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HomeMy WebLinkAboutMinutes Council 050472REGULAR MEETING CITY OF PALM BEACH GARDENS MAY 4, 1972 4 The Regular Meeting of the City of Palm Beach Gardens was called to order by Mayor Wiley at 8:00 P.M. The meeting was held at 10500 N. Military Trail in the Assembly Room and opened with the Pledge of Allegiance to the Flag. POLL CALL: Roll was called by the City Clerk and present were: Councilman DeLonga, Councilman Orr, Councilman Dunbar, Vice Mayor Kiedis and Mayor Wiley. Mr. Carlson, City Manager and Attorney Brant attended. MINUTES: Minutes of the Regular Meeting of April 20, 1972 were unanimously approved on a motion by Councilman Orr seconded by Vice Mayor Kiedis. PUBLIC HEARING: Mayor Wiley explained that the purpose of the Public Hearing was for considering the petition of the Kassuba Corporation to rezone a parcel of land South of Northlake Boulevard and East of 1 -95 from C -2 General Commercial to R_4 High Density Residential, advertised in a newspaper of general circulation. Persons from the audience who wished to present their views were asked to sign a list. There were 9 signatures: Barbara J. James, Mildred Peters, Robert Schlaudecker, Dr. H.R. Hathaway, Philip Bowdre, George Kelch, Joe Hancock, Tom Armer, Clair Andersen for the Planning and Zoning Commission. Mayor Wiley stated there were also 14 telephone calls to the City Manager objecting to the rezoning and that each Councilman had received numerous calls at their respective homes. Don Reed, Attorney, represented the Kassuba Corporation on the petition for a change of zoning. He stated that the recommendation and approval for a change of zoning from the Palm Beach Gardens Planning and Zoning Commission had been presented to the Council. Fie explained that "the Kassuba Corporation acquires, and constructs rental type dwellings and then operates the dwellings. They do not construct and then sell out and leave the area and are very careful Regular Meeting May 4, 1972 Page 2 in the type of approach they use in their acquisitions and they actually acquire property which their company serves; such as rentals and multi -type rental community. When this parcel was purchased it was zoned C -2 and the use included multi - family dwellings; then the Council repealed that particular use within that Zoning Classifica- tion. In order to utilitze this property in a manner close to that which the Company does construct, they would require an R -4 zoning," He urged the Council to permit this change of zoning as recommended by the Planning and Zoning Commission. Mr. Larry Coleman, Director of Planning for the Kassuba Corporation was introduced and he gave a slide presentation and explained the type of project that is contemplated; showing some of their building phases throughout the United States and what they have done in various parts of the Country. He stated that the Kassuba Corp. provided shelter through garden apartments, complexes and planned residential communities all throughout the United States, and that it is essential to provide facilities to make the people in the complexes comfortable and happy, and that they do not build highrise apartments but build efficiencies and one and two bedroom apartments. He presented a proposed basic plan for the project, pointing out the recreation areas, landscaping, and the waterways. He did not present any architectural drawings and stated they would not until they reconfirm with the City. He stated their projects across the Country average about 16 to 22 units per acre. He thanked the Council for their time and consideration and left the stand for the audience discussion. Mayor [Miley acknowledged many communications received in the past and gave a summary of the many meetings held by the Planning and Zoning Commission and the City Council on the petition for this rezoning. He stated that the Ordinance #8 was read on first reading Regular Meeting May 4, 1972 Page 3 on April 20, 1972. Councilman DeLonga commented on a communication from the Village of North Palm Beach stating that we have good rapport established with the Vilage of North Palm Beach and the Town of Lake Park. He stated he was concerned when the Village of North Palm Beach approved for construction 6 condominiums, "and if they find the plant overloaded they have the same option open to them as the City of Palm Beach Gardens and they too can declare a moratorium." He challenged the North Palm Beach Council to reconsider reclassi- fying some of their areas as the Palm Beach Gardens Council did three months ago when the Council voted a change in commercial areas whereby residential buildings could not be built in these areas. COMMUNICATIONS: Mayor Wiley acknowledged a communication from Anderson Wood, a resident, urging the Council to consider very carefully what impact this would be on schools, Police etc, and expressing opposition. A communication from Larry Lukin, Director of Environmental Services, Palm Beach County Health Department, and which was solicited, advised the project will be subject to the same consideration as the Palm Beach Gardens Hospital request. The Department of Pollution Control will not issue permits to construct until the Palm Beach County Area Planning Board has presented a schedule of implementation for the service area. They expressed no objection to the rezoning of the property but would not allow any further building until the situation of the County's sewage treatment plant is resolved. Letter from Mrs. Lee Hughes, property owner, who opposesjwas read. A communication from the Palm Beach Gardens Zoning Board Of Appeals in which they listed seven items of concern was acknowledged. Mayor Wiley presented the resume of the number of apartments and rental apartments existing in the City at the present time, as reported by the Building Official. (Resume attached to minutes) Mr. Carlson presented costs to the City if the proposed zoning Regular Meeting, May 4, 1972 Page 4 change was authorized, and read his report as presented to the Council. (Report attached to minutes). Mayor Wiley added that the V determination at the present time is that the parcel of land is out- side both of the adjacent utility company areas. Those speaking from the audience: Mrs. Barbara James spoke and objected. Mrs. Deters spoke in objection for the Woman's Club. Mr. Schlaudecker representing the Beautification Committee read a letter from the Committee in opposition to the rezoning. Dr, Hathaway of the Beautification Committee and Chairman of the Palm Beach County Committee on Environmental Health presented copies to the Council of an impact study of Orange County. This was reviewed. He expressed that he would go on record for his family opposing any high density residential areas. Mr. Phil Bowdre read a letter from E. R. Shoemaker, a resident, who could not be present and opposed the petition for rezoning. Mr. Bowdre also representing the Zoning Board of Appeals, expressed that the Board disagrees with the rezoning from C -2 to R -4. For himself he also expressed that the project would be of no advantage to the City. Mr. George Kelch stated there was sufficient high density, and is not in the best interest of the City and opposed. Mr. Joe Hancock objected stating the traffic is treacherous on west Lake Park Road. There is inadequate water and sewage facility and this would undoubtedly mean a higher tax rate. Mr. Tom Armer expressed that "who needs this in the area, we are here to benefit ourselves and that taxes would not go down and are very aware of the present school problem." Dr. Gerson asked: "Is the Council convinced by the feeling of the people who have elected you to the office ?" He opposed the zoning i Regular Meeting, May 4, 1972 Page 5 change. CLAIR ANDERSEN: Mr. Clair Andersen presented the recommendation of the Planning and Zoning Commission to allow the change of zoning from C -2 to R -4. He gave these points made by the Commission when considering the change: 1. The very fine work done by the Planning and Zoning Commission and the past Board, and to Gerald Dake and Associates on the completion of the Long Range Development Flan for the City. 2. Residential uses should be left in Commercial Zones. Consideration should be given as the Kassuba Corporation purchased this parcel of land with the knowledge that this was zoned for residential as well as Commercial. He acknowledged that the presentation given was substantially the same as given to the Planning and ,Zoning Commission. The matter of the Sewage Treatment was considered and they felt that this area is not in the area of either of the utility companies serving this area, that there is a letter from Larry Lukin stating that on the zoning petitions, the problem of sewage should not be considered. He stated that the survey of the area showed there was a need for this type of housing and these plans meet those needs. He added that he and the Council have an obligation to serve all the people, also those who would live here in the future years and urged the Council to make a survey of the needs of the area and take this petition into consideration. QUESTIONS BY COUNCIL: Councilman DeLonga asked: "What assurance is there that you would COUNCILMAN DELONGA: build just as presented and would you sign an