File Ref. #193 (1 of 3)
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CITY OF
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CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
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UNCLASSIFIED EMPLOYEES AND
ELECTED OFFICIALS
RETIREMENT SYSTEM
673-7437
MEMORANDUM
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DATE:
March 27, 2000
TO:
Robert Parcher
City Clerk
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FROM:
Margaret A Arculeo 'Z.~..
Pension Administrator '
RE:
Unclassified Employees & Elected Officials Retirement System
of the City of Miami Beach - Annual Report for 98/99 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 10/1/99 and the Independent
Auditor's Report as of 9/30/99 attached,
If there are any questions, please do not hesitate to contact me at the Pension Office 673-7437
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ANNUAL STATUS REPORT
RETIREMENT SYSTEM FOR THE UNCLASSIFIED EMPLOYEES & ELECTED
OFFICIALS OF THE CITY OF MIAMI BEACH
For the Year Ended September 30, 1999
The Board of Trustees, listed below, meet on the fourth Tuesday of each month:
Walter Coolidge, Trustee
Jose Cruz, Trustee
Jose Damien, Secretary
Ramon Duenas, Vice Chairman
Luis Garcia, Trustee
Jorge Gomez, Chairman of the Board
Harold Rosen, Trustee
Oscar Santiesteban, Jr., Trustee
Patricia Walker, Trustee
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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, 1999,
The Trustees have the responsibility 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 RhumbLine Advisers managing 40%
of the assets in equities in a Russell 1000 Value Index Fund, The rate of return for the year ended
September 30, 1999 was 19.1 % and the market value was at $85,810,866 compared to $74,255,878
at September 30, 1998,
ANNUAL STATUS REPORT
For Plan Year Ended 9/30/99
Page 2
The Actuary for the Plan is the firm of Gabriel, Roeder, Smith & Co, located in Fort Lauderdale, The
Actuarial Valuation as of October 1, 1999 has been completed and approved by the Board,
According to this report, the City's contribution for the coming Plan Year due October 1, 2000, will
be at zero, A copy of this Valuation has been filed with the State Actuary in Tallahassee and also
forwarded to the City's 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. A copy
of their report has also been forwarded to the City's Budget Department.
The mission of the Board has been to implement through proper channels, with the coordination and
cooperation of all of the above listed professionals, and insure that the original purpose 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 has been 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
of three employees along with other combined administrative and office expenses, Separately, each
System is responsible for those administrative expenses specifically directed to their System.
During the Plan Year ended 9/30/99, the number of Retirees increased from 95 to 103, the Active
Membership is at 109, and the Vested Members total 34, 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 service up to 10/18/92 with 3% ofF AME thereafter, with a maximum
benefit of80% with less than 20 years of creditable service, 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 ofliving 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 Termination with five or more years of creditable service, he/she were eligible to request the
same lump sum settlement or receive an accrued benefit beginning at age 50 (normal retirement age)
f:lpensl$all\mluncboardlannualrpt. 99