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06-18-1990 Qi (tits 1trtucttr POST OFFICE DOX 100 •$a ,���.., * EDGEWA1ER, FLORIDA32032 ti; 3- A 3 - 'i 4,' "..11_I1Y GENERAL EMPLOYEES PENSION BOARD REGULAR MEETING MONDAY, JUNE 18, 1990 3:00 P.M. CONFERENCE ROOM, CITY HALL Vice Mayor Gold called to order a regular meeting of the General Employees Pension Board at 3:00 p.m., Monday, June 18, 1990, in the conference room of City Hall. ROLL CALL: Vice Mayor Gold Present Robert DeLoach Present Susan Wadsworth Excused Rev. Harvey Hardin Present Charles Chamberlin Present Mary Lou McDonald Excused Also present were Jack Ascherl, Consulting Agent of record and Sondra Meager - Pengov, Secretary. OLD BUSINESS: There being no old business to report, the Board moved to New Business. NEW BUSINESS: Jack Ascherl reviewed a report of funds for the period January 1, 1989 through December 31, 1989 held under Group Contract GA59450. Fund balance as of December 31, 1989 was: General Investment Fund, $935,018.89, the 1989 Average Annual Rate of Return was 10.34 percent (see attached), a Principal Financial Group Pension Plan Analysis report showing total monies invested from December 31, 1987 through December 31, 1989 and the rates of return (see attached), report of the Actuarial Valuation Report, this report provides information needed to determine current year contribution to the plan (see attached). DISCUSSION ITEMS: Jack Ascherl reviewed with the Board, their responsibilities as a Board members. ADJOURNMENT: There being no further business to come before the Board, a motion was made by Rev. Hardin to adjourn, seconded by Chuck Chamberlin. The meeting adjourned at 3:45 p.m. Minutes respectfully submitted by: Sondra Meager - Pengov, Secretary /SMP . \ 1 41110v Nile rn 0 0 w 5 g 0 • H $ m In ...7 .] 0 Mp mo d• < < a ' U _ 0 a s W o 0 u in - 1-4 H a W V - i G a o < z z v i 0 H H H ' w . 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Des Moines, Iowa 50392 GP 9502 -3 Nue ANALYSIS OF THE ACTUARIAL REPORT FOR City of Edgewater General Employee's Retirement Plan GA 59450 This Actuarial Valuation Report is for the plan year beginning October 1, 1989. The report provides the information you need to determine your current year contribution to the plan. This year we have recognized the changes as required by the Tax Reform Act of 1986 (TRA '86). Your plan's definition of compensation has been changed to 415 pay plus elective deferral contributions. As of October 1, 1989, we have recognized the changes needed for your plan to comply with the Age Discrimination in Employment Amendments of 1986. The Late Retirement Benefit has been amended to the greater of the Accrued Benefit on Normal Retirement Date actuarially increased to Late Retirement Date or Accrued Benefit on Late Retirement Date. We have also recognized a signed plan amendment to add a Present Value of Accrued Death Benefit, effective Janaury 10, 1990. See page 6a for more information. Effective January 1, 1989, the maximum benefits allowable under Section 415 of the Internal Revenue Code have increased. Plan liabilities have been redetermined as of the beginning of the plan year to reflect the above changes. See Appendix II for more information. A summary of the results of the actuarial valuation is as follows: Total Normal Cost $125,556 Normal Cost as Percentage of Compensation 7.9% Minimum Employer Deposit to avoid Funding Deficiency 169,666 Normal Cost plus amount to fund the Unfunded Frozen Initial Liability over 20 years 181,580 Total Normal Cost as a percentage of compensation has increased from 6.4% to 7.9 %. This increase is a result of salary increases greater than expected, participant turnover less than assumed, increased 415 maximum benefits and the additional death benefit. You may deposit for the current plan year any amount in excess of the minimum deposit, $169,666. If you wish to follow a schedule of funding dollar amounts are illustrated in paragraph lc, page 2 of the report which will fund the Normal Cost and fund the Unfunded Frozen Initial Liability over a definite period of years. • Principal Mutual Life the' rincipa Insurance Company 711 High Street Financial Des Moines, Iowa 50309 Group Now ACTUARIAL VALUATION RESULTS For the plan year beginning October 1, 1989 As of the valuation date October 1, 1989 1. Deposit Levels a. Your minimum deposit necessary for the current plan year is $169,666. as of the end of the plan year. You may decrease this amount with interest at 8.0% from the end of the plan year to the date the deposit is received. This minimum amount is in addition to employee contri- butions, if applicable. This minimum is based on the requirements of Part VII, Chapter 112, Florida Statutes. Specifically, this is the amount necessary to fund the Normal Cost, and to amortize the Unfunded Frozen Initial Liability (UFIL) according to the schedule indicated