2019-08-06 Ex 06Law Offices
Chn*stiansen & Define r, P.A.
Scott R. Christiansen 63 Sarasota Center Blvd. Suite 107 H. Lee Dehner
Sarasota, Florida 34240 (1952-2019)
941-377.2200
Fax 941-377-4848
June 3, 2019
Mr. Marcos Montes De Oca
City Administrator
City of Okeechobee
55 S.E. 3rd Avenue
Okeechobee, FL 34974-2032
Re: City of Okeechobee General Employees' Retirement System - Proposed Ordinance
Dear Mr. Montes De Oca:
I represent the Board of Trustees of your City of Okeechobee General Employees'
Retirement System. Enclosed please find a proposed ordinance amending the City of Okeechobee
General Employees' Retirement System that has been approved by the Board and recommended for
adoption by the City Council. The plan is being amended to provide for a reduction in the normal
retirement age from sixty-five to sixty-two. Changes are being made to Section 6, Benefit Amounts
and Eligibility and Section 9, Vesting to reflect this change.
I have enclosed a copy of the required actuarial impact statement from the Board's actuary,
Gabriel Roeder Smith & Company, that must accompany this ordinance when it is presented to the
City for consideration and adoption. if you or any member of your staff have any questions with
regard to this ordinance, please feel free to give me a call. In addition, if you feel it would be
appropriate for me to be present at the meeting at which this ordinance is considered by the City
Council, please contact my office to advise me of the date that the ordinance would be considered.
Yours v ly,
Scott R. Christiansen
SRC/dm
enclosure
cc: Larry Wilson, with enclosure
Kyle Tintle, with enclosure
November 1, 2018
Board of Trustees
City of Okeechobee General Employees’ Retirement System
c/o Ms. Kyle Tintle
Resource Centers, LLC
4360 Northlake Blvd, Suite 206
Palm Beach Gardens, Florida 33410-6264
Re: City of Okeechobee General Employees’ Retirement System
Actuarial Impact Statement
Dear Trustees:
As requested, we are pleased to enclose three (3) copies of an Actuarial Impact Statement as of
October 1, 2017 for the proposed amendment under the City of Okeechobee General Employees’
Retirement System (System).
Background – The System currently provides:
o Normal Retirement eligibility upon the earlier of 1) attainment of age sixty-five (65) and
completion of five (5) years of Credited Service or 2) completion of thirty (30) years of
Credited Service
o Terminated vested benefits commence upon attainment of age sixty-five (65)
o Early retirement benefit reduction from age sixty-five (65)
Proposed Amendment – Under the proposed amendment:
o Normal Retirement eligibility upon the earlier of 1) attainment of age sixty-two (62) and
completion of five (5) years of Credited Service or 2) completion of thirty (30) years of
Credited Service
o Terminated vested benefits commence upon attainment of age sixty-two (62)
o Early retirement benefit reduction from age sixty-two (62)
Results – Based upon the results of our Actuarial Impact Statement, the proposed amendment
increases the first year annual City contribution by $5,918 (0.57% of covered payroll - $1,046,008).
Filing Requirements – We have prepared the Actuarial Impact Statement for filing with the State of
Florida. Please note that this Statement must be signed and dated on behalf of the Board of
Trustees. Copies of the Ordinance upon passage at first reading along with the signed and dated
Board of Trustees
November 1, 2018
Page Two
Actuarial Impact Statement are generally required to be filed with the State at the following
address:
Mr. Douglas E. Beckendorf, A.S.A.
Bureau of Local Retirement Services
Division of Retirement
Building 8
Post Office Box 9000
Tallahassee, Florida 32315-9000
We understand the State requires funding no later than the fiscal year next following the effective
date of the increases in costs resulting from the Ordinance.
Please forward a copy of the Ordinance upon passage to update our files.
Other Considerations – Under Governmental Accounting Standards Board (GASB) Statement
Number 68, we understand the cost / income of benefit changes must be recognized immediately
in pension expense (accounting not funding). Therefore, the pension expense is expected to
increase the first year and then is expected to return to lower levels in fiscal years following initial
recognition of the benefit change.
