HomeMy WebLinkAboutResolution_11-97/98_02/12/1998 i
RESOLUTION NO. 11 -9798
A RESOLUTION OF THE VILLAGE COUNCIL OF THE `
VILLAGE OF TEQUESTA, APPROVING A PROPOSAL
FROM GABRIEL, ROEDER, SMITH & COMPANY IN AN
AMOUNT NOT TO EXCEED $5,0000 FOR ACTUARIAL
AND CONSULTING SERVICES ASSOCIATED WITH
AMENDING GENERAL EMPLOYEE RETIREMENT
BENEFITS TO BE A DEFINED CONTRIBUTION PLAN,
AND AUTHORIZING THE VILLAGE MANAGER TO
ENGAGE THE FIRM FOR SUCH SERVICES.
NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE COUNCIL OF THE
VILLAGE OF TEQUESTA, PALM BEACH COUNTY, FLORIDA, AS FOLLOWS:
Section 1. The Proposal from Gabriel, Roeder, Smith &
Company in an Amount Not to Exceed $5,000 for Actuarial
I Services and Consulting Services, attached hereto as Exhibit
"A" and incorporated by reference as part of this
Resolution, is hereby approved and the Village Manager of t
the Village of Tequesta is authorized to engage the firm for
such services on behalf of the Village of Tequesta.
Section 2. Funding for the aforementioned Proposal is to be i
Provided from the FY 1998 Undesignated Fund Balance
Estimated to be $710,822 with the Director of Finance to
Include the Same with Future Budgetary Amendments to
Accomodate Same.
THE FOREGOING RESOLUTION WAS OFFERED by Councilmember
Mackail who moved its adoption. The motion was seconded by
Councilmember Hansen and upon being put to a vote, the
vote was as follows:
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FOR ADOPTION AGAINST ADOPTION
C
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Alexander W. Cameron A
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Joseph N. Capretta
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Carl C. I1ansen
Pion T. Mackail
Elizabeth A. Schauer
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The Mayor thereupon declared the Resolution duly passed and
adopted this 12th day of February, A.D., 1998.
L� MAYOR OFj-�'IEQU TA
j Elizabe A. Schauer
• ATTEST:
i
oann Mangan' llo
Village Clerk
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9
Village of Tequesta
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• GABRIEL, ROEDER, SMITH & COMPANY L ; I UIiIcc
Consultants & Actuaries
301 East Las Olas Blvd. • Suite 200 • Ft. Lauderdale, FL 33301 • 954 - 527 -1616 o FAX 954 - 525 -0083
January 30, 1998
Mr. Tom Bradford
Town Manager
Village of Tequesta
357 Tequesta Drive
Tequesta, Florida 33469
Dear Tom:
As requested, we are submitting a proposal to provide actuarial and consulting services in connection
with the withdrawal of general employees from the Town's Retirement Plan.
You have indicated that general employees hired after 1995 would rather participate in a defined
contribution plan than the defined benefit plan in which they presently participate. We are assuming
for purposes of this proposal that you do not wish us to provide a comparison of the pros and cons
of each type of plan, i.e., the decision to change has already been made.
We are also assuming that you will not need any assistance in choosing a defined contribution vendor.
The marketplace for a small group of employees with little in the way of start up funds is quite limited.
Since you already use ICMA for the Town's deferred compensation plan, you will likely use ICMA for
the new defined contribution plan.
The main service we will perform is to calculate the actuarial present value of accrued pension benefits
for each general employee participating in the existing Plan. Such value or, if greater, the employee's
own contributions will be transferred to the new plan. To prepare these calculations, we will need
for each general employee member of the Retirement Plan the following:
(a) Date of birth
(b) Date benefits begin to accrue, i.e., date of hire or later date as provided by the Plan.
(c) History of compensation as provided by the Plan.
(d) Accumulated employee contributions, with interest (if provided by Plan).
The date as of which the above information is to be collected is the day before you expect the new
• defined contribution plan will become effective. For example, if it appears that the new plan would
be effective April 1, 1998, then the requested information would be collected as of March 31, 1998.
Mr. Tom Bradford
City of Tequesta
January 30, 1998
Page 2
Our fee for this service will range from $1,700 to $2,000.
Another necessary part of the process will be an amendment to the Retirement Plan providing for the
withdrawal of general employees and the removal of references to general employees throughout the
Plan document. If you would like us to handle this assignment, results of which would have to be
reviewed by the Town's Attorney, we would need a floppy disk containing the present Plan document.
Our fee would range from $2,000 to $2,400.
Other steps that would be needed are as follows:
♦ Notify Loomis Sayles and Prudential of amounts that will be withdrawn from the
Pension fund, and provide them with instructions on transferring money to ICMA.
♦ Notify Office of Police /Fire Retirement Trust Funds and Bureau of Local Retirement
Systems that general employees are withdrawing from the existing Plan and being
transferred to a new plan.
Please contact us if you have any questions.
Sincerely yours,
J. Stephen Palmquist
JSP /or