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Home My WebLink AboutAgenda Fire Pension 111411THE R ESOURCE C ENTERS , LLC 4360 Northlake Boulevard, Suite 206 Palm Beach Gardens, FL 33410 Phone (561) 624-3277 Fax (561) 624-3278 WWW .R ESOURCE C ENTERS .COM PALM BEACH GARDENS FIREFIGHTERS’ PENSION FUND Meeting of Monday, November 14, 2011 Location: Council Chambers, Palm Beach Gardens City Hall 10500 North Military Trail Palm Beach Gardens, FL 33410 Time: 9:00 A.M. A GENDA 1. Call Meeting to Order 2. Minutes of Meetings Held September 20, 2011 3. Investment Manager Report: ICC Capital (Steve St ack) • September 30, 2011 Quarterly Report 4. Investment Monitor Report: The Bogdahn Group (Tr oy Brown) • September 30, 2011 Quarterly Report 5. Attorney Report: Pedro Herrera • Revised Travel Expense Policy • Memo Regarding Mandatory Local Law Pension Plan Re visions (SB1128) 6. Administrative Report: Resource Centers (Audrey Ross) • Disbursements 7. Other Business • 2012 Meeting Dates • GRS Actuarial Studies 8. Schedule Next Meeting: Monday, January 23, 2012 at 9:00 A.M. 9. Adjourn PLEASE NOTE: Should any interested party seek to appeal any deci sion made by the Board with respect to any matter c onsidered at such meeting or hearing, he will need a record of t he proceedings, and for such purpose he may need to insure that a verbatim record of the proceedings is made, which r ecord includes the testimony and evidence upon whic h the appeal is to be based. In accordance with the Americans With Disabilities Act of 1990, persons needing a specia l accommodation to participate in this meeting should contact The R esource Centers, LLC no later than four days prior to the meeting. THE R ESOURCE C ENTERS , LLC 4360 Northlake Boulevard, Suite 206 Palm Beach Gardens, FL 33410 Phone (561) 624-3277 Fax (561) 624-3278 WWW .R ESOURCE C ENTERS .COM PALM BEACH GARDENS FIREFIGHTERS’ PENSION FUND 2012 MEETING DATES Monday January 23, 2012 @ 9AM Monday March, 12, 2012 @ 9AM Monday May 14, 2012 @ 9AM Monday July 16, 2012 @ 9AM Monday September 10, 2012 @ 9AM Monday November 5, 2012 @ 9AM SUGARMAN & SUSSKIND PROFESSIONAL ASSOCIATION ATTORNEYS AT LAW Robert A. Sugarman ♦ 100 Miracle Mile Howard S. Susskind Suite 300 Kenneth R. Harrison, Sr. Coral Gables, Florida 33134 D. Marcus Braswell, Jr. (305) 529 -2801 Pedro A. Herrera Broward (954) 327 -2 878 Noah Scott Warman Toll Free 1 -800 -329 -2122 Ivelisse Berio LeBeau Facsimile (305) 447 -8115 ♦Board Certified Labor & Employment Lawyer M E M O R A N D U M November 1, 2011 In Re: Mandatory Local Law P ension Plan R evisions (Chapter 2011 -216 Laws of Florida (f/k/a SB1128)) Chapter 2011 -216, Laws of Florida (Senate Bill 1128) became law on June 23, 2011. This legislation made several changes to all of Florida’s local government defined benefit retirement plans with amendments to Florida Statute s, chapter s 112, 175 and 185. The following summarizes the required changes that may affect your plan: Changes that apply to all local law plans – Chapter s 112 , 175 & 185 : Plan sponsor contributions relating to normal cost : Effective July 1, 2011, lo cal government defined benefit plan sponsors may not reduce contributions required to fund the normal cost of the plan. If the Actuarially Required Contribution is less than the normal cost, employer contributions must be increased to at least equal the no rmal cost. The minimum funding requirement must be accounted for by the Plan sponsor by October 1, 2011. All local government pension plan actuarial valuations prepared after July 1, 2011, must include , for reporting purposes only (and not for funding pu rposes), a disclosure of the present value of accrued benefits (vested, non -vested and total), as adopted by the Memorandum In Re: Mandatory Local Law P ension Plan R evisions (Chapter 2011 -216 Laws of Florida (f/k/a SB1128)) November 1, 2011 Page 2 Financial Accounting Standards Board Statement No. 35, using the Florida Retirement System’s (FRS) assumed rate of return (currently 7.75%.). Action R equired : confirm with your actuary that the actuarial valuation that sets the employer contribution rate for the 2011 -12FY complies with these requirements. Pensionable “Compensation” or “Salary” - Overtime, accrued vacation and sick leave paym ents : For service earned on or after the “effective date” (July 