Exh 8DAgenda Item: _cp 1~__
Date: ~~ /3,~~
CITY OF ATLANTIC BEACH
CI'I'Y COMMISSIONER MEETING
STAFF REPORT
ITEM: :Fire C;ontr~act: with City of Jacksonville -Pension Funding
SUBMITTED BY: City Manager David Thompson
DATE: September 8, 1999
BACKGROUND: :Effective Tune 1, 1999, fire services, and fire employees, were transfen~ed to the
City of Jacksonville.
Initially, the City of Jacksonville indicated that assets of the Atlantic: Beach
I;A13~ Fire :Pension Plan were sufficient to fully fund the transfer and thc;re may
be a small :shortage of AB funding; however, it was so insignincant that
;facksonvilae did not consider this "shortage" as long as the City of Atlantic
Beach. transferred a.ll assets to their Plan. However, based upon a review by the
AB pension plan actuaries, it has been determined that the Fire J?ension Plan
may have funds that exceed those necessary to fully fund pension er.~titlements
for retired/'vested fire plan participants and for active fire e;mplo:yees transferred
to Jacksonville. This amount maybe as much as 5300,000.
Floc•ida Statutes 17'i.361 states that when a Pension Plan is tern~nated, surplus
funds will be divided "proportionately" between the plan sponsor. (C;ity of AB)
and the State based upon the total contributions made by t:he Ci~.`y and t:he funds
received fr~am the State.
FUNDING: ,Funds far this action are currently within the Fire portion of the City of Atlantic
~3each Employee Retirement Plan.
RECOMMENDATION: To ensure that the contract is in agreement with actions being taken, complies
tivith FS 175.361, and prevents future misunderstandings concerning funding;
both the Pension Board Attorney and City Attorney recommend. that the
Agreement have the language of the contract changed to read as folla~is:
T'he City of Atlantic Beach Employees Retirement Plan shall transfer to the: Jacksonville
Police and Fire Pension Plan all liabilities of the firefighters' portion of the retirement plan as
of the effecti~; a date of the merger. The firefighters' portion of the assets oi'the plan shall aL;o
be transferred in an amount sufficient to fully fund, as of the effective date of the merger, the
actu:u-ial accrued liability (i.e., accumulated past costs) for Atlantic 13each iarefighte;rs under
the 7acksonvi.lle Plan. In the event there is asset value remaining afi:er transfer of all
liabilities and required assets, such excess asset value shall be divided in accordance ~ti~th Sec.
,~~,,,, 17.361, Florida Statutes.
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CITY MANAGER: ___^~~~