in Appendix III. b. The dollar amount illustrated below is the deposit required to fund your Normal cost and to fund the Unfunded Frozen Initial Liability over a specified number of years. This amounts include interest for a full plan year at 8.0 %. Current Plan Year Last Plan Year Period in Years Amount Percentage* Amount Percentage* 20 year funding $181,580 11.5% $134,008 9.7% 2. Normal Costs Current Plan Year Last Plan Year Amount Percentage* Amount Percentage* Total Normal Cost $125,556 7.9% $88,042 6.4% 3. The Frozen Initial Liability is $410,121 of which $400,006 is unfunded as of the beginning of the plan year. *Amounts are expressed as a percentage of active employee annual compensation, which for the current plan year is $1,584,746 and for the last plan year was $1,379,409. -2- Principal Mutual Life the • incipa Insurance Company 711 High Street Financial Des Moines. Iowa 50309 Group *ow Noe MINIMUM FUNDING ACCOUNT 1. The Minimum Funding Account is used to measure the adequacy of funding your pension plan. An Accumulated Credit Balance (total credits exceed total charges) shows that the deposit has been adequate to meet minimum funding requirements. An Accumulated Funding Deficiency (total charges exceed total credits) shows that deposits have not been sufficient to meet the minimum funding requirements. To prevent a deficiency, your contribution should be at least equal to the minimum deposit shown on page 2. Your Minimum Funding Account is calculated at the end of the plan year Therefore, the Minimum Funding Account for the October 1, 1988 plan year is shown in this October 1, 1989 Valuation Report. 2. Minimum Funding Account for "the plan year beginning October 1, 1988 and ending September 30, 1989. a. Charges to the Funding Standard Account • • i. Accumulated Funding Deficiency - -last valuation date $ 0 ii. Employer Normal Cost - -last valuation date 88,042 iii. Amortization charges 38,678 iv. Interest on the above items 10,137 Total Charges $136,857 b. Credits to the Funding Standard Account i. Accumulated Credit Balance - -last valuation date $ 1,346 ii. Employer contributions - -last plan year 126,021 iii. Amortization credits 8,687 iv. Interest on the above items 4,525 Total Credits $140,579 c. Accumulated Credit Balance $ 3,722 The outstanding balance of amortization charges and credits as of the beginning of current plan year is $403,728. The corresponding Unfunded Frozen Initial Liability as of the beginning of the current plan year is $400,006. Effective January 10, 1990 the Unfunded Frozen Initial Liability will be increased by $30,738 due to the additional death benefit. Principal Mutual Life the • nncipa A Insurance Company 711 High Street Financial Des Moines, Iowa 50309 -3- Group GP 14553 A 9 RESOLUTION NO. 90 -R -4 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EDGE - WATER, FLORIDA, AUTHORIZING THE AMENDMENT OF THE CITY OF EDGEWATER GENERAL EMPLOYEES' PENSION PLAN BY INCLUDING A DESIGNATED BENEFICIARY FOR THE DEATH BENEFIT ON DATE OF DEATH AND PROVIDING FOR THE PAYMENT OF A LUMP SUM DEATH BENEFIT EQUAL TO THE PRESENT VALUE OF THE PARTICIPANTS ACCRUED BENEFIT ON DATE OF DEATH; THE 20 YEAR FUNDING COST WILL BE $4192.00; REPEALING ALL RESOLUTIONS IN CONFLICT HEREWITH AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the General Employees' Pension Board of the City of Edgewater, Florida, made a recommendation to amend the Pension Plan to include a designated beneficiary for the death benefit, and WHEREAS, the General Employees' Pension Board of the City of Edgewater, Florida, made a recommendation to amend the Pension Plan to provide for the payment of a lump sum death benefit equal to the present value of the participants accrued benefit on date of death, and WHEREAS, it has been determined by an Actuarial Review prepared by Principal Mutual Life Insurance Company that the twen- ty year funding cost will be $4192.00. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EDGEWATER, FLORIDA: SECTION 1. That the General Employees' Pension Plan of the City of Edgewater, Florida, is hereby amended to include a designated beneficiary for the death benefit. SECTION 2. That the General Employees' Pension Plan of the City of Edgewater, Florida, is hereby amended to provide for the payment of a lump sum death benefit equal to the present value of the participants accrued benefit on date of death. SECTION 3. That the twenty year funding cost will be $4192.00. SECTION 4. That all resolutions or parts of resolutions in conflict herewith, be and the same are hereby repealed. SECTION 5. That this resolution shall take effect immedi- ately upon its adoption by the City Council of the City of Edge- water, Florida, and approval as provided by law. This Resolution was introduced and sponsored by Councilman 1 '�►" 'fir ' Gold , and was read and passed by a vote of the City Coun- cil of the City of