agreement ?" Mr. Coleman stated yes as this was the type of building they construct and want everyone happy. Councilman DeLonga: "What assurance do we have that you won't come back next month and request a change of zoning on the other 40 acres and would you be willing to sign an agreement to this effect ?" Mr. Coleman answered no,visimply because I don't own the property." Regular Meeting May 4, 1972 Page 6 "Are there any government funds involved in this project ?" Mr. Coleman answered "No." "What would be the average monthly rental for apartments ?" Mr. Coleman answered: "efficiencies at $160.00, 2 bedroom town houses at $275.00 a month with 90 day cancellation clauses." Mr. Larry Coleman answered Councilman DeLonga that they were aware of the subdivision requirement for 10% donation for open space. He also stated the oldest project developed by Kassuba Corporation is between 12 and 14 years old now and have never sold a development. He stated that they had received preliminary approval of a 75,000 gallon per day temporary onsight sewage treatment plant until the project could be serviced by a franchised utility, and the permit for its construction will not be granted until the Area Planning Board has determined what Utility Company will be given the franchise to serve this property. VICE MAYOR Vice Mayor Kiedis questioned Mr. Coleman on the recreation KIEDIS: facilities and was assured that there would be outside facilities for various activities. COUNCILMAN Councilman Dunbar asked what the plans for the remaining portion of DUNBAR: the parcel of land would be and was informed that there were no definite plans but possibly for a shopping mall. MAYOR WILEY: Mayor Wiley asked why does Palm Beach Gardens need this development now? Mr. Coleman gave statistics of the desire of people to locate in a certain area and Palm Beach Gardens is a very nice area with wonderful people and this is what draws the Kassuba Corporation and that the project would be a credit to the community of Palm Beach Gardens. ATTORNEY DON Atty.Don Reed closed submitting substantiating facts to those � REED: presented by Mr. Coleman. He offered that the Kassuba Corporation would be paying rid Valorem taxes without the benefit of the $3000 Regular Meeting May 4, 1972 Page 7 Homestead Exemption per unit. "As for the school children it doesn't seem to matter where they live and the School Board is charged with taking care of this. In all good faith, I ask for serious consideration from the Council to grant this rezoning to the Kassuba Corporation." Public Hearing closed at 10:15 P.M. and continued with the Regular Meeting. ORDINANCE #8 Ordinance #8, Amending the Zoning Code of the City to rezone a REZONE SECTION 19, KASSUBA parcel of land in Section 19 along Northlake Boulevard and I -95 from C -2 General Commercial District to R -4 High Density Residential District, as petitioned by the Kassuba Corporation was read by title only on second reading by the City Clerk on a motion by Councilman DeLonga seconded by Councilman Dunbar. Vote 5 ayes and O nays on the motion. Mayor Wiley polled the Council on their views on the petition to rezone. MAYOR WILEY: Expressed that: "There have been several items expressed: the sewage situation, the schools, the building permits, the inequities regarding the property owners who are covered under our building moratorium of which the Kassuba Corporation would not be covered, the fact that our Community is predominately single family residents and is soon to be passed by apartment type complex buildings, it is the contention that we have adequate R -3. We have the distinction by the last census of being the fastest growing community in the entire United States. Aside from the notariety it is a distinction that I personally do not appreciate. It has cost us severe growing problems and quite personally I feel that the building moratorium we have in effect right now has been a very necessary breathing spell to give us an opportunity to catch our breath to see where we really want to go. However, it seems to me that an honorable Corporation like Regular Meeting, May 4, 1972 Page 8 this would do business with this City in the manner prescribed under the Community Planned Unit Development which governs this type of development within the City. I would recommend that since there can be no building in the appreciable future because of the building moratorium, and because of the statement of the Director of the County Board of Pollution Control that there will be no building in this area of the County until the sewage system is resolved. He has indicated when this is resolved our local moratorium situation will be solved, and it will lift the inequities. Based on this I would recommend we do not pass Ordinance #8." VICE MAYOR "Mayor Wiley touched on everything and the only thing I was going to KIEDIS. add was the traffic problem, the water supply and the precedent that might be set for future rezoning for properties that were not originally zoned for R -4. Otherwide I concur with Mr. Wiley." COUNCILMAN ORR: "I think you touched on the on -site treatment plant and agree with �= Mr. Wiley." COUNCILMAN "I also vote no and dontt plan to be redundant." DUNBAR : COUNCILMAN "I think there are 3 points of interest we might be concerned with. DEL ONGA : Number one: The only reason they couldn't purchase in the R -4 area is because the City bought this. Number 2: They just sunk a new well and I understand it's a good one, so our water supply should be very good. Number 3: The City does plan to expand its boundaries and perhaps double its size. It is presently under study by the Planning and Zoning Commission. I can't in good conscience support the issuance of any building permit in our City as long as we have property owners that can't build their homes. I can't justify instructing our Building Official which I have done in the past, to pull building permits and then turn around and permit someone to build 478 units while these property owners are unable to build. However, on the other hand I really have no serious objection to a Regular Meeting May 40 1972 Page 9 development such as this in that particular area; inasmuch as we deleted high density residential in the areas that I am most concerned about on both sides of PGA Boulevard and on both sides of Military Trail, I think, if we are going to have high density units in our Cityathat's the place to put them. We have to consider other people other than ourselves being single family home owners. I'm very concerned about very nice people who are just starting out in married life who can't afford single family dwellings, and about our senior citizens who aren't physically able to take care of a single family dwelling. I think we have to consider in the make up of our City, people of all natures, and I would be in favor of rezoning that particular piece of property. I wouldn't be in favor of re- zoning any adjacent piece of property for that purpose." MDTION TO ADOPT: Motion to adopt Ordinance #8, rezoning a parcel of land on the South side of Northlake Boulevard and East of I -95 from C -2 to R -4 made by ._ Councilman DeLonga seconded by Councilman Orr. Voting was 1 aye and 4 nays. Councilman DeLonga voted aye. Mayor Wiley announced that the request for rezoning by the Kassuba Corporation had been denied by a vote of the Council to not adopt Ordinance #8, 1972. He invited them to come back to the City with any additional plans and stated he felt that there are areas suitable for this type of development in the City. Mr. Coleman added he appreciated the time and courtesy given and would be in touch. DEPARTMENT Reports for the month of April from the following departments were REPORTS: reviewed and approved by the Council: Recreation, Public Works, Fire, Police, Vehicular Maintenance and Building. Public Works Department was advised to place lettering of City of Palm Beach Gardens on the new fogger. A report from the City Clerk on the transfer of properties in the City was acknowledged. i Regular Meeting, May 4, 1972 Page 10 FIRE WORKS FOR Council approved the expenditure of $1250.00 for purchase of the 4TH OF JULY: Fireworks for the 4th of July Celebration and $200.00 for refresh- ments. Councilman DeLonga stated he would meet with the Palm Beach Gardens Volunteer Firemen on Tuesday and discuss further plans. REPORT ON FIRE Mayor Wiley reported they are moving along just fine, and were 5TATIUN: given a report from Schwab & Twitty on the construction of the Central Fire Station. GARDEN LODGE: Mayor Wiley stated he had been in contact with the Garden Lodge and Grand Lodge and the Masonic Lodges of this District are going together to solve the financial burden and they will proceed with the cornerstone laying and he will meet with them on Wednesday at 7 :30 PM He informed the Council July 29, 1972 was the anticipated date for the laying of the Cornerstone, and suggested proceeding to send invitations. RECOMMENDATIONS Acknowledgement was made of the Planning and zoning Commission's PLANNING & ZONING BOARD: recommendation to rezone the Louis Bills' property on U.S. #1 from C -1 to C -2. The Public Hearing was set for June 1, 1972 and Attorney Brant was instructed to prepare the necessary Ordinance. SHUFFLEBOARD Council authorized the expenditure of an