Agenda Item: 14(B)(i)
Prepared By: Casey Lucius, City Manager
Business: Ordinance – First Reading
Department: Executive
Subject:
Title
Ordinance - First Reading - Amending Chapter 32 “Law Enforcement”, Article II “Police Officers’ Pension Plan” by Amending Section 32-35 “Contributions” to Provide for Fully Funding Over Ten Years; By Amending Section 32-36 “Board Of Trustees” to Modify Eligibility Requirement For Council Appointed Trustee.” - Casey Lucius, Ph.D., City Manager
Body
BACKGROUND:
The City maintains a defined benefit pension plan for its police officers, which is known as the City of Marco Island Police Officers’ Pension Plan (the “Plan”), and which is codified in Chapter 32 of the City’s Code of Ordinances. The Plan is funded using a combination of contributions from the members, the state and the City. The City, using these funds, is obligated to ensure that the Plan has zero unfunded actuarial accrued liability, as calculated by the Plan’s actuary (i.e., “fully funded”). The Code is being amended to require the City to fully fund the Plan over a ten (10) year period.
The second change pertains to the Plan’s Board of Trustees. The Plan is administered by a five (5) member Board of Trustees, two of whom are appointed by the City Council. Presently, the only requirement for the two appointed trustees is that they are residents of the city and that one be the City Clerk. The Code is being amended to require that at least one of them be an employee with relevant financial, actuarial or risk management expertise.
This Ordinance amends the Code to effectuate the various proposed changes to the Plan and has been reviewed by the City Attorney and forwarded to the Plan’s general counsel.
FUNDING SOURCE / FISCAL IMPACT: There is no increase to the pension cost with these changes.
PUBLIC NOTICE REQUIREMENTS: F.S. 166.041 (3)(a). Ordinance read by title on at least 2 separate days and shall be noticed in a newspaper of g...
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