R5T-Amend Pension Disability-Retirement Of Police And Fire Members -Weithorn-COMMISSION ITEM SUMMARY
Condensed Title:
An Ordinance Of The Mayor And City Commission Of The City Of Miami Beach, Florida, Amending Part I, Subpart B, Article lx, Related
Special Acts, Of The Miami Beach City Code Entitled "Pension System For Disability And Retirement Of Members Of Police And Fire
Departments"; Implementing Provisions Of The 2012-2015 Collective Bargaining Agreements Between The City And Fire Fighters Of Miami
Beach, IAFF Local 1510, And Miami Beach Fraternal Order Of Police, William Nichols Lodge No. 8; Amending Section 62 Entitled
"Definitions"; Amending Section 63 Entitled "Source Of Monies For Fund; Computation Of Liability; Use And Investment Of Fund"; Amending
Section 65 Entitled "Computation Of Creditable Service; Service Record"; Amending Section 66 Entitled "Service And Disability Benefits
Generally"; Amending Section 67 Entitled "Cost Of Living Adjustment"; Amending Section 79 Entitled "Deferred Retirement Option Plan";
Amending Section 82 Entitled "Military Service"; Creating A New Section 88 Entitled "Benefits For Members Hired On Or After September 30,
2013, Providing For Severability; Repealing All Ordinances In Conflict Therewith; And Providing For An Effective Date.
Item Summa_!Y/Recommendation:
First Reading
The City ratified a three-year labor agreement covering October 1, 2012 through September 30, 2015 with the IAFF on July 17,
2013. The Administration is presenting an item at the September 11, 2013 City Commission meeting recommending for the City
Commission to adopt a resolution to ratify a three-year labor agreement covering the period of October 1, 2012 through
September 30, 2015 between the City and the FOP. Included in the individual agreements are significant pension changes for
both current and future employees that will yield both short-term and long-term recurring savings. The pension changes include
the following for current employees: Final Average Monthly Earnings (FAME) = 3 highest years, Maximum Benefit of 85%,
grandfathering anyone who has already exceeded 85% to a maximum of 90%, 5 Year Vesting, Prior Creditable Service only for
prior military up to 2 years with a maximum of 6%, Elimination of the ability to utilize accrued leave to purchase additional
benefits, maximum overtime not to exceed 300 hours, implementing the retiree cost of living adjustment (COLA) while
participating in the 5 year Deferred Retirement Option Plan (DROP) with the ability to receive a one-time leave settlement
payout during the last year in the DROP, Benefit Multiplier of 3% for the first 20 years and 4% thereafter, Retirement Age for
pre-July 2010 employees= age 47 and for post=July 2010 members= age 48.
The changes for new employees hired on or after September 30, 2013 also include: All new hires will become members of the
plan immediately upon employment, employee contribution = 10.5% of pensionable earnings, FAME = highest 5 years. In
addition, no employee will be permitted to transfer from the general employee's pension plan into the Fire and Police Pension
Plan. In addition, the City Commission adopted the Budget Advisory Committee's recommended pension policies and
guidelines at the July 17, 2013 City Commission meeting. The relating policies are also included in the proposed amendment
to the Fire and Police Pension ordinance.
The projected 30-year net present value savings for these changes is estimated at $145 million. The draft Actuarial Impact
Statement by Buck Consultants is provided as Attachment 1.
Board Recommendation:
Financial Information:
Source of Amount
Funds: 1 FY2012/2013
$0
M
FY2013/2014 Reduction of the City's Annual Required Contribution attributed to
2 ($5,666,000) pension changes.
3 FY2014/2015 Reduction of the City's Annual Required Contribution attributed to
($6,034,000) pension changes.