Actuarial Assumptions and Methods, System Provisions, Financial Data, Member Census Data –
The actuarial assumptions and methods, financial data and member census data employed for
purposes of our Actuarial Impact Statement are the same actuarial assumptions and methods,
financial data and member census data utilized for the October 1, 2017 Actuarial Valuation with the
following exception:
o Assumed retirement eligibility is the earlier of 1) attainment of age sixty-two (62) and
completion of five (5) years of Credited Service or 2) completion of thirty (30) years of
Credited Service
The System provisions employed for purposes of our Actuarial Impact Statement are the same
System provisions utilized for the October 1, 2017 Actuarial Valuation with the exception of the
proposed amendment changes described above.
This Actuarial Impact Statement is intended to describe the estimated future financial effects of the
proposed System provision changes on the System, and is not intended as a recommendation in
favor of the benefit changes or in opposition of the System provision changes.
These calculations are based upon assumptions regarding future events. However, the System’s
long term costs will be determined by actual future events, which may differ materially from the
Board of Trustees
November 1, 2018
Page Three
assumptions made. These calculations are also based upon present System provisions that are
referenced in this Actuarial Impact Statement.
If you have reason to believe the assumptions used are unreasonable, the System provisions are
incorrectly described as referenced, important System provisions relevant to this proposed
Actuarial Impact Statement are not described or that conditions have changed since the
calculations were made, you should contact the undersigned prior to relying on information in this
Actuarial Impact Statement.
Future actuarial measurements may differ significantly from the current measurements presented
in this report due to such factors as the following: System experience differing from that anticipated
by the economic or demographic assumptions; changes in economic or demographic assumptions;
increases or decreases expected as part of the natural operation of the methodology used for these
measurements (such as the end of an amortization period); and changes in System provisions or
applicable law. Due to the limited scope of the actuary’s assignment, the actuary did not perform
an analysis of the potential range of such future measurements.
This Actuarial Impact Statement should not be relied on for any purpose other than the purpose
described in the primary communication. Determinations of the financial results associated with
the benefits described in this report in a manner other than the intended purpose may produce
significantly different results.
This Actuarial Impact Statement has been prepared by actuaries who have substantial experience
valuing public employee retirement plans. To the best of our knowledge the information contained
in this report is accurate and fairly presents the actuarial position of the System as of the Actuarial
Impact Statement date. All calculations have been made in conformity with generally accepted
actuarial principles and practices, with the Actuarial Standards of Practice issued by the Actuarial
Standards Board and with applicable statutes.
This Actuarial Impact Statement may be provided to parties other than the Board only in its entirety
and only with the permission of an approved representative of the Board.
The signing actuaries are independent of the System sponsor.
If you have reason to believe that the information provided in this Actuarial Impact Statement is
inaccurate, or is in any way incomplete, or if you need further information in order to make an
informed decision on the subject matter of this report, please contact the undersigned prior to
making such decision.
The undersigned are Members of the American Academy of Actuaries and meet the Qualification
Standards of the American Academy of Actuaries to render the actuarial opinion contained herein.
Board of Trustees
November 1, 2018
Page Four
If you should have any question concerning the above or if we may be of further assistance with this
matter, please do not hesitate to contact us.
Sincerest regards,
Lawrence F. Wilson, E.A., A.S.A.
Senior Consultant and Actuary
Jennifer M. Borregard, E.A.
Consultant and Actuary
Enclosures
City of Okeechobee General Employees' Retirement System
Actuarial Impact Statement as of October 1, 2017
A. Description of Proposed System Amendment
o Normal Retirement eligibility shall be the earlier of 1) attainment of age sixty-two (62) and
completion of five (5) years of Credited Service or 2) completion of thirty (30) years of
Credited Service regardless of age.
o Terminated vested benefits commence upon attainment of age sixty-two (62)
o Early retirement benefit reduction from age sixty-two (62)
B. An estimate of the cost of implementing this amendment (see attachment)
C. In my opinion, the proposed changes are in compliance with Part VII, Chapter 112, Florida Statutes
and Section 14, Article X of the State Constitution.
