Ordinance 2021-4423 ORDINANCE NO. 2021-4423
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, AMENDING THE CITY'S PENSION
ORDINANCE, CREATED BY ORDINANCE NO. 2006-3504, AS
AMENDED (THE "MIAMI BEACH EMPLOYEES' RETIREMENT PLAN"
OR "PLAN"), BY AMENDING SECTION 5.01(b)(6) THEREOF, FOR THE
SOLE PURPOSE OF IMPLEMENTING EMPLOYEE BENEFIT
PROVISIONS RELATING TO THE EMPLOYMENT OF THE CITY CLERK,
AS APPROVED VIA CITY COMMISSION RESOLUTION NO. 2021-31601,
BY PROVIDING FOR A PENSION ACCRUAL FACTOR OF FOUR
PERCENT (4%) FOR THE CHARTER POSITION OF CITY CLERK, THE
SAME ACCRUAL FACTOR APPLICABLE TO THE CITY MANAGER
AND CITY ATTORNEY; AND PROVIDING FOR SEVERABILITY;
REPEALER; AND AN EFFECTIVE DATE.
WHEREAS, at its meeting on April 11, 2012, the Mayor and City Commission
appointed Rafael E. Granado to the position of City Clerk of the City of Miami Beach
effective April 11, 2012; and
WHEREAS, Mr. Granado's engagement is reflected in an Employment Agreement
dated April 22, 2015, and unanimously approved by the City Commission pursuant to
Resolution No. 2015-28994 (the "Employment Agreement"); and
WHEREAS, the Employment Agreement provides for an annual performance
review and evaluation of the City Clerk, at which,time the City Commission shall review
the annual salary and/or other benefits of the City Clerk, and shall adjust in such amounts
and to such extent as the City Commission may determine it is desirable to do so; and
WHEREAS, on July 13, 2016, Mr. Granado's Employment Agreement was further
amended pursuant to Resolution No. 2016- 29513; and
WHEREAS, on July 26, 2017, Mr. Granado's Employment Agreement was further
amended pursuant to Resolution No. 2017-29960; and
WHEREAS, on July 17, 2018, Mr. Granado's Employment Agreement was further
amended pursuant to Resolution No. 2018- 30384; and
WHEREAS, on September 11, 2019, Mr. Granado's Employment Agreement was
further amended pursuant to Resolution No. 2019- 30992; and
WHEREAS, on February 10, 2021, Mr. Granado's Employment Agreement was
further amended pursuant to Resolution No. 2021-31601; which amendment provided, in
lieu of a merit increase, that the employee pension accrual factor for the City Clerk would
be modified from 3% to 4%, to provide the City Clerk with the same employee pension
accrual factor afforded to the City Manager and City Attorney under the Plan, during any
employee's period of service in said positions; and
WHEREAS, the change to the pension accrual factor requires an amendment to
the implementing ordinance creating the Plan (Ordinance No. 2006-3504, as
subsequently amended); and
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA:
SECTION 1. Section 5.01 (b) 6)of the Miami Beach Employees' Retirement Plan created
by Ordinance 2006-3504, as subsequently amended, is hereby amended as follows:
Section 5. Benefits
(b) Normal Retirement Benefit
* * *
6) Notwithstanding the provisions of paragraph (1), above, the normal
retirement benefit payable to a Member who has served as an Elected
Official, City Manager, Of City Attorney, or City Clerk (from and after
December 12, 2012, the date the position of City Clerk became a charter
officer of the City) shall be four percent (4%) of final average monthly
earnings multiplied by the number of years of creditable service as an
Elected Official, City Manager, Of City Attorney or City Clerk; andthe
percentage rate in effect under the Classified System, Unclassified
System or this Plan, as applicable, for any other periods of City
employment multiplied by the number of years of creditable service in
such employment; up to a maximum of eighty percent (80%) of final
average monthly earnings. Notwithstanding any other provision of this
Plan, in determining the benefit payable under this paragraph (6),
earnings as an Elected Official, City Manager, or City Attorney, or City
Clerk shall include total W-2 compensation plus any other payments or
allowances, up to the limitations set forth in Section 401(a)(17) of the
Internal Revenue Code and regulations promulgated thereunder.
