02-27-1992 Regular MeetingMIAMI SHORES VILLAGE
PENSION BOARD MEETING FEBRUARY 27, 1992
The meeting of the Village of Miami Shores Pension Board was
called to order by Mayor Steven Johnson at 8:10 a.m. The
following were In attendance:
Board Members:
Also Present:
Steven Johnson
Gall Macdonald
Jack Ulmer
Jean Bryant
Joseph Charles
Henry Courtney
Patricia Varney,
Plan Administrator
Karen Cole of Merrill Lynch
WIlliam Fann, Village Attorney
Joe Luksis of Sun Bank
Wally Wilson of
The Wyatt Company
Absent: Walter Latimer
1. Quarterly Investment Review
Mr. Joseph Luksis of Sun Bank reported that the overall performance of
the portfolio Is up 32.8% for the past year. He also reported that the
portfolio Is in excellent condition and that an economic recovery Is
expected this year.
Ms. Karen Cole of Merrill Lynch reported for the quarter ending 12/91
the portfolio rate of return is 6.7% and with a new money manager and
Sun Bank, the portfolio should stabalize and perform to the Board's
expectations.
2. Presentation of 1991 Actuarial Report
Mr. Wally Wilson presented the Annual Actuarial Evaluation for fiscal
year ending September, 1991. For fiscal year 1991 he indicated the plan
is fully funded with an unfunded acturlal accrued liability of
(440,143):
3. Discussion on Summary of Pension Plan Benefits
Mr. Wally Wilson presented the Summary of the Pension Pian to the Board
for distribution to the Plan members. (Copy attached.)
Ms. Macdonald made a motion to adopt the Summary of the Pension Plan and
authorize distribution to the participants of the Plan. Mr. Charles
seconded the motion, which passed unanimously.
4. Discussion and possible action regarding changes In Investment
managers.
Sgt. Ulmer made a motion to engage Barnett Bank and Sun Bank as money
managers as successors to Eickhoff, Pieper & Willoughby and NCNB. Mr.
Charles seconded the motion, which passed unanimously.
Sgt. Ulmer made a motion subject to approval of Village Council to
appoint Barnett Bank as successor trustee to NCNB. The motion was
seconded by Mr. Charles and passed unanimously. The Board has agreed to
indemnify Barnett Bank from responsibility against the NCNB Real Estate
Fund.
Mayor Johnson called for a break at 9:40 am and reconvened at 9:50 am
5. Discussion of Cost of Living to Retirees
Sgt. Ulmer proposed that the Board should annually In November or
December look Into the financial stability of the plan and decide
whether a one-time cost of living should be given to retirees. Ms.
Macdonald stated that under the present ordinance the Pension Board does
not have the power or duty to change any benefits. The City Attorney
stated that this subject should be bargained. Ms. Macdonald said she
will consult further with the labor attorney and that a special meeting
should be held In March with the attendance of the actuary.
6. Mr. Courtney made a motion to approve payment to NCNB for the
following invoices; $2,503.01, $962, $7,136.14, $318 totalling
$10,919.15. Ms. Macdonald seconded the motion, which passed
unanimously.
7. Mr. Courtney made a motion to approve payment to Eickhoff, Pieper
and Willoughby, Inc. In the amount of $4,569.07 for management fees for
the period of 1/1/92 to 3/31/92. The motion was seconded by Sgt. Ulmer
and passed unanimously.
8. Mr. Courtney made a motion to approve payment to Sun Bank In the
amount of $5,207.84 for quarterly management fee for the period ending
12/31/91. Sgt. Ulmer seconded the motion, which passed unanimously.
9. Sgt. Ulmer made a motion to approve payment to The Wyatt Company
in the amount of $8,000 for actuarial services for the period of 3/13/91
through 10/31/91. Mr. Courtney seconded the motion, which passed
unanimously.
411 (Mrs. Varney will discuss with The Wyatt Company the reduction in pay-
ment of this Invoice from $12,888 to $8,000 with the reasoning that The
Wyatt Company did not inform the Board of the charges.)
Mr. Courtney made a motion to add to the agenda an emergency item to
present to the Board a bill presented by Kruse, O'Connor and Ling for
Actuarial Study regarding proposed cost of living benefits for retirees
In the amount of $1,140. The motion was seconded by Ms. Macdonald and
passed unanimously.
•
•
Sgt. Ulmer moved to pay the Invoice in the amount of $1,140 to Kruse,
O'Connor & Ling for Actuarial Study regarding proposed cost of living
benefits for retirees. Mr. Courtney seconded the motion, which passed
unanimously.
