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AGENDA ITEM #8D
„~„ SEPTEMBER 9, 2002
CITY OF ATLANTIC BEACH
CITY COMMISSIONER MEETING
STAFF REPORT
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ACTION REQUESTED: Authorize Ordinance to be prepared .for City Commission- approval
~'"" implementing Section 185 mandated benefits for Police pension
plan.
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~" SUBMITTED BY: George Foster, Pension Plan Administrator
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DATE: September 3, 2002
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' BACKGROUND: Annually the City receives Section 185 premium tax revenues
from the State which must to be used to fund "extra" benefits
within the Police pension plan. Extra benefits means benefits in
addition to or greater than those provided to general employees.
~ In February 2000, the City Commission way advised that the cost
f th d d nh
o ese new man ate e ancements included with CS/HB 261 as
signed into law on March 12, 1999 would be approximately
$12,528.00 annually. As these enhancements were not mandatory
until additional State Section 185 revenues became available, the
City Commission advised staff that changes should be delayed
until such time as additional State Section 185 revenues became
' available.:..
7 , We have now received State Section 185 premium tax revenues for
2001 and the amount received ($85,719) has increased sufficiently
over the 1997 base year amount ($70,289) to implement all
-.enhancements as required by FS 185.
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•~^+ FUNDING: Enhancements (see attached) will be funded by State Section 185
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P revenues as received by the City. -
~^ RECOMMENDATION: That the City Commission authorize staff to prepare an Ordinance
~ ~ `for their approval changing the City Code to include the attached
mandated enhancements to the Police Pension Plan.
ATTACHMENT: Listing of Enhancements
CITY MANAGER:
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AGENDA ITEM #8D
~ SEPTEMBER 9, 2002
"~" - Benefit Enhancements
~""` To the extent that additional premium (Section 185) tax dollars over those received for
calendar year 1997 become available to incrementally fund the cost of enhancements the
following benefits, as required by FS 185, shall be considered by the City Commission:
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~,,, a) Normal retirement. A normal retirement benefit for members who have attained
' the age of fifty-five (55) years and have ten (10) or more years of creditable
service shall be established. Estimated annual cost of .30% of payroll or $3,056.
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b) Normal retirement ten (10) year period certain. Normal retirement benefits will
be paid for a ten (10) year period certain and life. In the event the officer dies
""'' after retirement but before receiving retirement benefits for a period often (10)
years, the same monthly benefit will be paid to the beneficiary for the balance of
such ten (10) year period, or if no beneficiary is designated, to the estate of the
~"' police officer. Estimated annual cost of .45% of payroll or $4,583.
,~ c) Early retirement. A member who has attained the age of fifty (50) years and has
` ' ten (10) years of credited service in force, shall be eligible for an early retirement.
p The amount of an early retirement benefit shall be calculated as provided in
•~ section 2-310.10(a) taking into account credited service to the date of actual
retirement and final monthly compensation as of such date. Such amount of
retirement income shall be actuarially reduced to take into account the
!~ participant's younger age and earlier commencement of retirement income
4 , _ payments. In no event shah the earlyretirement reduction exceed three (3)
percent for each year by which the member's age at retirement preceded the
member's normal retirement age. Estimated annual cost of .22% of payroll or
Y. $2,241.
~' d) Early retirement ten (10) year period certain. An early retirement benefit benefits
will be paid for a ten (10) year period certain and life. In the event the officer dies
after retirement but before receiving retirement benefits for a period often (10)
years the same monthly benefit will be paid to the beneficiary for the balance of
such ten'(10) year period, or if no beneficiary is designated, to the estate of the
police officer. Estimated annual cost of .14% of payroll or $1,426.
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e) Deferred retirement upon separation. Any police officer who has been in the
~+ service of the city for at least ten (10) years elects to leave his or her accrued
~' contributions in the plan, such police officer upon attaining age fifty (50) years or
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more, may retire under the provisions as set out for an early retirement. Estimated
~^ annual cost of .OS% of payroll or $509.
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AGENDA ITEM #8D
~, SEPTEMBER 9, 2002
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'"'' fj Deferred retirement ten (10) year period certain. Such benefits will be paid for a
a.~ ten (10) year period certain and life. In the evenf the officer dies after retirement
but before receiving retirement benefits far a period often (10) years, the same
~"'' monthly benefit will be paid to the beneficiary far the balance of such ten (10)
year period, or if no beneficiary is designated, to the estate of the police officer.
Estimated annual cost of .03% of payroll or $306.
g) Disability retirement ten (10) year period certain. Such benefits will be paid for a
~ ten `(10) year period certain and life. In the event the officer dies after retirement
3 but before receiving retirement benefits for a period often (10) years, the same
monthly benefit will be paid to the beneficiary for the balance of such ten (10)
year period, or if no beneficiary is designated, to the estate of the police officer.
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~, Estimated annual cost of .03% of payroll or $306.
":~ h) Employee death ten (10) year period certain. If any police officer having at least
ten (10) years of credited service dies prior to retirement, his or her beneficiary is
entitled to the benefits otherwise payable to the police officer at early or normal
retirement age. Estimated annual cost of .O1 % of payroll or $102.
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