estimated amount of $1400 CANOPIES: to construct shuffleboard canopies and begin construction as soon as these plans have been approved by the City Engineer, Howard Searcy. Motion by Councilman Dunbar seconded by Councilman Orr. Vote 4 ayes and O nays. Councilman DeLonga was out of the Assembly Room at this time. LEAGUE OF Council was not in favor of acting on a proposed resolution CITIES: commending the Florida League of Cities. WORKSHOP ITEM: Council decided to discuss the solicitors ordinance at the next Workshop Meeting, and advise the Beautification Committee the sign ordinance will be scheduled in the future. Regular Meeting, May 4, 1972 Page 11 ITEMS BY CITY COUNCIL: COMMENDING DAVIE) Mayor Wiley made a public commendation to Mr. David Livingston, a LIVINGSTON: resident in the City, who is credited with saving the life of a young 3 year old child after being taken from a swimming pool nearly drowned. Billy Waites, Sgt. of the Palm Beach Gardens Police Department was also commended for the manner he assisted. Mayor Wiley will commend them by personal letters. He also asked that this be included as an item in the Newsletter and point out to the citizens to take precautions. RCA LIGHT: Vice Mayor Kiedis reported that he had conducted a traffic count by himself at the RCA light on AlA and found that there were 58 cars which had to stop on AIA going in either direction and 55 that had the green light with a total of 113 cars on AlA and only 7 on RCA going West only. There were no cars that came out of the plant in that 20 minutes. He requested following through on the request for a correction. Council was in agreement to change the light to a flashing yellow light North and South, and flashing red East and West and directed the City Manager to proceed with the change. CONCESSION: Council discussed the breaking in at the Lake Catherine concession stand and announcement was made that an agreement to repair the door had been accomplished through Mr. Logan and the Public Works Department. WATERFALL Discussion of the maintenance of the entrance to the City at the MAINTENANCE: waterfall was held and Mr. John D. MacArthur will be contacted by letter requesting some consideration for better maintenance. Dedicating MacArthur Boulevard, formerly Garden Boulevard, was scheduled for July 4, 1972. PAYMENT TO Authorization to pay the contractor, S erraes Construction Company, SERRAES CONST. CO.: for the Central Fire Station, the amount of $15,759 was made on a motion by Councilman DeLonga seconded by Vice Mayor Kiedis. Vote Regular Meeting, May 4, 1972 5 ayes and 0 nays. Page 12 ADJOURNMENT. Adjournment was at 11:55 P.M. on a motion by Councilman Orr seconded by Vice Mayor Kiedis. -\� AM �HWL I Mayor Walter Wiley ice Mayor John Kiedis Thelma Compton, City Clerk Councilman James DeLonga Councilman John Orr 6 t` Councilman Gordan Dunbr May 3, 1972 To: Mayor and members of the City Council From: F2ohort H. Carlson, City Manager Subject: 1Cassuba Development Project Gentlemen: The following is a quote from the introductory to the recently adopted Sub - Division 1?cgul,itions for the City of Palm Heath Gardens. "The regulation of land subdivision for residential and other uses is widely accepted as a function of local gove- nment. It has become widely recogni7cd as a method of insuring so,Tnd commu-:ity growth and safeguarding the i_n`erest of the home owners, the sub_divirier and the local government." The purpose of the adoption of the Sub- Division 2eglilations is to prevent a:<cessive gnvernmontAl onorating costs and at the same tine a;:nre that lands will he dcweloped for ,hc highest possible use with all `hc nr- ,s:Dry protections aeiainst deterioration and obsolescence. In order to deter-iine accurately the actual acditional co3-�s, if any, to the City of Palm Beach Gardens for a project such as hat proposed by the 1Cns ,uba �.c�t[ cn,.xf.inn, i i w „ll +1 1.<, nvfc.1- 3s.xiy to tx.n.,o 1-1 h lufox'm -x icr,,. This information will he forthcoming at the Public 11eari-ng Thursday evening, May 4, 1972. The first two paragraphs above should assure the Cit,, that if a developm,i" such as proposed by the TCassuba Corporation was approverl the increased revenues from Ad valorem taxes, Occupational Licenses, Pc =:,mit Dens and thc: increased prorated share to the City of the revenues generated by additional sales taxes, cigarette taxes, gasoline taxes, a Portion of casualty insurance premiums, et,. should more than offset the costs of furnishing City services. Pecause popul t on is one of the factors used in the form+xla for distributing funds to municipal t es under the Revenue Sharing Act of 1972 a City whose growth is stymied would actucxlly be penalized by a reduced share. Kassuba Development Project Page 2 The Departments of the city most affected by the hroiLdeninq of the City's tax base are the Police Department, the Fire Department, Public Works Department and the recreation Department. The City of Palm Roach Gardens is presently supported by a Volunteer Fire (�C`prrtren +. under the direction of a salaried Chief. I .: -.n visualia(, no incre.),r- in this D­partmcnt directly clue to the broadening of our tax base by the devhlopma-nt of a residential project. The Polir_e Department would by necessity be required to patrol any additi)n..l sub- divisions or projects. Also any appreciable increase' in population would generate an increase in the number of complaints handled by th^ Police Departn ?nt. There would he a decided increase in the number of house ch -cks. The Palm peach �;ard, ns Senior Eii,th School, 11owell Watkins Junior Hi.ph School anal the Palm r ;each c =:irr ?ens Elementary School are all within 2 miles frnrl the area undr cons i•1cration for development and would no doubt require 2 addi'ional school rnrards. Fn r,rovirie the necessary additional patrolling anal surveillance previously mc,ntioned would require at least 1 additional ?'olio' Officer. Th e national a +rrririn is one Police Officer for every 1350 T)opalation. The cost to t?ttt cit -�, t, prnv lira .iu at+li1 ion tiI Officer inrludt,i,7 ., lar�+� uniforms, equipment etc. is estimated at $7500.00 annually. To Burnish 2 additional sch ml guards including salaries, uniforms, equipment etc. is estimated at $2000.00 annually. The City Presently is under contract with a Private rompany to pick up garbage in the residential areas twice weekly at a cost of $1.50 per unit per month. A 478 unit project such as proposed by the Kassuba Corporation would therefore he an eventu,il total cost to the City of ai,nroximately $8600.00. Tb Department of Public Works trash pick up schedule could easily he adjusted to absorb the additional number of pick ups. Any project, building or sub -divisi n constructed under the standards and specifications as required by our codes anj in conformity with the rr- rently adopted sub- divisioru rvroulations should assure maintenance free streets ana drainage fox at least B-10 years. If curb, gutte KaSSuba Development Project Paeye 3 and sidewalks are required this maintenance free period could h¢ extended appreciably. V Tn addition to the recreational facilities that the developer may provide for the residents of•the pr7ject he would also be required to dedicate certain ]ands for p,Eblic recreational use. The size of the parcel is determined by a formula in !ham City's Soh - Division Regulations. The irquisitinn by dedication of public r- creation a-oas would probably offset the cost to the City to effec any improv,.ments. S a conservative estimate of the additio,ial - eventlr's that a proje ' such as nr-s (,ntly prono,ed by the Kassuba Corporar=nn iv)nld ne-iorate for the City woul,l br> from ;1 ,0(10 to 55),0(`,0 based on our cuerent millage_ Respectiull , f2obert (l. Car'_s�n t City Maulrlrr ' TO: FROM: i May 3, 1972 Robert lf. Carlson, City Manager Hobert W. Afunsell, Building Official SUBJECT: Number of residential units in the City of Palm Beach Gardens Listed below are the number of single family dwellings, duplex, rental units, condominiums etc. in the City of Palm Beach Gardens: TOWN HALL HOMES Unit 2 31 single family residents Unit 3 52 single family residents Unit 4 62 single family residents Unit 5 148 single family residents Unit 6 108 single family residents PGA (16 duplex Tanglewood 276 rental apartments complete Single Family- 1,752. Nfulti- PGA 1 152 single family residents PGA 2 77 single family residents Plat 1 366 single family residents Plat 3 315 single family residents Plat 5 131 single family residents Plat 6 308 single family residents Plat 7 1 single family resident M &B (US 1) 1 single family resident `rOTA1, 1 ,751.77T , IT, FA N1 I IN 11 7 1 11F,N'1`5 A PA RTME NT S -C OND OM IN I UNtS Tamberlane 120 condominium apartments 66 duplex) Camberwell 20 condominium apartments lld uplex Longwood 48 condominium apartments completed Four - plex -A venue of PGA 4 (Under construction -42 units) Meridian Park 170 Condominium apartments Trails End 66 Condominium apartments Manson 66 Condominium apartments (20 duplex) Palm Garden Apartments 32 condominium apartments (16 duplex Tanglewood 276 rental apartments complete Single Family- 1,752. Nfulti- family over two -82(,. under construction -166 Phase IV) under permit -100 Phase V) Golfers Circle 132 apartments 66 duplex) Plat 7 22 