AGENDA MEMORANDUM

Meeting Date:           February 28, 2011

From:                          Jerry Boop, Finance Director, CPA, CGFO

Subject:                      Ordinance amending the City of Leesburg Municipal Firemen’s Retirement Plan, modifying section 2.2 (D) Supplemental Retirement Income with Amendment Seven.

Staff Recommendation: 

Staff recommends approval of the change to the City of Leesburg Municipal Firemen’s Retirement Plan section 2.2 (D) Supplemental Retirement Income. 

Analysis:

At the regular meeting of the Leesburg Municipal Firefighter’s Pension Fund, the Board of Trustees approved language to amend the supplemental benefit component of their Retirement Plan.  The current supplemental benefit is only payable to Firefighters who work as a Leesburg Firefighter until their normal retirement date.  The Pension Board felt that this was unfair to Firefighters who terminate vested or retire under the early or disability retirement provisions of the plan.  In addition, the Board felt that the City would reap the benefit of salary savings should Firefighters retire early.

The current supplemental benefit accrues at the rate of $13.00 per month per year of service, payable for life but only until age 65 and payable only to Firefighters who work to their normal retirement date with a minimum benefit of $220.00 per month. 

The proposed supplemental benefit would accrue at a rate of $10.50 per month per year of service, payable for life but only for a maximum of 13 years.  The benefit would be payable to all Firefighters who draw monthly benefits (who terminate employment on or after January 1, 2011).  This includes disability, normal and early retirees, including those that terminated vested and later draw monthly benefits.  There is no minimum monthly benefit to the new plan. 

Options:

1.  Approve ordinance amending the City of Leesburg Municipal Firemen’s Retirement Plan section 2.2 (D) Supplemental Retirement Income, or;

2.  Such alternative action as the Commission may deem appropriate

Fiscal Impact: 

The Actuarial Impact Statement completed by Foster and Foster reflects that the change is cost neutral and that there would be no financial impact to the Retirement Plan as a result of this change. 

Submission Date and Time:    3/9/2011 5:42 PM____

Department: ____Finance___________ Prepared by:  ____Jerry Boop_________                      Attachments:         Yes_X___   No ______ Advertised:   ____Not Required ______ Dates:   __________________________                      Attorney Review :       Yes___  No ____ _________________________________            Revised 6/10/04

Reviewed by: Dept. Head ________ Finance  Dept. __________________                                    Deputy C.M. ___________________                                          Submitted by: City Manager ___________________

Account No. _________________ Project No. ___________________ WF No. ______________________ Budget  ______________________ Available _____________________