10-21-1975 Regular Meeting�1
iami Jhores}ilage
F L O R 1 D A
October 21, 1975
PENSION BOARD MEETING
A breakfast meeting of the Miami Shores Pension Board was held
on Tuesday morning, October 21, 1975 at the Howard Johnson's
Restaurant on 95th Street.
The following Board Members were present:
Mayor Donald McIntosh Robert Day
William "Al" Davis M. David Peace
John Fletcher Ann Vigneron
Also present were:
James Shaw (The Wyatt Company)
Wallace Wilson (The Wyatt Company)
Jim Glaid
Absent was:
Dean Miller (on vacation in Spain)
The meeting began at 7:55 AM with the reading of the minutes of
the previous August 26th meeting.
The Board accepted the Trustee's Investment Review Report of
September 30, 1975, as submitted, on a motion by Bob Day and
a second by Al Davis. The motion passed unanimously.
A long discussion was had on the proposal to allow the present
Village Manager, and possible certain other department heads,
the option of joining or not joining the plan. A motion was
made by Bob Day and seconded by the Mayor, to give the Village
Manager only this option. After additional discussion, the
motion was rejected by the board upon voting. However, in lieu
of the above Manager's proposal and the resulting feeling's
of the Board, a motion was made by Al Davis and seconded by Bob
Day to pay interest of 3% on all Employee Contributions refunded,
with a starting date of 1/1/76 in figuring interest compounded
annually. The motion passed unanamously. The Wyatt Company
was asked to prepare the necessary Village Ordinance for this
change in the plan.
The recent Firemen transfer to Metro was reported on and dis-
cussed. The Wyatt Company was asked to prepare a letter of
recommendation on the distribution of fund assets as of 9/30/75
to the firemen leaving the plan.
Page 2
'iami crhores4II4ge
FLORIDA
Pension Board Meeting October 21, 1975
The Robert Wylie case was reviewed, and the Board voted to pro-
rate his time in the plan to give him police benefits for the
time he spent as a police officer and general employee benefits
for the time he will work as a general employee. The Wyatt Co.
was asked to prepare the necessary ordinance changes.
A report was given by the secretary on the Larry Dest case.
Dave Peace brought two other subjects to the attention of the
Board. (1) reducing entry age from 21 to 18 (2) increasing the
number of creditable years in the plan beyond the maximun of
30 years, as it now. The Board voted to keep the plan the
same, without making a change.
The meeting adjourned at 9:05 AM.
Respectfully submitted
al/M1
Secretary
October 1, 1975
aiami jhores9tage
F L PR ID A
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, October 21st at 7:45 am.
1 - Acceptance of the Trustee's Investment
Report as of September 30, 1975.
2 - Discussion on the proposal to allow the
Manager an option in joining the plan.
3 - Latest report by the secretary on Fireman
Pensions, Robert Wylie case, Larry Dest case,
and any other current happenings.
Review
Village
Please be prompt, as the meeting should be rather short.
((?164"
James A. Glaid
Pension Secretary
FL OR I DA
Pension Board
Miami Shores Village
10050 N. E. 2nd Avenue
Miami Shores, Florida 33138
Gentlemen:
3 3 1 3 8
MAcLAREN D. PEACE
VILLAGE MANAGER
October 7, 1975
As you are aware, Section 1-B of the Village Pension ordinance
states in part that .. "any person, who becomes an employee after the
effective date shall, upon completion of one year of continuous service,
become a member of the plan as a condition of employment ... "
I respectfully request your consideration of a recommendation to the
Village Council to have the Pension ordinance amended to grant the Village
Manager the option of joining the plan at the end of his first year of employ-
ment with the Village.
Under the plan, a younger employee must work for the. Village for
20 years before he has any vesting rights. By the inherent nature of the
Village Manager's job and today's City Management profession in general, I
believe it is unreasonable to assume that the Manager will remain with the
Village 20 years to receive benefits afforded by the plan.
Currently if the Manager leaves the Village before 20 years' employ-
ment, he receives only his contribution to the Village pension plan without
interest. But much of the contribution will have been eroded by inflation,
thereby reducing its purchasing power, in effect, indirectly penalizing the
contributor. And, of course, income tax must be paid on that contribution.
The 1974 Pension Reform Act has included some provisions that
make individual retirement plans far more attractive than ever before. City
Managers on the whole only rarely remain with one city long enough to realize
a pension. Now, under the so-called Individual Retirement Account, managers
who are free to do so will be able to develop their own retirement plan,
simultaneously saving money on these income -tax-free investments and hedging
against inflation by investing in interest bearing accounts.
(contd. )
f
Pension Board -2- October 7, 1975
Giving the Manager the opportunity to exclude himself from the
Village pension plan will not adversely affect the plan in any way. It would,
if the Manager exercises his option not to join the plan, save the Village
its 9% contribution of his salary. And finally, I think it would make the
Village a more attractive place for future managers to work.
Your consideration of this matter would be most appreciated.
Thank you very much.
MDP:v
Very truly yours,
Village Manager
i
October 1, 1975
Pension Board
Miami Shores Village
10050 N.E. 2nd Avenue
Miami Shores, Florida
Gentlemen:
This is my request to you to exercise my option, as
outlined in the County Merger Agreement previously, to
remain in the Miami Shores Pension Plan. The County will
continue to send the Village both the 6% employee contribution
and a 9% employer contribution monthly, just as long as I
remain working for the County.
I further understand that as of April 1, 1975 I will
no longer be considered a police officer under pension
ordinance, and that my time and contribution as of that date
will be figured and prorated by the Actuary on the basis I
am a general employee.
At this time, I am strongly considering taking reduced
pension or early retirement which will permit me to retire
at age 55 on January 10, 1978.
Yours truly,
Robert F. Wylie