apartments lld uplex Gardens East Apartments 16 apartments 8 duplex) Four - plex -A venue of PGA 4 apartments Four - plex- Aiilitary Trail 4 apartments Hidden Iien 20 apartments Holly Drive 40 apartments (20 duplex) Plant Drive 32 apartments (16 duplex TOTAL 1,068 units complete Single Family- 1,752. Nfulti- family over two -82(,. I)uPlex-242 apartments 121 buildin ps. MEETING OF THE MERIT SYSTEM BOARD MAY 8, 1972 _a a. The meeting of the Pterit System Board was held on Monday. May 8, 1972 at 7:00 P.M. at the City Hall, 10500 N. Military Trail, Palm Beach Gardens. Members present were: Samuel Brown, David Runkel, Rev. Wolber and Louis Oxnevad. Albert Pollard was absent. Mayor Wiley, Vice Mayor Kiedis and Councilman Dunbar attended the meeting. Discussion was held on the letter to the Board dated 5/8/72 from Mayor Wiley on the subject of the Merit Review Forms, rating factors and evaluation definition. The following recommendations were made: "The City "Manager shall equalize differences of the ratings among the different Departments so as to achieve an equitable standard of evaluation, the purpose of this being to eliminate inequities caused by unduly harsh or unduly lenient evaluations." "The City Ptanager shall not accept any evaluation from a Department Head which is not consistent with the aforementioned established standards, It is absolutely mandatory that Department Heads fill out the evaluation forms completely with emphasis placed on substantiating any factor rated unsatisfactory or outstanding." "The City Manager shall use his discretion as to percentage of merit increase on the basis of the employees' performance review, until such time as the City Council requests that this Board reopen consideration of this matter." In view of the request by Mayor Wiley that we also review the min -max pay scale ranges 'this Board feels that it has considered the matter and has no further recommendation to make. A review was made of the proposed Resolution modifying the rating factors Merit System Board Meeting, May 8, 1972 Page 2 r and amending Section 5 of the Employee Performance Review Manual. The following recommendation was made on a motion by Rev. Wolber, seconded by Mr. Runkel and unanimously carried: "Sections 1 and 2, would not recommend adoption, and Section 3 would recommend in its place: "When an employee has reached the maximum salary prescribed for said employees' job classification and subsequently, should said employees' performance review indicate a further increase in salary, this employee shall be given a promotion if feasible, and in the event that a promotion cannot feasibly be granted, this matter then shall be considered by the Merit System Administrator for recommendation to the City Council." A It was decided by the Board that the meeting in June will be held Monday, June 26, 1972, in July there will not be a meeting due to vacations and the August meeting will be held Monday, August 14, 1972. There being no further business, the meeting adjourned at 10:00 P.M. on a motion by Mr. Oxnevad, seconded by Rev. Wolber. lllice ,Dean Kerslake Recording Secretary • I I II I It 111 1 1 R 1 \ 11l N \ \( i ( 0"I I'1 \1 W trll'I' hl 1' 11' 111I V7 t'I, N4II,\ Iii' 1 1, N I'AAN6 L, DkNi,, I Atarvnoru May 5, 1972 Mr. Robert h. Carlson City 'Nana-er City of _al'n Beach :ardens 10500 Borth lTwlitary Trail t'alm Is_ech 'sardens, Floriaa 33403 Re: Group Annuity Contract GR -1329 Dear i3cb : yrt�i; /9yv NIT % \11 "14 14 C: 1111111 li. ❑!,i �f \,roue i\i n,t,, 1 -1 � ohm, 3313 L "I cicpho -- 379 -3731 RcCL!VED DATE. in connection with our telephone conversation, please ne advised that if change ti-e mate of retirement from age b0, as was previously pro - posed, to ace 45; the recoiT ended employer payment (total employer pay.oent if the unfunded prior service cost is amortized over 30 years) would be 435,493 for the olice, 4,111,006 for the General i�mployees for a total of "�19,45ty. This comnares in our previous proposal to $8,015 for the iolice and $16,235 for 'General smnlo-reeS. The benefits do increase for the employees since they will be working, five years longer and will have five years more of credited service. On the T l it-t.r .I I Iqn a1 1'r.,' -I r r t , y.. Il ;tu;t i t.s thr month -ly hen =i )nr hr:rnm- for the -dmployeec- in t,ider or their n-uncs; $127;', $2U, $213, ys_iL', .,126 , 15, and T am enclosing a comnarison of your existing pror;ram as well as the specifications of the nroTosed plarls which we have presented plus a comparison including the two other plans which we discussed which provides 2% per year of service rather than the proposed 1. ?i per year of service. I shall have this information typed in a more readable manner for you when we see you on the 11th. Should you have any questions in the meantime, please do not hesitate to let me know. Very truly yours, FLD:bg ---- FYrank L. D4. Enc. Assistant ".tanager cc: i-ir. Dob Diamond i.r. Larry Nortt•,, The Trmvelers Irs. Co. z r� s-i 1_ O N H V ri�V\ w w w O M N N M rfy e9 O a 0" w w w M O M rh �Q J. OO C U, --,I o r�} • raj rlx'�"1 tr% N N w r-i N Opp C� O� i� O G G tl •d m •ri a) q rl @ m G C i Gy a .ca a i r•t G `� O Ga O O m 0 � wow CD •H F F. U ,-i m •�i ri A r-r a � O +) G •�ri cli maF'i F �"�-, 10 O N ro ta.0 W if U-1 r-i � G •r01 •� O r-1 F Lea ro a F. rd O a G ri @ @ U m P-4 P, $4 0) G 9C - U 0 ri gC, d VN 07 m b W cd •ri H r-! m Ff H d V) fy ca] c ` a) Qh w r O C r. r) 4 4-f r' N P. W a ri cd '0' N O 1 m Id b u) O U) O V\ +) -rGi cd G -�ri Iq W m c O 0) nD G 0) S. V1 'A m U) r-i cd m •ri @ O m m G b$ O •rppi 9C @ cr, W U P.,A N • � t.f1 tIr O •rW1 (D a ri F w 10In o "5i5 4) sN,tni. tia�irn a) M k b 4Q cd F cd V +) Cn ri @ UW W ?) 04 >a rd cd O 1 @ A V\ O 'O •ri •.i cH Q ri U m F F. G cFd Ti m ro —4 ya "O a .�C �Nd )V-� Obi Rt. R. Id O C to ri cd a N O @ @ C b2 O c L'� O ro a o 0. o •rl 4i 1 a) cd co G. Ga 92 G. } N 'Gyy. N 'C7 Fa f.. vi S. 07 L ) 1-4 t: cd )w UN C Y> ri ra csi v@] O q (d N c3 cd O 1 @ Q O -d m Q U rd m k G rd k O m ri @ •r� G t< m O m F. U1 r-1 @ C 0) 5a oy U .� U o •+ ro a a) a o m m a) e O ro m U ro •ri UN W E0. 11. a rd W FK -,-< G, > a7 $vGy]. N fy G•c aa)i U) ri a cd N ro U 4`1 OH m O r,1 N P, ,tia id cV O 1 Gy to U N Q G •H d) F 'tea N O rn � 14 G) W O W al Vl ri Gt y U; Gi w @ 'o r Q . iti to S. V\ V\ O A etl 4) W � chi Vl o.) 0.. N N �O c7 G r— W 'd 'Ja •r♦ •rl •.i ro !n @ ti o G. m o, ro 0 G }a a a cd +.? W a F. U •n G. F B4 co G G N I -:' t>, A C ri +' R. 9 @ U] d ("i ri�V\ w w w O M N N M rfy e9 O a 0" w w w M O M rh �Q J. OO C U, --,I o r�} • raj rlx'�"1 tr% N N w r-i N Opp C� O� i� O G G tl •d m •ri a) q rl @ m G C i Gy a .ca a i r•t G `� O Ga O O m 0 � wow •H F +3 ,-i m •�i A r-r a � O +) G •�ri ri�V\ w w w O M N N M rfy e9 O a 0" w w w M O M rh �Q J. OO C U, --,I o r�} • raj rlx'�"1 tr% N N w r-i N Opp C� O� i� O G G tl •d m •ri a) q rl @ m G C i Gy a .ca a i r•t G `� O Ga O O m 0 � wow FOREWORD In the course of considering a Pension Plan it is inevitable that the following key questions will arise: What are the advantages of a Pension Plan9 M ' What are suitable Plan Provisions? A'•.lt \ttil Ihr 1'I tit r. ',t" How should the Plan be funded? Proper answers to the above are necessary to support a decision on your pension plan and its funding method. It is our intent in this proposal to assist you in considering these general points. We recommend a Travelers Deposit Administration Contract for the funding of retirement benefits — a most flexible means of accumulating a pension fund with guarantees available only from an insurance company. Under the suggested contract the pension fund is credited with high interest earnings supported by the fixed income type investments of The Travelers investment portfolio. Investment of Pension Plan deposits in common stocks is also possible by way of a Travelers Separate Account in conjunction with the Deposit Administration Contract described herein. Details of The Travelers Pooled Separate Account "All will be furnished upon request. 'fR_1l'I LERS INSURANCE COMPANIES • CROUP DEPAR'rA1E.N1' J i1-4 -11 ( t M h7 v1iN A -"yVr .� i Vii+, x� -'ti ti ' ��. •k - i � • _. 3a..ii.�•_.. �•�- Ji.i�u:p',...ls....F a-i - +,.....,..,ax., WHY A PENSION PLAN Basically a Pension Plan is "good business.Ir It is "good business" — • to permit and prepare fir_arciall;; for dignified retirement of older enlpis-ec': • to attract and hold vah'a 3e personnel inter- ested in the expectut -Lon of a secure pension • to recognize that !.n_on: �onoidcr pension,,, a prime ''fringe" 1 crcf__t • to receive employee, -. city, industry and union acknowledgement of pens.on program jut D If- J., "tuv d LhL.>e tsx advantages: d i4oney allocated to a pen:: on plan La a busi- ness is considered a 1-i,_nesL� c.,pense, and ao fully deductible for income tax p!.rposes. ® Retirement fund princ!pi1 and income earned through investment _.s not �,c!,Jcct to taxation while it is reta _Lncd _Ln t `.c pcn ion 1'tmd . ® The assets of the f,.,nd become taxable only when distributed at, retirement . , asi:ally a time when the rcc iJ,:c.:t c to e.