Agenda Item 7D - Ordinance 58-14-38 General Emp Retirement SystemCITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: Retir ement Ordinance No. 58-14-38
AN ORDINANCE OF THE CITY OF ATLANTIC BEACH,
AMENDING CHAPTER 2, ADMLNJSTRA TJON, ARTICLE VI,
EMPLOYEE BENEFITS, DIVISION 3, GENERAL EMPLOYEES'
RETIREMENT SYSTEM, OF THE CODE OF ORDINANCES OF
THE CITY OF ATLANTIC BEACH; AMENDING SECTION 2·
268, DISABILITY; AMENDING SECTION 2-274, MAXIMUM
PENSION; PROVIDING FOR CO))IFICATION; PROVIDING
FOR SEVERABILITY OF PROVISIONS; REPEALING ALL
ORDINANCES JN CONFLICT HEREWITH ANn PROVIDING
AN EFFECTIVE DATE.
SUBMITTED BY: Nelso n VanLiere, City Man ager
DATE: June 13,2014
A GENDA ITEM II 70
JlJ[.Y 14 ,20 14
BACKGROUND: At th e May 15 , 20 14 Pension Board meeting of th e General
Emp loy ees' Retirement System, th e pension attorney presented the proposed ordinance
refe renced above that inc lu des amen dmen ts to the current ordinance to clarify lang uage
regard ing disabi li ty benefits and to comp ly with recent changes to the internal Revenue Code
(lRC). These are mandatory amendments to ensur e the continuation of the pJan's tax
qualified sta tu s. The Board approved presenting this ordinance to the City Com mi ss ion and
requested an impact st udy be performed by the Board 's actuary, Gabriel Roeder Smith (GRS)
to determine th e cost of amending the ordinance.
As reported in the attached Actuarial Impact Sta tement, authori zed by the Board at th e June
12, 2014 me eting to be signed by the Pen sion Administrator, these changes wou ld have no
significant cost impact to th e plan benefits.
RECOMMENDATION: Approve Ordinance No. 58-14-38
ATTACHMENTS: Ordin ance No. 58-14-38 and Actuarial Impact Statement
REVIEWED BY CITY MANAGER: --7J. V 4-,;;J~
Law Offi ces
Christiansen & Dehner, P .A.
63 S:1ra s()ra Ccnlc r Blvd . S u ite I 07 Sarabota, Fl or id a 34240 • 9 4 1 • J 77 -2l00 • Fa~ 9 41 ,J 77 ··HHB
;\p ri l ICl , 20 14
Mr. Ne lson Vu n Lien.:
1\Li a nti c lkach Genera l l ~mplo yccs' RetirementS) s t ~:m
800 Sl:m ino lc Road
Atlant ic B~.:ach , Fl . 32233-54 55
Rc : C it y or A tl anti c Hcach <.icneral l:mplo yccs' Rl·tirt:nH.:nl Sys tem
Dcu r Ne lson:
AGEN DA ITEM II 7D
JULY 111,20 14
l·:nclo scd ple ase li nd a prop osl:d ordin ance aml:nd ing the C ity o l./\tlant il: lkarh Gt.!n l'ml
l·:mplo yccs' Re tire ment Sys ll.:m. l'hi s nnJinan cc aml.'nds ~·b:tion 2-2 68. Disabil iL). tu <tdd ad d itional
c la riJi cu ti on la ng uage un th e tim e ull owcd lo r a memb er to app ly lo r di sub i IiI ) bc m:li Is i l'tc nninatt.:d
by the 'ity !'or medica l rcason s. l'h is ordi nance a lsn aml'nd s Scct iu n 2-274. Ma ximum 1\:ns ion. to
comp ly wit h addit io na l rcc.:c nt c.:han gcs tu th t.: lnlcrnal Revt:nu c Cock (IR C') relat in g to ta x quali lil·d
pensio n r la ns s uch as thi s p lan. 'I hcsc amc ndm c nt s c luri l'y la ng ua ge rl.!quircd by th L' IR C' anu a rl'
nwndat o ry arm:nd mt.:nts to e ns un.: th~.: l:O ill inu a ti o n lll' the plan's ta x qualifi ed s tatu s.
