Agenda Item 7B - Ordinance 58-14-38CITY OF ATLANTfC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: Retirement Ordinance No . 58-14-38
AN ORDJNANCE OF THE CITY OF ATLANTIC BEACH,
AMENDING CHAPTER 2, ADMJNISTRATION, 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, OISABILTTY; AMENDING SECTION 2-274, MAXIMUM
PENSION; PROVIDING FOR CODlFICATION; PROVIDING
FOR SEVERABILITY OF PROVJSIONS; REPEALING ALL
ORDJNANCES l N CONFLICT HEREWITH AND PROVIDING
AN EFFECTIVE DATE.
SUBMITTED BY: Nelson Van Liere, City Manager
DATE: J tme 13,20 14
AGENDA ITEM tJ 713
AUGUST II , 20 14
BACKGROUND: A t th e May 15. 20 14 Pension Board mee ting of the General
Emp lo yees' Retirement System, the pension attorney pre se nted the proposed ordinan ce
referenced above that in cludes amendments to the cu JTent ordinance to clarify language
rega rdin g disa bility benefits and to comp ly with recent changes to th e Interna l Reve nue Co de
(IRC). T hese a re mandatory amend ments to ensu re the continuation of th e p lan 's tax
qualified status . The Board approved presenting thi s ord inance to the C it y Commission and
reque sted an impact study be performed by the Board 's actuary, Gabriel Ro eder Smith (GRS)
to determine th e cost of amending th e ordinance.
As repotted in the attached Actuarial Im pact Statement, authori zed by the Board at the Jun e
12, 2014 meeting to be signed by the Pension Adm ini strator, th ese changes wou ld ha ve no
sig nificant cost impact to the plan beneftts.
RECOMMENDATION: App rove Ordinance No. 58-14-38
ATTACHMENTS: Ordinance No. 58-14-38 and Actuarial Im pact Statement
REVIEWED BY CITY MANAGER: --:/1. V a-. ~
Law Offices
Christiansen & Dehne r, P .A.
63 Sarasota Cent er Blvd . S uit(! J 07 S am~olo~, Flo rid a 14240 • 94 1 ,J 77 -.?.200 • Fa " lN l • 3 77 -41H~
/\pril 16, 20 14
Mr. Ne lso n Va n Lil.:t'l!
1\ll u nti ~.: lk:'H.:h CJ~.:n c rnl Emp lo yees ' Rc lin.:tn cnt Sysh.:m
~00 S~.:min olc Road
1\tl nnli c Beach, fL 32233-5455
Re : C ity or Atlan ti c 13cac h Ge neral l:mployt:t:s' R~..·tin.:m c.:nl Sys tem
Dear Ne lso n:
AG EN DA IT 8M /1713
AUGU ST I I, 20 14
Em:lose d ph:asc li nd H prop()SCd ordinan ce amend in g lh c 'it y or /\tl a nt ic lkn<:h (kncral
l·:mpl oyces' Rclin.:mcnt Sys te m. Thi s ortlinan <.:e anwnd s Sect ion 2-26~L Di sabilit y. to add add itiona l
c lari li e at io n lang ua ge o n th <.: 1 i me allowed l'or u rm:111bcr lll a ppl y !'o r d is abi I il y be m: li ls i 1· t~:rmi nat t:d
hy th e 'ity lor m cdi ~.:a l ro.:aso ns. 'I hi s onlirwrH.:c al::in amt:nds Seclio n 2-27 4. Max imum Pen s io n. to
co mpl y with addilion nl recc nt c han gt:s t o the lntL:rna l Rt:\'Ctlltl! Code (IRC ) relating lO tax qualill~o·d
pc ns iu n plan s s u~.:h as thi s pla n. Th ese am L:tH.It m:nt s durify la ngua ge rcquin:tl by th e II{(' a nd ar~:
manda to ry a mc ndm L:nt s to L:ns un: 1 he co ntinu ation ur th e plan's wx qual i lkd st at us .