- ect his exemption to doublo raid t__ :3 tax k ricl,ct to be low. THE TRAVELERS INSi.RANCF COMPANIES v GROUP DEPARTMENT Gi -46643 131 REV 6-67 PRINTED IN u 5 A i fi E i L t s' _ 4 �f7 `�R� -� __'i� -Y1 erY• - "Y._ `n'''- -•,�jy � Y r,'- WHY THE TRAVELERS O F•(Ih (;PA?ArdTh:rs Guarantee of retirement income to the retired em- pla ee Guarantee of principal of all contributions for fixed income investment Guaranteed rate of interest on contributions for fixed income investment - 8,., currently wEth The Tr"xveler, the,c t,•,aranteeL) zre _, -t 1 'le onl.- throuch an ns:.rod projram, mp 'tarsi Y Ye, I,1c e -L firm fj : ,anr ial base 1 vita 1 , necesoai7 for t ne 1-1-co lens- term commlt- mu nts of a pens.�on plan. ® FnR ?I;I: f ^7TEREST REZ -'KTi E•Ter- encr r-,t i nr c,,n t ; t l -, � fl, , i nvc ., t r:cnt earn inE s . The net y--c1d fs,om new investments `- 1971 is e.rpected to 3pproxAr�te Tmportant? Yes. It tu].cc, an Incrca:;e in net inter - e„t return of only ]/:' of l; to rLdi.ce over -all T, ni- torm pf•n:Inn ])l I)I •� i I1� I]ypr• -nu Itcly Io"". 4 4 i r I ® F�R LJid EXIETd,�E� 4 - Through years of experience and efficiency of oper- ation The Travelers has been able to m�iintain ex- penses at a low level. I =• E TRAVELERS INSURANCE COMPANIES GROUP DEPARTNTENT S_ GI -46643 W REV d -71 PRINTEOINU.S.A r i r r' ()FOt DUE -STOP SL1+ ICE Only an insurance comp,rny r.%n offer cinder one roo_ the total fac- 11ties to meet all the needs of a modern pension plan. Under The Tr- velers Umbrella - our emblem of total service - all the following services are available to our Pension accounts: investments - broad diversification_, diroct placement bonds, mortgages, common stcck Planning - speciali-sts in the design of all types of pension plan provisions Actuarial - hi,hly trained actuarial personnel for studies necessar,- to sound functioning of the plan Administration - specialists available to furnish .information 111 1 _., t1-1 110'l ,t[> 11,10 i—I to mt-ut regl.irements of th— Disct-,'..re Act ar7 of tht Internal iiever::t� as to in -t_al and cor- f 11 v, =j 1" -''f 1 Electronic - sPecd, a 1•ur,rcy and Data Processing depth of rtnaly3is - all -�Lvailah1E with the latest cluctronic equipment (The Travelers owns and operates one of the most complete elec- tronic computing center.-, _n the 'united States) Aenefit Fad.. -ent - Travelers representation n_itionwide ind throw: out .Ln 'I(-' L F mployee "1 ec i if m LtIr t •Ll and I,onimunicat_ons technlglu 3 w th graphic enph.is_s to help com- rlunicate the value of pension benefits to E;inployeCs . JT_11_E TRAVELERS Iti ;I:RANCF, COMPANIES GROUP DEPARTMENT G4-46543 161 REV 6-67 PRINTED IN ll 5 A � E A, ff Az" V PARTIAL LIST OF ORGANIZATIONS WITH PENSION PLANS UNDERWRITTEN BY THE TRAVELERS I .- - ---n I, r,�- I 1_ 1 1'-,mq any roc= 1 jr -,-r:i :,,1P tl - ly Tr, "-d 'Icaj "23,Dclati-c-, The --ppewa Shoe Co. Z.- th,- i F--r- Th- 7 - r,-, II ;'n) . (Iomp.-iny [11 D, 1 .1 1, - I -,ct, L C I I -Lr e Company l.c-ripany (Divi.-1,o-. :�f R%r ) b r,- in Fic:.piL,il in the C;,-- of T:, P%r, ^'-ator Frod,,c+s, 'Inc. Cjrcm-caIs, Inc. �an.—= Electr?c Company "kir.rer Preci:,for Indiistries D C,j-q,,.ry (,f - School Retiremen- ,r, 't,:,el : r% fnrtirj-rig Company Tex-,,�:) 7n-. --rr- -n-tc,n Nlan,:factiiring Co. ea r, ry f-, Cc . t - ' I-- d I I I I t 1 ' L I , nC . -, r 'r ke Cor,[pany Yo-,ng Pubicam, Inc. GI-415643 161 REV 6-69 PRINTED IN U 5 A . TIJF TRAVELERS INSURANCE COMPANIES • GROUP DEPARTN,,ENT I Hi I ILL EMPLOYEE COMMUNICATIONS The ultimate value of a retirement program can effectivz-ly be rcaliced through the employee's understanding of the pension plan. e` An initial announcement letter can be prepared for distribution to employees at the outset of the plan. This letter would outline the purposes of the pension plan and describe some of the main provisions. Once the contract and pension plan are finalized, an attractive booklet will be developed to serve as a basic reference for the employees which will explain the main features of' the pension plan. Other special material and techniques with graphic emphasis will help communicate the value of the pension plan to the employees. Ultimately, the retiring employees are assured of prompt and efficient payment of pension benefits through the extensive nationwide claims service of The Travelers. As one of the largest multiple line insurance companies in the world, we have established over 300 claims offices staffed by more than 4,300 salaried personnel. It can be expected that a substantial percentage of pensioned employees will move to other parts of the country far from their previous job location. Through its unique electronic computer system, The Travelers can follow individuals wherever they may go to assure prompt payment of benefits. f . s[ R NNI P CONIPANIGS a GROUP r -46644 nnn %,wnp7 , F, , V_'u -. EMPLOYEE COMMUNICATIONS The ultimate value of a retirement program can effectivz-ly be rcaliced through the employee's understanding of the pension plan. e` An initial announcement letter can be prepared for distribution to employees at the outset of the plan. This letter would outline the purposes of the pension plan and describe some of the main provisions. Once the contract and pension plan are finalized, an attractive booklet will be developed to serve as a basic reference for the employees which will explain the main features of' the pension plan. Other special material and techniques with graphic emphasis will help communicate the value of the pension plan to the employees. Ultimately, the retiring employees are assured of prompt and efficient payment of pension benefits through the extensive nationwide claims service of The Travelers. As one of the largest multiple line insurance companies in the world, we have established over 300 claims offices staffed by more than 4,300 salaried personnel. It can be expected that a substantial percentage of pensioned employees will move to other parts of the country far from their previous job location. Through its unique electronic computer system, The Travelers can follow individuals wherever they may go to assure prompt payment of benefits. f . s[ R NNI P CONIPANIGS a GROUP r -46644 nnn %,wnp7 , F, , PARTIAL LIST OF PUBLIC ORGANIZATIONS WITH PENSION PLANS UNDERWRITTEN BY ^� THE TRAVELERS 1;orough of Ridgeway, Pennsylvania L'orough of Tyson, Pennsylvania Bristol Township, Pennsylvania City of Bradenton, Florida t;a.ty of Coalinga, California City of Fort Myers, Florada '1Ly oi' Urotori, Connecticut 'Ay of Kon, hang, Texts lity of Kount Dora, Florzdt Park, flouring Authority of La.ltimore City, Maryland Housing Authority of the City of Hartford, Connectirut huus�ng Authority of the City of New Britain, Connecticut Housing Authority of the City of New Haven, Connecticut Hou;j-ng Authority of the City of Sylacauga, Alabama ou ing hLtnorlty oi' tl:_ Town of Ea�-;t Hartford, Connecticut North Dakota State Employment Service Oklahoma Employees Security Commission Utah Employment Security Conm>.ission Town of Canton, North Carolina Township of Haverford, Pennsylvania Town of C,ilt.;ljury, Connecticut t T1 w11 ui' Uc:rnun, Coanec-Llcut ?'l t1. F!, E,RS INSURANCE (I)AMINIE'S 0 6R()11P ;I -46643 (103) REV 5 -70 PRINTED IN U.5.A. I OUTLINIT, OF PLAN - Effective date =ebru..ry 'L, 1972 ,Ai r, ib-il41 t., f,)r 'nr_11:>ion :rill oeconte eligible i:mnediately upon emnloynen . hoimil ! et: i e t %nt ')ate s t, or-it it ? F,' it e rent Date will be the later of a ;,P u0 or 10 years of :.ervi:- -z. ;vormal will receive, at his .normal etiremenL Date a rior3thly benefit equal Lo 1.2;' of his final 5 year avera -e earnings :multiplied by i;is nunner cl ;gears of credited service. Credited ,t'ervice Credite,! ..srv,ice is !t^ nx -it)er of years of continuous ser•rice from date of eTrl: -ent to :atc of rc',irenet,t. 1 ^rer'it.e ,or`•c_y ;arnz�r�n _'4veri­u ._unLniy ._aruin ­s .ire the earninzs avera ged over the 5 year ret-od iTneri -.r_ preceizn,; the ern:,Ioyee's date of retire - :lent. 1\ortp -0. ] orr c,_-- 'i nfnzity },e cz - l orm 9f '.tin,iity i s a 1J Year ',ertain and A", _r..u' ty. _iestin,, An e:: 1, ee shall oecome 25;, vest,.d upon completion of 5 years of Credi ted 'ervico r' th 15', ner year thereafter to a m.3 din= of 100 ; ;. i:t I Should _n employee oecome totally and permanently disaoled after completion of 10 y-_ars of service, ne will oe entitled to receive a monthly benefit equal to ais accrued oenefit under this Ilan at his date of clisablerm ent. Emcloyee Coutributions '.each employee w-a-11 contribute X of his averar*e monthly r -;ri in!•c. IH?: 4'RA' EL: RS VJti7:RANCC COMPANIES . (;R11C-1' ')Fp'IRTNiFNr v GI-46643 (8) REV G -67 PRINTED IN U 5 A rn N rtia M N �ci v v rq c nJ o r, Uy b a N v' v m � r~ H ,) N ro •1-i H c � v � n .,y v � � •rt � r,y { N U p G UJ H '�O J� -I m r✓I U) r. G i i'1 4y U +� N I U] In U U7 v ri c� F� ti U 'El 4- NJ -rA co U1 U O +� rI rn M N (D •. ; V �� O i V1 ?: m ro v r, 0 m rn Q. � v > a +� m v v •� I m N � p ,C S t to N N M J• u v w rl sy u Q r-4 , 1 m +1 ai C. s-; r vs eJ 4� N -. { au a o J; z. A N U � v v N f~ rn rn J N ,O rn r-J } R: oe r r C. C O r T L x r✓' w CG F Lx] x F v N o = 4 � ;� m ua r7 N of (, 7 t~ cp r••• � O co -:I P 47 se rs •- - { -{ U U O S. I. 'D $, rUl 19 J '7 U v~ >i� •�I { >'_. -4 ,--1 N NI f> 1 �I sl to u, r- 7 --+,D a rJ :} C: M CO 00 1 r-N r- v D J C- JD cm �i li N 0 O'q Q N cq NNN NN NNN N N t fly R� N r� v L 'r 0 a� O N �`- Ll ^ ^'l N [mil M - N N rJ ri y C J r-{ II L4 V I N QI .r. C� N N r N I) r'l N r-I 4 N N N C'i rr{ Ci, •j N E� h t,0 s rl T C) C) m o N v o ue ti 10 u� C; n7 ID UB 00 ti ¢ N rn -_-_I r+") rn .