Loading...
04-27-1976 Regular MeetingApril 27, 1976 aiami J ore 9 liage F L OR ID A PENSION BOARD MEETING A breakfast meeting of the Miami Shores Pension Board was held on Tuesday morning, April 27, 1976 at the Howard Johnson's Restaurant on 95th Street. The following Board Members were present: Mayor Donald McIntosh William "Al" Davis John Fletcher Dean Miller Also present were: Earl Andersen Ann Vigneron Robert Day Michael Franco Wallace Wilson (The Wyatt Company) Jay Wolfe (The Wyatt Company) The meeting began at 8:15 a.m. with the reading and acceptance of the minutes of the previous October 21, 1975 meeting. The Board accepted the Trustee's Investment Review of March 31, 1976, on a motion by Ann Vigneron and a second by John Fletcher. Included in the motion was a recommendation to the Trustee to sell the 1,200 shares of Pioneer Corporation Common Stock. The Board accepted the Actuarial Valuation Report for the year (report as of January 1, 1976) as presented by the Wyatt Company's Wallace Wilson. Al Davis made the motion, and with a second by Ann Vigneron, the motion passed unanimously. The proposed ordinance regarding 3y, interest and changes in classifica— tions or types of employees was approved by the Board, to be passed on to Council for approval. However, Mike Franco pointed out several items, which were to be corrected or clarified in the final draft by the Actu— ary. The Board reviewed the letter from the State of Florida written by Mr. Vereen, and approved the suggested reply letter as drawn up by the Wyatt Company for signature by the Pension Board Chairman. John Fletcher made the motion and it was seconded by Robert Day to send the letter as written. t iami CrhoresCilage FLORIDA April 27, 1976 Page 2 Wally Wilson brought to the attention of the Board the question of what 5 year period should be used in figuring final pension benefits in various situations, not now clearly defined in present ordinances. After much discussion, a motion was made by John Fletcher to amend the plan to use (1) the last 5 years prior to the normal retirement age, or (2) the last 5 years in which the employee contributes, whichever is the latest. The motion passed without objection, and the Wyatt Company was authorized to add this amendment to the ordinance now being prepared for Council. The meeting adjourned at 9:15 a.m. Approved: Respectfully submitted, 1-414-11) Chairman J. A. Glaid Secretary iami cfhoreF} lIage F L OR ID A April 19, 1976 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, April 27th at 8:15 a.m. The Agenda will include: 1. Reading of the minutes of last meeting (October 21, 1975 meeting). 2. Acceptance of the Trustee's Investment Review (Report as of March 31, 1976). 3. Acceptance of the Actuarial Valuation Report for the year (Report as of January 1, 1976). Presentation by Wallace Wilson of the Wyatt Company. 4. Approval of Ordinance regarding 1% interest, so that Council may consider it at its' next meeting. 5. Discussion on Mr. Vereen's letter of March 9, 1976, re— garding Section 175 Monies. JAMES A. GLAID Pension Secretary FL OR I DA 33 1 38 April 27, 1976 Mr. James R. Vereen Director Municipal Firemen's Pension Trust Fund 331 Larson Building Tallahassee, Florida 32304 Dear Mr. Vereen: EARL K. ANDERSEN VI WOE MANAGER Re: Miami Shores Village Pension Plan We are in receipt of your letter of March 9, 1976 requesting the payment of $20,512.01 from the Miami Shores Village Pension Trust Fund to the State in compliance with Section 175.361, Florida Statutes. The Pension Board of the Miami Shores Village Pension Plan has reviewed the mentioned Statute and has determined that no refund is payable to the Village or to the State. The remainder of this letter will provide you with the termination procedures and calculations that were followed to determine this fact. Section 175.361, Florida Statutes provides for an allocation pro— cedure upon termination of plan. The first step of this procedure is to determine "....the date of distribution and the asset value of such distribution." (Section 175.361(1)). The Pension Board, with the as— sistance of its actuary has determined that the amount of asset value to be distributed is $53,480.60. The method of determination of this amount is explained in the following paragraph. Miami Shores Village was given approval of Village Ordinance 349, effective July 7, 1970, which among other things, allowed the comming— ling of Chapter 175 funds with other assets of the Village Pension Plan, by the State Treasurer's Office (copies of pertinent correspon— dence are attached). It has been determined approximately that, on the basis of a ratio of past service liability of Firemen to the past service liability of all Village employees as of the effective date of the amendment, of the approximate book value of assets of $764,997.00 the value associated with the Firemen was $27,670.00. This asset value was then brought forward year by year by credit— ing Village, Firemen, and State contributions, debiting benefits and refunds of contributions paid, and allocating the change in book value of assets due to realized fund appreciation and expenses on the basis of the proportion of funds. At September 30, 1975, the date of termination. of the Firemen, the difference between market value of assets and book value was allocated to the Firemen on the basis of their share of the Page Two the book value. This resulted in a market value of assets attributable to Firemen of $54,063.60. From this was deducted the expense of the allocation of $583, payable to the plan actuary, leaving a distributable 'balance of $53,480.60. An attachment to this letter will illustrate the year by year progression of the funds as allocated among Fire and other employees. Section 175.361(2) calls for the Board to determine the manner of distribution of asset value. The Pension Board decided to pay active employees in cash and leave retired and vested assets in the fund. Section 175.361(3) describes the order of allocation of assets, where amount required to provide the retirement income means the actu— arially computed value of such income. This actuarial value was com— puted by the actuary on the basis of the current calculation assumptions of 4.5% interest and mortality according to the 1965 Projected Annuity Mortality Table. The first priority is given to the following groups with the following actuarial values, according to Section 175.361(3)(a): (1)2 (3) (4) (5) Firemen receiving benefits Beneficiaries receiving benefits Eligible for, but not'yet retired Total Assets remaining to be allocated — $18,309.00- — $ 0 — $ 0 — $18,309.00 — $35,171.60 The next priority group and amounts as provided in Section 175.361(3)(b) are as follows: (1) (2) (3) (4) Present service Section Total Assets remaining to be allocated Firemen with 10 years of and contributions 175.211 people — $ 0 — $23,234.00 - $23,234.00 — $11,937.60 The next priority group and amounts as provided are as follows: (1) (2) Present Firemen not included above Assets remaining to be allocated in Section 175.361(3)( — $11,937.60 $ 0 Since there is no asset value left to completely allocate according to Section 175.361(3)(c), Section 175.361(3)(d) is irrelevant. Section 175.361(4) then allows the distribution according to the above allocation. It is the intent of this Board to provide the present Firemen all of their employee contributions, thereby requiring an addi— tional sum of $522.32 to be distributed from the Miami Shores Village Pension Trust Fund. Page Three From the above description, we hope that you will agree that we have performed our duty according to Section 175.361. We, therefore, respectfully decline to refund the Chapter funds as you requested. You are hereby authorized to request any additional information you need with respect to this matter from our actuary at the following address: The Wyatt Company 9595 North Kendall Drive Miami, Florida 33156 ATTENTION: Mr. Wallace W. Wilson, F.S.A. Sincerely, SHORES VI P SION BOARD 7 Mayor Donald W. McIntosh Board Chairman DNAvt: j b MIAMI SHORES VILLAGE PENSION PLAN Division of Assets Based on Book Value Date Fire Other Total 07/07/70 $27,670.00 $ 737,327.00 $ 764,997.00 12/31/70 $29,413.70 $ 756,908.30 $ 786,322.00 12/31/71 $33,546.06 $ 836,217.72 $ 869,763.78 12/31/72 $39,039.37 $ 940,979.05 $ 980,018.42 12/31/73 $48,110.31 $1,039,392.15 $1,087,502.46 