File Ref. #142
CITY OF
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MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
UNCLASSIFIED EMPLOYEES AND
ELECTED OFFICIALS
RETIREMENT SYSTEM
673-7437
MEMORANDUM
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DATE:
March 25, 1999
TO:
Robert Parcher
City Clerk
FROM:
Margaret A Arculeo '-M.
Pension Administrator
RE:
Unclassified Employees & Elected Officials Retirement System
of the City of Miami Beach - Annual Report for 97/98 Plan Year
In accordance with the Unclassified Employees and Elected Officials Retirement System Ordinance
No, 88-2603 provides for an Annual Report to be filed along with the appropriate statistical
information. The report contains the names of the Board members, how often they meet, their
mission, objectives, strategies and accomplishments as a Board during the past fiscal year. The
statistical information is reported in the Actuarial Valuation as of 10/1/98 and the Independent
Auditor's Report as of 9/30/98 attached.
If there are any questions, please do not hesitate to contact me at the Pension Office 673-7437,
/ma
Enc.
c:\ \\\\\\genboard\annualrptcover.memo
CITY OF
MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
UNCLASSIFIED EMPLOYEES AND
ELECTED OFFICIALS
RETIREMENT SYSTEM
ANNUAL STATUS REPORT
673-7437
RETIREMENT SYSTEM FOR THE UNCLASSIFIED EMPLOYEES & ELECTED
OFFICIALS OF THE CITY OF MIAMI BEACH
For the Year Ended September 30, 1998
The Board ofTrusteesr listed below, meet on the fourth Tuesday of each month:
Walter Coolidge, Trustee
Ed Cox, Chairman
Ramon Duenas, Secretary
Jose Cruz, Trustee
Simon Cruz, Trustee
Jose Damien, Trustee
Jorge Gomez, Vice Chairman
Janice Pye, Trustee
Harold Rosen, Trustee
The Board of Trustees is appointed by the City Manager and consists of nine persons, including one
City Commissioner, and meets monthly. The Trustees are appointed for a two-year term with the
annual elections of a Chairman, Vice Chairman and Secretary. All were re-appointed effective April
1, 1998. Prior to the drafting of this report, Mr. Cox resigned his position as Chairman and Board
Trustee.
The Trustees have the responSloility for the proper operation and management of the System, and for
carrying out the wishes of the City Commission by making effective the provisions of the Pension
Plan Ordinances. They are assisted by contracted professionals in all areas concerning pension. From
the law firm of Cypen & Cypen, Mr. Steve Cypen is legal counsel for the Board and an expert in
pension law.
The Ordinance and Investment Guidelines govern the investment strategy for the Fund's three
investment managers. Mr. Michael Haley, of Mercer Investment Consulting, Inc., is the fund
evaluator and monitors the managers' performance and compliance with the Investment Guidelines.
He reviews this information and advises the Board through quarterly performance reports. The three
investment managers are Montag & Caldwell managing 40% of the assets in equities, The Northern
Trust Company managing 20% of the assets in fixed income and NWQ Investment Management
Company managing 40% of the assets in equities. The rate of return for the year ended September
30, 1998 was -0.5% and the market value was at $74,255,878. However, by December 31, 1998 the
one year rate of return was at 14.7% and the market value was at $85,704,206.
ANNUAL STATUS REPORT
For Plan Year Ended 9/30/98
Page 2
The Actuary for the Plan is the firm of Gabriel, Roeder, Smith & Co., formerly Kruse, O'Connor &
Ling, Inc., located in Fort Lauderdale. The Actuarial Valuation as of October 1, 1998 has been
completed and approved by the Board. A copy has been filed with the State Actuary in Tallahassee
and also forwarded to the Budget Department.
An independent audit has been conducted by the accounting firm of Spear, Safer, Harmon &
Company located in Miami. There were no control or material weaknesses reported by them, and
a copy of the completed audit has been forwarded to the Budget Department. The City's Audit
Department also completed an audit of the System in June 1998. There were no control or material
weaknesses reported from that report either.
The mission of the Board is to implement through proper channels with the coordination and
cooperation of all of the above listed professionals, to insure that the original pmpose for which the
Pension Ordinance was created, which is to provide retirement and other related benefits for eligible
employees and elected officials of the City and their beneficiaries or dependents, is accomplished as
cost effectively as possible.
The objective for meeting this mission is to secure a funding process assisted by actuarially calculated
contributions, and closely monitored investments by a fund evaluator while guided through
Investment Guidelines, to meet the operations and liabilities of the System.
The Unclassified Retirement System and the General Retirement System share an administrative staff
ofthree employees along with other combined administrative and office expenses. Each System is
responsible for those administrative expenses specifically directed to their System.
During the Plan Year ended 9/30/98, the number of Retirees increased from 81 to 95, the Active
Membership is at 112, and the Vested Members total 35. There were no amendments to the
Ordinance this Plan Year.
For those Members who retired during the fiscal year the following provisions applied: Normal
Retirement Eligibility was age 50 with five years of creditable service; the benefit was 4% of FAME
times the years of creditable selVice up to 10/18/92 with 3% of FAME thereafter, with a maximum
benefit of 80% with less than 20 years of creditable selVice. FAME was 1/12 of the average annual
earnings of the last year of creditable service. Retirees receiving benefits for at least 12 months are
subject to a 1.5% compounded cost of living increase each year at October 1st.
Terminations with less than five years of creditable service were eligible to request a lump sum
settlement of accumulated employee contributions including interest, plus an additional 10% of
accumulated employee contributions times his/her years of service, not to exceed ten years. For a
Vested Tennination with five or more years of creditable service, he/she may request the same lump
sum settlement or receive an accrued benefit beginning at age 50 (normal retirement age).
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