Exh 4BAGENDA ITEM #4B
JiTNE 24, 2002
ACTION REQUESTED:
SUBMITTED BY:
DATE:
CITY OF ATLANTIC BEACH
CITY COMMISSIONER MEETING
STAFF REPORT
None. This Staff Report for information only.
George Foster, Human Resource Manager
June 18, 2002
BACKGROUND:. The annual actuarial reports for the City's General Employee and
Police Employee Pension Plan have been received and a summary"
of each plan is attached.
General Employee Plan:
As of 09/30/01, there were 75 active members, 25 normal retirees,
2 disability retirees, and 13 vested. The City's projected
contribution rate increased, as a percent of total payroll, by 0.4%,
from 11.41% or $288,070 effective 10/Ol/Ol to 11.81% or
$315,106 effective 10/01/02. General changes to membership
demographics contributed+,14%, investment losses of $18,145
contributed +.06% and the 5% COLA provided to retirees effective
10/Ol/Ol contributing + .2%.
Police Employee Plan:
As of 09/30/01, there were 26 active members, 7 normal retirees, 2
disability retirees, and 3 vested. The City's projected contribution
rate increased, as a percent of total payroll, by .69%, from 11.75%
or $154,523 effective 10/Ol/Ol to 12.44% or $155,752 effective
10/01/02. General changes to membership demographics to
include less active members and a reduced overall payroll as of the
Actuarial Valuation Date contributed + .34% with the 5% COLA
provided to retirees effective 10/Ol/Ol contributing+.35%.
RECOMMENDATION: None. This Staff Report for information only.
ATTACHMENTS: 1. General Employee Plan Summary
2. Police Officer Plan Summary
CITY MANAGER: ~ r~
AGENDA ITEM #4B
JUNE 24, 2002
City of Atlantic Beach General Employee Retirement System
.Summary Annual Report
The City of Atlantic Beach General Employee Retirement System is a defined benefit pension
plan administered by a Boazd of Trustees. It was created by Chapter 99-1, Florida Statutes from
City Ordinance No. 58-75-4 and its amendments. It is intended to comply with Chapters 112 and
185, F.S. The plan yeaz ends on September 30, and records are maintained on a plan yeaz basis.
The Boazd of Trustees is the Retirement System Administrator. The following individuals are
members of the Board of Trustees:
Timothy Townsend
Chair Pro-Tem Vacant
Secretary Tony Downing
Member Harry McNally
Member Ed Lipscomb
The Boazd of Trustees is the agent for the service of legal process. Their address is:
Atlantic Beach City Hall
800 Seminole Road
Atlantic Beach, FL 32233
A description of the benefits of the Retirement System and the sources of funding are attached.
Claims for benefits should be filed with the Boazd of Trustees at the Human Resources
Department. If a claim is denied, you will be notified and informed of the procedure to request a
hearing before the Board of Trustees. Claim denials aze generally limited to failure to meet the
eligibility requirements for a benefit.
As of September 30, 2001 there were 25 retired pazticipants and 2 beneficiaries receiving annual
benefits of $237,738 from the Retirement System. Active members totaled 75 with an annual
payroll of $2,462,229. There were also 13 vested terminated members eligible for future
benefits.
City of Atlantic Beach General Employee Retirement System -1-
_ AGENDA ITEM #4B
JUNE 24, 2002
The City contributed $266,148 during the 2000-2001 $scal yeaz. The taxpayer contribution
rates for the fiscal yeaz, expressed as percents of payroll were as follows:
Percents of
Contriburion for Active Member Payroll
Normal Cost and Adminishative Expenses 9.10%
Unfimded Actuazial Accrued Liabilities 2.14
Total 11.24%
The September 3Q 2001 actuarial report indicated that the actuarial accrued liability under
Governmental Accounting Standard No. 25 was 80.0% funded.
Contributions to the System during the yeaz were equal to or greater than the actuarially
determined amount needed to comply with the provisions of Chapter 112, Florida Statutes.
The actuary concluded that the Retirement System is in good actuarial condition given the level
percent-of-payroll funding objective and continued receipt of contribution requirements when
due.
