Exh 7CAGENDA ITEM #7C
SEPTEMBER 24, 2001
CITY OF ATLANTIC BEACH
CITY COMMISSIONER MEETING
STAFF REPORT
AGENDA ITEM: Conduct first reading of Ordinance amending Chapter 2,
Administration, Article VI, Employee Benefits, Division 3,
General Employee Retirement System and Division 4, Police
Officers' Retirement System, providing a one time five percent
(5%) COLA to retirees, and beneficianes, who retired pnor to
January 1, 2001
DATE: September 18, 2001
SUBMITTED BY: George Foster, Human Resource Manager
BACKGROUND: This report is provided to implement a 5% COLA for retirees, and
beneficianes, who retired pnor to January 1, 2001 as previously
recommended by the Pension Boazd and discussed by the City
Commissioners dunng the budget process Retirement pnor to
January 1st is being utilized to be consistent with the previous
1997 COLA and Is more m tine with the information as utilized for
the actuanal impact cost statement
RECOMMENDATION: Conduct first reading of Ordinance and schedule second and final
reading for October 8, 2001
FUNDING: The Immediate cost for this action will be from current pension
fund assets Based upon a July 1999 actuanal Impact statement,
the City's annual contnbution rates well increase approximately
$8,412, which well be an increase for the General Employee
Pension Plan of approximately $4,032 (0 18% of current salary)
and for the Police Officers' Pensions Plan of approximately $4,380
(0 43% of current salary.}
CITY MANAGER:
ATTACHMENT: Proposed
AGENDA ITEM St7C
SEPTEMBER 24, 2001 '
ORDINANCE NO. 58-Oi-28
AN ORDINANCE OF THE CITY OF ATLANTIC BEACH,
FLORIDA, AMENDING CHAPTER 2, ADMINISTRATION,
ARTICLE VI, EMPLOYEE BENEFITS, DIVISION 3,
GENERAL EMPLOYEE RETIREMENT SXSTEM, SEC. 2-
281(b), TO PROVIDE GENERAL RETIREES WITH A FIVE
PERCENT (5%) COST OF LIVING ADJUSTMENT; AND
DIVISION 4, SEC. 2-31010(b) TO PROVIDE POLICE
RETIREES WITH A FIVE PERCENT {5%) COST OF LIVING
ADJUSTMENT; PROVIDING FOR A SAVINGS CLAUSE,
AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Atlantic Beach, Flonda has an interest m the retirement of its
employees and wishes to improve the retirement system whenever feasible, and
WHEREAS, the refired members and beneficianes of the City of Atlantic Beach Employees
Retirement System have not received any cost of hvmg adJustment since January 1997, the City's
pension plan is hereby amended as follows
NOW THEREFORE, BE IT ENACTED BY THE CITY COMMISSION OF THE
CITY OF ATLANTIC BEACH, FLORIDA, AS FOLLOWS:
Section 1: Divison 3, General Employee Retirement System, Section 2-281(b), Cost-of-
hvmg adjustment is amended as follows
Sec.2-281. Amount of level straight life pension.
(b) Cost-of-living ad~zzstment All retirement system members and beneficianes who retired
pnor to January 1, 1997, shall receive a one rime cost-of--hvmg adjustment, which shall be m an
amount equal to three (3) percent of the benefits paid to such retired members and beneficianes
dunng the immediately preceding month Effective October 2001. all retirement system members
and beneficianes who retired pnor to January 1. 2001, shall receive a one time cost-of--living
adtustment, which shall be m an amount equal to five (5)percent of the benef is paid to such retired
members and beneficianes dunne the immediate~precedmQ month
Section 2: Division 4, Police Officers' Retirement System, Section 2-310 10(b), Cost-of-
hvmg adjustment is amended as follows
Sec. 2-310.10. Calculation of pension benefit.
(b) Cost-of--hvmg ad~zzstment All retirement system members and beneficianes who retired
pnor to January 1, 1997, shall receive a one time cost-of--living adjustment, which shall be m an
AGENDA ITEM #7C
SEPTEMBER 24, 2001
amount equal to three (3) percent of the benefits paid to such retired members and beneficianes
dunng the immediately preceding month Effective October 2001, all retirement system members
and beneficianes who retired nnor to January 1. 2001, shall receive a one time cost-of--home
adjustment, which shall be m an amount equal to five (5) percent of the benefits paid to such retired
members and beneficianes dunng the immediately nrecedme month
Section 3 • The provisions adopted herein shall prevail over any existing sections of the
Atlantic Beach Code to the extent said existing sections are contrary or inconsistent herewith
Section 4 • Severabihty ff any section, sentence, clause, word, or phase of this Ordinance
is held to be invalid or unconstitutional by a court of competent~urisdiction, then said holding shall
m no way affect the validity of the remaining portions of this Ordinance
Section 5• This Ordinance shall take effect immediate]y upon its final passage and
adoption and be effective October 2001.
PASSED by the City Commission on second and final reading this _ day of ,
2001.
ATTEST
City Clerk Mayor, Presiding Officer
Approved as to form and correctness
City Attorney
LEGEND Underlining ~s new language