10. Ms. Macdonald made a motion to approve the minutes of the February
7, 1992 Pension Board meeting. Sgt. Ulmer seconded the motion, which
passed unanimously.
11. A motion for adjournment waCi ade at 10:02 am
Cd
Gall onald,
Secretary
• •
MIAMI SHORES PENSION PLAN
1990-1991 PLAN YEAR
• •
•
. •
MIAMI SHORES PENSION PLAN
TABLE OF CONTENTS
PAGE
PLAN PROVISIONS AT A GLANCE 1
INTRODUCTION 2
PLAN HIGHUGHTS 2
CONTRIBUTIONS TO THE PLAN 3
EUGIBIUTY REQUIREMENTS 3
VESTING 3
ELIGIBILITY FOR BENEFITS 4
DETERMINING YOUR BENEFIT 4
HOW BENEFITS ARE CALCULATED 5
PAYMENT OF YOUR BENEFITS 7
DEATH BENEFITS 7
BENEFIT UMITATIONS 7
IMPORTANT FACTS ABOUT YOUR PLAN 8
GLOSSARY 11
PLAN PROVISIONS AT A GLANCE
PLAN
PROVISIONS CONDITIONS HIGIILIGHTS
Eligibility
Cost
Vesting
You become a participant You participate upon
upon completion of one completion of one year
year of service. of service.
Employees hired after
attainment of age 55 are
permanently excluded.
Participation is elective for
Village Manager, Village
Clerk and Village
Attorney.
General employees The State contributes
contribute 6% of under Chapter 185 for
compensation. Police the Police Officers,
Officers contribute 9% of and the Village is
compensation. required to contribute
to keep the plan
actuarially sound.
You are 100% vested with You may receive
10 or more years of benefits at your
Credited Service. Normal Retirement
Date if you do not
withdraw your
contributions.
Normal Your Normal Retirement Plan benefits are
Retirement Date is the first day of the calculated using your
month following the date Average Monthly
you attain age 62 for Compensation during
general employees. For the highest 36
Police Officers, completion consecutive calendar
of 25 years of Credited months out of the last
Service. 120 months worked
and your Credited
Service at retirement.
It •
3
3
3
4
Early Age 55 with at least 15 You may elect to 4
Retirement years of Credited Service. receive reduced
pension payments.
Pre -Retirement You must be a participant In the event of death,
Death Benefits of the plan. return of accumulated
participant
contribution with 3%
interest to your
beneficiary.
1
7
•.•
-2-
4. Total actuarial present value of future
expected benefit payments
5. Unfunded actuarial accrued liabilities
D. Statement of Accumulated Plan Benefits
General
10/01/90
Police
l0 1
$ 4,381,696 S 5,228,619
$ (181,314) $ 322,315
1. Actuarial present value of accumulated vested
plan benefits
a. Participants currently receiving benefits $ 1,205,854
b. Other participants 1.204.863
c. Total
2. Actuarial present value of accumulated
non vested plan benefits
3. Total actuarial present value of accumulated
plan benefits
EPension Cost
S 2,230,717
135.672
$ 413,124
2.080.326
$ 2,493,450
24.302
$ 2,366,389 $ 2,517,752
1. Total normal cost
2. Payment required to amortize unfunded liability
3. Total required contribution (including interest) $
4. Item 3 as a percentage of payroll
5. Estimated employee contributions
6. Item 5 as a percentage of payroll
7. Estimated State contributions
& Item 7 as a percentage of payroll
9. Net amount payable by City $
10. Item 9 as a percentage of payroll
158,944 $ 215,356
(13,308) 30,682
154,279 S 261,599
12.3% 22.8%
75,196 $ 103,040
6.0% 9.0%
N/A $ 23,000
N/A 2.0%
79,083 $ 135,559
6.3% 11.8%
INTRODUCTION
•
Providing for yourself and your family when you retire is an important long-range goaL Should you
continue to work with the Village until you retire, the benefits available from the Miami Shores
Pension Plan ("the plan") will provide you with a lifetime income when you retire.
The plan covering Police Officers and General Employees of Miami Shores has been in effect since
1957, and has been occasionally amended.
Highlights of the plan are listed below and are followed by a description of the plan in more
detail. The end of this booklet includes a glossary of key terms and phrases that have special
meanings in the plan. When these words fust appear in the text, they are underlined to remind
you to refer back to this section. Knowing what these terms mean will help you understand the
plan.
As required by State Law, you must receive a copy of this booklet when you become eligible for
the plan. Every second year thereafter, you will receive a new booklet. If changes to the plan
occur prior to the publication of a new booklet, you will receive a summary of those changes.
