AGENDA MEMORANDUM

Meeting Date:           June 26, 2006

From: Bob Brown, Chairman General Employees Retirement Board                                   

Subject:                      Ordinance amending the “Retirement Plan for The General Employees for The City of Leesburg”

Staff Recommendation:

The General Employees Retirement Board recommends adoption of the amended plan as presented.

Analysis:

The General Employees Retirement Board, upon advice of their duly appointed legal and investment consultants recommend the following amendments to the currently adopted “Retirement Plan For General Employees For The City of Leesburg”, with previous amendments:

Section 4.(amended in Section 2.) Finances and Fund Management: The change increases the maximum amount of total investment allowed in international investments from 10% to 15% which will enable us to take advantage of higher market returns while only minimally increasing risk.

The following amendments create no changes in benefits or costs for the employee or the City. The changes are house-keeping only and are necessary to comply with IRS requirements:

Section 1. Credited Service:  Our members do not contribute so this does not apply. 

Section 10. (amended in section 3.) Optional Forms of Benefits: Rewording with no change in benefit.

Section 15. Distribution of Benefits: Rewording with no change in benefit.

Section 22. subd. 3.  Elimination of Mandatory Distributions: Our members do not contribute so this does not apply.   

Options:

1.  Adopt the Ordinance as presented; or

2.  Such alternative action as the Commission may deem appropriate

Fiscal Impact: 

There is no direct fiscal impact to the City caused by adoption of this Ordinance.

Submission Date and Time:    7/21/2006 4:26 PM7/7/2006 3:39 PM____

Department: ______________________ Prepared by:  ______________________                      Attachments:         Yes____   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 ________RS___________

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