OBPI Total ($11 ,700,000)
Si n-Offs:
Department Director Assistant City Manager
MIAMI BEACH 697 AGENDA ITEM
DATE
RS'T
9-11-£3
--------------------------------------------
~ MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
TO:
FROM:
DATE:
SUBJECT:
COMMISSION MEMORANDUM
Mayor Matti Herrera Bower and Members of the7 Commission
Jimmy L. Morales, City Manager /~ r _f:-
September 11, 2013 FIRST READING
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, AMENDING PART I, SUBPART B, ARTICLE IX, RELATED SPECIAL
ACTS, OF THE MIAMI BEACH CITY CODE ENTITLED "PENSION SYSTEM FOR
DISABILITY AND RETIREMENT OF MEMBERS OF POLICE AND FIRE DEPARTMENTS~~;
IMPLEMENTING PROVISIONS OF THE 2012-2015 COLLECTIVE BARGAINING
AGREEMENTS BETWEEN THE CITY AND FIRE FIGHTERS OF MIAMI BEACH, IAFF
LOCAL 1510, AND MIAMI BEACH FRATERNAL ORDER OF POLICE, WILLIAM NICHOLS
LODGE NO.8; AMENDING SECTION 62 ENTITLED "DEFINITIONS"; AMENDING SECTION
63 ENTITLED "SOURCE OF MONIES FOR FUND; COMPUTATION OF LIABILITY; USE
AND INVESTMENT OF FUND"; AMENDING SECTION 65 ENTITLED "COMPUTATION OF
CREDITABLE SERVICE; SERVICE RECORD"; AMENDING SECTION 66 ENTITLED
"SERVICE AND DISABILITY BENEFITS GENERALLY"; AMENDING SECTION 67
ENTITLED "COST OF LIVING ADJUSTMENT"; AMENDING SECTION 79 ENTITLED
"DEFERRED RETIREMENT OPTION PLAN"; AMENDING SECTION 82 ENTITLED
"MILITARY SERVICE"; CREATING A NEW SECTION 88 ENTITLED "BENEFITS FOR
MEMBERS HIRED ON OR AFTER SEPTEMBER 30, 2013, PROVIDING FOR
SEVERABILITY; REPEALING ALL ORDINANCES IN CONFLICT THEREWITH; AND
PROVIDING FOR AN EFFECTIVE DATE.
ADMINISTRATION RECOMMENDATION
Approve the ordinance on first reading and set a second reading, public hearing for September 30,
2013.
BACKGROUND
The City's workforce is divided into seven salary groups: (1} those covered by the American Federation
of State, County and Municipal Employees, Local1554 (AFSCME) bargaining unit; (2) those covered by
the Communications Workers of America, Local 3178 (CWA} bargaining unit; (3) those covered by the
Government Supervisors Association of Florida/OPEIU, Local 100 (GSA) bargaining unit; (4) those
covered by the Fraternal Order of Police, William Nichols Lodge No. 8 (FOP) bargaining unit; (5) those
covered by the International Association of Fire Fighters, Local 1510 (IAFF) bargaining unit; (6)
Unclassified; and (7) "Others" (classified service employees not represented by a bargaining unit}.
698
City Commission Memorandum
September 11, 2013
Fire and Police Pension -1st Reading
Page 2 of6
On September 30, 2012, the three-year collective bargaining agreement between the City of Miami
Beach and the IAFF (covering the period of October 1, 2009 through September 30, 2012) expired.
Negotiations for a successor agreement began on September 19, 2012. On July 17, 2013, the City
Commission ratified a three-year collective bargaining agreement covering the period of October 1, 2012
through September 30, 2015, between the City of Miami Beach and the IAFF, subject to the IAFF
ratifying the agreement among their membership, which if passed, would determine the effective
ratification date. Subsequently, on August 7, 2013, the IAFF confirmed the passage of the contract
amongst the majority of their voting membership.
On September 30, 2012, the three-year collective bargaining agreement between the City of Miami
Beach and the FOP (covering the period of October 1, 2009 through September 30, 2012) also expired.
Negotiations for a successor agreement began on September 19, 2012. On July 19, 2013, the City
Commission ratified a three-year collective bargaining agreement covering the period of October 1, 2012
through September 30, 2015, between the City of Miami Beach and the FOP, subject to the FOP ratifying
the agreement among their membership, which if passed, would determine the effective ratification date.