Chairman, Retirement Committee
Date
City of Okeechobee General Employees' Retirement System 1
Covered Group
A.Number of Participants
Actives 27 27
Retirees, Disabilities, Beneficiaries
and Vested Terminations 22 22
Total Covered Annual Payroll $1,046,008 $1,046,008
Long Range Cost
B.Actuarial Present Value of Projected 5,461,963 5,370,257
Benefits
C.Valuation Assets 4,409,661 4,409,661
D.Actuarial Present Value of Prospective
Contributions: (B)-(C)1,052,302 960,596
Current Cost
E.Total Normal Cost (for current year)
For Benefits 110,051 115,406
For Administrative Expense 48,490 48,490
Total Normal Cost 158,541 163,896
Increase NC Benefits for Salary Scale 6,603 6,924
Increase NC Admin Exp. for Interest 3,394 3,394
Total Normal Cost for Fiscal Year in (F)168,538 174,214
F.Fiscal Year End to which Contributions Apply 2019 2019
G.Total Required Contributions if paid
quarterly during the fiscal year in (F)175,723 181,641
As % of Payroll 16.80%17.37%
H.Expected Member Contributions in fiscal year (F)66,526 66,526
As % of Payroll 6.36%6.36%
I.Total Required City Contribution if paid
quarterly during the fiscal year in (F)109,197 115,115
As % of Payroll 10.44%11.01%
ACTUARIAL IMPACT STATEMENT
AS OF OCTOBER 1, 2017
Actuarial Proposed
Valuation Amendment
City of Okeechobee General Employees' Retirement System 2
A.Actuarial Present Value (APV) of
Projected Benefits
1. Active Members
Service Retirement Benefits $2,899,448 $2,815,100
Vesting Benefits 161,478 161,533
Disability Benefits 18,881 25,959
Preretirement Death Benefits 40,750 26,259
Return of Contributions 14,041 14,041
Total 3,134,598 3,042,892
2. Inactive Members
Service Retirees 2,276,481 2,276,481
Disability Retirees 0 0
Beneficiaries Receiving Benefits 0 0
Terminated Vested Members 50,884 50,884
Total 2,327,365 2,327,365
3. Grand Total 5,461,963 5,370,257
B.Valuation Assets 4,409,661 4,409,661
C.APV of Projected Normal Costs: (A)-(B)
1. APV of Projected Member Contributions 600,121 522,385
2. APV of Projected Employer Normal Costs 452,181 438,211
3. Total APV of Projected Normal Costs 1,052,302 960,596
D.APV of Projected Covered Payroll 10,002,020 8,706,417
E.Normal Cost Rate: (C3) / (D)10.521%11.033%
F.Annual Payroll of Active Members 1,046,008 1,046,008
G.Normal Cost for Benefits: (E) x (F)110,051 115,406
H.Normal Cost for Administrative Expense 48,490 48,490
I.Total Normal Cost: (G) + (H)158,541 163,896
DERIVATION OF NORMAL COST
AS OF OCTOBER 1, 2017
Actuarial Proposed
Valuation Amendment
City of Okeechobee General Employees' Retirement System 3
CITY OF OKEECHOBEE GENERAL EMPLOYES' RETIREMENT SYSTEM
SUMMARY OF SYSTEM PROVISIONS
A. Ordinances
System established under the Code of Ordinances for the City of Okeechobee General, Florida,
Chapter 2, Article III, Division 7, and was most recently amended under Ordinance No. 1141
passed and adopted on September 6, 2016. The System is also governed by certain provisions
of Part VII, Chapter 112, Florida Statutes (F.S.) and the Internal Revenue Code.
B. Effective Date
Initial Ordinance: January 1, 1972
Amended & Restated Ordinance: October 1, 2016
C. System Year October 1 through September 30.
D. Type of System
Qualified, governmental defined benefit retirement plan; for GASB purposes it is a single-
employer plan. The System was treated as a cost sharing multiple-employer plan for GASB
purposes for FYE September 30, 2015 and FYE September 30, 2016.
E. Eligibility Requirements
All regular full-time employees of the City (excluding certified Police Officers and Firefighters
and the Utility Authority) are eligible on Date of Employment; Participation is mandatory.
Elected officials are also eligible.
F. Credited Service
Service is measured as the total number of years and completed months of service as a
participant. No service is credited for any periods of employment for which the participant
received a refund of Employee Contributions.
G. Compensation
Compensation includes tax sheltered and tax exempt income which would otherwise be
included in base income, derived from elective employee payroll deductions or salary
reductions, but excluding overtime, bonuses and any other non-regular payment.
H. Average Final Compensation (AFC)
AFC is the average compensation over the highest five years of the last ten years.
City of Okeechobee General Employees' Retirement System 4
I. Normal Retirement
Eligibility: Age 62 and 5 years of service, or 30 years of service regardless of age.
Benefit: 2.10% of Average Final Compensation times years and completed months of
continuous service with the City.