12/31/74 $52,658.29 $1,128,040.66 $1,180,698.95 09/30/75 $64,119.21 $1,268,366.52 $1,332,485.73 Total Market Value as of 09/30/75 Difference Between Market and Book Value Pro -rata Portion of Difference -$10,055.61 -$ 198,913.81 Market Value of Assets as of 09/30/75 $54,063.60 $1,069,.452.71 • THE WQ COMPANY $1,123.516.31 $ -208,969.42 $ -208,969.42 $1,123.516.31 STATE TREASURER INSURANCE COMMISSIONER FIRE MARSHAL March 9, 1976 Mr. James A. Glaid Finance Director 10050 N.E. Second Avenue Village of Miami Shores, Florida 33138 Dear Mr. Glaid: oitee ie39it ALW/J we Znamwmild4wmr STATE OF FLORIDA TALLAHASSEE 32304 City Ordinance No. 349, dated August 18, 1970, places the state contributions from the fire and casualty insurance premiums into the Miami Shores Pension Plan for additional benefits to your police officers and firemen. Previously, the monies had gone to a share plan fund and was disbursed to the officers upon retirement or termination. The amount of monies placed in the Miami Shores Pension Plan for firemen since August 18, 1970, is as follows: 1970 - $ 3,181.07 1971 - 34,594.05 1972 - 3,546.15 1973 - 5,290.61 1974 = 4,900.13 $20,512.01 - Total since 1969 Since the firemen, by referendum, have elected the Florida State Retirement System, please refund the total amount as stipulated above in compliance with Section 175.361, Florida Statutes. If you have any further questions concerning this matter, please do not hesitate to call. JRV/cjs Sincerely, STAT INSU IP F. ASHLER TREASURER CE CO u' I IONER James Muni' wereen, Director ipal Firemen's ion Trust Fund ADMINISTRATION / BANKING AND COLLATERAL SECURITIES / REHABILITATION AND LIQUIDATION / FINANCIAL RESPONSIBILITY ARSON AND FIRE PREVENTION / LIQUEFIED PETROLEUM GAS CHICAGO CLEVELAND DALLAS DETROIT FORT WORTH HONOLULU HOUSTON LOS ANGELES MIAMI THE(�L L G COMPANY ACTUARIES AND EMPLOYEE BENEFIT CONSULTANTS 9595 NORTH KENDALL DRIVE MIAMI, FLORIDA 33156 (305) 274-8080 November 7, 1975 Mr. James Glaid Financial Director Miami Shores Village 10050 N.E. 2nd Avenue Miami Shores, Florida 33138 Re: Transfer of Firemen Dear Mr. Glaid: MINNEAPOLIS NEW YORK ORLANDO PHILADELPHIA SAN FRANCISCO WASHINGTON OTTAWA TORONTO Attached please find a worksheet prepared by us which indicates that it is our recommendation, considering the present assets and liabilities of the retirement plan, that the Firemen transferring to the Metro plan only receive the return of their employee contributions from the trust fund. You will note that this recommendation concurs with the resolution of the Retirement Committee which stated that any monies, beyond employee contributions, given to the Firemen, be directly from Village funds, rather than from the trust. If you have any questions with regard to the above, please do not hesitate to contact us. WWW:rgb f Sincerely, A/tx,,Add?...„ Wallace W. Wilson, F.S.A. Actuary • MIAMI SHORES PENSION PLAN ,FIREMEN TRANSFER ALLOCATION 1. Value of Assets as of September 30, 1975: (a) Market Value of Assets in Trust Fund as of September' 30, 1975 (b) Contributions from Village .and State for 1975 calendar year for first nine (9) months of the year (.,75 x $80,462) (c) Benefit disbursements made for October 1, 1975 (d) Total market value of assetsas of September 30, 1975 [ (a) + (b) - (c) ] 2. Allocated Liabilities as of September 30, 1975: (a) (b) (c) (d) Retired life reserves Vested termination reserves Member contributions Total: (a) + (b) -1- (c) 3. Assets Available for Distribution Member Contributions: (1) - (2), Other Than minimum -0- 4. Employee Contributions to be Returned: Name James C. Daniels Jack DeYoung John J. Fordham Carlos E..Perez Richard A. Mallett Michael • J. Meyers Vernon K. Oster Louis A. Simpson Amount $ 1,581.36 $ 1,119.6.7 $ 363.90 $ 2,875.37 $ 3,165.92 $ 1,475.83 $ 702.42 $ 1,175.45 $12,459.92 THE II c/CZ COMPANY $ 1,077,236>9.4 $ 60,346.50 $ 6,752.12 $ 1,144,335.56 $ 869,787.00 $ 46,468.00 $ 239,211.27 $ 1,155,466.27 $ -0- • CHICAGO CLEVELAND DALLAS DETROIT FORT WORTH HONOLULU H O USSTON LOS ANGELES MIAMI T H E all COMPANY ACTUARIES AND EMPLOYEE BENEFIT CONSULTANTS 9595 NORTH KENDALL DRIVE MIAMI, FLORIDA 33156 (306) 274-6080 November 4, 1975 Mr. James Glaid