However, the agreement ratified by the City Commission included two substantive changes (which were
made on the floor and approved by a vote of 6:1) from the terms that were tentatively agreed upon
between the negotiation teams for the City and the FOP. These changes included implementing for all
members, excluding any current police sergeants or police lieutenants, that the total maximum pension
benefit could not exceed eleven percent of the member's salary upon retirement and implementing a
voluntary fitness program on a quarterly basis of all FOP members. Based on the changes made on the
floor during the City Commission meeting, the FOP and the City renegotiated certain provisions of the
contract that was ratified on July 19, 2013. The Administration will be presenting an item at the
September 11, 2013 City Commission meeting amending the 2012-2015 FOP collective bargaining
agreement that was previously ratified on July 19, 2013.
In the adopted FY 2012/13 budget, employee givebacks represented $3.782 million in savings
(approximately $3 million in the General Fund) which were to be allocated among the seven salary
groups. The methodology to allocate the givebacks for each salary group was the proportionate share of
the City's total costs for pension and health benefits for FY 2012/13, as in recent years these have been
major personnel expenditure cost drivers. However, to date, no significant savings achieved for FY
2012/13.
The prior collective bargaining agreements (October 1, 2009-September 30, 2012) between the City
and IAFF and the City and FOP, included a number of pension changes for the Fire and Police Pension
Plan that were implemented in 2010; however, these pension changes did not significantly impact
existing employees and were insufficient to address the short term and increasing benefit cost which, in
recent years, has represented the fastest growing cost in the City's budget. The draft Valuation for the
Fire and Police Pension Plan estimates the City's Annual Required Contribution (ARC) payable October
1, 2014 to be $41.5 million. This represents an increase of $2.2 million in the Fire and Police Pension
Plan when compared to last year.
The City initially proposed the Budget Advisory Committee's (BAG) August 29, 2012 recommendation of
a hybrid plan for new and non-vested employees in the Fire and Police Pension Plan. The BAC
recommendation was anticipated to save $2.5 million in year one and a $74 million net present value
over thirty years based on the October 1 , 201 0 Valuation Report data. The City actuary updated the
estimated figures based on the October 1, 2011 Valuation with an estimated savings of $3.6 million in
year one.
Therefore, the Administration received direction from the City Commission to negotiate changes to the
699
City Commission Memorandum
September 11, 2013
Fire and Police Pension -1st Reading
Page 3 of6
Fire and Police Pension Plan that would generate a savings of $6 -$8 million from the City's Annual
Required Contribution (ARC) in the first year. In addition, any negotiated pension changes would need to
yield recurring, annual savings from the City's ARC, as well as a reduction to the Unfunded Actuarial
Accrued Liability (UAAL).
ANALYSIS
After numerous negotiations, the City has reached agreements with both the IAFF and the FOP
which include significant pension changes for both current and future employees who participate in
the Fire and Police Pension Plan. These changes include the follow:
Pension Adjustments/Changes
(Note: The effective date for the following proposed changes is September 30, 2013 unless
otherwise noted.}
• Final Average Monthlv Earnings (FAME)-Effective September 30, 2015, the FAME for current
IAFF and FOP bargaining unit employees hired prior to September 30, 2013, will have the
average of the three (3) highest years; and future employees hired on or after September 30,
2013 will have the average of the five (5} highest years.
• Maximum Bener;t-Currently, the maximum pension benefit for post May 1993 members is 90
percent of pensionable earnings. Effective September 30, 2013, the maximum benefit will be
reduced to 85 percent of pensionable earnings for all post May 1993 members. Employees, who
as of September 30, 2013, have attained a pension benefit of 85 percent or higher, are eligible to
continue to earn the 90 percent maximum benefit. In addition, any police officer member who was
hired due to a consent decree shall also be grandfathered and may continue to earn the
90percent maximum benefit.
• Vesting -The vesting period was reduced from ten to five years.
• Prior Creditable Service-Currently, upon completion of ten years of creditable service (vesting)
with the City, employees can purchase prior creditable service of up to two years of full-time
public safety service as a public safety officer prior to City employment, up to four years of military
service and up to an additional six percent multiplier on the additional creditable service years
purchased; however, the maximum benefit purchased shall not exceed twelve percent. Effective
September 30, 2013, all bargaining unit employees participating in the Fire and Police Pension
Plan will be limited to purchasing only military service for up to two years, at three percent each
year for a maximum benefit of six percent. The employee will pay the equivalent of their
employee contribution amount in effect at the time of purchase (1 0 percent per year of purchase
for employees hired prior to ratification of their respective collective bargaining agreement and
10.5 percent per year of purchase for all new employees hired thereafter).