-:I --I Ln GI-46643 (8) REV G -67 PRINTED IN U 5 A rn N rtia M N �ci v v rq c nJ o r, Uy b a N v' v m � r~ H ,) N ro •1-i H c � v � n .,y v � � •rt � r,y { N U p G UJ H '�O J� -I m r✓I U) r. G i i'1 4y U +� N I U] In U U7 v ri c� F� ti U 'El 4- NJ -rA co U1 U O +� rI rn M N (D •. ; V �� O i V1 ?: m ro v r, 0 m rn Q. � v > a +� m v v •� I m N � p ,C S t to N N M J• u v w rl sy u Q r-4 , 1 m +1 ai C. s-; r vs eJ 4� N -. { au a o J; z. A N U � v v N f~ rn rn J N ,O rn r-J } R: oe r r C. C O r T L x r✓' w CG F Lx] x F v o = � ;� m ua r7 � � � h • U N C VJ r•i jy '� ,� a 47 se rs •- - { -{ U U O S. I. 'D $, rUl 19 J '7 U v~ >i� NI GI-46643 (8) REV G -67 PRINTED IN U 5 A rn N rtia M N �ci v v rq c nJ o r, Uy b a N v' v m � r~ H ,) N ro •1-i H c � v � n .,y v � � •rt � r,y { N U p G UJ H '�O J� -I m r✓I U) r. G i i'1 4y U +� N I U] In U U7 v ri c� F� ti U 'El 4- NJ -rA co U1 U O +� rI rn M N (D •. ; V �� O i V1 ?: m ro v r, 0 m rn Q. � v > a +� m v v •� I m N � p ,C S t to N N M J• u v w rl sy u Q r-4 , 1 m +1 ai C. s-; r vs eJ 4� N -. { au a o J; z. A N U � v v N f~ rn rn J N ,O rn r-J } R: oe r r C. C O r T L x r✓' w CG F Lx] x F PENSION PLAN COSTS Actual pension plan costs by their nature can only he finally deter- mined retrospectively - as in the long run these must work out to be the sum of pension benefits paid minus investment earnings credited plus expenses of admin_stration. Estimating pension plan costs or deposits in advance necessarily requires assumptions as to the future. For example, assumptions must be ma3e as to: O long range investment return, Orates of death and termination among covered employees, ® retirement age, ()future expense levels, O future earnings level (for plans basing benefits on earrings), and O Future annual contributions (for plans basing benefits on faxed contributions defined by union negotiated bargaining agreement). Obviously x different approach <,an be made is to each of these face or -s . Since ultirla.tely the very soundness of the funding of the pension plan will be premised on cost assumptions, we definitely suggest that they be appraised closely by the parties to the plan for reasonableness. 1RA %!;1 E'RS INI&K.0 ci, (;()MP 9NIES GI -46643 (10) REV 11 -67 PRINTED IN u 7 A /� "'F •``7'`.'y',' w��ss.e- a d° =.`V� _ _ �,v -�' w{,' -PSv + r��y . $ Yp,1•l `-, .� i. -.�Ai y. ���f a'dL _ � •�_ . _ _ J Xi �,�. Y, 1.. _ 4-. - _ .iww :.. L. r�i +3io3eadC..H.a� "•�SF�- �'.+.. -. _ u ✓.�.....m.....�a -� �� PENSION PLAN COSTS Actual pension plan costs by their nature can only he finally deter- mined retrospectively - as in the long run these must work out to be the sum of pension benefits paid minus investment earnings credited plus expenses of admin_stration. Estimating pension plan costs or deposits in advance necessarily requires assumptions as to the future. For example, assumptions must be ma3e as to: O long range investment return, Orates of death and termination among covered employees, ® retirement age, ()future expense levels, O future earnings level (for plans basing benefits on earrings), and O Future annual contributions (for plans basing benefits on faxed contributions defined by union negotiated bargaining agreement). Obviously x different approach <,an be made is to each of these face or -s . Since ultirla.tely the very soundness of the funding of the pension plan will be premised on cost assumptions, we definitely suggest that they be appraised closely by the parties to the plan for reasonableness. 1RA %!;1 E'RS INI&K.0 ci, (;()MP 9NIES GI -46643 (10) REV 11 -67 PRINTED IN u 7 A /� "'F •``7'`.'y',' w��ss.e- a d° =.`V� _ _ �,v -�' w{,' -PSv - ,�`,•� �a. .'� } � i ♦ ; -'�f - _ .iww :.. L. r�i +3io3eadC..H.a� "•�SF�- �'.+.. -. _ u ✓.�.....m.....�a -� �� PENSION PLAN COSTS Actual pension plan costs by their nature can only he finally deter- mined retrospectively - as in the long run these must work out to be the sum of pension benefits paid minus investment earnings credited plus expenses of admin_stration. Estimating pension plan costs or deposits in advance necessarily requires assumptions as to the future. For example, assumptions must be ma3e as to: O long range investment return, Orates of death and termination among covered employees, ® retirement age, ()future expense levels, O future earnings level (for plans basing benefits on earrings), and O Future annual contributions (for plans basing benefits on faxed contributions defined by union negotiated bargaining agreement). Obviously x different approach <,an be made is to each of these face or -s . Since ultirla.tely the very soundness of the funding of the pension plan will be premised on cost assumptions, we definitely suggest that they be appraised closely by the parties to the plan for reasonableness. 1RA %!;1 E'RS INI&K.0 ci, (;()MP 9NIES GI -46643 (10) REV 11 -67 PRINTED IN u 7 A /� t DETAIL ON COST ASSUMPTIONS • Interest.. 5V- • Contingencies and Expenses: 5'1'4� • Mortality: GA 1975 • Disability: 100`,'4 1952 Inter - Company St_ Jy • Retirement Date: Normal Retire,nent 0ste • Cost Method: Ultimate Normal Cost v • Turnover: Annual rate for employees included in estimates: .;Caie B Age _ hoe Aj�e ;tale Female % r'emale o Mc le resale o 15-19 20 -2 1� 4 7- 9 75=T9 7-- 177 ''_ 20 -24 25 -29 10 35 -39 40-44 4 50 -59 `15 -64 1 25 -29 30 -34 7 40 -44 45-49 3 60 & 6; .sz 0 0-rer aver • Salary Scale: Male 4ges Salary 3c-tle 3 Female r1,Jes alarr kale (11 20 -'VG 3° 20 -34 2 -1/2 0 35 -39 3",,' 35 -39 2 -112- 40 -44 "-3/4, 4) -1,4 h5 -119 ' -1 /2l 45 -49 2" 53 -54 2i 50 -54 1 -112% 55 -59 1 -1/2.0 55 -59 1', 4 60 Cc n „r 0 60 & Over 0 CHNIPAN1ES • CROUP r)CVAR'FN!EN r INITIAL C-09T P;ST -MAT ;S - OZI?A'L ^,')$T 5,510 POLY 'E L TO PAL E °nployee Payment $ 3,562 $ 8,158 $11,720 Emnln;,rer „avmAnt Totn1 7,779 17,756 Pension < <enefit 6,49h 15,168 21,662 festin- Cost 16 - 16 Total - 2mrloyer Payment 6,510 15,168 21,678 'T,TFTMD�D ..: 1:i COST 23,077 47,0116 70,123 DJPrSIT Minimum "or rax Purpnses Normal 'most 5,510 15,168 21,578 Pay-ent Towar3 `.'nfunded 1,269 2,583 3,3;7 yrior -' =r' ] .P, Cost Totn1 7,779 17,756 25,515 PIT-nent if r'nfunded -rior Service "ost ?mortize9 over 30 3ars Normal Cost 6,510 15,16,, 21,678 Fa yment roWard Lnf ,-:-ided Prior "ervice ''ost 1,5'15 3,057 4,572 Tot:- 9,015 13,?35 26,250 Maximum :,ir 'Pax P,,rposes Normal Cnst 6,510 14,168 21,673 Payment Toward .Jnfanded Prior .service Cost 2,308 4,704 7,012 Total 3,818 19,872 28,690 Number of loyees included aoove: In adell -Jon to the above there will be a first year manly contract char ;.e of X100 to co,er the cost of converting to a Deposit Administration. '1 I(f' iH 1E'i,F.F:FtS INIATRANCC C(IMPANIF.S • (;ROUP DEPARTMENT 1 rr Cc' C r-1 F V: rr. ti r_ rti r. r� rn f =1 y� c ,_a i.i F �-7 1-1 fYl 7; I 64 FBI rhl 7 H rk r�? a Ln M w +) CJ G r7 r1 ;7 T, -.-1 f y c.' 7 Ica .v u\ o t� 14 - O r+ a, {•} J M +j r\ r,. rc� C Q -M r to ct � f• R' C: a, r� L C 1101 C, O U G r` rn I 0 ri O E-+ m_ 6; L f' C: a` ;3 a7 U ri r-1 P. r•*l M I -co co 0 !rAm a) C` -- < D M rl C9 r'r rrs C• � co O` !rsS) 7J M if\ rl w w r r"1 !f\ r'1 4 a -j � ,- � M r s 14 Lt\ I- C7, �O ,T t„ r-f U m L t, n7 r-1 N rrs _i 1, \,t) ^ -•O m C C) t r c? G` lT (P D` 6` o' (^ O C, r-1 —4 .- r-1 r� U) C G 41 -s; 3 m t. C4 • Ci o to •r1 s: i ttl 'n a> a7 +� •'., r ri © C •c3 Q7 a7 a;6 a) U a) O i a7 m a. m m C, 4� ©mT4 t4 c7 W o yr U a) co 4-) C: y maa Q C C a m t . , a,, f. 41 T. : v 0.0 , a c• rl F z w E- F /7 N .-1 of u\ co �O t� 7'o 'o rr\ ,YJ rn Ln,!T UN M r1 nJ + ry (Ii O VVY-) Ul C) t,1�0 O Q• h O* .ws ice —_f U M u, OD f<} C7, �O ,T t„ r-f U m L t, n7 r-1 N rrs _i 1, \,t) ^ -•O m C C) t r c? G` lT (P D` 6` o' (^ O C, r-1 —4 .- r-1 r� U) C G 41 -s; 3 m t. C4 • Ci o to •r1 s: i ttl 'n a> a7 +� •'., r ri © C •c3 Q7 a7 a;6 a) U a) O i a7 m a. m m C, 4� ©mT4 t4 c7 W o yr U a) co 4-) C: y maa Q C C a m t . , a,, f. 41 T. : v 0.0 , a c• rl F z w E- F /7 TRAVELERS DEPOSIT ADMINISTRATION FUNDING OPERATION Each year an estimate is made of the Normal or Current Service Cost for that year, shown on the chart as (1), and of the Unfunded Prior Service Cost (2), representing the expected plan liabilities in excess of those covered by future payments towards "formal Cost. A payment ._s made each year to The Travelers of the estimated Normal Cost plus an ijanunt to reduce tv.e '- :rf.nded Prior Service Cost. This payment, a su illy 1 caned the Purcha:.o Payment, goes into the Purch'I e Payment Furd Account (5), which represents the amount held by The Trevelers for the future purchase of benefits. From this Purchase Payment Fund kccount are withdrawn the premiwns to purchase the annuity benefits for retiring e ^ployees M. Also withdrawn from the account is the amount required to pay benefits to disabled employees if such benefits are provided by the pension p1,n (6). The annuity prcPLiun :, go into the =etircd Life Fund Account (8), from which account the annuities are paid to retired employees as shown by (9) on the chart. The dollars represented by the Purchase Payment and Retired Life Fund Accounts are invested as part of the assets of The Travelers (3), and by reason of such invest- ment, interest at a definite guaranteed rate is credited to those accounts (Q. ','revelers :'ei o_-_ f ;.dm nL tr_t _on i'ortract includes a guarantee of principal, a r ._r -Lntee of -i ;n'* Ltrl m r,.