Hy copy or thi s ktt~r to th e plan 's actuary . (iabri c l R n~J ..:r S mith & Cu rnp an). I am
requ L:s ti ng thai th ey prov id e you wi th u ktter inu ka tin g that th e re is 11 0 cos t <~ssoc iar nl with the
adoption or this ordinance.
Pl ease pro v id e n t.:o py o l't hi s o rdinan ce to eac h membe r ol 'th c Board lor rcvk\\ anJ r1ppro\'al
at lh e ll CXtlllCC tin g.
SRC/dm
e nc los ure
c..:: J ames Ritto. '' ith enclos ure
St:o tl R. 'hri s tian scn
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# 7B
AUGUST 11, 2014
BE IT ENACTED BY THE CITY COMMISSION ON BEHALF OF THE PEOPLE 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) DjsabjJity 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 fmal
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 fmal compensation multiplied by the total
years of credited service for members hired on or after April 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 vtithin 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) Bask linlitatjon. Notwithstanding any other provisions of this system to the contrary,
the member contributions paid to, and retirement benefits paid from, the system shall be limited to
such extent as may be necessary to conform to the requirements of IRC Section 415 for a qualified
retirement plan. Before January 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 January 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# 78
AUGUST 11, 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 ancillary benefits) without regard to the benefit
attributable to after-tax employee conttibutions (except pursuant to Code Section 415(n) and to
rollover contlibutions (as defined in Code Section 415(b)(2)(A)). The "benefit attlibutable" shall be
detetmined in accordance with Treasury Regulations.
(b) Adjustments to Basic Limitation for F01m of Benefit. If the benefit under the plan is
other than the annual benefit desetibed in subsection (a), then the benefit shall be adjusted so that it is
the equivalent of the annual benefit, using factors presctibed in Treasmy Regulations. If the fonn 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 starting date or adjusting the fmm of benefit to an
actuarially equivalent amount (detetmined using the assumptions specified in Treasury Regulation
Section 1.415(b )-1 (c )(2)(ii)) that takes into account the additional benefits under the fmm 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 actumially 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 stmting date as the fmm of
benefit to the member, or
b. The annual amount of the straight life annuity commencing at the same
annuity stmting date that has the same actumial present value as the fmm of
benefit payable to the member, computed using a 5 percent interest assumption
(or the applicable statutory interest assumption) and (i) for years p1ior to
January 1, 2009, the applicable mmtality tables desctibed 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
mmtality tables desclibed in IRC section 417(e)(3)(B) (Notice 2008-85 or any
subsequent Intemal Revenue Service guidance implementing IRC section
417(e)(3)(B)); or
(2) For a benefit paid in a fmm to which IRC section 417(e)(3) applies (generally, a lump
sum benefit), the actuatially equivalent straight life annuity benefit that is the greatest
of:
a. The annual amount of the straight life annuity commencing at the annuity
sta1ting date that has the same actuarial present value as the pmticular fmm of
benefit payable, computed using the interest rate and mmtality table, or tabulm·
factor, specified in the plan for actumial expetience;
b. The ammal amount of the straight life annuity commencing at the annuity
stmting date that has the same actumial present value as the particular fmm of
benefit payable, computed using a 5.5 percent interest assumption (or the
applicable statutory interest assumption) and (i) for years p1ior to January 1,
2009, the applicable mmtality tables for the disttibution under Treasury
Regulation Section 1.417(e)-l(d)(2) (the mortality table specified in Revenue
Ordinance No. 58-14-38 -2-dm/ab/gen/04-09-14.ord
AGENDA ITEM# 7B
AUGUST 11, 2014
Ruling 2001-62 or any subsequent Revenue Ruling modifying the applicable
provisions of Revenue Ruling 200 1-62), 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)); or
c. The annual amount of the straight life annuity commencing at the annuity
statting date that has the same actuatial present value as the patticular fmm of
benefit payable (computed using the applicable interest rate for the disttibution
under Treasury Regulation Section 1.417(e)-1(d)(3) (the 30-year Treasury rate
(ptior to J anuat·y 1, 2007, using the rate in effect for the month ptior to
retirement, and on and after January 1, 2007, using the rate in effect for the
first day of the pla11 year with a one-year stabilization petiod)) and (i) for yea~·s
ptior to January 1, 2009, the applicable mmtality tables for the disttibution
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 200 1-62), and (ii) for
yeat·s 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)), divided by 1.05.