Hy wpy u l' t his lc tt ~.:r to th e plan 's dl:lu a ry. Cia bri c l Rnedl:r S mith & C'ompnn ). I a m
rcq m:stin g th a t th t.:y prov id e yo u w ith u le tt cr indica ting that there is n o cos t ussu c iatcd w ith th e
adoption o r thi s o rdinan ce.
Plc usc prov id e u copy o l'thi s ord in a nce lO eac h member l)f'l he 13oard l'ur rl'\'icw and ap pro\'al
a t LhL· nex t meeting.
SRC/dm
cnciL)Slll'l'
ec: Jwn cs Ri 11.o, \\ ith l'nc.:los url.'
Scott I ~ Ch ristiansl.'n
ORDINANCE NO. 58-14-38
AN ORDINANCE OF THE CITY OF ATLANTIC BEACH,
AMENDING CHAPTER 2, ADMINISTRATION, ARTICLE
VI, EMPLOYEE BENEFITS, DIVISION 3, GENERAL
EMPLOYEES' RETIREMENT SYSTEM, OF THE CODE OF
ORDINANCES OF THE CITY OF ATLANTIC BEACH;
AMENDING SECTION 2-268, DISABILITY; AMENDING
SECTION 2-274, MAXIMUM PENSION; PROVIDING FOR
CODIFICATION; PROVIDING FOR SEVERABILITY OF
PROVISIONS; REPEALING ALL ORDINANCES IN
CONFLICT HEREWITH AND PROVIDING AN
EFFECTIVE DATE.
AGENDA ITEM# 7D
JULY 14,2014
BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF ATLANTIC
BEACH, FLORIDA;
SECTION 1: That Chapter 2, Administration, Article VI, Employee Benefits, Division
3, General Employees' Retirement Plan, of the Code of Ordinances of the City of Atlantic Beach,
is hereby amended by amending Section 2-268, Disability, subsection (a), Disability benefits, to
read as follows:
* * * * *
(a) Disability benefits. Any member who has accrued five (5) or more years of credited
service, who shall become totally and permanently disabled to the extent that he is unable, by reason
of a medically determinable physical or mental impairment, to render useful and efficient service as a
general employee, shall, upon establishing the same to the satisfaction of the board, be entitled to a
monthly pension equal to two and eight-five one hundredths percent (2.85%) of his average final
compensation multiplied by the total years of credited service for members hired before April 24,
2005, and two and one-half percent (2.5%) of his average final compensation multiplied by the total
years of credited service for members hired on or after Aptil 24, 2005. Terminated persons, either
vested or non-vested, are not eligible for disability benefits, except that those terminated by the City
for medical reasons may apply for a disability within ninety (90) days after termination.
Notwithstanding the previous sentence, if a member is terminated by the City for medical reasons, the
terminated person may apply for a disability benefit if the application is filed with the board within
ninety (90) days from the date of termination. If a timely application is received, it shall be
processed and the terminated person shall be eligible to receive a disability benefit if the board
otherwise determines that he is totally and permanently disabled as provided for above.
* * * * *
SECTION 2: That Chapter 2, Administration, Article VI, Employee Benefits, Division 3,
General Employees' Retirement Plan, of the Code of Ordinances of the City of Atlantic Beach, is
hereby amended by amending Section 2-274, Maximum Pension, to read as follows:
Sec. 2-274. Maximum pension.