• Probationary Period and Contribution of Pensionable Earnings -All new hires will become
members of the Fire and Police Pension Plan effective upon their hire date and will contribute
10.5 percent of their pensionable earnings immediately.
• Overlime. O'ff-dutv. Accrued Leave and Other Pays-In the past, employees were able to apply
unused sick and/or vacation time for inclusion in their salary for pension purposes at the
equivalent rate of their employee pension contribution. For example: for each $100 of unused
sick and/or vacation time (at the member's hourly rate), $90 was applied toward their FAME and
700
City Commission Memorandum
September 11, 2013
Fire and Police Pension-1st Reading
Page 4 of6
$10 contributed to the pension fund.
As a result of recent changes in Florida statutes, accrued leave can no longer be used to
increase pension benefits and the application of overtime toward their FAME is limited to a
maximum of 300 hours. In addition, the definition of salary shall exclude any payments relating to
hazardous duty pay, domestic partner tax credit reimbursements, and any payments to police
officer members for voluntarily participation in a physical fitness assessment program offered by
the City.
• Deferred Retirement Option Plan (DROP) and Retiree COLA -Currently bargaining unit
employees hired prior to July 14, 2010, receive a 2.5 percent annual retiree COLA, unless they
entered the DROP after September 1, 2012, and forfeited the Retiree COLA for years three and
four in the DROP.
Bargaining unit employees hired on or after July 14, 2010, are eligible to receive a 1.5 percent
annual Retiree COLA.
Any member who joins the DROP on or after September 30, 2013, will be eligible to receive a
Retiree COLA each year that they participate in the DROP. The rate at which the member earns
his/her annual Retiree COLA shall be based on hire date (2.5 percent for all pre-201 0 members
and 1.5 percent for all post-201 0 members).
• DROP and Leave Payouts-Effective October 1, 2013, any bargaining unit member currently
participating in the DROP, or who enters the DROP, may elect to request a full or partial payment
of earned sick and vacation leave balances up to the maximum amount stipulated in each of the
respective collective bargaining agreements and applicable pension ordinance. Eligible
employees will have until June 30 of each year to exercise this option, and receive payment
during the first pay period ending in October of the same year. Any amount paid out to an
employee upon entering the DROP will be deducted from the cap for their maximum leave payout
upon leaving the DROP.
• Miami Beach Employees' Retirement Plan CMBERPJ Service Transfer-Upon ratification of the
collective bargaining agreement, MBERP members will not be eligible to transfer creditable
service time from MBERP to the Fire and Police Pension Plan if they are subsequently employed
in a classification covered by the IAFF or FOP bargaining units.
• Retirement Age-Under the current contracts, employees hired prior to July 14 2010, can retire
at either the rule of 70 (age plus creditable years of service) or at age 50. Effective September
30, 2013, employees hired before July 14, 2010, may retire based on the rule of 70 with a
minimum age of 47. Employees hired on or after July 14, 2010, may retire based on the rule of 70
with a minimum age of 48.
However, because some members who have already purchased additional creditable service
may reach the maximum benefit of 85 percent prior to age 47, the City has agreed to allow these
members to continue working for the City; however, upon reaching maximum pension benefit, the
employee will cease contributing their pension contribution and their FAME will freeze at the
same time.
701
City Commission Memorandum
September 11, 2013
Fire and Police Pension -1 51 Reading
Page 5 of6
• Benefit Multiplier-Effective September 30, 2013, the benefit multiplier for all bargaining unit
members shall be three percent for year one through twenty, and four percent per year thereafter.
Changes for New Employees Hired After Ratification
• Employee Pension Contribution = 10.5% of Pensionable Earnings
• FAME = 5 Highest Years
• Enter directly into the Fire and Police Pension Plan upon hire date (vs. currently enter upon
successful completion of probationary period (12 months for Firefighter and 18 months for
Police Officer).