ill The actuary may adjust the 415(b) limit at the annuity stmiing date in accordance
with subsections (1) and (2) above.
(c) Benefits Not Taken into Account. For pmposes of this Section, the following
benefits shall not be taken into account in applying these limits:
(1) Any ancillary 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 pmposes of the limitation of IRC Section
415(b)(l); and
Ql 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 pmposes 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 )(1 )(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.
Ordinance No. 58-14-38 -3-dm/ab/gen/04-09-14.ord
AGENDA ITEM# 7B
AUGUST I I, 2014
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.
(e) Other Adjustments in Limitations.
(1) In the event the member's retirement benefits become payable before age sixty-two
(62), the limit presclibed 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 department of the City, the adjustments
provided for in (e)(l) above shall not apply.
(3) The reductions provided for in (e)(l) 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 detennining whether this benefit meets the limit set forth in subsection
(a) herein, such benefit shall be adjusted so that it is actuarially 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 Participation or Service. The maximum retirement
benefits payable under this section to any member who has completed less than ten (10) years of
credited service participation with the City shall be the amount dete1mined under subsection (a) of this
section multiplied by a fraction, the numerator of which is the number of the member's years of
credited service participation and the denominator of which is ten (10). The reduction provided by
this subsection cannot reduce the maximum benefit below 10% of the limit dete1mined 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 Dollar ($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 forth in this subsection (h) of section 2-274 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 contributes, do not exceed ten thousand dollars ($10,000) for
the applicable IJffin limitation year and for any p1ior IJffin limitation year and the City has not any time
maintained a qualified defined contribution plan in which the member participated; 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
($1 0,000) 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 (1 0).
Ordinance No. 58-14-38 -4-dm/ab/gen/04-09-14.ord
AGENDA ITEM# 7B
AUGUST I I, 2014
(i) Reduction of Benefits. Reduction of benefits and/or conttibutions to all plans, where
required, shall be accomplished by first reducing the member's benefit under any defined benefit plans
in which member participated, such reduction to be made first with respect to the plan in which
member most recently accmed benefits and thereafter in such pliority as shall be detetmined by the
board and the plan administrator of such other plans, and next, by reducing or allocating excess
fmfeitures for defined conttibution plans in which the member participated, such reduct1on to be made
first with respect to the plan in which member most recently accmed benefits and thereafter in such
ptimity 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 ptimity pursuant to the
agreement of the board and the plan administrator of all other plans coveting such member.
(j) Service D-edit Pu1r:hase Limits.
(1) Effective for petmissive service credit conttibutions made in limitation years
beginning after December 31, 1997, if a member makes one or more conttibutions to
purchase petmissive 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) are met, detetmined by treating the
accmed benefit detived from all such conttibutions as an annual benefit for
purposes ofiRC Section 415(b), or
b. the requirements of IRC Section 415(c) are met, detetmined by treating all
such conttibutions as annual additions for purposes of IRC Section 415(c).
&.-For purposes of applying subparagraph (j)(l)a.~, the System will not fail to meet the
reduced limit under IRC Section 415(b)(2)(C) solely by reason of this subparagraph&.-,
and for purposes of applying subparagraph (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 tenn "petmissive 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
conttibution, in an amount detennined under the system, which does not
exceed the amount necessary to fund the benefit atttibutable to such service
credit.