Normal Form
of Benefit: Monthly annuity payable for life, with 10 years guaranteed; other options are
available.
COLA: None
J. Early Retirement
Eligibility: A participant may elect to retire earlier than the Normal Retirement Eligibility
upon the attainment of age 55 with 10 years of Credited Service.
Benefit: The Normal Retirement Benefit is reduced by 1/6% for each month by which
the Early Retirement date precedes age 62 (i.e. 2% per year early).
Normal Form
of Benefit: Monthly annuity payable for life, with 10 years guaranteed; other options are
available.
COLA: None
K. Delayed Retirement
Same as Normal Retirement taking into account compensation earned and service credited
until the date of actual retirement.
L. Service Connected Disability
Eligibility: Disabled so as to be incapable of further service with the City.
Benefit: Calculated in the same manner as for Early Retirement if the benefit begins at
or after age 55, and if the benefit begins prior to age 55, the benefit shall also
be actuarially reduced for the period prior to age 55.
Normal Form
of Benefit: Monthly annuity payable for life, with 10 years guaranteed; other options are
available.
COLA: None
City of Okeechobee General Employees' Retirement System 5
M. Non-Service Connected Disability
Eligibility: Disabled so as to be incapable of further service with the City.
Benefit: Calculated in the same manner as for Early Retirement if the benefit begins at
or after age 55, and if the benefit begins prior to age 55, the benefit shall also
be actuarially reduced for the period prior to age 55.
Normal Form
of Benefit: Monthly annuity payable for life, with 10 years guaranteed; other options are
available.
COLA: None
N. Death in the Line of Duty
Eligibility: Any participant who dies before starting to receive benefits.
Benefit: Vested Active and Inactive participants: The amount of the death benefit
shall be equal to 50% of present value of vested accrued benefit, or refund of
accumulated member contributions, with interest, whichever is greater.
Eligible for Retirement: The amount of the death benefit shall be the accrued
benefit, determined as though the deceased had retired, payable under 10
year certain and life form, or 50% of present value of vested accrued benefit
if greater.
Not Vested: Return of accumulated contributions.
Normal Form
of Benefit: Monthly annuity payable for life, with 10 years guaranteed; other options are
available.
COLA: None
O. Other Pre-Retirement Death
Eligibility: Any participant who dies before starting to receive benefits.
Benefit: Vested Active and Inactive participants: The amount of the death benefit
shall be equal to 50% of present value of vested accrued benefit, or refund of
accumulated member contributions, with interest, whichever is greater.
Eligible for Retirement: The amount of the death benefit shall be the accrued
benefit, determined as though the deceased had retired, payable under 10
year certain and life form, or 50% of present value of vested accrued benefit
if greater.
City of Okeechobee General Employees' Retirement System 6
Other Pre-Retirement Death - Continued
Not Vested: Return of accumulated contributions.
Normal Form
of Benefit: Monthly annuity payable for life, with 10 years guaranteed; other options are
available.
COLA: None
P. Post Retirement Death
Benefit determined by the form of benefit elected upon retirement.
Q. Optional Forms
In lieu of electing the Normal Form of benefit, the optional forms of benefits available to all
retirees are the Single Life Annuity option and the 50%, 66-2/3%, 75% or 100% Joint and
Survivor options. A Social Security option is also available for participants retiring prior to the
time they are eligible for Social Security retirement benefits.
R. Vested Termination
Eligibility: Participants earn a non-forfeitable right to System benefits after the
completion of 5 years of Credited Service if they elect to leave their
accumulated contributions in the fund.
Benefit: The participant’s accrued Normal Retirement Benefit as of the date of
termination, beginning at age 62. Participants with 10 or more years of
Credited Service may elect to receive an actuarially reduced Early Retirement
Benefit beginning anytime between ages 55 and 62.
Not Vested: Return of accumulated contributions with interest.
Normal Form
of Benefit: Monthly annuity payable for life, with 10 years guaranteed; other options are
available.
COLA: None
S. Refunds
Eligibility: Participants leaving employment with less than 5 years of Credited Service are
eligible. Optionally, vested participants (those with 5 or more years of Credited
Service) may elect a refund in lieu of the vested benefits otherwise due.
Benefit: Refund of the participant’s Employee Contributions with interest.
City of Okeechobee General Employees' Retirement System 7
T. Participant Contributions
6% of earnings. Member contributions are accumulated at 5.25% interest through September
30, 1993, and 3.00%, interest thereafter.