According to Buck Consultants, the actuary for the Fire and Police Pension Plan, the aforementioned
changes that have been agreed to by both FOP and IAFF are projected to generate savings as follows:
ARC Savings Unfunded Liability Savings
(in Millions) Qn Millionsl
Year1 $5.666 $24.37
Year2 $6.034 $24.25
Year3 $6.391 $23.55
Year4 $7.065 $30.02
YearS $7.988 $34.56
Year6 $8.721 $40.41
Further, the projected 30-year net present value savings for these changes is estimated at $145
million. The draft Actuarial Impact Statement by Buck Consultants is provided as Attachment 1.
At the July 17, 2013 City Commission meeting, the City Commission adopted a number of policies and
guidelines relating to the City's two pension plans (Attachment 2). Therefore, included in the first reading
of the proposed amendments to the Fire and Police Pension ordinance are the following pension
policies:
• The City shall fund at least the normal cost of pension. If this exceeds the amount of the
actuarially determined annual required contribution, the excess should be placed in a pension
stabilization fund, to be made available for future pension shortfalls.
• The City should require 5, 10 and 20 year projections of required pension contributions as part of
the annual actuarial valuations for each of the City's pension plans. These projections shall be
based on the current actuarial assumptions for each plan. The projections shall be updated to
reflect the cost of any proposed benefit enhancement before the City Commission agrees to the
enhancement. The cost of these studies shall be funded separately from the annual contribution
to the pension plan
• There shall be an experience study of each of the City's pension plans' actuarial assumptions
performed by an actuary that is independent from the pension board. The experience study
should be conducted at least once every three years to compare actual experience to the
assumptions. The independent actuary shall make recommendations for any changes in
assumptions based on the results of the experience study, and any deviations from those
assumptions by the pension boards shall be justified to the City Commission.
702
City Commission Memorandum
September 11, 2013
Fire and Police Pension -1st Reading
Page 6 of6
CONCLUSION
The terms and conditions of the ratified three year labor agreement between the City and IAFF and the
tentative agreement with the City and FOP includes significant changes to pension benefits for current
employees that will result in long-term, recurring pension savings. Based on the Actuarial Impact
Statement provided by Buck Consultants (Attachment 1 ), the total pension Plan savings for both Fire and
Police which, include changes for future employees will yield a savings of ($5.66 million) in FY 2013/14
and a savings of ($6.034) in FY 2014/15, for a total savings of ($11.694) million over the contact term,
and $145 million in net present value savings over thirty years.
As previously stated, the City and IAFF ratified a three-year labor agreement effective August 7, 2013.
The Administration will be presenting an item to the City Commission recommending adopting a
resolution amending the ratified 2012-2015 labor agreement between the City and FOP. At the time of
this writing, the FOP has scheduled a vote amongst their membership for the week of September 9,
2013. The certified results of this vote will be provided to the City Commission as soon as they are
received by the FOP president. Provided that the City Commission and the FOP ratify the proposed
Collective Bargaining Agreement, the Administration recommends approving the ordinance on first
reading and setting the second reading public hearing on September 30, 2013, in order to effectuate the
pension changes that were agreed upon with both the IAFF and the FOP.
Attachment
J LM/KGB/SC-T/CMG
T \AGENDA\2013\September 11 \Fire and Police Pension 1st Reading Memo.doc
703
ATTACHMENT 1
buckconsultants
September 4, 2013
CONFIDENTIAL
Ms. Kathie Brooks
Assistant City Manager
1700 Convention Center Drive
Miami Beach, FL 33139
Dear Kathie:
A Xerox Company
Actuarial Impact of Proposed Plan Changes to the City Pension Fund for Police Officers
and Firefighters in the City of Miami Beach
As requested, we have calculated the estimated impact of the proposed changes to the City
Pension Fund for Firefighters and Police Officers in the City of Miami Beach (Pension Fund).
Summarized below are the proposed plan changes and the cost impact of these changes. The
following changes will become effective September 30, 2013 unless otherwise stated below.
A combination of the following changes to the Pension Fund:
• Amend the Plan's Final Average Earnings calculation, for participants hired prior to July
17, 2013, from the average of the highest 2 years of compensation to the average of the
highest 3 years of compensation effective for fiscal years ending after September 30,
2015.