(a) Basic limitation. Notwithstanding any other provisions of this system to the contrmy,
the member contributions paid to, and retirement benefits paid from, the system shall be limited to
such extent as may be necessmy to conform to the requirements of IRC Section 415 for a qualified
retirement plan. Before Janua1y 1, 1995, a plan member may not receive an annual benefit that
exceeds the limits specified in IRC Section 415(b ), subject to the applicable adjustments in that
section. On and after Janumy 1, 1995, a plan member may not receive an annual benefit that exceeds
the dollar amount specified in IRC Section 415(b)(l)(A) ($160,000), subject to the applicable
AGENDA ITEM# 7D
JULY 14, 2014
adjustments in IRC Section 415(b) and subject to any additional limits that may be specified in this
System. For purposes of this section, "limitation year" shall be the calendar year.
For purposes of Code Section 415(b), the "annual benefit" means a benefit payable
annually in the form of a straight life annuity (with no ancillmy benefits) without regard to the benefit
attributable to after-tax employee contributions (except pursuant to Code Section 415(n) and to
rollover contributions (as defined in Code Section 415(b)(2)(A)). The "benefit attributable" shall be
determined in accordance with Treasury Regulations.
(b) Adjustments to Basic Limitation for Fonn of Benefit If the benefit under the plan is
other than the annual benefit described in subsection (a), then the benefit shall be adjusted so that it is
the equivalent of the annual benefit, using factors prescribed in Treasmy Regulations. If the form of
the benefit without regard to any automatic benefit increase feature is not a straight life annuity or a
qualified joint and survivor annuity, then the preceding sentence is applied by either reducing the Code
Section 415(b) limit applicable at the annuity stmiing date or adjusting the form of benefit to an
actuarially equivalent amount (determined using the assumptions specified in Treasmy Regulation
Section 1.415(b)-1(c)(2)(ii)) that takes into account the additional benefits under the form of benefit as
follows:
(1) For a benefit paid in a form to which IRC section 417(e)(3) does not apply (generally,
a monthly benefit), the actum·ially equivalent straight life annuity benefit that is the
greater of:
a. The annual amount of the straight life annuity (if any) payable to the member
under the plan commencing at the same annuity stmiing date as the form of
benefit to the member, or
b. The annual amount of the straight life annuity commencing at the same
annuity stmiing date that has the same actuarial present value as the form of
benefit payable to the member, computed using a 5 percent interest assumption
(or the applicable statutory interest assumption) and (i) for yem·s prior to
January 1, 2009, the applicable mmiality tables described in Treasury
Regulation Section 1.417(e)-l(d)(2) (Revenue Ruling 2001-62 or any
subsequent Revenue Ruling modifying the applicable provisions of Revenue
Rulings 2001-62), and (ii) for years after December 31, 2008, the applicable
mmiality tables described in IRC section 417(e)(3)(B) (Notice 2008-85 or any
subsequent Internal Revenue Service guidance implementing IRC section
417(e)(3)(B)); or
(2) For a benefit paid in a form to which IRC section 417(e)(3) applies (generally, a lump
sum benefit), the actuarially equivalent straight life annuity benefit that is the greatest
of:
a. The annual amount of the straight life annuity commencing at the annuity
stmiing date that has the same actum·ial present value as the particular form of
benefit payable, computed using the interest rate and mmiality table, or tabulm·
factor, specified in the plan for actum·ial experience;
b. The annual amount of the straight life annuity commencing at the annuity
starting date that has the same actuarial present value as the patiicular fmm of
benefit payable, computed using a 5.5 percent interest assumption (or the
applicable statutory interest assumption) and (i) for years prior to January 1,
2009, the applicable mortality tables for the distribution under Treasury
Regulation Section 1.417(e)-1(d)(2) (the mmiality table specified in Revenue
Ruling 2001-62 or any subsequent Revenue Ruling modifying the applicable
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AGENDA ITEM# 7D
JULY 14, 2014
provisions of Revenue Ruling 200 1-62), and (ii) for years after December 31,
2008, the applicable mmtality tables desctibed in IRC section 417(e)(3)(B)
(Notice 2008-85 or any subsequent Internal Revenue Service guidance
implementing IRC section 417(e)(3)(B)); or
c. The annual amount of the straight life annuity commencing at the annuity
stmting date that has the same actuarial present value as the pmticular form of
benefit payable (computed using the applicable interest rate for the distribution
under Treasury Regulation Section 1.417(e)-1(d)(3) (the 30-year Treasury rate
(ptior to January 1, 2007, using the rate in effect for the month prior to
retirement, and on and after January 1, 2007, using the rate in effect for the
first day of the plan yem· with a one-year stabilization petiod)) and (i) for yem·s
prior to January 1, 2009, the applicable mmtality tables for the distribution
under Treasury Regulation Section 1.417(e)-1 (d)(2) (the mmtality table
specified in Revenue Ruling 2001-62 or any subsequent Revenue Ruling
modifying the applicable provisions of Revenue Ruling 2001-62), and (ii) for
years after December 31, 2008, the applicable mmtality tables described in
IRC section 417(e)(3)(B) (Notice 2008-85 or any subsequent Internal Revenue
Service guidance implementing IRC section 417(e)(3)(B)), divided by 1.05 .