Finance Director Miami Shores Village 10050 N. E. 2nd Avenue Miami Shores, Florida 33128 Re: Ordinance Amending Miami Shores Pension Plan Dear Mr. Glaid: Enclosed please find three (3) copies of a draft of an ordinance which provides for the following changes: (1) crediting of 3% interest to employee contributions, (2) granting such interest in all pre -retirement with- drawal situations, and (3) creating a procedure for determination of normal retirement age for cases such as Mr. Wylie. This draft is for review by the Pension Board and the Village attorney. If you have any questions with regard to the above, or the enclosed, please do not hesitate to contact us. WWW:rgb enclosures Sincerely, t &gee e//iehr2.- Wallace W. Wilson, F.S.A. Actuary MINNEAPOLIS NEW YORK ORLANDO PHILADELPHIA SAN FRANCISCO WASHINGTON OTTAWA TORONTO ORDINANCE NO. AN ORDINANCE TO AMEND SECTIONS 3, 6, 8, AND 9 OF THE MIAMI SHORES PENSION PLAN ORDINANCE NO. 273, AS A- MENDED BY ORDINANCE NOS.. 291, 321, 326, 341, 349, 366, 371, 376, AND 384. BE IT ORDAINED'BY MIAMI SHORES VILLAGE: • FIRST: Sub -section (m) of Section 3 of•Ordinance 273 is hereby Amended so that the same shali'read.as follows: "(m) "Accumulated con:trib.utions"-•means the sum of the amounts contributed by a.member'of the plan and credited to hits individual account,• plus interest`on such amounts credited to his individual account in 'the amount of 3% per annum, compounded, annual ly each January 1 for each year.starting as of. January 1, 1976. Monies'must 'be credited to the individual account for one (1) full year prior to 'receiving any inter - SECOND Sub -section (a) of Section 6 of Ordinance 273 is hereby amended so.that the same shall read as follows: rr( ).Any police officer and fireman, upon with- drawal from. service,,upon or after the at- tainment of the age of 58, -and any general employee, upon withdrawal from service,.upon or after the attainment of, age .65, shall be- come entitled to receive a.service retirement annuity as an amount provided under Sub Section (c) hereunder. In the'event that. an employee 'of the Village has been classified as a police officer or ,fireman for part of his employment with the Village and a .general.employe,e for another part 'of his employment with the:Village, his age for entit.lenient.to receive.a service . .retirement annuity will .b'e adjusted upon hi0 date of change in classification in the follow-; ing manner: (i) If the employee was classified .immediately' prior to the current date of change as a police officer or. fireman and changes clas-. sification to'a general employee, .his a-d- justed age of entitlement to receive a 'service retirement annuity will be '[(1)+ (2) + (3) ] (4) , where 1. is fifty-eight (58) multiplied by years and fractions of creditable service ac- crued to date of current change of clas- sification while classified as a police officer or fireman. 2. is sixty-two (62) multiplied by years and fractions of creditable service accrued to date of current change of classification whileclassified as a general, employee, 3. . is sixty-two (62) multiplied by the number of years• and fractions from the date of change until the. date the employee would attain the age of sixty-two•(62), and 4, is the number of years.andfract.ions. of creditable service the employee has accrued at his current date of 'change plus the num•- ber of years and fractions from the date of current change'until:the date the employee would attain the age of sixty-two (62). (ii) If the employee. was classified immediately prior to the current date of:change as a general employee and changes classification to.a police officer or fireman, his adjusted age of entitlementto receive a service retirement. annuity will be f(1):+ (2) + (3)] (4), where 1. is sixty-two (62) multiplied by years and fractions of creditable. service accrued to date ofcurrent change of classification while -classified as a general employee, 2 is fifty-eight- (58) multiplied by years and fractions of:creditable service accrued't.o date of current change of classification while classified as a police officer or fire- man, 3. is fifty-eight (5.8) multiplied. by thenumber of years•and fractions from the date of cur- rent change until the date the employee would attain the age of fifty-eight (58), and 4. is the number of years and fractions of credit- able service the employee has accrued at his current date of change plus the number of years and f,raction$.from the date of current change until the date the employee would attain the -age of :fifty-eight (58)." 