Notwithstanding any other provision of this Plan, the normal retirement
benefit payable to a Member who has served as an Elected Official and
is subsequently employed, without a break in service, by the City in
another position as a member of this Plan for a period of at least five
additional years, shall be equal to the sum of the retirement allowance
payable based on the member's creditable service and final average
monthly earnings as an Elected Official, plus the retirement allowance
payable based on the member's creditable service and final average
monthly earnings for the period of employment subsequent to service as
an Elected Official, up to a maximum of eighty percent (80%) of final
average monthly earnings during employment subsequent to service as
an Elected Official. In the event a Member who has served as an Elected
Official and is subsequently employed, without a break in service, by the
City in another position as a member of this Plan for a period of less than
five additional years, such Member shall not be entitled to a benefit from
this Plan for the period of employment subsequent to service as an
Elected Official, but shall be entitled to a refund of accumulated
employee contributions for such period of service.
SECTION 2. REPEALER.
All ordinances or parts of ordinances in conflict herewith be and the same are
hereby repealed.
SECTION 3. SEVERABILITY.
If any section, subsection, clause or provision of this Ordinance is held invalid, the
remainder shall not be affected by such invalidity. portions of this ordinance.
SECTION 4. EFFECTIVE DATE.
This Ordinance shall take effect on the 3 day of :k yy , 2021.
PASSED and ADOPTED this at3 day of 2 21.
t.,4:�LBER
l /-
41r0 * INCORP ORATED:
�I Iii
E"UTY CITY CLER • O ?/ '•,V•••.
%s CH`26 4.
APPROVED AS TO
Underline denotes additions FORM & LANGUAGE
Strikethrough denotes deletions & FOR EXECUTION
\r-V-e)(sponsored by Mayor Dan Gelber) — - 1 /
City Attorney Date
Ordinances -R5 E
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Rafael Paz,Acting City Attorney
DATE: June 23, 2021
10:25 a.m. Second Reading Public Hearing
SUBJECT:AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, AMENDING THE CITY'S PENSION
ORDINANCE, CREATED BY ORDINANCE NO. 2006-3504, AS AMENDED
(THE "MIAMI BEACH EMPLOYEES' RETIREMENT PLAN" OR "PLAN"), BY
AMENDING SECTION 5.01(B)(6)THEREOF, FOR THE SOLE PURPOSE OF
IMPLEMENTING EMPLOYEE BENEFIT PROVISIONS RELATING TO THE
EMPLOYMENT OF THE CITY CLERK, AS APPROVED VIA CITY
COMMISSION RESOLUTION NO. 2021-31601, BY PROVIDING FOR A
PENSION ACCRUAL FACTOR OF FOUR PERCENT (4%) FOR THE
CHARTER POSITION OF CITY CLERK, THE SAME ACCRUAL FACTOR
APPLICABLE TO THE CITY MANAGER AND CITY ATTORNEY; AND
PROVIDING FOR SEVERABILITY; REPEALER; AND AN EFFECTIVE
DATE.
ANALYSIS
This amendment to the City's pension ordinance was prepared at the request Mayor Gelber, the
sponsor.The amendment was approved on first reading at the April 21, 2021 Commission Meeting.
On February 10, 2021, as part of the City Commission's annual performance evaluation of the City
Clerk, the City Commission approved, among other terms and in lieu of a merit increase, an
amendment to the employee benefits to be provided to the City Clerk. Specifically, the City
Commission approved for the employee pension accrual factor for the City Clerk to be modified from
three percent (3%) to four percent (4%), to provide the City Clerk with the same employee pension
accrual factor afforded to the City Manager and City Attorney under the Miami Beach Employees'
Retirement Plan (the"Plan").
