Staff recommends approval of the ordinance amending the Municipal Police Officers’ Pension Trust Fund, amending Section 1.
The attached ordinance amends Section 1, Definitions, of the Municipal Police Officers’ Pension Trust Fund. Specifically it amends the definition of Actuarial Equivalent to incorporate the mortality table currently being used by the plan’s actuary, as well as decreases the assumption rate of interest from 8% to 7.9%.
This change has been recommended by the Board of the Municipal Police Officers’ Pension Trust Fund. The actuary for the Plan, Foster & Foster, Inc. has reviewed the proposed ordinance and determined that there is no cost associated with its adoption.
1. Approve the Ordinance amending the City of Leesburg Municipal Police Officers’ Pension Trust Fund; or
2. Such alternative action as the Commission may deem appropriate
Approval of this Ordinance will have no fiscal impact on the City of Leesburg.
Prepared by: ___Jay Evans___________
Attachments: Yes __X__ No _____
Advertised: ____Not Required ______
Attorney Review : Yes___ No ____
Reviewed by: Dept. Head ________
Finance Dept. ________JB________
Deputy C.M. ___________________
City Manager ___________________
Account No. _____N/A_________
Project No. ___________________
WF No. ______________________
AN ORDINANCE OF THE CITY OF LEESBURG, AMENDING CHAPTER 17, PENSIONS AND RETIREMENT, ARTICLE IV, POLICE OFFICERS’ RETIREMENT FUND, OF THE CODE OF ORDINANCES OF THE CITY OF LEESBURG; AMENDING SECTION 1, DEFINITIONS; PROVIDING FOR CODIFICATION; PROVIDING FOR SEVERABILITY OF PROVISIONS; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH AND PROVIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:
SECTION 1: That Chapter 17, Pensions and Retirement, Article IV, Police Officers’ Retirement Fund, of the Code of Ordinances of the City of Leesburg, is hereby amended by amending Section 1, Definitions, to amend the definition of “Actuarial Equivalent”, to read as follows:
Actuarial Equivalent means a benefit or amount of equal value, based upon the RP 2000 Combined Healthy Mortality Table and at an interest rate of seven and nine-tenths percent (7.9%) per annum. This definition may only be amended by the City pursuant to the recommendation of the Board using assumptions adopted by the Board with the advice of the plan’s actuary, such that actuarial assumptions are not subject to City discretion.
SECTION 2: Specific authority is hereby granted to codify and incorporate this Ordinance in the existing Code of Ordinances of the City of Leesburg.
SECTION 3: All Ordinances or parts of Ordinances in conflict herewith be and the same are hereby repealed.
SECTION 4: If any section, subsection, sentence, clause, phrase of this ordinance, or the particular application thereof shall be held invalid by any court, administrative agency, or other body with appropriate jurisdiction, the remaining section, subsection, sentences, clauses, or phrases under application shall not be affected thereby.
SECTION 5: That this Ordinance shall be effective upon adoption.
PASSED AND ADOPTED AT A REGULAR METING OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA, HELD ON THE ____ DAY OF _____________, 2011.