10-04-1989 °r = '" • r q Tit of Eb .eurttter
Posa. OFFICE BOX 1M
*'''� � -^A* EDGEWATER, FLORIDA 32032
1 .1V A
•
GENERAL EMPLOYEES PENSION BOARD
REGULAR MEETING
WEDNESDAY, OCTOBER 4, 1989
9:00 A.M.
CONFERENCE ROOM, CITY HALL
Vice Mayor Gold called to order a regular meeting of the General
Employees Pension Board at 9:07 a.m., Wednesday, October 4, 1989,
in the conference room of City Hall.
ROLL CALL:
Vice Mayor Gold PRESENT •Karen Rickelman PRESENT
Susan Wadsworth PRESENT •Rev. Harvey Hardin PRESENT
Charles Chamberlin PRESENT
Also present were Jack Ascherl, Agent of Record and Sondra
Meager - Pengov, Secretary.
OLD BUSINESS:
Employee Supplemental Retirement Plan - Mr. Ascherl reviewed for
the Board the three plans, presented on the Supplemental
Retirement Alternatives (see attached.)
Ms. Rickelman made a motion to request, from City Council,
authorization to amend the Retirement Plan to include a
designated beneficiary to the Death Benefit. (see attached.)
Seconded by Mr. Chamberlin. Motion CARRIED 5 -0.
Ms. Wadsworth made a motion to have an independent auditor give a
presentation on investment performance to the Board. Seconded by
Ms. Rickelman. Motion CARRIED 5 -0.
ADJOURNMENT:
There being no further business to come before the Board a motion
was made by Ms. Rickelman to adjourn, seconded by Ms. Wadsworth.
The meeting adjourned at 10:14 a.m.
Minutes respectfully submitted by:
Sondra Meager- Pengov, Secretary
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Actuarial Review
of Proposed
Pension Plan
Changes
PREPARED FOR:
City of Edgewater General Employees'
Retirement •Plan
GA 59450
PREPARED:
•
July 6, 1989
_ Principal Mutual Ufa
the' , nc Insurance Company
711 High Street
* Des Moines, Iowa 50309
>t`''` financial
Group
GP 13552.2
Nosy Nee
INTRODUCTION
This report has been prepared in response to your request for cost information
on the following:
Additional Death Benefit
Addition of a Cost -of- Living Provision
CURRENT DATA AND ASSUMPTIONS
Data Date: October 1, 1988.
Interest: 8.0% per annum, compounded annually.
Salary Scale: 7.5% increases each year to retirement.
Turnover: Based on Table 11 of the Actuary's Pension Handbook.
Assets: The value of assets as of October 1, 1988 is $631,254.22.
Retirement Age: Attained age 60 with five years of service or attained
30 years of service.
Vesting Percentage: 100% subsequent to five years of plan participation.
Benefit Formula: 2% of Average Compensation multiplied by years of service.
The estimates in this report are based upon the above Actuarial Assumptions. If,
between now and the next valuation date, these assumptions are not realized, costs
may vary from these estimates.
The above information was prepared in the home office by your valuation analyst.
If you have questions concerning the review, please feel free to use the home
office toll free number (1- 800 -543 -4015) and ask for Dave Hardin, ext. 6859. You
may call Dave directly at (515) 247 -6859.
•
-1-
Principal Mutual Lite
the rincipa Insurance Company
711 High Street
Financial Des Moines, Iowa 50305
Group
• PROPOSED CHANGES
1. Add a lump sum death benefit equal to the present value of the participant's
accrued benefit on date of death.
2. _ •rovision to the plan which would give automatic annual cost -of -ling
increases to p a •• '•:r s receiving monthly retirement bepe its -
increases would be equal to the percen : r - •-irr"t a Consumer Price
Index each year. We h n overall maximum increa'e --Aof_
th a retirement benefit.
•
•
-2- "= ^=''+;; Principal Mutual Lite
the rinCiQa Insurance Company
711 High Street
`r' ` f / Des Moines, Iowa 503:5
Group
DISPLAY OF ESTIMATED COSTS FOR
City of Edgewater General Employees' Retirement Plan
GA 59450
10 -01 -88
Actuarial Proposed Proposed
Valuation Change 1 Change 2
Normal Cost $ 88,042 $ 90,200 $ 1
Normal Cost as a
Percentage of
Compensation 6,47, 6.57. 8.07.
Annual Compensation 1,379,409 1,379,409 1,379,409
Minimum Deposit
(Reflects Credit balance
of $1,346) 126,021 130,000 182,700
20 year funding 134,008 138,200 195,400
Unfunded Frozen Initial
Liability 362,927 382,000 727,000
Frozen Initial Liability 367,418 386,536 731,500
-3-
'' r . ;i`" Principal Mutual Life
• the rincapa Insurance Company
711 High Street
financial Des Moines. Iowa 5030'
Group
ACTUARIAL CERTIFICATION
To the best of my knowledge this impact statement is complete and accurate.
It is based on reasonable techniques and on actuarial assumptions which, in
the aggregate, are reasonably related to the experience of the plan and to
reasonable expectations and which, in combination, represent my best estimate
of anticipated experience under the plan.
To the best of my knowledge the calculations and assumptions reflect all
benefits and expenses to be provided by the plan and any events or trends
which could materially increase plan costs.
Furthermore, this impact statement meets the requirements and intent of
Part VII, Chapter 112, Florida Statutes, based on current plan provisions,
and also recognizes the benefit limitations described in Section 112.65.
7- 3` B / �+-• , F S A, MAAA
(Date)
Neil A. Parmenter
Enrollment Number 3575
Pension Actuarial Services
Principal Mutual Life Insurance Company
• 711 High Street
Des Moines, Iowa 50309
Phone (515) 247 -5467
Principal Mutual Lite
the • rincipa - Insurance Company
= 711 High Street
financial Des Moines, Iowa 50309
Group
•