The change to the employee pension accrual factor for the City Clerk requires an amendment to the
implementing ordinance creating the Plan. The proposed amendment is attached hereto and
provides the position of City Clerk with an accrual factor of 4%for any employee's period of service
as City Clerk, in the same manner as provided for the City Manager and City Attorney.
SUPPORTING SURVEY DATA
N/A •
Page 549 of 1884
FINANCIAL INFORMATION
The required actuarial statement is attached.
Is this a"Residents Right Does this item utilize G.O.
to Know" item, pursuant to Bond Funds?
City Code Section 2-14?
No No
Legislative Tracking
Office of the City Attorney
Sponsor
Mayor Dan Gelber
ATTACHMENTS:
Description
❑ Ordinance
❑ Actuarial Statement
Page 550 of 1884
ORDINANCE NO. 2021-
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, AMENDING THE CITY'S PENSION
ORDINANCE, CREATED BY ORDINANCE NO. 2006-3504, AS
AMENDED (THE "MIAMI BEACH EMPLOYEES' RETIREMENT PLAN"
OR "PLAN"), BY AMENDING SECTION 5.01(b)(6) THEREOF, FOR THE
SOLE PURPOSE OF IMPLEMENTING EMPLOYEE BENEFIT
PROVISIONS RELATING TO THE EMPLOYMENT OF THE CITY CLERK,
AS APPROVED VIA CITY COMMISSION RESOLUTION NO. 2021-31601,
BY PROVIDING FOR A PENSION ACCRUAL FACTOR OF FOUR
PERCENT (4%) FOR THE CHARTER POSITION OF CITY CLERK, THE
SAME ACCRUAL FACTOR APPLICABLE TO THE CITY MANAGER
AND CITY ATTORNEY; AND PROVIDING FOR SEVERABILITY;
REPEALER; AND AN EFFECTIVE DATE.
WHEREAS, at its meeting on April 11, 2012, the Mayor and City Commission
appointed Rafael E. Granado to the position of City Clerk of the City of Miami Beach
effective April 11, 2012; and
WHEREAS, Mr. Granado's engagement is reflected in an Employment Agreement
dated April 22, 2015, and unanimously approved by the City Commission pursuant to
Resolution No. 2015-28994 (the "Employment Agreement"); and
WHEREAS, the Employment Agreement provides for an annual performance
review and evaluation of the City Clerk, at which time the City Commission shall review
the annual salary and/or other benefits of the City Clerk, and shall adjust in such amounts
and to such extent as the City Commission may determine it is desirable to do so; and
WHEREAS, on July 13, 2016, Mr. Granado's Employment Agreement was further
amended pursuant to Resolution No. 2016- 29513; and
WHEREAS, on July 26, 2017, Mr. Granado's Employment Agreement was further
amended pursuant to Resolution No. 2017-29960; and
WHEREAS, on July 17, 2018, Mr. Granado's Employment Agreement was further
amended pursuant to Resolution No. 2018- 30384; and
WHEREAS, on September 11, 2019, Mr. Granado's Employment Agreement was
further amended pursuant to Resolution No. 2019- 30992; and
WHEREAS, on February 10, 2021, Mr. Granado's Employment Agreement was
further amended pursuant to Resolution No. 2021-31601; which amendment provided, in
lieu of a merit increase, that the employee pension accrual factor for the City Clerk would
be modified from 3% to 4%, to provide the City Clerk with the same employee pension
Page 551 of 1884
accrual factor afforded to the City Manager and City Attorney under the Plan, during any
employee's period of service in said positions; and
WHEREAS, the change to the pension accrual factor requires an amendment to
the implementing ordinance creating the Plan (Ordinance No. 2006-3504, as
subsequently amended); and
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA:
SECTION 1. Section 5.01 (b)6)of the Miami Beach Employees' Retirement Plan created
by Ordinance 2006-3504, as subsequently amended, is hereby amended as follows:
Section 5. Benefits
(b) Normal Retirement Benefit
* * *
6) Notwithstanding the provisions of paragraph (1), above, the normal
retirement benefit payable to a Member who has served as an Elected
Official, City Manager, or City Attorney, or City Clerk shall be four
percent(4%)of final average monthly earnings multiplied by the number