U. Employer Contributions
The additional amount determined by the actuary needed to fund the System properly
according to State laws.
V. Cost of Living Increases
Not Applicable
W. 13th Check
Not Applicable
X. Deferred Retirement Option Plan
Eligibility: System members are eligible for the DROP on the first day of the month
coincident with or next following Normal Retirement Date.
Members who meet the eligibility requirements must submit a written election
to participate in the DROP.
Benefit: The member’s Credited Service and FAE are frozen upon entry into the DROP.
The monthly retirement benefit as described under Normal Retirement is
calculated based upon the frozen Credited Service and FAE.
Maximum
DROP Period: 60 months
Interest
Credited: Members elect to have their DROP accounts credited quarterly at a rate equal
to either (i) 6.5% or (ii) actual net rate of investment return realized by the
System. Members may elect to change their elections once during the DROP
period.
Normal Form
of Benefit: Monthly annuity payable for life, with 10 years guaranteed; other options are
available.
COLA: None
City of Okeechobee General Employees' Retirement System 8
Y. Other Ancillary Benefits
There are no ancillary retirement type benefits not required by statutes but which might be
deemed a City of Okeechobee General Employees’ Retirement System liability if continued
beyond the availability of funding by the current funding source.
Z. Changes from Previous Valuation
Normal Retirement Eligibility was:
Age 65 and 5 years of service, or 30 years of service regardless of age.
Early Retirement Benefit was:
The Normal Retirement Benefit is reduced by 1/6% for each month by which the Early
Retirement date precedes age 65 (i.e. 2% per year early).
Vested Termination Benefit was:
The participant’s accrued Normal Retirement Benefit as of the date of termination,
beginning at age 65. Participants with 10 or more years of Credited Service may elect
to receive an actuarially reduced Early Retirement Benefit beginning anytime between
ages 55 and 65.
City of Okeechobee General Employees' Retirement System 9
ACTUARIAL COST METHODS AND ASSUMPTIONS
Valuation Assumptions
The covered group size does not support statistically significant experience on which to base certain
demographic assumptions. Mortality is based on a commonly used fully generational mortality
table and projection scale. The retirement age assumption tracks the eligibility requirements for
normal retirement. Note that a member must be eligible for normal retirement in order to enter
the DROP.
Economic Assumptions
The investment return rate assumed in the valuation is 7.0% per direction from the Board of
Trustees based on information from their investment consultant. The 7.0% is per year, compounded
annually, net of investment expenses.
The inflation rate assumed in this valuation is 2.50% per year. The Inflation Rate is defined to be
the long-term rate of annual increases in goods and services.
The assumed real rate of return over inflation is defined to be the portion of total investment
return that is more than the assumed inflation rate. Considering other economic assumptions, the
7.0% investment return rate translates to an assumed real rate of return over inflation of 4.50%.
Payroll growth The active member population is assumed to remain constant.
Administrative Expenses paid out of the fund are assumed to be the actual expenses incurred for
the preceding System year.
Pay increase assumptions for individual active members is 6.0% per year. Part of the assumption
for each age is for merit and/or seniority increase, and the other 2.50% recognizes inflation,
productivity increases, and other macro-economic forces. Please see illustration below:
20 9.2 %
30 16.4
40 29.4
50 52.7
60 94.3
Current Salary as a
% of Salary at Age 62 Age
City of Okeechobee General Employees' Retirement System 10
Demographic Assumptions
The mortality table is RP-2000 Combined Healthy Participant Mortality Table (for pre-retirement
mortality) and the RP-2000 Mortality Table for Annuitants (for post-retirement mortality), with
mortality improvements projected to all future years after 2000 using Scale BB. For males, the base
mortality rates include a 50% blue collar adjustment and a 50% white collar adjustment. For
females, the base mortality rates include a 100% white collar adjustment. These are the same rates
currently in use for Regular Class members of the Florida Retirement System (FRS), as mandated by
Florida House Bill 1309.