• Amend the Plan's Final Average Earnings calculation, for participants hired on or after
July 17, 2013, from the average of the highest 3 years of compensation to the average of
the highest 5 years of compensation effective for fiscal years ending after September 30,
2015.
• Extend the Benefit Accrual Rate of 3% per annum up from 15 years of service to 20
years of service with a 4% multiplier for service greater than 20 years, subject to a
maximum pension benefit of 85% of Final Average Earnings. Participants exceeding
85% oftheir pension benefit at September 30, 2013 will be grandfathered at 90%.
• Amend the rule of 70 (age plus service) criteria to require participants to also attain age
47, for participants hired prior to July 15, 2010, with the exception of three members.
These three members will not be subject to the minimum age requirement under the rule
of70. For participants hired after July 14, 2010 the rule of 70 (age plus service) will be
amended to require participants to also attain age 48.
• Freeze the cost of living adjustment component for salary increases in fiscal years
2012/2013 and 2013/2014 and grant a cost of living adjustment of 3% in fiscal year
2014/2015.
704
Ms. Kathie Brooks
September 4, 2013
Page2
• Change the vesting requirement from 10 years of service to 5 years of service.
• Eliminate the ability to purchase prior creditable service or additional multiplier except
for prior military service up to 2 years at 3% each year for a maximum of 6%. The cost to
the employee would be at 10% for those hired prior to July 17, 2013 and 10.5% for those
hired on or after July 17, 2013.
• Reinstate the annual cost of living adjustment in all years for participants who enter the
DROP on or after September 30, 2013.
• Eliminate the use of accrued leave to purchase additional benefits and cap the maximum
overtime hours that can be used for pensionable pay at 300 hours per Florida statute.
• Eliminate the ability to transfer creditable service from the Miami Beach Employees
Retirement Plan (MBERP) to the Miami Beach Fire and Police Pension Plan.
• Police officer members shall no longer be able to apply overtime, off-duty or any other
compensation for the purposes of calculating a member's retirement benefit that yields a
benefit in excess of eleven percent (11 %) of the highest annualized pay rate for the same
salary rank that the member is in at time of retirement. This provision shall not apply to
current Police Sergeants or Police Lieutenants, or Police Officers promoted to the rank of
Police Sergeant from the 2013 Certified Police Sergeant Promotional List
• Eliminate the probationary period tor new hires to become participants in the pension
plan.
• Extension of Ranges for Firefighter I, Police Officer, Sergeant of Police and Police
Lieutenant effective April 1, 2015 (Proposed Maximum includes the 3% COLA payable
on October 1, 2014 and 5% additional Step effective April 1, 2015 for eligible members)
Current Current Proposed Proposed
Minimum Maximum Minimum Maximum*
Firefighter I -45,139.11 74,745.85 45,139.11 80,837.64
Da Shift
Police Officer 53,309.01 75,033.33 53,309.01 81,148.55
Police Ser eant 78,748.42 86,852.71 78,748.42 93,931.21
Police 86,852.71 100,532.31 86,852.71 108,725.69
Lieutenant
• Any covered employee hired prior to July 14, 20 l 0 who completes a buyback of prior
creditable service prior to September 30, 2013 and reaches the maximum pension benefit
of 85% prior to reaching age 47, the employee contribution shall cease on the date such
employee reaches the 85% maximum pension benefit, and his/her final average monthly
earnings (FAME) will be frozen on the same date.
705
Ms. Kathie Brooks
September 4, 2013
Page 3
Cost Impact of Plan Changes:
The 30 year cost impact of the combined code changes outlined above is outlined in appendix A
attached to this letter.
Data, assumptions, Methods and Plan Provisions:
The calculations contained in this study are based on the data, assumptions, methods and plan
provisions used for the October 1, 2012 actuarial valuation of the System. The salary scale
assumption has been reduced to reflect the cost of living freeze reference above. I am an
Enrolled Actuary and meet the qualification standards of the American Academy of Actuaries to
render the actuarial opinion contained in this letter.
Please note that any changes to Pension Fund would need to be documented in an impact
statement and submitted to the State for acceptance. If you have any questions, please do not
hesitate to contact me.