Please read this booklet carefully and discuss its contents with your family. If any details are not
clear or if you have any questions, please contact the finance director at the Village Hall.
PLAN HIGHLIGHTS
The Miami Shores Pension Plan provides participating employees with:
• A monthly income upon retirement... in addition to Social Security benefits.
• Normal retirement at attainment of age 62 for General Employees. For Police Officers,
normal retirement is upon completion of 25 years of Credited Service.
• Early Retirement at age 55 and the completion of 15 years of Credited Service.
• Benefit in the event of your pre -retirement death payable to your beneficiary.
• The right to future retirement benefits (1. you leave the Village and you are vested in the
Pte.
These important features are explained in more detail on the pages that follow.
CONTRIBUTIONS TO THE PLAN
• •
There are three sources of contributions for your plan: the Village, the State, and your own
contributions. The City is required to contribute amounts as mandated by State Statute and
determined by an actuary. The State makes contributions for the Police Officers under State
Statute Chapter 185.
General employees are required to contribute 6% of Basic Compensation for up to 30 years of
membership service. Police Officers contribute 9% of Basic Compensation for up to 30 years of
membership service.
Contributions from all sources are deposited and accumulated in a special trust fund under which
you and your dependents are the beneficiaries. Monies in this trust fund may be used only to pay
benefits and expenses of the plan, and are allocated between the General Employees and the Police
Officers. The assets of the trust fund are invested by the Trustee.
ELIGIBILITY REQUIREMENTS
You become a participant upon completion of one year of service. Employees hired after
attainment of age 55 are permanently excluded. Participation is elective for the Village Manager,
Village Clerk and Village Attorney.
VESTING
Vesting refers to that portion of your retirement benefit which is eligible for payment starting at
your Normal Retirement Date even if you leave the employment of the Village prior to your
Normal Retirement Date. You become fully "vested" in your retirement benefit after completing
10 years of Credited Service with the Village.
Your Employee Contributions, which earn interest at the rate of 3%, are always 100% vested.
You always have a nonforfeitable right to receive your Employee Contributions with interest, after
your termination of service with the Village for any reason, in lieu of any retirement benefit in
which you may be vested.
A. Participant Data
1.
2.
3.
4.
5.
MIAMI SHORES PENSION PLAN
Report of Financial and Actuarial Information
Active participants
Retired participants and beneficiaries
receiving benefits
Terminated vested participants
Annual payroll of active participants
Annual benefits payable to those currently
receiving benefits
B. Assets at Actuarial Value
1. Actuarial Value
2. Market Value
C. Liabilities
• . •
1. Actuarial present value of future expected benefit
payments for active members
a. Retirement benefits
b. Vesting benefits
c. Return of employee contributions
d. Total
General
10/01/90
53
30
4
$ 1,253,261
$ 135,555
Police
10/01/90
27
4
1
$ 1,144,891
$ 47,466
$ 3,358,886 $ 3,308,957
$ 3,358,886 $ 3,308,957
$ 2,616,795 $ 4,624,460
257,537 85,978
181,394 . 24.268
$ 3,055,726 $ 4,734,706
2. Actuarial present value of future expected benefit
payments for terminated vested members $
3. Actuarial present value of future expected benefit
payments for those receiving benefits
a. Service retired
b. Beneficiaries
c. Miscellaneous
d. Total
120,116 $ 80,789
$ 1,158,558 $ 413,124
47,296 0
0 0
$ 1,205,854 $ 413,124
GLOSSARY
J
Compensation
This is salary or wages payable by the Village for a regular work week.
Credited Service
This is membership service plus prior service for which credit is allowable.
Employee Contributions
•
General Employees contribute 6% of Compensation payable when you become a participant until
the earliest of the date you retire, terminate service, attain 30 years of credited service, or are
deceased. Police Officers contribute 9% of Compensation.
Average Monthly Compensation
This is your average monthly rate of compensation from the Village for the 36 consecutive months
out of your last 120 months which give you your highest average monthly earnings.
Normal Retirement Date
For General Employees, the first of the month following the attainment of age 62 years. For
Police Officers, the first of the month following the completion of 25 years of Credited Service.
ELIGIBILITY FOR BENEFITS
imdRetirement
• For General Employees, Normal Retirement Date is the fust day of the month following the date
you attain age 62 years.
For Police Officers, Normal Retirement Date is the first day of the month after you complete 25
years of Credited Service.
Early Retirement
If you are at least age 55 and you have completed at least 15 years of Credited Service, you are
eligible for early retirement.
