01-26-1978 Regular Meeting•
aiami c.rhorentlage
F L OR ID A
January 26, 1978
Pension Board Meeting'
A breakfast meeting of the Miami Shores Pension Board was
held on Thursday, January 26th, 1978 at Mr. Adam's Restaurant
at 9099 Biscayne Boulevard. The following Board Members
were present:
Joseph Farina, John McCoy, Joseph Gionfriddo,
John Fletcher, Ann Vigneron and Sam Ackley(who arrived
late because of family sickness)
Absent was: Ralph Bowen.
Also present were; William Fann and Jim Glaid.
The meeting began at 8:05 A.M. with the acceptance of the
minutes of the previous November 22, 1977 meeting.
A pension of $303.77 per month for life, beginning February 1
1978 was approved for former police officer, Harold L. Cummings,
who has been on disability since July 17, 1975.
No approval was made on the annual bill from the Actuary
(The Wyatt Company). A detail breakdown of the invoice
was asked for by the board. However, payment of the bill
was allowed, subject to later board approval.
The secretary was requested to ask the Actuary to send all.
future yearly invoices with detail charges shown.
It was suggested by John Fletcher that the board set regular
times or dates for meetings. Regular monthly or quarterly
meetings were discussed, however, no agreement was reached.
The meeting was adjourned at 8:40 A.M. with most of the
members remaining for another 20 minutes or so to discuss a
variety of general pension plan questions.
Respectfully submitted,
APPROVED:
Charman
&e;;41
James A. Glaid
Secretary
Storer
BROADCASTING 1177 Kane Concourse, Miami Beach, Florida
COMPANY
JOHN E.MCCOY
VICE PRESIDENT FOR LAW
AND SECRETARY
Honorable Joseph Farina, Mayor
Village of Miami Shores
10050 N. E. 2nd Avenue
Miami Shores, Florida
Dear Joe:
one (305) 866-0211
February 15, 1978
Re: 'Miami Shores Pension Plan
At the January 12, 1978 meeting of the Pension Board, we discussed
four matters, among others. It was decided that certain actions
would be taken on the matters. The following is a summary of the
matters discussed and the present status.
1. Trustee's investment powers. Question was raised as to
whether the trustee's powers were completely discretionary.
I have received a copy of the trust agreement dated January
22, 1957, with the First State Bank (then Little River Bank
and Trust Company). It confers "sole discretion" on the
trustee with respect to investment and reinvestment, but
reserves to the Pension Board the right to direct specific
investments. This is a normal type of provision and is
not in itself objectionable.
I think, however, that the Board does have the responsibility
as a fiduciary to review the investments from time to time
and determine whether the trustee is exercising its discre-
tionary investment powers in the best interest of the trust
fund. This is a matter that I recommend be gone into more
fully at an appropriate time.
2. Annual Report (Form 5500). The Employee Retirement Income
Security Act (ERISA) provides that administrators of govern-
ment pension plans must file an annual report on Form 5500
with the IRS. The first report must cover the year 1975.
The reports for 1975, 1976 and 1977 are due to be filed on
or before July 31, 1978, pursuant to an extension granted
by the IRS on December 28, 1977. There is a penalty of $10
per day for not filing by the deadline.
Someone was going to check with the Wyatt Company as to
whether the reports for 1975 and 1976 had been filed. Action
Honorable Joseph Farina, Mayor February 15, 1978
Village of Miami Shores Page Two
will have to be taken to insure that the July 31, 1978 deadline
is met.
3. $20,000 Refund to State of Florida. It appeared that the State
was claiming a refund of $20,000 from the pension fund or the
Village. I could not understand the details, but Bill Fann
said he would furnish copies of the correspondence with the State.
I personally haven't seen the correspondence yet.
4. Impact of Social Security Tax Increases. I reported that many
corporate pension plans contained provisions for offset of
Social Security, which had the effect of reducing pensions as
Social Security benefits (and taxes) increased. Many corpora-
tions felt that this offset was necessary to avoid the combined
cost of the pension plan and Social Security taxes from becom-
ing excessive. Since the Village employees are under Federal
Social Security, it might be desirable to have this problem in
mind due to the substantial tax increases that have occurred in
1978 and will occur in future years under the recently adopted
amendments to the Social Security law. The Board took no action.
Cordially,
ohn E. McCoy
JEMcC:gin
•
MIAMI SHORES PENSION PLAN
Calculation of Deferred Retirement Income
.1. Name
2. Date of birth
3. Date of employment
4. Normal retirement date
5. Deferred retirement date
6. Credited service as of deferred retirement date
7. Average final compensation as of deferred retire-
ment date
Year
1978
1977
1976
1975
1974
1973
Basic No. of
Compensation Paid Months
$ 4,651.01 3
$17,456.83 12
$16,035.00 12
$14,295.00 12
$12,603.50 12
$ 8,505.25 9
$73,546.59 60
Quincy Chester '
December 19, 1916
August 1, 1946
January 1, 1975
April 1, 1978'
30.000 years
$1,225.78
8. Accrued monthly retirement income as of deferred
retirement date
(a) 2% (.0200) x $1,225.78 = $24.52
(b) Item 6. x Item 8.(a) _ $735.60
9. Monthly deferred retirement income payable for
life, first payment payable on April 1, 1978 $735.60
Based,on information supplied by the Village and the provisions of the
plan, the monthly deferred retirement income payable to Quincy Chester is
$735.60. The first payment is due on April 1, 1978 with subsequent payments
due on the first day of each succeeding month and the last payment being the
payment due in the month in which death occurs. Mr. Chester is guaranteed
111 to receive payments which total $11,264.82, his accumulated employee contri-
butions.
