plan is actuarial sound, where as the State Plan
has an unfunded liability of 2 billion, and some I have
talked with compare it to the unfunded Social Security
System.
(3) Benefits to Policemen and Firemen are much better
than under our plan. Benefits to other employees are
about the same, better in some areas and less in others.
(4) Cost of past service to any employee now in our plan
would be greater than the funds he presently has in our
plan ( especially since the State plan starts from day
of hire, where -as we have a one year waiting period before
any contributions.)
Robert L Kennedy, Jr.
STAT ETIREMENT DIRECTOR
STATE OF FLORIDA
oat -hunt of A/mutterings'
Division of Retirement
CARLTON BUILDING
Aeubin ®'D. Askew,
GOVERNOR
TALLAHASSEE
32304 Lt. Gov. J. H. "Jim" Williams
SECRETARY OP ADMINISTRATION
January 22, 1975
Mr. James A. Glaid
Finance Director
City of Miami Shores
Miami Shores Village, Florida
Dear Mr. Glaid:
This is in answer to your letter dated January 9, 1975, re-
questing a brief outline of the advantages and disadvantages of
joining the Florida Retirement System. -Without getting into a com-
parison of benefit by benefit or clause by clause of your system
as compared to the Florida Retirement System, I am limiting my
thoughts to the principal aspects of the Florida Retirement System.
Enumerated below are some of the advantages and disadvan-
tages of joining the Florida Retirement System. But, depending
upon your point of view -- employee or employer -- an advantage as
I have listed may well be considered a disadvantage. Likewise,
the converse would be true. We should also evaluate the respective
advantages and disadvantages from a long -rang point of view. What
may appear to be a disadvantage today (e.g., item 3) will ultimately
prove to be advantageous in the long run in placing the system on an
actuarially sound basis.
The advantages can be summarized as follows:
1. Portability of Benefits -- if .an employee leaves
an employer who is currently under the Florida
Retirement System, his accrued benefits follow
to his next employer providing, of course, his
next employer is also a member of the Florida
Retirement System.
2. Effective January 1, 1975, the Florida Retire-
ment System became a non-contributory system
for regular and special risk members; for
cities, the non-contributory feature would go
into effect October 1, 1975.
Mr. James A. Glaid
Page 2
January 22, 1975
3. Effective January 1, 1975, employers will be
required to contribute 9% of salary on behalf
of their regular members and 13% on behalf of
their special risk members; for cities, the
effective date would be October 1, 1975.
4. Pooling of monies to take advantage of invest-
ment opportunities which may not be available
for a smaller system.
5. Resources of the state give more assurance
to the individual participants that benefits
promised will be made.
6. Greater benefit security is afforded by
virtue of its size ($1.5 billion in assets).
7. Administrative costs are absorbed by the Florida
Retirement System, and accordingly, this should
afford certain relief on the part of a munici-
pality.
The main disadvantages of the Florida Retirement System
are:
1. A local system would lose its identity.
2. A local system would not be able to channel
funds for local investments unless it were
approved by the State Board of Administra-
tion which handles investments for the Florida
Retirement System.
3. There would be no reversion to the municipal
retirement fund on account of non -vested
terminating employees.
Participation in the Federal Social Security Program and
the Florida Retirement System is mandatory. Employees are required
to make social security contributions.
One other item 1 should point out is that the Florida Retire-
ment System presently has an unfunded liability of approximately
$2 billion. One of the reasons for going to a non-contributory sys-
tem was to provide the fund with more money to liquidate this 'debt'.
Based on our latest cost estimates, this should be accomplished in
approximately 30 years.
1
Mr. James A. Glaid
Page 3
January 22, 1975
Enclosed is a summary of the Florida Retirement System to-
gether with several brochures that have been distributed. For
further information concerning the procedure for joining the Florida
Retirement System, please direct your correspondence to Mr. Hal
Walling, Administrator of Enrollment and Social Security, 530
Carlton Building, Tallahassee, Florida 32304, (904)488-X3837.
Sincerely,
Gibne
Sta a Retir ent Actuary
LJG:jd
Enclosures
cc: Mr. Robert L. Kennedy, Jr.
State Retirement Director
Mr. Hal Walling
Administrator
Enrollment and Social Security