of years of creditable service as an Elected Official, City Manager, or
City Attorney or City Clerk; and the percentage rate in effect under the
Classified System, Unclassified System or this Plan, as applicable, for
any other periods of City employment multiplied by the number of years
of creditable service in such employment; up to a maximum of eighty
percent (80%) of final average monthly earnings. Notwithstanding any
other provision of this Plan, in determining the benefit payable under this
paragraph (6), earnings as an Elected Official, City Manager, OF City
Attorney, or City Clerk shall include total W-2 compensation plus any
other payments or allowances, up to the limitations set forth in Section
401(a)(17) of the Internal Revenue Code and regulations promulgated
thereunder. Notwithstanding any other provision of this Plan, the normal
retirement benefit payable to a Member who has served as an Elected
Official and is subsequently employed,without a break in service, by the
City in another position as a member of this Plan for a period of at least
five additional years, shall be equal to the sum of the retirement
allowance payable based on the member's creditable service and final
average monthly earnings as an Elected Official, plus the retirement
allowance payable based on the member's creditable service and final
average monthly earnings for the period of employment subsequent to
service as an Elected Official, up to a maximum of eighty percent (80%)
of final average monthly earnings during employment subsequent to
service as an Elected Official. In the event a Member who has served
Page 552 of 1884
as an Elected Official and is subsequently employed, without a break in
service, by the City in another position as a member of this Plan for a
period of less than five additional years, such Member shall not be
entitled to a benefit from this Plan for the period of employment
subsequent to service as an Elected Official, but shall be entitled to a
refund of accumulated employee contributions for such period of
service.
SECTION 2. REPEALER.
All ordinances or parts of ordinances in conflict herewith be and the same are
hereby repealed.
SECTION 3. SEVERABILITY.
If'any section, subsection, clause or provision of this Ordinance is held invalid, the
remainder shall not be affected by such invalidity. portions of this ordinance.
SECTION 4. EFFECTIVE DATE.
This Ordinance shall take effect on the day of , 2021.
PASSED and ADOPTED this day of 2021.
DAN GELBER
MAYOR
DEPUTY CITY CLERK
Underline denotes additions
StFieegh denotes deletions
(sponsored by Mayor Dan Gelber) APPROVED AS TO
FORM&LANGUAGE
&FOR EXECUTION
(-, - 1 3
City
r Pf�Z Date
Page 553 of 1884
talloRP:954.527.1616 F;954.525,0083 j www.grsconsulting,com
June 11, 2021
Mr. Rick Rivera
Pension Administrator
City of Miami Beach
1700 Convention Center Drive
Miami Beach, Florida 33139
Re: City of Miami Beach Employees'Retirement Plan
Actuarial Impact Statement
Dear Rick:
As requested,we have reviewed the proposed Ordinance No. 2021- (copy attached)and prepared the
enclosed Actuarial Impact Statement for the City of Miami Beach Employees'Retirement Plan(the"Plan")
showing the financial impact of increasing the City Clerk's pension accrual rate from 3%to 4%and
changing the pensionable earnings from base pay to W-2 earnings. As directed,we have estimated the
member's W-2 earnings by increasing base pay by 20%. All other provisions would remain unchanged
from the provisions outlined in the October 1,2020 Actuarial Valuation Report dated May 10,2021.
Please have a member of the Board sign the Statement and send the Statement along with a copy of the
proposed Ordinance to the Division of Retirement before the final public hearing on the Ordinance.
Summary of Findings
The financial effect of the proposed Ordinance described above is summarized as follows:
• The required employer contribution would increase by$65,542 (from$29,524,827 to
$29,590,369).