Prepared by: ,?JL )11,-tte'itVe,./z...
Jean. Mauldin
Administrative Assistant
Certified by: THE WYATT COMPANY
Actuaries for the Plan
Reviewed by: ' .':...•a `
THE Waal COMPANY
Wallace W. Wilson, F.S.A.
Actuary
•
•
Dates
Pension Board
Miami Shores Pension Plan
Miami Shores, Florida
Gentlement
1 hereby apply for a service retirement annuity ia
coord nee with the provisions of Miami Shores Pension Flan to
take effect as of
mo1'Q I L 1 ► 1 y7$ , as of which
date I discontinued eervjce with Miami Shores Village.
I desire to avail myself of the Reversionary Annuity
Option under the Plan and hereby designate my
who is dependent upon Me, aS my bene£ioiary. I ah to provide
for my beneficiary an annuity equal to ' d" % of the amount of
my annuity.
I was born on ./9/. /9/6 ./*
My beneficiary was born on Ay , /97 ,.
Tours very truly,
A
6?'°g °S. 44112t2
* To be verified by the Board.
Ui .11 urd of"'lliwlth-'+
CERTIF'.I
Biala Board of B.olth
Bureau of Vital Statistics
FLAYED CERTIFICATE OF BIRTH
FLORIDA
Place of Birth: County . Gadsden
State File No., 1.94'1
_City or TownQu1fCy,
Name at Birth Quincy William Cheater
•
Sex dale Color or Race White
Nage of,.
ifather "Charlle_ *art in,Cheater►:
' Maiden nam
iof Mother_.
Nettle Maria Goodson
Date of Birth
December 19, 1916
,:._Legitimate? Yea Social Security No. 700-03-51326
Birthplace Father _
Birthplace
of Mother
�eealB�Br
Cuincy, Florida
AFFIDAVIT: 1 14:RF011' DECIARE THAT THE ABOVE STATEMENTS ARE TRUE' TO TIF BEST (W NY KNOILED E.
sworn to before me this Q (Signature
Lf/
1A%/
'•r.,,�k.
Subscribed and
day of__
(8igned)�
Official Title.
Abstract of Supporting Evidence
Photostatic copy of application for Social Security Account Number. dated
September 13, 1937, shows that 6uincy B111 Chester was born on Decemner 19, 1916
in Greensboro. Florida to Charlie Martin Chester and Nettie Mariah Goodson
Chester.
Affidavit made by 0. W. Gardner, M. D., dated May 27, 1942, states that he was
the physician in attendance at the birth of Quincy William Chester, who was born `.
on. Deoember l9, .1.916 at._Quin , Florida to, Charlie uM.;, and Nettie Ooodeon''Cheate
Affidavit made by J. M. Brewer, Notary Public, dated Way 27, 1942, states that
he has examined the Bible Record of the Chester Family and found the entry of t:_x
birth of Quincy William Cheater, who was born on December 19, 1916 to Charlie M.
and Nettie G. Cheater.
9 it
-• .vvvrting Evidence
Photostatic copy of application for Social Security
September 13, 1937, ehuwa that Quincy B111 Chesterwascborn onmber.
. in Greensboro, .Florida to Charlie Martin dated '
Chester. Chester and Nettie Mariah Goody. 1916
Affidavit made by 0. W. Gardner, M.
the physician ad in attendance at , D., dated key 27, 1942, states that he was
ohephysici n a attendance
nti•Quina the birth of Quincy.Villiam Chester, was.
•` lorid who
.�►e to� Charle;DL:�aad Nettie born..
Affidavit made byJ. � '��Qheate
M. Brewer, r.
he has it examined the Bible Record Notary Public. dated Mayj
rha of of the Chester d7, u9d,$, entry
tont
Quincy William Chester, who Family and 9, 19 tho ® b.
and Nettie G. Chester. ' was Dorn on December i9 3' of t�:;:
.'1916 to Charlie N.
STATEMENT OF REVIEWING OFFICIAL
I hereby certify that I have reviewed the evidence recorded above
. contained therein is as noted in preceding abstract.
and that information
DATE
810180
DATE
FILED
•
•
CHICAGO
CLEVELAND
DALLAS
DETROIT
FORT WORTH
HONOLULU
HOUSTON
LOS ANGELES
MIAMI
THE(.L,GG COMPANY
ACTUARIES AND EMPLOYEE BENEFIT CONSULTANTS
9585 NORTH KENDALL DRIVE
MIAMI, FLORIDA 33156
(305) 274-8080
February 1, 1978
Mr. James Glaid
Financial Director
Miami Shores Village
10050 N.E. 2nd Avenue
Miami Shores, Florida 33138
Dear Jim:
MINNEAPOLIS
NEW YORK
ORLANDO
PHILADELPHIA
SAN FRANCISCO
WASHINGTON
OTTAWA
TORONTO
The following will provide you with an estimated breakdown, by
major task accomplished, of the charges reflected in our statement
of December 15, 1977:
1. Completion of January 1, 1977 actuarial
valuation, employee benefit statements $3,175
2. Study of valuation assumptions of
Retirement Plan $ 550
3. Completion of Annual Reports to the
State Treasurer for Policemen $ 300
4. Completion of Form 5500 $ 400
5. Miscellaneous assignments, correspondence,
benefit calculations and attendance at
meetings $ 338
TOTAL $4,763
The amounts above are merely estimates since we keep track of
our time, in the aggregate, per client, rather than on an assignment
basis.
If you have any questions concerning any of the above, please
do not hesitate to contact us.
/ cb
Sincerely,
A.4L-
Wallace W. Wilson, F.S.A.
Actuary
Never Use for Approvals, Disapproval
Concurrences, or Similar Actions