Deferred Vested Retirement
If you leave the Village after you become vested, but before you become eligible for retirement,
and you do not elect to withdraw your accumulated Employee Contributions with interest, you are
entitled to a deferred vested benefit starting at your Normal Retirement Date. If you leave the
Village before you are vested or have become eligible for retirement, your accumulated Employee
Contributions with interest will be refunded.
DETERMINING YOUR BENEFIT
Your retirement benefit is based on a formula which takes into account:
• your years of Credited Service,
• your Average Monthly Compensation,
• your age at retirement, and
• the payment option you elect:
- Normal form
- Joint and contingent
• •
HOW BENEFITS ARE CALCULATED
Normal Retirement
For General Employees, the monthly benefit you can receive if you retire on or after your Normal
Retirement Date is 2.0% (.02) of your Average Monthly Compensation at your actual retirement
date multiplied by your credited service (maximum 30 years) at your actual retirement date.
For Police Officers, your monthly benefit will be 2.4% (.024) of Average Monthly Compensation
times up to 25 years of Credited Service plus 2.5% (.025) of Average Monthly Compensation times
Credited Service in excess of 25 years (maximum 30 years).
These benefits are payable in the normal form of payment described below:
Example: Normal Retirement for a General Employee
Let's assume you are born on May 15, 1943, and you begin working for the Village on May
29, 1976, and you have 29 years of Credited Service on June 1, 2005 at which time you retire.
We will also assume Average Monthly Compensation of $2,200. Your benefit would be calculated
as follows:
2.0% of your Average Monthly Compensation times your years of Credited Service
.02 x $2,200 = $ 44.00
$ 44.00 x 29 years of Credited Service = $1,276.00
Therefore, you would receive a monthly retirement benefit of $1,276 from the plan payable for life
(the normal form of payment). Other options are also available.
The section of this booklet entitled "Payment of Your Benefit" describes the normal form of
payment and the different ways you can receive your monthly payments.
Example: Normal Retirement for a Police Officer
Let's assume you begin working for the Village as a Police Officer on October 25, 1978, and you
have the required 25 years of Credited Service on November 1, 2003. We will assume Average
Final Compensation of $2,200. Your benefit would be calculated as follows:
2.4% of your Average Monthly Compensation times your years of Credited
Service =
.024 x $2,200 = $ 52.80
$ 52.80 x 25 years of Credited Service = $1,320.00
i
Claims Procedure
41 re shall be written notice given to any member or beneficiary whose claim for benefits has been
ed. The notice shall indicate the specific reasons for denial and will clearly indicate that a
ew is possible and the manner in which to apply for such a review.
Relevant Local and State Law
The Pension Plan has been established under the provisions of the Miami Shores Village Code
• Article I, Subpart B and Article III as amended by Ordinances 511-88, 520-89 and 535-90. The plan
is subject to the relevant provisions of Florida Statutes Chapters 112 and 185.
The Pension Board may be reached in writing at the following address:
Pension Board
Miami Shores Pension Plan
c/o Patricia Varney, Plan Administrator
Miami Shores Village
10050 N.E. Second Avenue
Miami Shores, Florida 33138-2382
•
Ms. Patricia Varney, the Plan Administrator, is available for questions and has regular office hours
at Village Hall. She may be reached by telephone at (305) 795-2209.
Plan Trustees
The Trustees are the Pension Board. They are responsible for the prudent administration and
investment of the assets of the Trust Fund. The Trustees have appointed the investment advisors
listed below to assist with the investment of the plan assets.
Eickhoff, Pieper and Willoughby, Inc.
First Florida Tower #1550
111 Madison Street
Tampa, Florida 33602
North Carolina National Bank
Trust Group
Box 1469 TPAHQ6-4
Tampa, Florida 33601
SunBank Trust and Investment Management Group
777 Brickell Avenue
Miami, Florida 33131
Agent for Service of Legal Process
Service of legal process may be made on the Pension Board or the Village Attorney of the Village
of Miami Shores. The addresses of these parties are:
Pension Board
Miami Shores Pension Plan
c/o Patricia Varney, Plan Administrator
Miami Shores Village
10050 N.E Second Avenue
Miami Shores, Florida 33138-2382
William F. Fam, Jr.
Village Attorney
Miami Shores Village
10050 N.E Second Avenue
Miami Shores, Florida 33138-2382
9
•
Therefore, you would receive a monthly retirement benefit of $1,320 from the plan payable for life
(the normal form of payment).
Other payment options are also available. The section of this booklet entitled "Payment of Your
Refits" describes the normal form of payment and the different ways you can receive your
thly payments.
Early Retirement
Your early retirement benefit is determined in the same way as your normal retirement benefit,
based on your Final Average Compensation and your years of Credited Service when you retire.