• The Unfunded Actuarial Accrued Liability(UAAL)would increase by$422,351(from$209,132,501
to$209,554,852).
• The funded ratio would remain unchanged at 76.9%.
• The ultimate cost of the proposed changes is measured by the increase in the Present Value of
Future Benefits less the Present Value of Projected Member Contributions.The proposed
Ordinance would increase the Actuarial Present Value of Projected Benefits by$624,691(from
$1,033,689,145 to$1,034,313,836)and increase the Actuarial Present Value of Future Projected
Contributions by$29,238(from$72,284,147 to$72,313,385),for an ultimate cost of$595,453.
This assumes all of our actuarial assumptions are met each year.This represents the value of the
expected employer provided benefit payments in today's dollars that is funded over time by the
City.
Other Cost Considerations
• This report shows the increase in the required City contribution for the first year only. Future
increases in the required City contribution may be higher if there are changes in assumptions,
methods,demographics,or plan provisions.
r .
i `�' �t,= t1t:I 3 _ ..I,1 B,�, •:,I ; Su:i 50 L uJ,rd11e. 1-lcrid3 33301-1804
Mr. Rick Rivera
June 11, 2021
Page 2
• As of October 1,2020,the market value of assets exceeded the actuarial value by$134,909.
Once all the gains and losses are fully recognized in the actuarial value of assets,the required
contribution will decrease by roughly$11,000 in the absence of offsetting losses.
Risks Associated with Measuring the Accrued Liability and Actuarially Determined Contribution
The determination of the accrued liability and the actuarially determined contribution requires the use
of assumptions regarding future economic and demographic experience. Risk measures are intended to
aid in the understanding of the effects of future experience differing from the assumptions used in the
course of the actuarial valuation. Risk measures may also help with illustrating the potential volatility in
the accrued liability and the actuarially determined contribution that result from the differences
between actual experience and the actuarial assumptions.
Future actuarial measurements may differ significantly from the current measurements presented in
this report due to such factors as the following: Plan experience differing from that anticipated by the
economic or demographic assumptions;changes in economic or demographic assumptions due to
changing conditions;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,or additional
cost or contribution requirements based on the Plan's funded status);and changes in Plan provisions or
applicable law. The scope of this report does not include an analysis of the potential range of such
future measurements.
Examples of risk that may reasonably be anticipated to significantly affect the Plan's future financial
condition include:
1. Investment risk—actual investment returns may differ from the either assumed or forecasted
returns;
2. Contribution risk—actual contributions may differ from expected future contributions. For
example,actual contributions may not be made in accordance with the Plan's funding policy or
material changes may occur in the anticipated number of covered employees,covered payroll,
or other relevant contribution base;
3. Salary and Payroll risk—actual salaries and total payroll may differ from expected,resulting in
actual future accrued liability and contributions differing from expected;
4. Longevity risk—members may live longer or shorter than expected and receive pensions for a
period of time other than assumed;
5. Other demographic risks—members may terminate,retire or become disabled at times or with
benefits other than assumed resulting in actual future accrued liability and contributions
differing from expected.
The effects of certain trends in experience can generally be anticipated. For example,if the investment
return is less(or more)than the assumed rate,the cost of the Plan can be expected to increase (or
decrease). Likewise if longevity is improving(or worsening), increases(or decreases) in cost can be
anticipated.
The computed contribution amounts may be considered as minimum contributions that comply with the
pension Board's funding policy and the State statutes. The timely receipt of the actuarially determined
Clen
Mr. Rick Rivera
June 11,2021
Page 3
contributions is critical to support the financial health of the Plan. Users of this report should be aware
that contributions made at the actuarially determined rate do not necessarily guarantee benefit
security.
Additional Risk Assessment
Additional risk assessment is outside the scope of this report.Additional assessment may include
scenario tests,sensitivity tests,stochastic modeling,stress tests, and a comparison of the present value
of accrued benefits at low-risk discount rates with the actuarial accrued liability.