.Ql The actuary may adjust the 415(b) limit at the annuity starting date in accordance
with subsections (1) and (2) above.
(c) Benefits Not Taken into Account. For purposes of this Section, the following
benefits shall not be taken into account in applying these limits:
(1) Any ancillmy benefit which is not directly related to retirement income benefits;
(2) Any other benefit not required under §415(b)(2) of the IRC and Regulations
thereunder to be taken into account for purposes of the limitation of IRC Section
415(b)(l); and
ill That pmtion of any joint and survivor annuity that constitutes a qualified joint and
survivor annuity
(d) COLA Effect. Effective on and after January 1, 2003, for purposes of applying the
limits under IRC Section 415(b) (the "Limit"), the following will apply:
(1) A member's applicable limit will be applied to the member's annual benefit in the
member's first calendar limitation year of benefit payments without regard to any
automatic cost of living adjustments;
(2) thereafter, in any subsequent calendar limitation year, a member's annual benefit,
including any automatic cost of living increases, shall be tested under the then
applicable benefit limit including any adjustment to the IRC Section 415(b)(l)(A)
dollar limit under IRC Section 415(d), and the regulations thereunder; but
(3) in no event shall a member's benefit payable under the system in any calendar
limitation year be greater than the limit applicable at the annuity starting date, as
increased in subsequent years pursuant to IRC Section 415( d) and the regulations
thereunder.
Unless otherwise specified in the system, for purposes of applying the limits under IRC
Section 415(b), a Member's applicable limit will be applied taking into consideration cost of living
increases as required by Section 415(b) of the IRC and applicable Treasury Regulations.
-3-
(e) Other Adjustments in Limitations.
AGENDA ITEM# 7D
JULY 14,2014
(1) In the event the member's retirement benefits become payable before age sixty-two
(62), the limit presc1ibed by this section shall be reduced in accordance with
regulations issued by the Secretary of the Treasury pursuant to the provisions of IRC
Section 415(b) of the IRC, so that such limit (as so reduced) equals an annual straight
life benefit (when such retirement income benefit begins) which is equivalent to a one
hundred sixty thousand dollar ($160,000) annual benefit beginning at age sixty-two
(62).
(2) In the event the member's benefit is based on at least fifteen (15) years of credited
service as a full-time employee of the police depmtment of the City, the adjustments
provided for in (e)(1) above shall not apply.
(3) The reductions provided for in (e)(1) above shall not be applicable to disability
benefits pursuant to Sec. 2-268, or pre-retirement death benefits paid pursuant to Sec.
2-267.
(4) In the event the member's retirement benefit becomes payable after age sixty-five (65),
for purposes of determining whether this benefit meets the limit set fmth in subsection
(a) herein, such benefit shall be adjusted so that it is actumially equivalent to the
benefit beginning at age sixty-five (65). This adjustment shall be made in accordance
with regulations promulgated by the Secretary of the Treasury or his delegate.