FRS Post-Retirement Mortality for Regular Class Members
Sample
Attained
Ages (in 2017)Men Women Men Women
50 0.55 %0.23 %34.66 38.31
55 0.60 0.32 30.03 33.29
60 0.76 0.47 25.36 28.39
65 1.15 0.74 20.84 23.65
70 1.78 1.24 16.59 19.19
75 2.97 2.09 12.73 15.11
80 5.03 3.51 9.40 11.49
Probability of Future Life
Dying Next Year Expectancy (years)
FRS Pre-Retirement Mortality for Regular Class Members
Sample
Attained
Ages (in 2017)Men Women Men Women
50 0.21 %0.15 %35.58 38.66
55 0.36 0.24 30.46 33.51
60 0.61 0.39 25.53 28.49
65 1.08 0.70 20.88 23.67
70 1.78 1.24 16.59 19.19
75 2.97 2.09 12.73 15.11
80 5.03 3.51 9.40 11.49
Probability of Future Life
Dying Next Year Expectancy (years)
For disabled lives, the mortality table used was the RP-2000 Mortality for Disabled Annuitants, set-
back 4 years for males and set-forward 2 years for females, with no provision being made for future
mortality improvements. These are the same rates currently in use for Regular Class members of
the Florida Retirement System (FRS), as mandated by Florida House Bill 1309.
City of Okeechobee General Employees' Retirement System 11
FRS Disabled Mortality for Regular Class Members
Sample
Attained
Ages (in 2017)Men Women Men Women
50 2.38 %1.35 %20.25 23.74
55 3.03 1.87 17.78 20.46
60 3.67 2.41 15.55 17.43
65 4.35 3.13 13.44 14.58
70 5.22 4.29 11.39 11.96
75 6.58 5.95 9.43 9.65
80 8.70 8.23 7.65 7.66
Probability of Future Life
Dying Next Year Expectancy (years)
The rates of retirement are used to measure the probability of eligible members retiring during the
next year. It was assumed that members retire upon eligibility. Assumed eligibility is age 62 and 5
years of service, or 30 years of service regardless of age.
Any actuarial losses due to early retirement are assumed to be offset by gains due to eliminating
future salary increases. Any actuarial losses due to delayed retirement are assumed to be offset by
gains due to delaying the benefit commencement date.
Rates of separation from active membership were as shown below (rates do not apply to members
eligible for normal retirement and do not include separation on account of death or disability). This
assumption measures the probabilities of members remaining in employment.
20 12.4 %
30 10.5
40 5.7
50 1.5
60 0.5
Separation RateAge
Rates of disability among active members were as shown below. This assumption measures the
probability of members retiring with a disability benefit.
20 0.07 %
30 0.11
40 0.19
50 0.51
60 1.66
Disability Rate Age
City of Okeechobee General Employees' Retirement System 12
Valuation Methods
Actuarial Cost Method - Normal cost and the allocation of benefit values between service rendered
before and after the valuation date were determined using an Aggregate Actuarial Cost Method
having the following characteristics:
(i) The excess of the Actuarial Present Value of Projected Benefits of the group included in
the valuation, over the Actuarial Value of Assets is allocated as a level percentage of
earnings of the group between the valuation date and the assumed retirement age. This
allocation is performed for the group as a whole, not as a sum of individual allocations.
(ii) The portion of this Actuarial Present Value allocated to a specific year is called the Normal
Cost. Under this method, actuarial gains and losses, System amendments, and changes in
actuarial assumptions and methods reduce or increase future Normal Costs.
Timing of Contribution - increase Normal Cost for benefits by 6%; increase Normal Cost for
administrative expense by 7%; increase expected member contribution by 6%; increase City
contribution with interest for quarterly payments.
Actuarial Value of Assets - The Actuarial Value of Assets phases in the difference between the
expected return on the actuarial value of assets and the actual return on the market of assets at the
rate of 25% per year. The Actuarial Value of Assets is further adjusted to the extent necessary to
fall within the corridor whose lower limit is 80% of the Market Value of System assets and whose
upper limit is 120% of the Market Value of System assets. During periods when investment
performance exceeds the assumed rate, Actuarial Value of Assets will tend to be less than Market
Value. During periods when investment performance is less than assumed rate, Actuarial Value of
Assets will tend to be greater than Market Value.
Changes from Previous Valuation:
The rates of retirement were:
It was assumed that members retire upon eligibility. Assumed eligibility is age 65 and 5
years of service, or 30 years of service regardless of age.
Rationale for Assumptions:
The investment earnings assumption reflects direction from the Board of Trustees based on
information from their investment consultant. The mortality table is based on the assumption used
by the Florida Retirement System, as required by Florida House Bill 1309 (codified in Chapter 2015-
157).