Required Disclosures
This report was prepared at the request of the Board and is intended for use by the Plan and those
approved by the Board. This report may be provided to parties other than the Board only in its entirety
and only with the Board's permission. GRS is not responsible for unauthorized use of this report.
The purpose of this report is to describe the financial effect of the proposed changes. This report should
not be relied on for any purpose other than the purpose described above. Determinations of financial
results associated with the benefits described in this report,for purposes other than those identified
herein may be significantly different.
The calculations in this report are based upon census data and financial information furnished by the
Plan Administrator for the October 1,2020 Actuarial Valuation and this Report concerning Plan benefits,
financial transactions, plan provisions and active members,terminated members, retirees and
beneficiaries. We reviewed this information for internal and year-to-year consistency, but did not audit
the data. We are not responsible for the accuracy or completeness of the information provided by the
Plan Administrator.
The calculations in this report are based on data or other information through September 30,2020.
They are also based upon census data,financial information, assumptions and methods,and the
provisions described in this report and the October 1,2020 Actuarial Valuation Report dated May 10,
2021. If you have reason to believe that the assumptions that were used are unreasonable,that the
current and proposed plan provisions are incorrectly described,that important plan provisions relevant
to this report are not described,or that conditions have changed since the calculations were made,you
should contact the author of this report prior to relying on information in this report.
If you have reason to believe that the information provided in this report is inaccurate,or is in any way
incomplete,or if you need further information to make an informed decision on the subject matter of
this report, please contact the authors of this report prior to making such decision.
This report was prepared using our proprietary valuation model and related software which in our
professional judgment has the capability to provide results that are consistent with the purposes of the
valuation and has no material limitations or known weaknesses.We performed tests to ensure that the
model reasonably represents that which is intended to be modeled.
GRS
Mr. Rick Rivera
June 11,2021
Page 4
This report has been prepared by actuaries who have substantial experience valuing public employee
retirement systems.To the best of our knowledge,the information contained in this report is accurate
and fairly presents the actuarial position of the Plan as of the valuation 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.
Melissa Zrelack and Travis Robinson are members of the American Academy of Actuaries and meet the
Qualification Standards of the American Academy of Actuaries to render the actuarial opinions
contained herein. The undersigned actuaries are independent of the plan sponsor.
This actuarial valuation and/or cost determination was prepared and completed by us or under our
direct supervision,and we acknowledge responsibility for the results.To the best of our knowledge,the
results are complete and accurate. In our opinion,the techniques and assumptions used are reasonable,
meet the requirements and intent of Part VII,Chapter 112, Florida Statutes,and are based on generally
accepted actuarial principles and practices.There is no benefit or expense to be provided by the plan
and/or paid from the plan's assets for which liabilities or current costs have not been established or
otherwise taken into account in the valuation.All known events or trends which may require a material
increase in plan costs or required contribution rates have been taken into account in the valuation.
Respectfully submitted,
•
2K,cMa..-
Melissa Zrelack, MAAA, FCA Travis Robinson,MAAA,ASA,FCA
Enrolled Actuary No.20-06467 Enrolled Actuary No.20-08351
Enclosures
GRS
CITY OF MIAMI BEACH EMPLOYEES'RETIREMENT PLAN
Impact Statement—June 11,2021
Description of Amendments
The proposed Ordinance would increase the City Clerk's pension accrual rate from 3%to 4%and change
pensionable earnings from base pay to W-2 earnings.
Funding Implications of Amendment
An actuarial cost analysis is attached.
Certification of Administrator
I believe the amendment to be in compliance with Part VII,Chapter 112,Florida Statutes and Section 14,
Article X of the Constitution of the State of Florida.
