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a'30?92
.3'
. ?a
,r AGENDA 4
Board of Trustees of the Employees'
Pension Fund
' Ma'rch.'30, 1992 ,
After Special Meeting
1. Call to : order 1. 9:16 a.m.
2: 'Approval-of Minutes 2. Approved as submitted:'
`y of 3/16/92. Reapproved'.
.
' Reapprove 312!92
' 3. Appointment of Coopers & Lybrand 3. Approved.
t'. to review impact of Pol ice '&
Fire-Supplemental Pension Plans
on the current project to
qualify the City's Pension Plan,
for a total fee not to exceed
$1,750 and authorize City
' Manager to spend up,to $8,000
,.' additional as he deems necessary
for other work related to'this
project which cannot be
presently foreseen
4. Other"Business: 4. - None.
'J 5. Adjournment: 5. 9:20 a.m.
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.:. . - . ' i ... ; • .. 91
AGENDA '
Soard'of Trustees of the
Employees' Pension Fund
.
March 30, 1992 ;
.After 'Special
Meeting
,
1. Call to order
2. Approval of Minutes
of 3/16/92
Reapprove' 3/2 92
3. ' Appo.i ntment of Coopers & Lybrand
to review impact of Police &
. Fire Supplemental Pension Plans' ;
on the current project to
qualify the ,City's Pension Plan; .
for a total fee not-to exceed
$1,750 and authorize City
Manager to spend up to $8,000
additional as he deems necessary
for other work related to this.
` project-which cannot be
presently foreseen
4. 'Other Business:
` 5. Adjournment:
it
.• Item 0
PENSION FUND TRUSTEES Meeting Date: _ 3/30/92
a Agenda Cover Memorandum
SUBUE^T:
Additional'lExpenditures Regarding'Pension Plan Qualification Project.
RECOMMENDATION/MOTION-
Approve the appointment of Coopers & Lybrand to review the impact of the Police
and Fire Supplemental Pension Plans on the current project to qualify the
City's Pension Plan for a total fee not to exceed $1,750, and authorize the
City Manager to spend up to $8,000 additional as he deems necessary, for other
work related to this project which cannot be presently foreseen.
0 and that the appropriate officials be authorized to execute same.
BACKGROUND:
On November 18, 1991, the Trustees appointed Kalish & Ward, P.A., to assist the
city in modifying the Pension Plan as necessary to achieve IRS "qualification"
and "employer pick--up" of employee contributions for a total fee not to exceed
$15,000. In the course of reviewing our plan and IRS qualification
requirements, Kalish & Ward has determined that the City Supplemental. Plans for
Police and Fire also need to be considered in determining overall compliance
with maximum benefit limitations (IRC Section 415). They have recommended an
actuarial analysis to determine the potential impact of this new development.
our current actuaries have proposed to perform the requested analysis for a fee
not to exceed $1,750.
In addition to the $1,750 for this study, we are requesting authority for the
City Manager to spend up to $8,000 additional as he deems necessary for further
work on this qualification project. Even though we are not presently aware of
additional requirements, there may well be needs for subsequent smaller
expenditures to provide specific information in the future.
Unlike City funds, where the Manager has spending authority up to $10,000, only
the Trustees have authority to spend pension funds. It is for this reason that
we are requesting additional expenditure authority so that the qualification
project can proceed as expeditiously as possible.
Reviewed by. 4 Originating Dept: Costs: up to S9 „750 Trustee Action:
Legal DOHS/Finance Total O Approved
Budget
Purchasin
LA = ? Approved u/conditions
g
Risk Mgmt. HU
_ User Dept: Current Fiscal Yr. E3 Denied
H
CIS ? Continued to:
ACM
'
Funding Source; ^
Other ? Capital imp.
Advertised; ? Operating Attachments:
r Date: 0 Other pension Fund Kalish & Ward Letter
Paper; Coopers 6 Lybrand Letter
d
? N
R
i
ot
re
equ
5 t Affected Parties ? None
? Notified Appropriation Code:
646-7410.301-585
red
13 Not Requi
City Nan er
r
KALI S H 8C WARD
' PNOI[S310HAL ASSOCIATION
A17007N[Y8 AT LAW
atoo SARNISTT PLAZA
WiLLL1}t K.Atte1l 101 BAST KRNNUOY DOVI.KVARD .
ALTO" 0. W.?nD THIMPHON11i (010) QgC-8700
MantAnD A. Son onean POST OFFICK DOX 71 FAOSIMIM (8t0) 2329-8701
Jonarn W. N. RUO 1 TAMPA FLORIDA anno1-0071
RODU30 J. Rovnu.
MxallAHL A. DnDm
w>Y aAx T. n&nwoon, in January 31, 1992
TnOX" P. HWANAMA
Daniel J. DeIgnan, CPA
Finance Director ,
City of Clearwater
Post Office Box 4748
Clearwater, Florida 34618-4748
Re: Employees' Pension Fund of the City of Clearwater
Dear Dan:
The purpose of this letter is to follow-up on our telephone conversation regarding the
need for actuarial services relating to the tax-qualification of the Employees' Pension Plan.
As we discussed, because of limitations imposed by Section 415 of the Internal Revenue
Code ("Code"), benefits earned by certain participants under the police and fire plan may reduce
the benefits they can earn under the Employees' Pension Plan. To avoid unpleasant surprises,
some type of actuarial study should be undertaken to determine the extent of this cut-back, If
any.
In addition, it will be necessary to analyze the effect of Code Section 415 on the benefits
payable to certain early retirees.
We have enclosed for your information a general information letter prepared by the
Internal Revenue Service that discusses certain issues relating to the application of Code
Section 415 to governmental plans.' It appears that disability benefits under the Employees'
Pension Plan will not be an issue.
If you have, any questions, please give me a call.
Sincerely,
Roger J. Rovell
RJRIchd -*?
j
cc: Stephen Metz, Senior Consultant, Coopers & Lybrand
rI
J?
} Coopers. cartlfled publlc accofjnlarnts Suite 15(10 " In principal arena of the wend
tpl E. Kennedy Blvd.
& Ly ran actuarial benefits Tampa, Florida 33602
i r and compensation 1
i 1 coneutlfnq divielnn Tampa (613) 229.0221
Pinellas (613) 48l•156U
ti Fax (813) 229.3646
March 10, 1992
Mr. Daniel J. Deignan, CPA.'
Finance Director'
City of Clearwater .
.Post Office Box 4748
Clearwater, FL 33518-474a
Dear Dan:
This letter will serve as our proposal to provide the City with a
report reviewing the potential impact of the Internal. Revenue
Code's combined plan limits on police and firemen's pension
benefits. Our report will-provide the following:
o A description of the combined plan limits,
o An example of the calculation for a hypothetical employee
(or one or two employees of your choosing),
o An analysis of the expected impact based on the past
history of contributions to the City's Chapter 175 and
Chapter 185 plans. 'This analysis will discuss the
circumstances under which an employee would be likely to
have his benefits limited by the combined plan limits.
Our fees for this report will not exceed $1,750. We will provide
the report within two to three weeks of approval..
If you have any questions or comments, please give me a call.
Very truly yours,
Stephen M. Metz
Senior Consultant
SMM/bb
RECjI vED
U44 !.2 199
FINANCE Div.
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