*o of ---- •_re °t, and a guarantee of price for the p-_rch.LSe oaf .inn Lt i, :_ +rver . r_ t :r •v the:,e Euarantees, the plain provides that if the ce-:t ned crpc :r,en: of act : Ll nterest earn -nEs, actual el.penses, and act,,al mortality de-.elop an Lecem :l,tLon citcr ---in the �Lmo'mt considered nece,sar^r to . ^,atisfy- the 1- :Lll,t_a5 •,nd_-r tht Pl• n, tliu r--Pes3 ;s available as an exper -ence credit to he y .ceded to the 1'•.11"_f a..c i . mcnL I --:- : lcconnt . Th's chart is llmcted to the pl:_ In its simplest form and would be appropriately tr' -1 feel P..r . I1 r, w) lI I I- l •t• fit -• .- d Ile , thin f.. I' r,t I ,d • r i 17'li am- plo--ees or 2f there -Lr•e employee contribution:; with resultir:b refunds at, death or terrunation of employment. y_ :UfiFU'�OF,• INVESTMENT: _ kl NORMAL COST R'�Eft,11CF -n,,,_ AS PART OF ASSETS- . �t • ? :�.OST_ OF THE TRAVELERS LIFE DEPT - 4 INTEREST EMPLOYER I III PAYMENT _ �6 PURCHF.'! PAY, MEN - 6 DISABILITY 7 ANNUITY PAYMENTS I I PREMIUMS I 9 ANNUtEY , ( PAYMENTS I T11 ` ' V 1:LE.K i iNrSUR A Nit'Ti COMPAN'I S s GROUP DrPARVOENT U AN � T# -•� w � `�'�' :�:zt ��"��'��' - ;�"vy �,��s �.° ,� . 4 ���a_..�:-t r °.�E �.::.. ;� t F'r'',; L-�, ; ,.y..= -'� :�`xt��:�;.:. .; ,n.«�' . � sr.@:s -� , m- �?`;�,� *'� ' ,u.�t,:'� .� e �,�'.. �� ` ,� ;4 ,45 _ ' .4 fir` +� r. �� "r 1�• �,>. �e.�. _' __ ' + `� •, �$ i " "t rr_ 1i Y T}LS ® Principal The principal of all fixed income deposits is guaranteed against investment depreciatioi 0 Interest Interest will be credited to the Purchase Payment Fund at the rate of 8% during the first year and thereafter until further notice. In the event of change after the first year interest will be credited to the Purchase Payment Fund with respect to the deposits received in the first 5 years at not less than 7% for the 2nd and 3rd year, 6% for the 4th and 5th -.ear, 5- for the 6th through the 10th year, and 4% thereafter. ® Premi-t -m Rates The S -r_gle prennums to purchase an irnc ediate 1 , Year Certain and Life annuity of $1.00 a month at age 65 during the first year and thereafter until further notice are: Dale Female $126.59 $138.45 If the rate chcdulc is changed, the ,:Cj um single premiums to purchase an immediate 10 Year Cert•iin -nd Life �rnmFitI, of Ti ,nn q m•-,nth -,tt with rc;spucL Lo deposits received in the first 5 years are: M .le r en-Lle For purchases in the 2nd and 3rd ye- r 0,132.92 $145.37 For purchases in the 4th and 5th year 136.72 149.53 For -DurcnasPS in The 6th through IcIth ,he=ir 139.25 152.30 After the l "th ycar 151.91 166.14 NOTE: The 13st increase in The TrtvclErs purch,�❑e 2'ito, wl._ :n 1q!il, .- thouc.h there have been 9 general decreases since then. The aY.rre r.rtc : preui:nie th tt evide T nce f good healLh will } c rcuu _re _` r optional forms of annuity i,nless elected 2 ,years prior to retirement or 90 dayo from the effective dtte of the contract, if later. A Retiremanl nlom Trill, c,L y"!4r,QnLeC'd that his monthly incorric will Lu paid as long as lie 1 i v . nd : iciv r lc.-;.; t h-(n 1."0 m xiths . THE TRAVELERS INSURANCE COMPANIES • GROUP DEPARTMENT GI-46643 (108) REV 6-7t PRINTED IN u 5 4 �2 V JI C hrl•r,l'.' P, L91ID.,T TY.'_' CONTRACT The annual orri r -ict char_— I,, 'IA To11a r: : Non- contributory plan: •$1000 less 2% of deposits in excess of $20,000 ContriLr.tory plan: $1200 less 2% of deposits in excess of $20,000 i, i When a pre--r(-I -' -m-nL ,ir,J,b r,r .;cver<Lnc•r, },enelit 1s payaL,h' dlrcrtl�' from the 11'r- chase Paym n i.nt P ,i, there 1., t r}, -,rge of ;", of such benc£i_t. The Travelers Pen :ion Contract-, ire c.�erience rated and it is tnder•1hls experience rating program 'hat a pen:iion plan co <;t in the long run 1•nrf.s Grit to be the sum of actual benef.itr• pal d and , hn-inl - tr•at1,-tn t —pen.-,es rreirnz :, intvrc._L cjrnint., crcdited- Undor it- i rp,r. r, , nrc' r., l r, :,, Fjru<<i tin, Thu Tr,tvc•ler , keep.; Lr• t ]- Of pa3 d i €tan _t,m •, disbursements and rntrrp:et -,red ii,,, devel.nped on each cane. Thc: -,r fi; r: r, 1r,: re- viewed on a cunlulaLtve every year end the net accumilatior, is compared with the reserves considcrud ncc awry to meet future liabilities, under the c•ortr -,c•t. Any excess of the n.•L .1r.,rum,7o €Lion ov.r• the nece :soar re ez.,n,,, F, t•,m :. aviiLiijlu aj an experience cred :t.. The Traveler;, -,,,,a its lnve;imi nt Year methrld �n dctt rr :un:n r ,lit r€.;t• cr, d is under oxperic;ncu xrtl,Ir,_ of Cro1 1p -ndcr Lhl:, mo'hod, Intcro. ;t earning-, from its general portfolio are rtsr,igr.ed to invested funds held a:'. re�-erres tinder Group Annuity ccnt,rarts. In the first C",I"nd -tr ye-tr Of a contract the e, -cee�s of prem I -ua :, :rd lnve. :tment Lncome over dt.,t .! „entcut,, .>>trt, t.. = xnnulty p�iyment., and e%rpcn :,r—,, is tnve,.ted as a part of th «t •yctr'❑ por•ffr,11,� ni' Inv -, „tmcnt< Yc,rr i.,;:ct;:. Tit „IJ•, ,tn,nl, yc ,r•:; Lhtj Proceeds frnnl n> tllr t;; arid r,a10 of prior year's assets plus; the u-_ce of clrrrcnt year prenu.um anti irtv,,stm,�nt li,c orit over disbur3emcnL-, are nvc �,ted as, p =irt of the ,-u__�nt �-��_''_• t_rtfolio. lNStIRA 4CF,, COMPANIES • GROUP DEPAlt'i'tifEM' .1.46643 (141 REV. 5 -71 PRINTED IN U.S.A. t r 1 M; r J 3 9 INVESTMENT RETURN Long range investment return under ex- perience rating is •x most important fi- nancial consid0rat.i.on sJnc,o a differ - ii once of only 1/. ,,T' intcrc.:',,, crc•d Lt ed to pen,, Lon fund•, can result in an eventual .increase or decrease of 10� :' : n the, eo�7t of -a pension plan. _7 4 � The general investment objective of The Travelers is to obtain as favorable a return as possible from investments of high quality. In 1970 The Travelers net income from .investments totaled $289,735,00(1, or "1o,959,000 more than in 1969. Thin wls the highest, investment income in the history of the company. To obtain a high return, The Tr=ivelers engages in a broad program embracing most fields of long term investment:, including rommerc l,,il, home -inLl f irm r "ortr. ges and direct placement loano to businesses. The investment operr-_on of The Travelers is continent wide with significant invest- ments in virtLall -.- every sector of the economy. The Tr%:velers is able to explore investment opport:nities regardless of location arl 1„ .,in ccmptutcr model,, to project ca:;h flog:, which allow; the max'i.- mum commitment tc _ nvestments with the min Lna,m of -Ldle funds. As a matter of general Investment prac- tice, The Tr•Lvcl.E,rs concentrates in fixed income. securities where the most -attractive retux'n appears available . At one time, for example, concentration may be on commerr-Lal mortgages with par - tic.ilar emphasis on selected regions of the country based on information de- veloped through our local mortgage loan facilities throughout the United States. At another time, emphao).s may be on "direct placement" loans, such as loans in connection with airline operation or oil production. Obviously, flexibility to determine the hcst cori;hination of in- vestments in the light of current condi- tions and to modify the inve ^tmcnt portfolios as condition, change is of utmost importance In taking advantage of investment oppertl.nities. 1010h- THE T?t4VHERS INSURANCE COMPANIES • GROUP DEPARTMENT ki 1.46643 (16) REV 42J1 PRINTED IN U 5 A ;.3 L 4 \ ) INVESTMENT HIGHLIGHTS FROM 1370 ANNUAL REPORT OF THE TRAVELERS Growth in Assets The combined assets of The Travelers Corporation and its Domestic and Canadian Insurance subsidiaries reported at the end of 1970 were $6,840,110,000. This is an increase of $414,950,000 on a pro forma basis over the previous -,ear. At the same tyme, assets in the Separate Equity Pension Accovnts in the insurance company had increased to lQ2,n56,000. Followin,* th- policy of repent years, funds available for :nve tment by The Travelers [naurtnce Company were placed principally in industrial securities and mortgage mans acgnLred in private placement. Near17 all funds of The Travelers are invested on a forward commitment basis, with agreements on the amount of the loin and the intErest to be charged arrived at as much as two years or more ;n advance of the time the funds are taken. As a result, many loans placed in 1970 were contracted for during the previous two years. By the samw proc,0re, forward commitments were made during 1 ?70 at high levels of anterest. Tnvestment riels -, The Trnvr l r rr Tn.;1u.•ynrn a;oTtp env irade nc•w investment , tot al ;nr ",770, 17 ,000 d"rinrl 1' +','e a' an avvinrc 7 +e id of R.1'TN; a significant fncrea .e over the 7.41,E rate o mined on new investments of .245,803,000 in 191;9. Included in I h1ac f i po'n WW O 11V1fVWV 10 67M and corporate bond purcln c w rcturulni, an ive rago r et+. W 8.11% aid 0.28% re„ pect.ively. Both of tress: MQMS arV up significantly from the 19c? rates. As mentioned previously, bond and mortgage commitment^ which are outstanding for closing, in the future, plat* an Import. ant ' �, ' � .� „•. I If ,,,�;,'. DI„�•Il,e(1' +inuNlfnie•til �i 1! �i,l, I•. 