Sincerely, Jog:-G;.n~:AAA, rcA
Director, Consulting Actuary
cc: Mr. David Campbell-Buck Consultants/Atlanta
Mr. Steward Sainvil -Buck Consultants/ Atlanta
P:\Retu~ment\M1ami Beach Fire and Police\2013\Uoion Pncmg\Corresponden«:e\2013 Un1on Negotiat1on Pridngs Results-Scet'laric 5.docx
00993-000 l RET03
706
........ 0 ........ Appendix A City Pension Fund for Firefighters and Police Officers in the City of Miami Beach Union Pricing Summary Current Year Year1 Year2 Year 3 Year4 Scenario 1A: lncrease/(Decrease) in Normal Cost (1,479,000) (1,574,000) (1,673,000) (1,630,000) (1,897,000) lncrease/(Decrease) in Unfunded Accrued Liability [24,366,000) (24,252,000) (23,554,000) (30,018,000) (34,561,000) lncrease/(Decrease) in Annuol Required Contribution (ARC) [5,666,000) (6,034,000) [6,374,000) (7,021,000) (7,935,000) Net Present Value of 30 Year ARC Changes (145,176,000) Page 1 of 4 YearS Year6 (1,877,000) (1,782,000) (40,411,000) (46,633,000) (8, 721,000) (9,423,000) Year 7 (1,794,000) (52,628,000) (10,215,000) BuckConsultants 7/26/2013
........ 0 00 Appendix A City Pension Fund for Firefighters and Police Officers in the City of Miami Beach Union Pricing Summary Year 8 Year9 Year 10 Year 11 Yearl2 Scenario lA: lncrease/{Decrease) in Normal Cost (1,694,000) (1,572,000) (1.430,000} {1,534,000) (1,236,000) lncrease/(Decrease) in Unfunded Accrued liability (58,833,000) (64, 738,000) (70,675,000} (76,466,000) (82,522,000) lncrease/(Decrease) in Annual Required Contribution (ARC) (10,936,000) (11,655,000) (12,387,000) (13,408,000) (14,059,000) Net Present Value of 30 Year ARC Changes Page2 of4 Year 13 Year 14 (978,000) (1,093,000) [87,821,000) (92,337,000) [ 14,631,000) (15,718,000) Year 15 (973,000) (97,843,000) (16, 717,000) BuckCons ulta nts 7/26/2013
........ 0 <0 Appendix A City Pension Fund for Firefighters and Police Officers in the City of Miami Beach Union Pricing Summary Year 16 Year 17 Year 18 Year 19 Year20 Scenario 1A: lncreas~/(D~cr~a;~) in Normal Cost [404,000) (364,000) 209,000 461,000 999,000 lncreas~/(D~creas~) in Unfunded Accrued Liability (102,880,000) [105,617,000) [107,847,000) (107,883,000) [106,848,000) lncrease/(DHrea;e) in Annual Required Contribution (ARC) (17,100,000) [17,888,000) [18,254,000) [18,842,000) [19,068,000) Net Present Value of 30 Year ARC Changes Page 3 of 4 Year 21 Year l2 1,410,000 991,000 (104,00S,OOO) [99,609,000) (19,308,000) [20,330,000) Year 23 1,185,000 [96,317,000) [20,867 ,000) BuckConsultants 7/26/2013
........ ~ 0 Appendix A City Pension Fund for Firefighters and Police Officers in the City of Miami Beach Union Pricing Summary Year 24 Year25 Year l6 Year 27 Year lB Scenario lA: lncrea~e/(Decrease) in Normal Cast 1,277,000 1,293,000 1,292,000 1,334,000 1,378,000 lncrea~e/(Decrease) in Unfunded Accrued Liability (92,780,000) (88,647,000) (33,961,000) (78,545,000) (72,022,000) Increase/( Decrease) in Annual Required Contribution (ARC) (21,455,000) (22,090,000) (22,693,000) (23,190,000) (23, 5 73,000) Net Present Value of 30 Year ARC Changes Page 4 of4 Year 29 1,409,000 (64,214,000) (23,869,000) Year30 1,436,000 (55,154,000) (24,111,000) BuckConsultant~ 7/26/2013
FIRE AND POLICE PENSION ORDINANCE SHALL BE
PROVIDED UNDER SEPARATE COVER
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