A copy of the annual audit report is available for inspection in the Human Resources
Department.
Board of Trustees
City afAtlanric Beach General Employee Retirement System -2-
AGENDA ITEM #4B
JUNE 24, 2002
Summary of Beneft Provisions
.September 30, 2001
Normal Retirement (no reduction factor for age):
Eligibility -Age 60 with 5 or more years of service.
Annual Pension -Total service times 2.85% of final average compensation.
Total pension cannot exceed 100% of final average compensation. The normal form of pension is
payable for life. Optional forms aze available on an actuarial equivalent basis.
Type aj Final Average Salary -One-sixtieth (1/60) of the aggregate amount of compensation. paid a
member during the period of sixty (60) consecutive months of the member's credited service in which the
aggregate amount of compensation paid is greatest. The sixty (60) months of credited service must be
contained within. the member's last one hundred twenty (120) months of credited service.. If a member
has less than sixty (60) months of credited service, final average compensation means the aggregate
amount of compensation paid the member divided by the member's months of credited service.
Deferred Retirement (vested benefit):.
Eligibility - 5 or more years of service. Pension begins at normal retirement eligibility.
Annual Pension -Computed as a normal retirement pension but based upon service and final average
salary at time of termination of employment.
Disability Retirement:
.Eligibility - 5 or more continuous years of service.
Annual Pension -Computed as a nom~al retirement pension.
Death Before Retirement:
Eligibility - 5 or more years of service.
Annual Pension -Computed as a normal retirement pension.
Member Contributions:
2.0% of salary
If you terminate employment and receive a refund of your own contributions, you forfeit any rights to
future benefits from the Retirement System. The taxable portion (money contributed on a.pre-tax basis)
of any refund you receive is subject to an automatic 20% withholding for federal income tax purposes,
and a possible 10% excise tax. These taxes can be avoided, however, if you roll the taxable portion over
to an Individual Retirement Account (IRA) or another qualified employer plan. This rollover will result in
no tax being due until you begin withdrawing funds from the IRA or other qualified employer plan. The
rollover of the distribution, however, MUST be made directly by the Plan to your chosen IRA or other
qualified employer plan.
City ojAtlantic Beach General Employee Retirement System -3-
AGENDA ITEM #4B
J[JNE 24, 2002
City Contributions: Actuarially determined amounts which aze sufficient to cover the requirements of
the financial objective..
Forfeiture of Retirement Benefits: Retirement benefits granted by the Retirement System are subject to
forfeiture if an employee is convicted of an offense specified in Section 112.3173, Florida Statutes,
.pursuant to the procedures set forth in the cited stature.
Claims Procedure: Claims for benefits should be filed with the Board of Trustees at the Human
Resources Department. If a claim is denied, you will be notified and informed of the procedure to request
a hearing before the Board of Trustees.
The preceding summary briefly describes the principal benefits of the Retirement System.. Said summary
is not binding and should not be relied upon in any action concerning your participation in the System or
benefit thereunder. Detailed benefit conditions and limitations are contained in the Pension Ordinance
which established the System. Interpretations of the Ordinance are made by the Board of Trustees. The
Ordinance and Board interpretations govern the operation of the System and should be consulted before
you take any action concerning your participation or benefits. Copies are available at the Human
Resources Department.
City of Atlantic Beach General Employee Retirement System ~_
AGENDA ITEM #4B
JUNE 24, 2002
Accounting Information Submitted for Valuation
Revenues and Expenditures
September 30, 2001 September 30, 2000
Revenues:
a. Member Contributions $ 50,206 $ 47,543.