'li 'I, �',` %•`i are calling for an average return of 8.89% while bond cori7-.itnaents totaling $56,318,000 call for an average rate of 9.192. This increase in yields reflects the increase in inve;ta:,le assets and the fact that interest rates, while lower than the record highs of 1970, were, at year end, still well above the average rates of recent years. It also continues to reflect a change which has been taking place in The Travelers investment program; a shift towards a more agcressive posture in investments, which is producing higher current .income today and is expected to increase investment income in the future. The Traveler; also roccaniscs its social responsibilities •end, in 1;70, Committed more than 117.E million to jar- jest,, vrhich -ire sponsored '1•, the Life In tivance industry Urban investment Pool and % )med at renewing urban hour ine,, building ]ding schools and croui.ing cmplcyr.ettt . THE TRAVELERS INSURANCE COMPANIES • GROUP DEPARTMENT 0 GI -46643 1171 REV. 4 -71 PRINTED IN U.S.A. ­W _. "K V MOM . ,_ wWsaO t` t f 1 3 c e' --5 ..r •�- z'{�., „T; `,� 4... � , . .,,, _'�y ti iyi7-n •£- � ^y.�'• '.5,:" t� .?� :g fi +?�. r�fc �w ._ •0... :1 r _z ,.�,- _ - -: _4 �� :: --^v _ ?tw��• ° "r'-., `* ; °y,�°$'.i:, I �sS` < °d r'u .. 'mot. 's• {!"'�' s " ! 'wyY <P._ _ 4"`F }tr�'.0 _ - _ ; .s '�'�$���,f $s �4k� ". xYFy a�'�lF " :�y" °}��'� '1����'"..,Y•` :.��'w�l _ .i[..�'."',� i3 `. =.w�i "tg- _,t, >•za„ ., .; .,rT >`sn, ', ±$� ,- " 0.•T .M1- .�' "�,, J4 .: }. - _ ,r`�.�i.�„ -, n` rN`•!,�,+�t'Y ,, J ,i;:+u.sv'. :.,� e, :�, :i jy, ,, s' '� 5 �'..`� " %v Y' �y�. `!' � y - .:y,Sm. -; _ ' . :T "�. ;��t `a. -r�. 'k. 'Y }si ? -- ;C�.�F =.,. �r •, 5: -„s' #{ r'. .E.,,. ��.,:.�. �; ,'�?'_ .,'y;: - .:�:3�- ',._ ' 1 :`M'; i 'Vy�ri4.4'S ;_ ,�.:; F I`,:e+T•, ;y,+, � :., : i , w- i`a�:;,�ji :" � •, t�;' •4a r. ��5i ...L4, F'ij �r -< -�j'� � _ -^w! ._? '3 -- - 'vu�:�::+.. . -s :F �r a... 3 �d' 1.:., :�- �.:�•°.aa'� ... ._:.. - _ .w:...,,,ia5. :" r- }= t'_.w, y +r DISTRIBUTION OF ASSETS THE T1?AVI',Ll,'I;) C,r 11i'JWtl'Ii,IJ AMD J1'S LK;:5,MC APD CAfMlll4lJ ]f! UPiAflf'F, S`_'PBJll_tAHiI,9 T:. " r'i'd i €tS T'.-Y RAM—F COMPANIES )%P :RTM' ,N f GI 46643 (18) REV. 4 -71 PRINTED IN U.S.A. •� (I n ` 11ous >n'ie) I)-LL f rabut.J on Uec . 31, ir' >( %ems . 31 , 1969 Dec. 31, 1970 1 ^00 1969 127-0 TJn:Lted State, Government, 1�ord3 750.b5o 355,325 346,`73 lc. 5.5`' 5.1,T� ether Pull i r fonds. . . . . . S1 '+43,6'1 954, _ L _ 14.7 14.0 fuilic lt,l,t' i onds. . . . . . 2,U2_ "1 7C11,224 7 6 7 1 7--1 i 1,-.3 10.1a 11,2 fiailroad Fond L 42'', Inciu tr L•zl n1i 14icc. Fond, 35G,3t1" 3,13', 1,19 ?12,11 1`.i 17.5 Preferred Stocl:s « , ;C 73,033 77,4Z7 1 .0 1.2 1.1 J Common Stocks 102,3 'IC 5,3,C17G 535,7?6 5 • 3.7 7.E 25..., ..:6.8 25.6 Real Estate. . . 43,^34 1n5,427 127,x_1, 1.2 1.6 1.9 Policy Loan; . . 93,3 ",i, 17(",,533 2(-13,')73 ._.), 3.0 Crash . . . . . . '2' , 1,3 121,056 / , ,,, t/1 2 .4 1.0 1.1 Tnw- stmont Tncomc Due and Accrued 3",lE_ I",156 /:',C Premiums Due and Deferred and All other A :33et3 197,517 39'1,(),4 4'._, 71 5.1 (,.2 7.1 Separate Equity Pension Accounts - 15(),5 ()3 192,55(, - 2.' 2 TOTAL $3,8)'2,4 "6 - J6,425,160 1;6,80,110 T:. " r'i'd i €tS T'.-Y RAM—F COMPANIES )%P :RTM' ,N f GI 46643 (18) REV. 4 -71 PRINTED IN U.S.A. •� POOLED SEPARATE ACCOUNT "A" Operat._or. Under the operation of the contract the contractholder would de- term_,,e wliat portion, if any, of each purchase payment is to be allocated to the Separate Account. (mounts not in tife Separate j Account would be held under the Purchase Payment I­und of the !I Deposit Administration Contract attracting guarantees as to interest return and premium rates. A contractholder upon 15 c;is_ness days' notice prior to a valuation date may direct thdt funds from the Separate Account be transferred to the Purchase T,,%^ :e: t Fund. I - II ,I. V., dial "l` I , I .dgfl €V I3 ',1 ,,[, ImA In oh, - II 1011 ; , p.kt_nF; contracts share Investment results. In the raethod It uses to reflect e. -tent of participation and investment gains to partici- patir.l contracts th ( s ", c2p,ir-if e Account operates ,omowhat as r,, mu t.uul fund. h deposit under a part.iclpating contract to Fooled ;>epar•,rt.e Account "A" in effect purch :tjos a number of "units of participation" and the "price" of each unit reflects the current market value of securities held under the account. Normally, this Separate Account would be valued as of the last business day of each month and admissions or withdrawals would occur as of that date. Also, on each valuation date additional units of participation are distributed to each part icipatirig contract reflecting net investriwnt e:arninGs for that month. At the present time all investments are made in coimgon stocks which are selected from an approved list reviewed and authorized for Investment by the finance Committee of The Travelers Hoard of IJir-_ctors. Th_rs list is revised as necessary by action of thaL I:Vrmrilttee, 1 Y J r f 31.4,( 43 (306) REV 11-67 PRINTS" IN U 5 A lr�d'�. V- "li•- !Yp'�Y'.e "V�j��S�°i���bEn %'-Y -�91 •!n !�'f itl.'^'F ..s. �'A "q" " _- ` s1• '� *, {�!g % -sir .t"`��� ,.�1'r - -_ 3. y,, ^ "9� - -' W'�. €`: _ '�` N'' y -' .it _ -t _ � .� ✓Y 'aty4 C ".��.ft''�1 `J ".WjO�,_ ..: „¢';, 4'� �.1A± -_ "4•.�2• cj ,• _ _ .•t.� r4i� -_ ;,+:` - jfz.... .� _'� �!_�.! rY gs rty d _Ki� - :c` , p2” u " ' - _ - 't : °`* .. F. -Jt, . ;f... _ POOLED SEPARATE ACCOUNT "A" Operat._or. Under the operation of the contract the contractholder would de- term_,,e wliat portion, if any, of each purchase payment is to be allocated to the Separate Account. (mounts not in tife Separate j Account would be held under the Purchase Payment I­und of the !I Deposit Administration Contract attracting guarantees as to interest return and premium rates. A contractholder upon 15 c;is_ness days' notice prior to a valuation date may direct thdt funds from the Separate Account be transferred to the Purchase T,,%^ :e: t Fund. I - II ,I. V., dial "l` I , I .dgfl €V I3 ',1 ,,[, ImA In oh, - II 1011 ; , p.kt_nF; contracts share Investment results. In the raethod It uses to reflect e. -tent of participation and investment gains to partici- patir.l contracts th ( s ", c2p,ir-if e Account operates ,omowhat as r,, mu t.uul fund. h deposit under a part.iclpating contract to Fooled ;>epar•,rt.e Account "A" in effect purch :tjos a number of "units of participation" and the "price" of each unit reflects the current market value of securities held under the account. Normally, this Separate Account would be valued as of the last business day of each month and admissions or withdrawals would occur as of that date. Also, on each valuation date additional units of participation are distributed to each part icipatirig contract reflecting net investriwnt e:arninGs for that month. At the present time all investments are made in coimgon stocks which are selected from an approved list reviewed and authorized for Investment by the finance Committee of The Travelers Hoard of IJir-_ctors. Th_rs list is revised as necessary by action of thaL I:Vrmrilttee, 1 Y J r f 31.4,( 43 (306) REV 11-67 PRINTS" IN U 5 A Objec' ",-re Th' _ rt,vestr,ent obje,t,ve of Separate Account A is to ma:clmrze the pr oc?b =Ltd of obtainint a return hjl'hc•r th ,n J thai, -.v-,;I, f'r�, -n fx ed 3-nPome securit4es. Therefore, the n e ;lments rrc ;eLccted pru:.ar.t_ly- from equit2e13 of leadtrq; US colporatrons. "election is on the basis of pot.er_t131 for a },ove •iv�r•age long term growth in c'•irninf-s per !Tit . Ir',11111.1 ll�rt . - Ill 1,e11 �I�i. 1r11iv• -,f ln.:fll .I Ali "i'I• -1 il i r, 1.i1e -,l to pruvlde a return at least one -third higher than that available from taxed income investments. ChargEs The or -ly direct charge against the assets of the account is the Investment Management Fee determined in accordance w th the fol- lowinp` schedule, subject to a rrunimum of til:' 1 ,y-e i s V_lue of Fund Arrual t F' e E' j rci 11,5oo, O00 l /4w AIe t 5CO,00rj l/5 4,OC1( 000 1 /lu L_-ecs over 5,000,000 1/2(.) Broker's co7LTassio;_a and other expenses in conneuticn w_th the purchase or sale of securities are covered in the net waount paid or rea.ived for the _eparate Account 2.11 such a transaction. y-- - t GI -46643 II071 REV 11 1.7 l *IN 111, N U 5 w `l4 ' , • 1 a= r any- °" f t �' � _' �,_ .r._ '.. — '�.. k.' -' - -� , �� � � Objec' ",-re Th' _ rt,vestr,ent obje,t,ve of Separate Account A is to ma:clmrze the pr oc?b =Ltd of obtainint a return hjl'hc•r th ,n J thai, -.v-,;I, f'r�, -n fx ed 3-nPome securit4es. Therefore, the n e ;lments rrc ;eLccted pru:.ar.t_ly- from equit2e13 of leadtrq; US colporatrons. "election is on the basis of pot.er_t131 for a },ove •iv�r•age long term growth in c'•irninf-s per !Tit . Ir',11111.1 ll�rt . - Ill 1,e11 �I�i. 1r11iv• -,f ln.:fll .I Ali "i'I• -1 il i r, 1.i1e -,l to pruvlde a return at least one -third higher than that available from taxed income investments. ChargEs The or -ly direct charge against the assets of the account is the Investment Management Fee determined in accordance w th the fol- lowinp` schedule, subject to a rrunimum of til:' 1 ,y-e i s V_lue of Fund Arrual t F' e E' j rci 11,5oo, O00 l /4w AIe t 5CO,00rj l/5 4,OC1( 000 1 /lu L_-ecs over 5,000,000 1/2(.) Broker's co7LTassio;_a and other expenses in conneuticn w_th the purchase or sale of securities are covered in the net waount paid or rea.ived for the _eparate Account 2.11 such a transaction. y-- - t GI -46643 II071 REV 11 1.7 l *IN 111, N U 5 w