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Agenda Item: 14(B)1 |
Prepared By: Joan Taylor, City Clerk |
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Business: Ordinance - First Reading |
Department: Executive |
Subject:
Title
Ordinance - First Reading - Amending Chapter 32 “Law Enforcement”, Article II “Police Officers’ Pension Plan” in Accordance with Secure Act 2.0, Increased Required Minimum Distribution Age for Retirement Accounts - Joan Taylor, City Clerk
Body
BACKGROUND:
In 2022, the Biden Administration signed the Securing a Strong Retirement Act of 2022 (SECURE 2.0 Act) as part of the Consolidated Appropriations Act of 2023. The SECURE 2.0 Act introduces several changes to the Internal Revenue Code that affect qualified retirement plans, which include the City of Marco Island Police Pension Plan (the Pension Plan). This amendment complies with the mandates in the SECURE 2.0 Act by increasing the applicable age required for minimum distribution requirements. To ensure conformity with the SECURE 2.0 Act, the proposed ordinance amendment has been prepared.
The amendment ensures conformity with federal regulations.
FUNDING SOURCE / FISCAL IMPACT: The City of Marco Island's general fund is the source of funding for the pension plans and the associated administrative costs.
An actuarial impact statement was issued by the Plan' s actuary on May 29, 2025, addressing the financial impact of the amendment on the Pension Plan. It was determined that the adoption of the changes will have “no impact.”
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 general circulation at least 10 days prior to the second reading.
NOTICE APPEARANCE DATE(S): N / A
RECOMMENDATION: Adopt ordinance 25-05 on first reading.
POTENTIAL MOTION: "I move to adopt on first reading Ordinance 25-05.”