(f) Less than Ten (1 0) Years of Pmticipation or Service. The maximum retirement
benefits payable under this section to any member who has completed less than ten (10) years of
credited service pmticipation with the City shall be the amount determined under subsection (a) of this
section multiplied by a fraction, the numerator of which is the number of the member's yem·s of
credited service pmticipation and the denominator of which is ten (10). The reduction provided by
this subsection cannot reduce the maximum benefit below 10% of the limit determined without regard
to this subsection. The reduction provided for in this subsection shall not be applicable to
pre-retirement disability benefits paid pursuant to Sec. 2-268, or pre-retirement death benefits paid
pursuant to Sec. 2-267.
(g) Participation in Other Defined Benefit Plans. The limit of this section with respect to
any member who at any time has been a member in any other defined benefit plan as defined in IRC
Section 414(j) maintained by the City shall apply as if the total benefits payable under all City defined
benefit plans in which the member has been a member were payable from one plan.
(h) Ten Thousand Donar ($10,000) Limit,· Less Than Ten Years of Service.
Notwithstanding anything in this section 2-274, the retirement benefit payable with respect to a
member shall be deemed not to exceed the limit set fmth in this subsection (h) of section 2-27 4 if the
benefits payable, with respect to such member under this system and under all other qualified defined
benefit pension plans to which the City contlibutes, do not exceed ten thousand dollars ($10,000) for
the applicable f)lan limitation year and for any p1ior f)lan limitation yem· and the City has not any time
maintained a qualified defined cont1ibution plan in which the member pmticipated; provided, however,
that if the member has completed less than ten (10) years of credited service with the City, the limit
under this subsection (h) of section 2-274 shall be a reduced limit equal to ten thousand dollars
($10,000) multiplied by a fraction, the numerator of which is the number of the member's years of
credited service and the denominator of which is ten (10).
(i) Reduction of Benefits. Reduction of benefits and/or contl·ibutions to all plans, where
required, shall be accomplished by first reducing the member's benefit under any defined benefit plans
in which member pmticipated, such reduction to be made first with respect to the plan in which
member most recently accrued benefits and thereafter in such priority as shall be determined by the
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AGENDA ITEM# 7D
JULY 14, 2014
board and the plan administrator of such other plans, and next, by reducing or allocating excess
fmfeitures for defined contribution plans in which the member pmiicipated, such reduction to be made
first with respect to the plan in which member most recently accrued benefits and thereafter in such
priority as shall be established by the board and the plan administrator for such other plans provided,
however, that necessary reductions may be made in a different manner and priority pursuant to the
agreement of the board and the plan administrator of all other plans covering such member.
(j) Service Credit Purchase Limits.
(1) Effective for permissive service credit contributions made in limitation years
beginning after December 31, 1997, if a member makes one or more contributions to
purchase permissive service credit under the system, as allowed in Sections 2-283, and
2-284, then the requirements of this section will be treated as met only if:
a. the requirements of IRC Section 415(b) m·e met, determined by treating the
accrued benefit derived from all such contributions as an annual benefit for
purposes of IRC Section 415(b ), or
b. the requirements of IRC Section 415(c) are met, determined by treating all
such contributions as annual additions for purposes of IRC Section 415( c).
e;-For purposes of applying subparagraph (j)(1)a.;, the System will not fail to meet the
reduced limit under IRC Section 415(b)(2)(C) solely by reason of this subparagraph e;-,
and for purposes of applying subpm·agraph (j)(l)b. the System will not fail to meet the
percentage limitation under Section 415(c)(l)(B) of the IRC solely by reason of this
subparagraph e-.
(2) For purposes of this subsection the term "permissive service credit" means service
credit-
a. recognized by the system for purposes of calculating a member's benefit under
the plan,
b. which such member has not received under the plan, and
c. which such member may receive only by making a voluntary additional
contribution, in an amount determined under the system, which does not
exceed the amount necessm-y to fund the benefit attributable to such service
credit.