1, 2011, or the date of entry into the first collective bargaining agreement (CBA) entered into on or after July 1, 2011 ) a defined benefit plan may include a maximum of 300 hours per year of overtime compensation, as specified in the plan or CBA, but may not include any payments for accrued unused sick or annual leave , in the retirement calculation. Payments for overtime greater than 300 hours per year or accrued unused annual or sick leave accrued with service earned before the “effective date” may still be included in compensation for pension purposes, even if the payment is not actually made until after the “effective date”. Action required : if there was a CBA in place or being negotiated on July 1, 2011, monitor status and ask employer to inform you when next CBA is entered into (signed and ratified by employer’s legislative body and bargaining unit) so that plan amendment ordinance can be prepared. There are several ways to comply with this requirement so urge bargaining parties to agree upon calculation method ology in the new CBA. If workers are not covered by a CBA, prepare plan amendment for adoption by employer retroactive to July 1, 2011. Additional changes that apply to local law Police Officer and Firefighter pension plans – Chapters 175 & 185 : There are no changes to the definition of “compensation” or “salary” for service earned prior to the “effective date”. Police Plans continue to require 300 hours per year of overtim e in the retirement calculation as a minimum benefit. Fire Plans may include up to 300 hours per year of overtime . Memorandum In Re: Mandatory Local Law P ension Plan R evisions (Chapter 2011 -216 Laws of Florida (f/k/a SB1128)) November 1, 2011 Page 3 • Board of Trustees – makeup of the board of trustees - Change appl ies only to local Police Officer and Firefighter pension plans – Chapters 175 & 185 : Applies to those local law plans in effect on June 30, 1986 having a greater than 40% employee representation on the board. The City may now change the designated municipal representative appointed to the board. Such municipal representatives must continue to be residents of the municipality. This change may not reduce the membership percentage of firefighters, police officers, or the municipal representatives on the board. • Employee Contribution increases - Change applies only to local Polic e Officer and Firefighter pension plans – Chapters 175 & 185 : As of the “effective date”, increases in employee contributions still require the consent of the members’ collective bargaining unit, or if none, of a majority of the active police officers and firefighters in the plan . However, i ncreases in employee contributions no longer require an increase in benefits . • Collectively Bargained Benefits & Non -collectively Bargained Benefits – Effective Date - Change applies to all local plans – Chapter 112, 1 75 & 185 : Where the members are represented by a collective bargaining agent (whether the CBA includes pension benefits or not) these provisions are effective on the date of entry into the first CBA entered into on or after July 1, 2011. Where participan t s in the plan include persons represented by a collective bargaining agent and other persons are not so represented , the effective date is the date of entry into the first CBA after July 1, 2011 for all participants. For pension plans covering more tha n one bargaining unit , implementation of these changes is not required until the final CBA is entered into by the last bargaining unit , even if after July 1, 2011. In cities/districts where the members are not represented by a collective bargaining agen t, the effective date is July 1, 2011. Implementation of these changes requires individual analysis of each plan . T herefore , we request that you provide our office with a copy of the most current collective bargaining agreement(s) between the Plan sponso r (i.e. the employer of bargaining unit participant s ) and the employ ee organizations , once ratified by the District/City /Town ’s legislative body, so that we Memorandum In Re: Mandatory Local Law P ension Plan R evisions (Chapter 2011 -216 Laws of Florida (f/k/a SB1128)) November 1, 2011 Page 4 may proceed with the analysis of your plan . We will then provide recommendations for compliance with the newly enacted legal requirements .