b. City Contribution 266,148 259,411
Total Contributions 316,354 306,954
c. Investment income:
1. Interest and Dividends 83,417 9,789
2. Gain(loss) on investments (155,981) 233,560
3. Investment expenses (25,302) (35,982)
Tota] Investment Income (97,866) 207,367
d. Total revenues 218,488 514,321
Expenditures:
a. Refunds of member contributions 3,268 5,524
b. Benefit payments 225,232. 179,935
c. Administrative expenses 0 0
d. Total expenditures. S 228,500 $ 185,459
Net Income:
Total revenues minus total expenditures S (10,012) $ 328,862
Summary of Assets (Market Value)
September 30, 2001 September 30, 2000
Cash and equivalents $ 30,649 $21,830
Receivables none 93
Short term investment funds 63,547 211,928
U.S. Government Securities none none
Bonds government none none
corporate none none
mutual fund 2,173,014 1,837,724
Stocks common none none
preferred none none
mutual fund 2,850,694 3,057,769
Payables (452) (1,880)
.Total assets S 5,117,452 $ 5,127,464
City ofAtlantic Beach General Employee Retirement System -5-
AGENDA ITEM #4B
JiJNE 24, 2002
City of Atlantic Beach Police Officers' Retirement System
Summary Annual Report
The City of Atlantic Beach Police Officers' Retirement System is a defined benefit pension plan .
administered by a Boazd of Trustees. It was created by Chapter 99-1, Florida Statutes from City
Ordinance No. 58-75-4 and its amendments. It is intended to comply with Chapters 112 and
185, F.S. The plan year ends on September 3Q and records aze maintained on a plan yeaz basis.
The Boazd of Trustees is the Retirement System Administrator. The following individuals aze
members of the Board of Trustees:
Chairman Henry Bartle
Chair Pro-Tem .Dale Hatfield
Secretary Tony Downing
Member Harry McNally
Member Ed Lipscomb
The Boazd of Trustees is the agent for the service of legal process. Their address is:
Atlantic Beach City Hall
800 Seminole Road
Atlantic Beach, FL 32233
A description of the benefits of the Retirement System and the sources offending are attached.
Claims for benefits should be Sled with the Boazd of Trustees at the Human Resources
Department. If a claim is denied, you will be notified and informed of the procedure to request a
hearing before the Boazd of Trustees. Claim denials aze generally limited to failure to meet the
eligibility requirements for a benefit.
As of September 30, 2001 there were nine retired participants receiving annual benefits of
$205,162 from the Retirement System. Active members totaled 26 with an annual payroll of
$1,15,404. There were also three vested terminated members eligible for future benefits.
-1-
AGENDA ITEM #4B
NNE 24, 2002
The City contributed $ 113,534 and $69,557 was received under the provisions of Chapter 185,
F.S., during the 2000-2001 fiscal yeaz. The taxpayer .contribution rate for the fiscal year,
expressed as percents of payroll were as follows:
Percents of
Contnbution for Active Member Pavroll
Norma] Cost and Administrative Expenses 14.70%
Unfunded Actuarial Accrued Liabilities 2.00
Total 16.70%
The September 3Q 2001 actuarial report indicated that the, actuarial accrued liability under
Governmental Accounting Standard No. 25 was 81.1% funded.
Contributions to the System during the yeaz were equal to or greater than the actuarially
determined amount needed to comply with the provisions of Chapter 112, Florida Statutes.
The actuary concluded that the Retirement System is in good actuarial condition given the level
percent-of-payroll funding objective and continued receipt of contribution requirements when
due.
A copy of the annual audit report is .available ,for inspection in .the Human Resources
Department.
'Board of Tnrstees
City ofAtlantic Beach Police t~cers' Retirement System -2-
AGENDA ITEM #4B
Summary. of Benefit. Provisions JUNE za, zooz
(September 30, 2001)
Normal Retirement (No reduction factor for age):
Eligibility
Any age with 25 years of service or age 50 with 20 or more years of service or age 60 with
5 or more years of service.
Annual Pension
Total service times 3.00% of final average salary.
Total pension cannot exceed 100% of final average compensation. The normal form of
pension is payable for life. Optional forms aze available on an actuarial equivalent basis.
Type of Final Average Salary
One-sixtieth (1/60) of the aggregate amount of compensation paid a member during the
period of sixty (60) months of the member's credited service in which the aggregate
amount of compensation paid is greatest. The sixty (60) months of credited service must
be contained within the member's last one hundred twenty (120) months of credited.
service. If a member has less than sixty (60) months of credited service, final average -
compensation means the aggregate amount of compensation paid the member divided by
the member's months of credited service.
Deferred Retirement (Vested Benefit):
Eligibility - 5 or more years of service. Pension begins at normal retirement eligibility.
