HomeMy WebLinkAboutHandouts_Pension Public Safety_Handout No. 1_11/02/2009Public Safety Officers Pension Board Meeting -November 2, 2ix19
415L Annual Police Officer's and Firefighter' Pension Conference October 215` - 23'd -Key Takeaways
Bonnie has done an excellent job of keeping our board informed of the state and federal law changes
impacting the Tequesta Public Safety Plan.
*175/185 funds are available to fund DB or share plans (DB supplement or 457). If primary plan is a
Defined Contribution municipality is not eligible for the supplemental funds to fund the DC plan.
*Request that advisors and consultants provide written fiduciary acknowledgement. Disputes to be
resolved under Florida Law in the county where the Board sits.
*Investment return assumptions are factored over the life of the plan. Not recommending changes to
current assumption unless the consultant can clearly make the need for change. Rule of thumb, a 1%
change equals a contribution increase or decrease equal to 10% of payroll. (Foster & Foster -Actuaries)
*Mortality increases in the latest mortality table are having the greatest impact on plans that have
majority male populations. Male mortality has improved while female mortality has remained relatively
constant.
*Smoothing -dampens funding volatility but "does not change ultimate plan costs". Counter argument
-when deferring costs you are deferring from current to future taxpayers.
*For 2010 forward the retirement division will require contribution to be expressed as a % of payroll
rather than a specific dollar amount. Any required adjustments (up only) would then be made at year-
end
*Establishment of a two tier plan would result in municipality losing 175/185 money. Bonnie, this needs
clarification. (Sugarman & Susskind, Attorneys At law)
*Metro Dade is proposing a 5% pay-cut for one year to help offset pension costs. (Sugarman)
*Donnelly & Gross - in response to the funding crisis what they are hearing from many of their clients is
municipalities asking for pay cuts of 3% and in several cases the establishment of two tier plans.
*There is "proposed" legislation (Helps 2) that would permit employees to directly pay for health care
and/or long-term care premiums directly and still claim the $3000 tax deduction. This legislation would
also provide an inflation index and would extend the benefit to all public sector employees.
*Section 175/185 clarifications -retirees may change their beneficiary up two times after retirement
without providing proof of good health or that the beneficiary being removed still lives with the
appropriate actuarial adjustment to the benefit. Form of benefit cannot be changed. Process to change
needs to be established as well as who pays any associated costs.
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