3 - THIRD: Sub -section (b). ofHSectioii ,6 of Ordinance No.. 273, is :hereby amended sothat-the same shall be read as follows.:. "(b) Any member who shall have completed at least 15 years of cr.editab.le service may withdraw from service at the age of fifty-five (55) or over and shall thereupon become entitled•to receive a serv- ice retirement. annuity equal to the actuarial :value of his annuity at age .58 if he is a' police officer or firema.n,.at; age 62 if he- .is •a general employee,: or'.at his adjusted retirement age 'as defined in Section' 6(a) hereof, if he hag been, both:a police officer or fireman and - a general employee.. However, at his option, such member shall b'ecomeenti-tled to the service. retirement annuity,.the payment of which, however, is t:o be deferred until his attainment of age fifty-eight (58) if h.e is: a police officer or a. fireman,, age sisty'-two .(62) if, he is a general em- ployee, or at his adjusted retirement age as defined in Section 6(d) hereof , :1f he has. been. both a police officer or fireman and•.a general employee." • FOURTH: Sub -section (e) of Section.6 of Ordinance No. 273 is hereby amended so that the same shall read as follows: n( Any employee who is permitted to remain in the service of the Village after his normal retirement, date at age 58 for a police officer or afiremany age 62 for ..a gen- eral employee, or adjusted retirement age as defined in Section'6(a).hereof, for an employee who has been both a police: officer or fireman and a general employee, may remain inservice for periods of one.year each. No contributions are to .be madeby such employee and no.. further annuity credits shall accrue .to.him and his annuity shall be fixed as -of age 58 for a police officer and a fireman, age 62 for a_.general employee, and an adjusted retirement age as defined in. Section. 6(a) here- of, for ere-of,.for an employee who has been both a polic,e:.officer or fireman and a general employee, except where a police officer or fireman has' to his credit :less, than 30' years of creditable service at age 58 years, a general employ- ee has to his creditless than 30•year.s.of creditable .service at .age 62 years, or. an • employee who 'has been both a police officer or' fireman and a general. employee. has to his credit less than 30 years of creditable serv- ice at his adjusted retirement age, as' defined in Section 6(a) hereof. In such event, theextended service shall be credited for annuity :purposes and contributions shall dontinue to be made by the member until creditable serv- ice of thirty (30) years is attained."' FIFTH: 41) SIXTH: SEVENTH: EIGHTH: 197 ATTEST; Sub -section (a) of Section 8 of Ordinance No. 273 is .hereby. .amended so that the same shall read as follows "(a) Upon death -of a member prior to retirement,.his exe- cutor or administrator; or.such'person ashe shall have nominatedby written direction duly- acknowledged and filed with the Board,. shall rece'ive a .refund of the member's accumulated contributions.' Sub -section (a) of -Section 9 'of Ordinance 'No. 273 is hereby amendedso that the same shall read as :follows: 1 ( ). Upon withdrawal from the service o:f.th.e:Village, in- cluding withdrawal caused by, total and permanent disability, as defined under the Social Security Law of the United States, such that.the employee is eli- gible for Federal Social Security disability .benefits and such eligibility .for Federal Social. Security disa- bility b.enefits shall be. satisfactory evidence of the employee's total and.pe.rmanent disability, a former member shall receive a.ref:und of his ac•cum.ulated con- tributions" In all other.respects said Ordinance is unaffected by this amendment. This Ordinance shall be .effective January 1, 1975. * * * * * ..* . * * * * * * * * * * Passed and Adopted this Idar of Village Clerk" Mayor •