Edgewater, Florida, at a Regular meet- ing of said Council held on the 10 day of Janaury 1990, and approved as provided by law. ROLL CALL VOTE AS FOLLOWS: , 61:("41/1/ 1: Ot %.s Mayor ■_.4 0 Oj 911 •uncilman -ZIT % %ne / � o u onSan -Zone Two Counc Thr / r c (4'LL. Councilman- one F.ur ATTEST: City Cle k Authenticated this 10 day of January , 1990. /464: Mayor This Resolution prepared by: City Attorney 2 w STATE OF FLORIDA it Department of Adm 17 .4 '\! Division of Retirement Bob Martinez Cedars Executive Center, Building C Aletta L. Shute Governor 2639 North Monroe Street Secretary Tallahassee, Florida 32399 -1560 February 27, 1990 Mr. Ferdinand Munoz Finance Director City of Edgewater 104 N. Riverside Drive P.O. Box 100 Edgewater, Florida 32132 -0100 RE: The City of Edgewater General Employees' and Police Officers' Retirement Plans Dear Mr. Munoz: This is to confirm our conversation today regarding the necessary items to satisfy Rule 22D- 1.04(3), F.A.C. We are expecting from you the applicable certifications pursuant to the referenced rule, as well as copies of the legal enactments regarding the current benefit programs and the changes thereto. Additionally, we have also requested certain information from your actuary regarding the recent actuarial impact statements. Should you have any questions, please do not hesitate to contact us. Sincerely, Cgt4 Charles Slavin, Actuary Bureau of Program Services CS /lw /w cc: Russell Gold Neil A. Parmenter Marvin B. Clayton j. . "Helping Government Serve Florida" • Equal Opportunity Employer Affirmative Action Employer � O O E wg r �� err Noe CITY OF EDGEWATER • di 904 N. RIVERSIDE DRIVE * " * P.O. Box 100 - Edgewater. Florida 32132 -0100 N , II (904)428 -3245 SunCom 371 -7005 S o04, T -ALIT-/ 0 February 27, 1990 Mr. Charles Slavin, Actuary Bureau of Program Services • State of Florida Department of Administration Division of Retirement Cedars Executive Center, Building B, Room 229 2639 North Monroe Street Tallahassee, Florida 32399-1560 RE: City of Edgewater General Employees' Retirement Plan - GA 59450 CERTIFICATION OF STATEMENT OF ACTUARIAL IMPACT To the best of my knowledge the actuary was provided with all the information necessary to determine the actuarial impact of the proposed amendment of providing a lump sum death benefit equal to the present value of the participants accrued benefit on date of death. The Actuarial Review of Proposed Pension Plan Changes was prepared by Principal Mutual Life Insurance Company and includes an estimate of the cost of implementing the amendment. In reliance upon the representation made in the Actuarial Certification Statement, the proposed changes are in compliance with Part VII, Chapter 112, Florida Statues and Section 14, Article X of the State Constitution. Sincerely, Mr. E Johnson Plan Admi istrator /smp i ii %.:viil11W. neL ewl (.n, oe ana tine same - are - nereoy repealed. _ CITY OF EDGEWATER /,i . ,I. , • * 104 N. RIVERSIDE DRIVE P.O. Box 100 - Edgewater, Florida 32132 -0100 S. - _ 1 (904) 428 -3245 SunCom 371 -7005 ()4 04 RECEIVED fir' "ir;' ' i TAUT 1 March 27, 1990 Principal Mutual Life Insurance Co. 711 High Street Des Moines, Iowa 50392 -3760 RE: General Employees Pension Plan Change GA59450 Dear Ms. Gaston: Enclosed you will find a copy of the letter from Mr. Slavin where it was determined that the change requested by the General Employees Pension Plan was State accepted. I am also forwarding to you a copy of the City's Resolution 90 -R -14 which accepted the change along with a copy of the Actuarial Review which was prepared by Principal on March 12, 1990. Implementation of the change, as quickly as possible, is greatly appreciated. V . truly yours, , ( 1- - t : 7.//iL- - - - l 14 erdinand Munoz / Finance Director Enclosures . cc: Jack Ascherl General Employees Pension Board File FM /mav STATE OF FLORIDA *.r+ 11 7',) Department of Administration Bob Martinez Division of Retirement Aletta L. Shutes Governor • Cedars Executive Center, Building C Secretar\ 2639 North Monroe Street Tallahassee, Florida 32399 -1560 March 21, 1990 Mr. Ferdinand Munoz Finance Director City of Edgewater 104 N. Riverside Drive P.O. Box 100 Edgewater, Florida 32132 -0100 RE: October 1, 1986 (revised), 1987 and 1988 Actuarial Valuation Reports and the July 6, 1989 Actuarial Impact Statement for the City of Edgewater General Employees' Retirement Plan Dear Mr. Munoz: The material we just received regarding the actuarial impact statement as well as the certifications of February 27, 1990 by Elly Johnson enabled us to complete our review of the referenced items and we have determined them to be state accepted. Should you have any questions, please do not hesitate to contact us. Sincerely, Charles Slavin, Actuary Bureau of Program Services CS /lw /w cc: Elly Johnson Neil A. Parmenter "Helping Government Serve Florida" Equal Opportunity Employer Affirmative Action Employer