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Village Of're9uesta
* Department of Fire-Rescue Services
V 357 Tequesta Drive P.O. Box 3273 ~ Tequesta, FL 33469 P: (561) 744-4051 ~ F: (561) 575-6239
James M. Weinand, Fire Chief
October 20, 2004
J. Stephen Palmquist
Gabriel, Roeder, Smith & Company
301 East Las Olas Boulevard
Suite 200
Ft. Lauderdale, FL 33301
Dear Mr. Palmquist:
On August 10, 2004, I send you a letter stating that the Board of
Trustees of the Village of Tequesta Public Safety Officers' Pension
Trust Fund has accepted your firm's proposal to conduct an Actuarial
Valuation Report for the Village of Tequesta Public Safety Officers'
Pension Trust Fund for October 1, 2004. Please disregard this
directive until I receive further direction from the Board of
Trustees.
The Board was under the assumption that we did not have an Actuarial
Valuation Report for October 1, 2003. I understand that we have a
contractual agreement with your firm to prepare annual reports and
that you have completed this report. The Board of Trustee may want
to continue with annual reports or implement biennial reports
starting in 2005.
The October 1, 2003, Actuarial Valuation Report that I have seen
needs to be corrected. First, the valuation results need to be
split; Firefighters separated from Police Officers, which is in
accordance with our plan. Secondly, please double check the data
used for this actuarial report; to my knowledge the Village of
Tequesta does not have an employee in the 60-64 age-range in either
the police or fire departments.
The Board of Trustees did authorize your firm to prepare cost
estimates (impact statements) for the possibility of adding the
following benefit or benefits to our existing pension plan. Please
base these estimates from the October 1, 2003, data that you have
already complied.
First, we would like you to look at a twenty-five and out provision,
similar to the FRS provision where an employee would work twenty-
five consecutive years and be eligible to retire regardless of age.
M:\Administration Documents\Pension File\Palquist Letter 10202004.doc
Second, we would like you to look at the cost associated with
raising the multiplier for years sixteen (16) through twenty-one
(21) to 3.Oo instead of the 2.5o multiplier.
Third, in case we do not implement the twenty-five and out
provision, we would like you to look at the cost associated with
raising the multiplier for years twenty-five and up to a 3.Oo
multiplier instead of the 2.Oo provision.
Forth, the membership is interested in increasing the Monthly
Supplemental Benefit to $20.00 per year of service to a maximum of
$600.00 per month.
Steve, the Board would also like to know how much state supplemental
money has been spent to date. I understand that since the Village
of Tequesta gave the six-year vesting provision to all employees
(including general employees) that the state supplemental funds for
extra benefits for Police and Fire should not be charged the extra
costs associated with adding this provision. Please let me know if
this is wrong.
The Actuarial Valuation Report for October 1, 2003, is scheduled to
be on the next Tequesta Public Safety Pension Trust Meeting, which
is scheduled for November 9, 2004, at 8:00 a.m. Your presence is
requested for this meeting to answer any questions the Board Members
may have on this subject. Please bring any corrected reports or
impact statements that you have completed to this meeting.
Please let me know the results of you study. I can be reached by E-
mail @ ,Tweinand@tequesta.org, phone @ (561) 744-4056 or mail at the
above address.
Sincerely,
~/[~I Weinand, Chairman
is Safety Officers Board of Trustee's
Cc: Board Member's agenda package
Hanson, Perry & Jensen, P.A.
M:\Administration Documents\Pension File\Palquist Letter 10202004.doc