For the Board of Trustees
as Plan Administrator
CsMiami Beach Employees'Retirement Plan 5
Actuarial Impact Statement as of October 1,2020
Page 558 of 1884
SUPPLEMENTAL ACTUARIAL VALUATION REPORT
Plan
City of Miami Beach Employees' Retirement Plan
Valuation Date
October 1, 2020
Date of Report
June 11, 2021
Report Requested by
Board of Trustees
Prepared by
Melissa Zrelack
Group Valued
All active and inactive members participating in the Plan
Plan Changes being Considered for Change
The proposed Ordinance would increase the City Clerk's pension accrual rate from 3%to 4%and
change pensionable earnings from base pay to W-2 earnings.
Actuarial Assumptions and Methods
Actuarial Assumptions and Methods are the same as October 1,2020 Actuarial Valuation Report
with the additional assumption that the City Clerk's W-2 earnings are 20%higher than base pay.
Some of the key assumptions/methods are:
Investment Return: 7.40%
Mortality Table: The same versions of the PUB-2010 Headcount-Weighted Mortality
Tables and mortality improvement projection scale used for Regular
Class members of the Florida Retirement System (FRS) in the July 1,
2020 actuarial valuation. Florida Statutes Chapter 112.63(1)(f)mandates
the use of mortality tables from one of the two most recently published
FRS actuarial valuation reports.
Amortization Period for Unfunded Actuarial Accrued Liability
29 years
Financing of Unfunded Actuarial Accrued Liability
Level Dollar
Summary of Data Used in Report
See attached page(s).
Actuarial Impact of Proposal(s)
See attached page(s).
Miami Beach Employees'Retirement Plan 6
Actuarial Impact Statement as of October 1,2020
Page 559 of 1884
Special Risks Involved With the Proposal That the Plan Has Not Been Exposed to Previously
None
Other Cost Considerations
• This report shows the increase in the required City contribution for the first year only. Future
increases in the required City contribution may be higher if there are changes in assumptions,
methods,demographics,or plan provisions.
• As of October 1, 2020,the market value of assets exceeded the actuarial value by$134,909.
Once all the gains and fosses are fully recognized in the actuarial value of assets,the required
contribution will decrease by roughly$11,000 in the absence of offsetting losses.
•
Miami Beach Employees'Retirement Plan 7
CRes Actuarial Impact Statement as of October 1,2020
Page 560 of 1884
ACTUARIALLY DETERMINED CONTRIBUTION(ADC)
A. Valuation Date October 1,2020 October 1,2020
Valuation After Plan Changes Change
B. ADC to Be Paid During
Fiscal Year Ending 9/30/2022 9/30/2022
C. Assumed Date of Employer Contrib. 10/1/2021 10/1/2021
D. Annual Payment to Amortize
Unfunded Actuarial Liability $ 19,883,224 $ 19,916,525 $ 33,301
E. Employer Normal Cost 7,607,304 7,635,029 27,725
F. ADC as of the Valuation Date: Di-E 27,490,528 27,551,554 61,026
G. ADC Adjusted for Frequency of
Payments 29,524,827 29,590,369 65,542
H. ADC as%of Covered Payroll 33.38 % 33.44 % 0.06 %
I. Covered Payroll for Contribution Year 88,446,616 88,493,486 46,870
CRes
Miami Beach Employees'Retirement Plan 8
Actuarial Impact Statement as of October 1,2020
Page 561 of 1884
ACTUARIAL VALUE OF BENEFITS AND ASSETS
A. Valuation Date October 1,2020 October 1,2020
Valuation After Plan Changes Change