Annual Pension -Computed as a normal retirement pension but based upon. service and
final average salary at fime of temunation of employment.
Disability Retirement:
Eligibility - 5 or more continuous yeazs of service. Service requirement waived for member
if disability is incurred in the line of duty.
Annual Pension -Computed as a normal retirement pension. Minimum benefit is 42% of
final average salary for members if disability is incurred in the line of duty.
Death Before Retirement:
Eligibility - 5 or more years of service.
Annual Pension -Computed as a normal retirement pension.
Member Contributions:
Police Bargaining Unit: 1.0% of salary
Police Other: 4.815% of salary
If you terminate employment and receive a refund of your own contributions, you forfeit
any rights to future benefits from the Retirement System. The taxablcportion (money
contributed on a pre-tax basis) of any refund you receive is subject to an automatic 20%
withholding for federal income tax purposes, and a possible 10% excise tax. These taxes .
can be avoided, however, if you roll the taxable portion over to an Individual Retirement
Account (1RA) of another qualified employer plan. This rollover will result in no tax being
Ciry ofAtlantic Beach Police Oj~cers' Retirement System -3-
' AGENDA ITEM #4B
JUNE 24, 2002
due until you begin withdrawing funds from the IRA of other qualified employer plan. The
rollover of the distribution, however, MUST be made directly by the Plan to your chosen
IRA or other qualified employer plan.
Premium Tax Monies: A distribution of casualty insurance premium tax monies collected
by the State pursuant to Chapter 185 Florida Statutes.
Cfty Contributions: Actuarially determined amounts which together with Chapter 185
monies are sufficient to cover the requirements of the financial objective.
Forfeiture of Retirement Benefits: Retirement benefits granted by the Retirement System
aze subject to forfeiture if an employee is convicted of an offense specified in Sections
112.3173 and 185.185, Florida Statutes, pursuant to the procedures set forth in the cited
statutes.
CLAIMS PROCEDURE: Claims for benefits should be filed with the Boazd of Trustees at the
Human Resources Department. If a claim is denied, you will be notified and informed of the
procedure to request a hearing before the Board of Trustees.
The preceding summary briefly describes the principal benefits of the Retirement System.
Said summary is not binding and should not be relied upon in any action concerning your
participation in the System of benefit thereunder. Detailed benefit conditions and limitations
aze contained in the Pension Ordinance which established the System. Interpretations of the
Ordinance are made by the Board of Trustees. The Ordinance and Board interpretations
govern the operation of the System and should not be consulted before you take any action
concerning your participation or benefits. Copies aze. available at the Human Resources .
.:.Department.
Ciry ofAtlantic Beach Police t~cers' RetirementSystem -4-
AGENDA ITEM #4B
JiJNE 24, 2002
Accounting Information Submitted for Valuation
Revenues and Expenditures
September 30,2001 September 30, 2000
Revenues:
a. Member Contributions
b. City Contribution
c. Premium taxes from State
Total Contributions
d. Investment income
1. Interest and Dividends
2. Gain (loss) on sales of investment
3. Investment expenses
Total Investment Income
e. Total revenues
Expenditures:
a. Refunds of member contributions
b. Benefit payments
c. Administrative expenses
d..Total expenditures
$22,059
113,534
69,557
205,150
40,253
(30,164)
(19,243)
(9,154)
195,996
171 -
168,340
0
$168,511
$22,054
116,023
63,997
202,074
4,275
208,705
(26,647)
186,333
388,407
8,338
158,271.
0
$166,609
Net Income: -
Total revenues minus total expenditures $27,485 $221,798
Summary of Assets (Market Value)
September 30, 2001 September 30, 2000
Cash and equivalents $ 10,357 S 35,818
Receivables none 108
Short term investment funds 21,299 75,275
U.S. Government Securities none none
Bonds government none none
corporate none none
mutual fund 1,819,909 1,481,640
Stocks common none. none
preferred none none
mutual fund 1,962,675 2,195,733
Payables none (1,819)
Total assets $ 3,814,240 $ 3,786,755
Ciry ofAtlantic Beach Police Officers' Retirement System -5-