You may choose to start receiving your early retirement benefit effective the first day of any month
on or after the day you retire.
If you retire early, you may elect to wait until your Normal Retirement Date to receive your
benefit, and no reduction will be made to the benefit. However, if you elect to receive your early
retirement benefit right away, it will be reduced. This reduction is required because you will be
receiving a benefit sooner than anticipated and over a longer period of time.
The actuarial reduction that applies if you receive your benefit before your Normal Retirement
Date depends on your age at early retirement. Examples of approximate early retirement factors
are shown below. The factors shown are multiplied by the accrued benefit as of Early Retirement
Date payable at your Normal Retirement Date to determine the early retirement benefit.
Age at Early
Early Retirement
Retirement Factor
61 .9069
60 .8241
59 .7503
58 .6842
57 :6248
56 .5715
55 '_ 5234
Deferred Vested Retirement
If you leave the Village after becoming vested, but before you become eligible for retirement, you
are entitled to a deferred vested benefit starting at your Normal Retirement Date. If you have
at least 15 years of service when you leave, you may elect to begin receiving your benefit after
attainment of age 55. This benefit is actuarially reduced as for Early Retirement.
Your deferred vested benefit is determined by the same formula used for normal retirement, based
ur Average Monthly Compensation and your years of Credited Service at the time you leave
Village. Or, if you prefer, you may withdraw your Employee Contributions with interest, in
which case you will not be eligible for any other plan benefits.
Remember, if you are not vested when you leave the City, your Employee Contributions you
deposited into the plan, plus interest will be refunded.
PAYMENT OF YOUR BENEFITS
This section describes the various ways and conditions your retirement benefit can be paid.
Normal Form of Payment
•
When you retire, you will receive a monthly retirement benefit payable during your lifetime only,
with the final payment due in the month in which death occurs. If you wish, however, you may
choose the optional payment method. If you choose the optional form of payment, your benefit
amount will be adjusted to be the actuarial equivalent of the normal form of payment.
Optional Payment Methods
You may elect to receive reduced monthly payments under the Reversionary Annuity option.
Under this option, you would receive a reduced monthly benefit, payable to you during your joint
lifetime with a beneficiary or beneficiaries you designate. Following your death, the percentage
continuation of your monthly amount will be payable to the beneficiary for his or her remaining
lifetime.
DEATH BENEFITS
Before Your Retirement Benefit Has Commenced
Your contributions will be refunded to your beneficiary with interest.
After Your Retirement Benefits Have Commenced
If you have selected a Reversionary Annuity Option, the designated percentage of your payment
will continue to your beneficiary.
BENEFIT LIMITATIONS
This plan is maintained for the benefit of eligible employees to provide financial security upon
retirement. However, the following circumstances could cause a loss or reduction in benefits from
the plan:
(1) If you stop working before you become vested under the plan, then you are entill
only to a refund of the contributions you put into the plan plus interest.
(2) If you fail to properly file all necessary information and applications as required by
the Retirement Committee, then you may be denied benefits.
If the plan terminates and the assets in the trust fund are insufficient, then you may
not receive full payment of your accrued benefit under the plan.
In no event can your annual retirement benefit from the plan exceed the legal limit
for benefits established by the Internal Revenue Service.
If you willfully falsify pension documents or willfully make false statements to obtain
benefits, as determined by the Pension Board, you shall forfeit plan benefits and
receive only a refund of accumulated contributions.
Portions of your plan benefits may be subject to Federal income tax when paid to you
or your beneficiary. When benefits become payable, you will be advised of any
taxable amount. The Trustee will withhold payment for taxes from your benefits or
you may pay the taxes yourself along with your personal income tax.
IMPORTANT FACTS ABOUT YOUR PIAN
Name of Plan
Miami Shores Pension Plan.
Plan Year
The Plan Year begins on October 1 and ends the following September 30. This is the same as
the fiscal year of the Village. The records of the plan are kept on a plan year basis.
Administration of the Plan
The plan is administered by the Pension Board. The Board has the authority to administer and
interpret the provisions of the plan. The Board must approve the payment of benefits and
expenses from the plan. The Board has the authority to engage professionals to assist with the
administration of the plan.
The Pension Board shall consist of 7 members. The members consist of the Mayor, the Village
Manager, one Councilman, one Police Officer elected by active Police Members of the plan, and
the appointed members, one active General Employee, and two legal residents of the Village not
employed by the Village.
With the exception of the Mayor and the Village Manager, the Board members shall each serve
for a period of two years, or until their successors are appointed or elected. Appointed members
may be removed at any time by a majority vote of the Village Council.
•