Effective for permissive service credit contributions made in limitation years
beginning after December 31, 1997, such term may, if otherwise provided by the
system, include service credit for periods for which there is no performance of service,
and, notwithstanding clause (j)(2)b., may include service credited in order to provide
an increased benefit for service credit which a member is receiving under the system.
® Contribution Limits.
(J.l) For purposes of applying the Code Section 415(c) limits in this subsection U).
which are incorporated by reference and for purposes of this subsection (k), only
and for no other purpose, the definition of compensation where applicable will be
compensation actually paid or made available during a calendar limitation year,
except as noted below and as permitted by Treasury Regulations Section
1.415( c )-2, or successor regulations. Unless another definition of compensation
that is permitted by Treasury Regulations Section 1.415( c )-2, or successor
-5-
AGENDA ITEM# 7D
illLY 14,2014
regulation, is specified by the system, compensation will be defined as wages
within the meaning ofiRC Section 3401 (a) and all other payments of compensation
to an employee by an employer for which the employer is required to furnish the
employee a written statement under IRC Sections 604l(d), 6051(a)(3) and 6052
and will be determined without regard to any rules under IRC Section 3401(a) that
limit the remuneration included in wages based on the nature or location of the
employment or the services performed (such as the exception for agricultural labor
in IRC Section 3401(a)(2).
a. However, for calendar limitation years beginning after December 31, 1997,
compensation will also include amounts that would otherwise be included
in compensation but for an election under IRC Sections 125(a), 402(e)(3),
402(h)(l)(B), 402(k), or 457(b). For calendar limitation years beginning
after December 31, 2000, compensation will also include any elective
amounts that are not includible in the gross income of the employee by
reason ofiRC Section 132(f)(4).
b. For limitation years beginning on and after January 1, 2007, compensation
for the calendar limitation year will also include compensation paid by the
later of2Yz months after an employee's severance from employment or the
end of the calendar limitation year that includes the date of the employee's
severance from employment if:
1. the payment is regular compensation for services during the
employee's regular working hours, or compensation for services
outside the employee's regular working hours (such as overtime or
shift differential), commissions, bonuses or other similar payments,
and, absent a severance from employment, the payments would have
been paid to the employee while the employee continued in
employment with the employer; or
2. the payment is for unused accrued bona fide sick, vacation or other
leave that the employee would have been able to use if employment
had continued.
c. Back pay, within the meaning of Treasury Regulations
Section 1.415(c)-2(g)(8), shall be treated as compensation for the limitation
year to which the back pay relates to the extent the back pay represents wages
and compensation that would otherwise be included under this definition.
( 4 .f) Notwithstanding any other provision of law to the contrary, the board may modify a
request by a member to make a contribution to the system if the amount of the
contribution would exceed the limits provided in IRC Section 415 by using the
following methods:
a. If the law requires a lump sum payment for the purchase of service credit, the
board may establish a pe1iodic payment deduction plan for the member to
avoid a contribution in excess of the limits under IRC Sections 415(c) or
415(n).
b. If payment pursuant to subparagraph (j)(4)a. (k)(2)a. will not avoid a
cont1ibution in excess of the limits imposed by IRC Section 415(c), the board
may either reduce the member's contribution to an amount within the limits of
that section or refuse the member's contribution.
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AGENDA ITEM# 70
JULY 14,2014
(§. 2) If the annual additions for any member for a j:Jlaft limitation year exceed the limitation
under section 415(c) of the code, the excess annual addition will be conected as
permitted under the Employee Plans Compliance Resolution System (or similar IRS
conection program).
(61) For limitation years beginning on or after January 1, 2009, a member's compensation
for purposes of this subsection @ DQ shall not exceed the annual limit under section
401 (a)( 17) of the code.