Ordinance No. 1190 - Page 1 of 2
Language to be added is underlined.
Language to be deleted is struck through.
ORDINANCE NO. 1190
AN ORDINANCE OF THE CITY OF OKEECHOBEE FURTHER AMENDING THE CITY
OF OKEECHOBEE GENERAL EMPLOYEES= RETIREMENT SYSTEM, RESTATED
PURSUANT TO ORDINANCE 1141; AMENDING SECTION 6, BENEFIT AMOUNTS
AND ELIGIBILITY; AMENDING SECTION 9, VESTING; PROVIDING FOR
CODIFICATION; PROVIDING FOR SEVERABILITY OF PROVISIONS; REPEALING
ALL ORDINANCES IN CONFLICT HEREWITH; AND PROVIDING AN EFFECTIVE
DATE.
WHEREAS, the City of Okeechobee General employees are presently provided pension and certain other
benefits under Ordinances of the City of Okeechobee; and
NOW THEREFORE, be it ordained before the City Council of the Cit y of Okeechobee, Florida; presented
at a duly advertised public meeting; and passed by majority vote of the City Council; and properly
executed by the Mayor or designee, as Chief Presiding Officer for the City:
SECTION 1: That the City of Okeechobee General Employees= Retirement System, restated pursuant
to Ordinance No. 1141, as amended, is hereby further amended by amending Section 6, Benefit Amounts
and Eligibility, subsection 1., Normal Retirement Age and Date, and subsection 4., Early Retirement
Benefit, to read as follows:
* * * * *
1. Normal Retirement Age and Date.
A Member's normal retirement age is the earlier of the attainment of age sixty-five (65)
sixty-two (62) and the completion of five (5) years of Credited Service or upon the completion of thirty (30)
years of Credited Service, regardless of age. Each Member shall become one hundred percent (100%)
vested in his accrued benefit at normal retirement age. A Member's normal retirement date shall be the first
day of the month coincident with or next following the date the Member retires from the City after attaining
normal retirement age.
* * * * *
4. Early Retirement Benefit.
A member retiring hereunder on his early retirement date may receive either a deferred or
an immediate monthly retirement benefit payable in the same form as for normal retirement as follows:
A. A deferred monthly retirement benefit which shall commence at age sixty-five (65)
sixty-two (62) and shall be continued on the first day of each month thereafter.
The amount of each such deferred monthly retirement benefit shall be determined
in the same manner as for retirement on his normal retirement date except that
Credited Service and Average Final Compensation shall be determined as of his
early retirement date; or
B. An immediate monthly retirement benefit which shall commence on his early
retirement date and shall be continued on the first day of each month thereafter.
The benefit payable shall be as determined in paragraph A above, which is
reduced by two percent (2%) for each year by which the commencement of
benefits precedes age sixty-five (65) sixty-two (62).
* * * * *
SECTION 2: That the City of Okeechobee General Employees= Retirement System, restated pursuant
to Ordinance No. 1141, as amended, is hereby further amended by amending Section 9, Vesting,
subsection 2., to read as follows:
* * * * *
2. If the Member has five (5) or more years of Credited Service upon termination, the
Member shall be entitled to a monthly retirement benefit, determined in the same manner as for normal or
early retirement and based upon the Member's Credited Service, Average Final Compensation and the
benefit accrual rate as of the date of termination, payable to him commencing at age 65 62, or age 55
reduced as for early retirement from age 65 62, provided he does not elect to withdraw his Accumulated
Contributions and provided the Member survives to his otherwise normal or early retirem ent date. If the
Ordinance No. 1190 - Page 2 of 2
Language to be added is underlined.
Language to be deleted is struck through.
Member does not withdraw his Accumulated Contributions and does not survive to his otherwise normal or
early retirement date, his designated Beneficiary shall be entitled to a benefit as provided herein for a
deceased Member, vested or eligible for Retirement under Pre-Retirement Death.
* * * * *
SECTION 3: Specific authority is hereby granted to codify and incorporate this Ordinance in the existing
Code of Ordinances of the City of Okeechobee.
SECTION 4: All Ordinances or parts of Ordinances in conflict herewith be and the same are hereby
repealed.
SECTION 5: 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 6: That this Ordinance shall become effective upon adoption.
INTRODUCED on First Reading and set for Final Public Hearing this 16th day of July, 2019.