B. Actuarial Present Value of All Projected
Benefits for
1. Active Members
a.Service Retirement Benefits $ 314,262,609 $ 314,854,867 $ 592,258
b.Vesting Benefits 34,379,565 34,393,547 13,982
c. Disability Benefits 8,517,785 8,527,955 10,170
d. Preretirement Death Benefits 3,478,425 3,486,633 8,208
e. Return of Member Contributions 1,751,110 1,751,183 73
f.Total 362,389,494 363,014,185 624,691
2. Inactive Members
a.Service Retirees&Beneficiaries 637,929,844 637,929,844 -
b. Disability Retirees 9,232,908 9,232,908 -
c.Terminated Vested Members 24,136,899 24,136,899 -
d.Total 671,299,651 671,299,651 -
3. Total for All Members 1,033,689,145 1,034,313,836 624,691
C. Actuarial Accrued (Past Service)
Liability per Entry Age Normal Method 906,000,016 906,422,367 422,351
D. Actuarial Value of Accumulated Plan
Benefits per FASB No.35 N/A N/A N/A
E. Plan Assets
1. Market Value 697,002,424 697,002,424 -
2. Actuarial Value 696,867,515 696,867,515 -
F. Unfunded Actuarial Accrued Liability 209,132,501 209,554,852 422,351
G. Actuarial Present Value of Projected
Covered Payroll 785,119,341 785,411,931 292,590
H. Actuarial Present Value of Projected
Member Contributions 72,284,147 72,313,385 29,238
I. Funded Ratio: E2_C 76.9% 76.9% 0.0%
�C Miami Beach Employees'Retirement Plan 9
.7 Actuarial Impact Statement as of October 1,2020
Page 562 of 1884
CALCULATION OF EMPLOYER NORMAL COST
A. Valuation Date October 1,2020 October 1,2020
Valuation After Plan Changes Change
B. Normal Cost for
1. Service Retirement Benefits $ 11,694,993 $ 11,723,189 $ 28,196
2. Vesting Benefits 2,356,418 2,359,130 2,712
3. Disability Benefits 649,466 650,193 727
4. Preretirement Death Benefits 224,841 225,324 483
5. Return of Member Contributions 492,279 492,573 294
6. Total for Future Benefits 15,417,997 15,450,409 32,412
7. Assumed Amount for Administrative
Expenses 818,007 818,007 -
8. Total Normal Cost 16,236,004 16,268,416 32,412
9. Total as a%of Covered Payroll 18.36 % 18.38 % 0.02 %
C. Expected Member Contribution 8,628,700 8,633,387 4,687
D. Employer Normal Cost:B8-C 7,607,304 7,635,029 27,725
E. Employer Normal Cost as a%of
Covered Payroll 8.60 % 8.63 % 0.03 %
Cs
Miami Beach Employees'Retirement Plan10
Actuarial Impact Statement as of October 1,2020
Page 563 of 1884
PARTICIPANT DATA i
October 1,2020 October 1,2020 I
Valuation After Plan Changes Change
ACTIVE MEMBERS
Number 1,229 1,229 ' 0
Covered Annual Payroll $ 88,446,616 $ 88,493,486 $ 46,870
Average Annual Payroll $ 71,966 $ 72,004 $ 38
Average Age 44.3 44.3 0.0
Average Past Service 8.6 8.6 0.0
Average Age at Hire 35.7 35.7 0.0
DROP PARTICIPANTS
1 Number 100 100 0
Annual Benefits $ 4,875,701 $ 4,875,701 $ 0
Average Annual Benefit $ 48,757 $ 48,757 $ 0
Average Age 60.2 60.2 0.0
RETIREES&BENEFICIARIES
Number 1,089 1,089 0
Annual Benefits $ 47,730,035 $ 47,730,035 $ 0
Average Annual Benefit $ 43,829 $ 43,829 $ 0
Average Age 71.1 71.1 0.0
DISABILITY RETIREES
1 Number 25 25 0
Annual Benefits $ 857,090 $ 857,090 $ 0
Average Annual Benefit $ 34,284 $ 34,284 $ 0
Average Age 64.6 64.6 0.0
TERMINATED VESTED MEMBERS
Number 96 96 0
Annual Benefits $ 2,476,196 $ 2,476,196 $ 0
Average Annual Benefit $ 25,794 $ 25,794 $ 0
1 Average Age 46.2 46.2 0.0
Miami Beach Employees'Retirement Plan 11
es Actuarial Impact Statement as of October 1,2020
Page 564 of 1884