(k: D Additional Limitation on Pension Benefits. Notwithstanding anything herein to the
contrary:
(1) The nmmal retirement benefit or pension payable to a retiree who becomes a member
of the system and who has not previously participated in such system, on or after
January 1, 1980, shall not exceed one hundred percent (100%) of his average final
compensation. However, nothing contained in this section shall apply to supplemen-
tal retirement benefits or to pension increases attributable to cost-of-living increases or
adjustments.
(2) No member of the system shall be allowed to receive a retirement benefit or pension
which is in part or in whole based upon any service with respect to which the member
is already receiving, or will receive in the future, a retirement benefit or pension from
a different employer's retirement system or plan. This restriction does not apply to
social security beriefits or federal benefits under Chapter 67, Title 10, U.S. Code.
SECTION 3: Specific authority is hereby granted to codify and incorporate this Ordinance in
the existing Code of Ordinances of the City of Atlantic Beach.
SECTION 4: All Ordinances or parts of Ordinances in conflict herewith be and the same are
hereby repealed.
SECTION 5: If any section, subsection, sentence, clause, phrase of this ordinance, or the
particular application thereof shall be held invalid by any court, administrative agency, or other body
with appropriate jurisdiction, the remaining section, subsection, sentences, clauses, or phrases under
application shall not be affected thereby.
SECTION 6: That this Ordinance shall become effective upon its adoption.
PASSED ON FIRST READING, this ___ day of _____ , 2014.
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PASSED AND ADOPTED ON SECOND READING, this
______ , 2014.
MAYOR
ATTEST:
CITY CLERK
Approved as to form:
CITY ATTORNEY
dm/ab/gen/04-09-14.ord
-8-
AGENDA ITEM# 7D
JULY 14, 2014
day of
GRS
June 4, 2014
Gabriel Roeder Smith & Company
Consultants & Actuaries
Mr. Nelson VanLiere
Plan Administrator
City of Atlantic Beach
800 Seminole Road
Atlantic Beach, Florida 32233-5445
One East Broward Blvd.
Suite 505
Ft Lauderdale, FL 33 30 l-1804
RE: City of Atlantic Beach General Employees' Retirement System
Actuarial Impact Statement
Dear Nelson:
AGENDA ITEM# 7D
JULY 14,2014
954.527.1616 phone
954.525.0083 fax
www.gabrielroeder.com
As requested by Scott Christiansen in his letter of April 16, 2014, please find enclosed an Actuarial
Impact Statement for the proposed ordinance (also enclosed). We have determined that the plan
provisions in the ordinance would have no significant cost effect to the plan benefits.
Please sign the Actuarial Impact Statement as the Plan Administrator and forward the original, and
one copy, along with a copy of the ordinance to the address below. Please file the Actuarial Impact
statement prior to the second reading.
Division of Retirement
Bureau of Local Retirement Systems
Post Office Box 9000
Tallahassee, Florida 32315-9000
ave any questions, please give us a call.
ekora, ASA, MAAA
Consultant & Actuary
Enclosure
cc: Mr. Scott R. Christiansen
AGENDA ITEM II 70
J ULY I 4,20 14
CITY OF A l'LANTIC BEACH GENERAL EMPLOYEES' RET IREMENT S YSTEM
ACTUARIAL IMPACT STATEMENT
Attached proposed Ordinance in corporates language necessary to update th e Plan with th e
technical requireme nt s of Int ernal Revenue Co de and includes mandatory amendments to
e nsure the continu at ion of th e Plan 's tax qualifi ed sta tu s. There is no s ignificant meas ur ab le
benefit cost effect to th e plan .
ACTUARY, Ga briel , Ro eder, Smith & Compan y
By ~-12~~£
Date : Jun e 4, 2014
T he above changes arc in compliance with Part VII , Chapter 11 2, Flo rid a Statut es, and Secti on 14,
Articl e X of the Stat e Constituti on . The Ac tu ary was provid ed the inform ation in the proposed
amendment.
PENSION BOARD COMMITIEE
By: ~ ty4=f4 pf_'M.£
Date: '/tz./;y
r I