Dowling R. Watford, Jr., Mayor
ATTEST:
Lane Gamiotea, CMC, City Clerk
PASSED AND ADOPTED after Second Reading and Final Public Hearing this 6th day of August, 2019.
Dowling R. Watford, Jr., Mayor
ATTEST:
Lane Gamiotea, CMC, City Clerk
APPROVED FOR LEGAL SUFFICIENCY:
John R. Cook, City Attorney
Lake Okeechobee:N"
miiiI
107 SW 17th Str. ;ef to 15
k NDEPENDENTOkeechobee, FJ.orla 37,41- ' \
863-763 134 Cf'�' °� .
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NEWSMEDIA INC. US �'f «, c ......,
STATE OF FLORIDA `� i4, ? ` /
COUNTY OF OKEECHOBEE •:,...,.._/I � v ,-/
Before the undersigned authority personally appeared
CITYF OKEECHOBEE
Katrina Elsken, who on oath says she is the Publisher of the Lake CONSIDERATION OFADOPTING
AQIYORDINANCE
Okeechobee News, a three times a week Newspaper published at NOTICE IS HEREBY GIVEN that the ay Caurrdl of the ray cf
Okeechobee wa mrdrrt a Pubic Hearing on Tues, 6,
Okeechobee, in Okeechobee County, Florida, that the attached 2O1s,at s PM,oras won uraar poke,at ' sE
aid AvG Olmedral�ee R,b mnsda fcx or the
copy of advertisement being a ('L.3 kC Nfi t - `°'°""` raw Na 1190:AN Ana t3Ttf OICEEDttIOBEE HNUER AMENDING THE A OF
olloBEE( IExAI Eh�LOYEESRETIItE1dENr M,
/\ l ` RESTATED PURSUANT TO ORDIINANOE 1141;AMENDING
in the matter of r_:�?t tCI-111Z sL�'C)''' -�-1 , -ffi1 L -f TRIAMoPNISAND EI.IGIBnIIY;A ND;
I� IING 9 vtrsmNG;PRWIDIING TORooDiFccAnoN;
PROVIDING FOR SEVFRABDITY OF PROVISIONS;REPEAL-
-) ALL ORDINANCES IN MIMIC!'HEREWITH;AND PRO-
� L; r� VIDINGANEFFECTVEDiATE.
`—' ` t LL YC1 S"1 LCAi muiixl of the pudic are encouraged to*band and rirte n
in the 19th Judicial District of the Circuit Court of Okeechobee cf theFlamdlic A the Offizencifteralledatk doling
business toms,Mon-Fri,8:0:1 AM-4:30PM,a fonccidals.
County, Florida,was published in said newspaper in the issues of ANY PERSON DECIDING TOAPPFALany decision made bythe
aty Cad with impel to any ma misdeed at this rusebng wI
need to rive a verbatim reaxd of the proceed k made the
re ba Includes the test and eviderr�upon etre (ADA),
be taasa 1.In aoiordanoe theA1wbrts with Disabilities Ad:(ADA),
! �I r i cit arryperznwihadsablayasd ibytheADA tlatneedsspewlao-
I l r oxnrtrodadontopartidpa�intlispn�medng,aorrlacit}teatyae�ior
face no later than two business days pricrto proaaedug,863-763-3372.
Affiant further says that the said Lake Okeechobee News is a BE ADVISED that sha,ldyou intend mshowarydocumer�r;i e,
video or bens m the Card n supporta to rtn on
newspaper published at Okeechobee, in said Okeechobee County, p,ortt,1e7g.tra*rPrde ' be
Florida, and that said newspaper has heretofore been published ay:�y aerklaneGamioha (VC
continuously in said Okeechobee County, Florida each week and 351812 ON 7/2612019
has been entered as second class mail matter at the post office in
Okeechobee, in said Okeechobee County, Florida, for a period of
one year next preceding the first publication of the attached copy
of advertisement, and affiant further says that she has neither
paid nor promised any person, firm or corporation any discount,
rebate, commission or refund for the purpose of securing this
advertisement for publication in the said newspaper.
atrina Elsken
Sworn to and subscribed before me,this
).i,, 1 day of 'u- -t , -�..:'I t AD
Notary Public State of Florida at Large
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40.1..44.. ANGIE BRIDGES
*; ', :*: MY COMMISSION#FF 9711149
t. EXPIRES:April20 2020
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