Effective for pennissive service credit conttibutions made in limitation years
beginning after December 31, 1997, such tetm may, if otherwise provided by the
system, include service credit for petiods for which there is no petfmmance 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.
ill Contribution Limits.
(J 1) For purposes of applying the Code Section 415(c) limits in this subsection (j).
which are incorporated by reference and for purposes of this subsection (k), only
Ordinance No. 58-14-38 -5-dm/ab/gen/04-09-14.ord
AGENDA ITEM# 7B
AUGUST 11, 2014
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 pe1mitted 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
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 finnish the
employee a written statement under IRC Sections 6041(d), 6051(a)(3) and 6052
and will be dete1mined 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 of 21/z 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 accmed 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 .2) Notwithstanding any other provision of law to the contra1y, the board may modify a
request by a member to make a contribution to the system if the amount of the
contlibution 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).
Ordinance No. 58-14-38 -6-dm/ab/gen/04-09-14.ord
AGENDA ITEM# 7B
AUGUST II, 2014
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 cont1ibution to an amount within the limits of
that section or refuse the member's contribution.
(.§.}) If the annual additions for any member for a Illiffi 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).
(6 :)) For limitation years beginning on or after January 1, 2009, a member's compensation
for purposes of this subsection @ 00 shall not exceed the annual limit under section
401 (a)(l7) of the code.
(k D Additional Limitation on Pension Benefits. Notwithstanding anything herein to the
contrary:
(1) The nonnal 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 att1ibutable 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 secmity benefits or federal benefits under Chapter 67, Title 10, U.S. Code.
SECTION 3: Specific authmity 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 pm1s 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
pm1icular application thereof shall be held invalid by any com1, administrative agency, or other body
with appropriate jmisdiction, 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 14th day of July 2014.
Ordinance No. 58-14-38 -7-dm/ab/gen/04-09-14.ord
PASSED AND ADOPTED ON SECOND READING, this
_____ ,2014.
ATTEST:
Donna L. Bartle, CMC
CITY CLERK
Approved as to fmm:
Rich Komando, Esquire
CITY A TIORNEY
Ordinance No. 58-14-38 -8-
Carolyn Woods
MAYOR
AGENDA ITEM# 7B
AUGUST II, 2014
day of
dm/ab/gen/04-09-14.ord
GRS
June 4, 2014
Gabriel Roeder Smith & Company
Consultants & Acwarics
Mr. Nelson Van Liere
Plan Administrator
City of Atlantic Beach
800 Seminole Road
Atlantic Beach, Florida 32233-5445
One East Broward Blvd.
Suite 505
FL Lauderdale, FL 33301-1804
RE: City of Atlantic Beach General Employees' Retirement System
Actuarial Impact Statement
Dear Nelson:
AGENDA ITEM# 7B
AUGUST 11, 2014
954.527.1616 phone
954.525.0083 fax
www.gabrielroeder.com
As requested by Scott Christiansen in his letter of Aprill6, 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.
Enclosure
cc: Mr. Scott R. Christiansen
1\GEND/\ ITEM II 7B
1\UGUST II, 201 4
CITY OF ATLANTIC BEACH GENERAL EMPLOYEES' RETIREMENT SYSTEM
ACTUARIAL IMPACT STATEMENT
At1ached propo sed Ordinance incorporates language necess ary to update the Plan with the
technical requirements of Internal Revenu e Code and includes mandatory amendments to
ensure the continuation of the Plan's tax qualified status . There is no significant measurable
benefit cost effect to the plan.
ACTUARY, Gabriel, Roeder, Smith & Company
By :~~~R
Date: June 4 2014
The above changes are in compliance with Part VII , Chapter 112, Florida Statutes, and Section 14,
Article X of th e State Constitution . The Actuary was provided the information in the proposed
amendment.
PENSION BOARD COMMIITEE
By : ~Y~£~
Dat e: '/tz,/tV ~ I